PM-Vidyalaxmi Scheme: Empowering Students for a Brighter Future
Prime Minister Narendra Modi announced the approval of the PM-Vidyalaxmi scheme by the Union Cabinet, aimed at providing financial support to deserving students. This initiative is designed to make education more accessible and empower the youth of India.
Key Features of the PM-Vidyalaxmi Scheme
The scheme targets middle-class students who face financial challenges in pursuing higher education. Eligible students can secure education loans without the need for collateral or a guarantor. The scheme will cover up to one lakh students annually.
Eligibility and Benefits
Students with an annual family income of up to Rs 8 lakh can receive a three percent interest subvention on loans up to Rs 10 lakh. Additionally, full interest subvention is available for students with a family income of up to Rs 4.5 lakh. The government ensures that no meritorious student is denied higher education due to financial constraints.
Implementation and Monitoring
The Department of Higher Education will annually list high-quality institutions eligible under the scheme. Loan applications will be processed through the PM-Vidyalaxmi portal, with loans up to Rs 7.5 lakh eligible for a 75 percent credit guarantee on outstanding defaults.
Union Information Minister Ashwini Vaishnaw highlighted the scheme’s benefits, emphasizing its role in supporting students’ educational aspirations.
Doubts Revealed
PM Modi -: PM Modi is the Prime Minister of India. He is the leader of the government and makes important decisions for the country.
PM-Vidyalaxmi Scheme -: The PM-Vidyalaxmi Scheme is a new plan by the Indian government to help students who need money for higher education. It provides loans without needing to give something as security or having someone to guarantee the loan.
Union Cabinet -: The Union Cabinet is a group of top leaders in the Indian government who help the Prime Minister make important decisions. They work together to approve new plans and policies.
Collateral-free loans -: Collateral-free loans mean that students don’t have to give anything valuable, like property, to the bank to get a loan. This makes it easier for students to get money for their education.
Guarantor-free loans -: Guarantor-free loans mean that students don’t need someone else to promise to pay back the loan if they can’t. This helps students who might not have someone to be a guarantor.
Interest subvention -: Interest subvention is when the government helps pay part of the interest on a loan. This makes the loan cheaper for students to repay.
Rs 8 lakh -: Rs 8 lakh is a way to say 800,000 rupees, which is a unit of money in India. It is used to measure family income in this scheme.
