Cabinet Approves ‘PM Vidyalaxmi’ Scheme for Easy Student Loans
The Union Cabinet has approved the “PM Vidyalaxmi” scheme, aimed at providing financial assistance to meritorious students facing financial challenges in pursuing higher education.
This initiative allows eligible students who secure admission in Quality Higher Education Institutions (QHEIs) to access collateral-free, guarantor-free loans covering full tuition fees and related expenses.
Loan Coverage and Eligibility under PM Vidyalaxmi
Union Minister Ashwini Vaishnaw announced the scheme, emphasizing its focus on “empowering youth and the middle class.” According to Vaishnaw, students with a family income up to ₹8 lakh annually are eligible for a 3% interest subvention on education loans up to ₹10 lakh. This program aims to support approximately 1 lakh students each year, providing a significant boost to those pursuing quality education without financial hindrance.
Targeted Institutions and NIRF Rankings
The scheme applies to institutions ranked within the top 100 in the National Institutional Ranking Framework (NIRF) across overall, category-specific, and domain-specific rankings. It also includes state government institutions ranked between 101-200 and all Central Government institutions. Currently, the list encompasses 860 qualifying QHEIs, covering more than 22 lakh students who may benefit from the PM Vidyalaxmi scheme. This list will be updated annually, ensuring continued access to financial aid for students attending top-ranking institutions.
This initiative is expected to play a crucial role in enhancing educational opportunities for talented students, ensuring that financial barriers do not hinder their academic ambitions.
