Introduction
The Union Cabinet has approved the PM Vidyalaxmi Scheme, a new initiative aimed at providing financial support to meritorious students pursuing higher education in India's top institutions. This scheme is designed to ensure that financial constraints do not hinder students from accessing quality higher education.
Key Highlights
- Eligibility: The scheme is open to students who secure admission in quality higher education institutions (QHEIs) ranked within the top 100 by the National Institutional Ranking Framework (NIRF).
- Loan Features: The scheme offers collateral-free, guarantor-free education loans to cover the full amount of tuition fees and other course-related expenses.
- Interest Subvention: For loans up to Rs 7.5 lakh, the government provides a 75% credit guarantee on outstanding defaults. Additionally, students from families with an annual income of up to Rs 8 lakh are eligible for a 3% interest subvention on loans up to Rs 10 lakh during the moratorium period.
- Application Process: The scheme will be administered through a simple, transparent, and entirely digital application process via the PM-Vidyalaxmi portal.
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Budget: An outlay of Rs 3,600 crore has been allocated for the scheme, spanning from 2024-25 to 2030-31.
Importance of the Scheme
The PM Vidyalaxmi Scheme aims to dismantle barriers to higher education and make it more accessible for students from economically disadvantaged backgrounds. By providing financial support and reducing the burden of education loans, the scheme seeks to empower students to pursue their academic goals without financial constraints.
How to Apply
- Visit the PM-Vidyalaxmi Portal: Apply through the official portal managed by the Department of Higher Education.
- Prepare Documentation: Ensure you have all necessary documents, including proof of admission and family income.
- Submit Application: Complete the online application form and submit it before the deadline.
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Stay Updated: Regularly check the portal for updates on the application process and eligibility criteria.
Conclusion
The PM Vidyalaxmi Scheme is a significant step towards fostering educational equity and unlocking the potential of India's future leaders. By providing financial support to meritorious students, the scheme ensures that no one is prevented from pursuing higher education due to financial constraints.
