PM Vidya Lakshmi Scheme Launched to Provide Education Loans for Talented Students
The central government has introduced a new scheme to help talented students from poor and middle-class backgrounds pursue higher education. The ‘PM Vidya Lakshmi Scheme’ aims to provide education loans to students seeking admission in top educational institutions across India. The scheme was approved by the Union Cabinet on November 6, during a meeting chaired by Prime Minister Modi. The government aims to benefit around 22 lakh students annually through this initiative.
The scheme, with a budget of ₹3,600 crore from 2024-25 to 2030-31, will ensure that students with merit do not face financial barriers to quality education. According to Union Minister Ashwini Vaishnaw, the scheme is designed to make higher education accessible to deserving students from all backgrounds. The Cabinet’s approval for this scheme was welcomed by SBI Chairman, C.S. Shetty.
Eligibility for the Scheme
The PM Vidya Lakshmi Scheme is open to students who gain admission to institutions ranked under the National Institutional Ranking Framework (NIRF), which includes 860 institutions across the country. These institutions comprise both government and private institutions. Students can avail of loans from banks and financial institutions without the need for a guarantor or collateral. The scheme targets students with an annual family income of up to ₹8 lakh.
Loan Amounts and Interest Rates
Under the scheme, students can avail of loans up to ₹7.5 lakh with a 75% credit guarantee. This credit guarantee will help banks provide loans to students. Students who fall under specific government scholarship schemes or interest subsidy schemes can avail themselves of a 3% interest rate reduction. The scheme allows loans of up to ₹10 lakh for students pursuing higher education in professional and technical courses.
Vidya Lakshmi Portal
To facilitate the loan application process, the government has created a dedicated portal – the PM Vidya Lakshmi Portal. Eligible students can register, apply for loans, and apply for interest subsidies through this platform. The loan application process is expected to be completed within 15 days for eligible students. If a loan application is rejected, the reasons will be communicated via email. The entire loan approval process will be conducted through this portal.
This new initiative is expected to benefit around 7 lakh students across the country every year, particularly those pursuing technical and professional courses at government institutions.
