- The PM Vidyalaxmi Scheme is a new Central Sector scheme that seeks to provide financial support to meritorious students pursuing higher studies.
- Eligibility: Students enrolled in recognized Quality Higher Educational Institutions (QHEIs) in India are eligible covering 860 qualifying QHEIs.
- No Guarantor or Collateral Required: The scheme offers collateral-free loans, making it accessible to a wider range of students. Loan amounts up to Rs.7.5 lakhs will be provided a 75% credit guarantee by the Government of India.
- Interest Subsidy: The government provides interest subsidies for specific categories of students, including those from low-income families. 3% interest subvention for loans up to Rs.10 lakhs during the moratorium period for eligible students.
- The loan can be used to cover tuition fees, hostel fees, and other educational expenses.
- The loan repayment period is typically 5-15 years, depending on the course duration and loan amount.
- It will be complementary to the Pradhan Mantri Uchchatar Shiksha Protsahan (PM-USP) Scheme.
| Pradhan Mantri Uchchatar Shiksha Protsahan (PMUSP) Scheme To provide financial assistance to meritorious students from poor families while pursuing higher studies. Components: Central Sector Interest Subsidy (CSIS) and Credit Guarantee Fund Scheme for Education Loans (CGFSEL). Eligibility: Students with annual family income up to ₹ 4.5 lakhs and pursuing technical/ professional courses from approved institutions get full interest subvention during the moratorium period for education loans up to ₹ 10 lakhs. |
Dig Deeper: Read about National Education Policy, 2020
