PM Vidyalaxmi Scheme: A New Hope for Middle-Class Students
The Union Cabinet has introduced the PM Vidyalaxmi scheme to assist middle-class students in India who face financial challenges in pursuing higher education. This initiative allows students who gain admission to higher educational institutions to access education loans without needing collateral or a guarantor.
Key Features of the Scheme
- Up to one lakh students can benefit from the scheme each year.
- 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.
- Full interest subvention is available for students with a family income of up to Rs 4.5 lakh.
Eligibility and Process
The Department of Higher Education will annually list high-quality institutions, including the top 100 ranked institutes in various categories and the top 200 state/UT government institutions as per NIRF rankings. Loan applications will be managed through the PM-Vidyalaxmi portal, with loans up to Rs 7.5 lakh eligible for a 75 percent credit guarantee on outstanding defaults.
Government’s Commitment
The government emphasizes that no deserving student should miss out on higher education due to financial limitations. This scheme is a step towards ensuring educational opportunities for all.
Doubts Revealed
PM Vidyalaxmi Scheme -: The PM Vidyalaxmi Scheme is a government program in India designed to help middle-class students get loans for their education without needing to provide any security or guarantor.
Union Cabinet -: The Union Cabinet is a group of top government officials in India, including the Prime Minister, who make important decisions for the country.
Collateral-free -: Collateral-free means that students do not need to offer any property or asset as security to get the education loan.
Guarantor-free -: Guarantor-free means that students do not need someone else to promise to pay back the loan if they cannot.
Interest subvention -: Interest subvention is a financial help where the government pays part or all of the interest on a loan, making it cheaper for the borrower.
Meritorious student -: A meritorious student is someone who has done very well in their studies and has good grades or achievements.