The Union Cabinet has officially endorsed the PM-Vidyalaxmi initiative, set to allocate ₹3,600 crore aimed at assisting deserving students in overcoming financial barriers in their pursuit of quality higher education. This program guarantees loans without collateral from banks for those admitted to India’s top 860 Quality Higher Education Institutions (QHEIs) as ranked by NIRF.
The recent approval by the Union Cabinet for the PM-Vidyalaxmi scheme marks a significant step towards enhancing the educational landscape in India. This initiative aims to provide financial assistance to talented students, ensuring that financial limitations do not hinder their access to quality higher education. Union Minister Ashwini Vaishnaw emphasized the importance of this scheme in empowering the youth of India.
A substantial budget of ₹3,600 crore has been sanctioned for this scheme. The funding will facilitate education loans for students who gain admission to the top 860 Quality Higher Education Institutions (QHEIs) identified based on the National Institutional Ranking Framework (NIRF). This initiative is expected to benefit over 22 lakh students annually, providing them with opportunities to excel in their academic pursuits without the burden of hefty fees.
Under the PM-Vidyalaxmi scheme, students can avail unsecured loans of up to ₹7.5 lakhs, with a credit guarantee of 75% on the outstanding defaults. This financial support aims to ease the process for students in obtaining necessary funds for their education. Moreover, students from families earning an annual income of up to ₹8 lakhs, who do not qualify for other government scholarships, will receive a 3% interest subvention on loans of up to ₹10 lakhs during the moratorium period. This component is designed to assist one lakh students each year, particularly those enrolled in technical and professional courses.
The Department of Higher Education will introduce a unified online portal named ‘PM-Vidyalaxmi’. This platform is intended to simplify the application process for students seeking education loans and interest subventions. Banks and financial institutions will utilize this portal to process applications efficiently. Additionally, payments for interest subventions will be facilitated through e-vouchers and Central Bank Digital Currency (CBDC) wallets, reflecting a modern approach to managing financial transactions.
Union Education Minister Dharmendra Pradhan highlighted the scheme’s potential to empower millions of students from underprivileged backgrounds. By promoting universal access to modern higher education, the PM-Vidyalaxmi scheme aligns with Prime Minister Modi’s commitment to fostering the talents of India’s youth. The removal of financial barriers associated with higher education is seen as a key factor in enabling students to realize their dreams and aspirations.
The PM-Vidyalaxmi scheme represents a transformative opportunity for students across India. By facilitating access to quality education through financial support, the initiative aims to create a more equitable educational environment for aspiring learners. As the list of eligible QHEIs is updated annually based on the latest NIRF rankings, students can continuously benefit from this initiative, paving the way for a brighter future in higher education.
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