Synopsis
The PM Vidyalaxmi scheme allocates Rs 3,600 crore from 2024-25 to 2030-31, providing 3% interest subvention for 7 lakh students seeking education loans. This initiative aims to remove financial barriers for students pursuing higher education.Key Takeaways
- Rs 3,600 crore allocated for education loans.
- 3% interest subvention for 7 lakh students.
- Available for OBCs/SCs/STs in QHEIs.
- Online platform for loan applications.
- Equitable distribution of slots among states.
New Delhi, March 10 (NationPress) An allocation of Rs 3,600 crore under the PM Vidyalaxmi initiative has been earmarked from 2024-25 to 2030-31 to offer a 3 per cent interest subvention benefit for up to 7 lakh new students pursuing guarantor-free education loans for higher education, as disclosed in the Lok Sabha on Monday.
The Minister of State for Education, Sukanta Majumdar, stated in a response that all students from OBCs/SCs/STs, regardless of gender, who secure merit-based admission in top Quality Higher Education Institutions (QHEIs) for degree or diploma courses can take advantage of this benefit.
The Minister emphasized that the primary goal of the PM Vidyalaxmi, a central sector scheme introduced on November 6, 2024, is to guarantee that no student is deprived of the chance to pursue higher education due to economic challenges.
Through this scheme, collateral-free and guarantor-free education loans are accessible to all students, including those from Bihar and Andhra Pradesh, who achieve merit-based admissions in leading QHEIs.
Majumdar mentioned that for families earning an annual income of up to Rs 8 lakh, the scheme offers a 3 per cent interest subvention on loans up to Rs 10 lakh. Up to one lakh new students who do not receive any other scholarships or interest subventions on education loans will benefit from this interest subvention, he added.
If the number of fresh applicants exceeds one lakh, the available slots will be allocated across states based on population to ensure fair representation, translating to 10,302 slots for Bihar and 3,428 for Andhra Pradesh, he explained.
A dedicated online platform, the PM Vidyalaxmi portal, has been established for students to apply for education loans and interest subventions through a streamlined application process that all banks will utilize.
This portal caters to all Public Sector Banks, Private Banks, Regional Rural Banks, and Cooperative Banks. These initiatives aim to raise awareness about the scheme and assist eligible students, including those from rural and disadvantaged backgrounds, in accessing the PM-Vidyalaxmi benefits, noted the MoS.
The QHEIs identified under PM-Vidyalaxmi comprise higher education institutions ranked within the top 100 in the overall, category-specific, or domain-specific rankings in the latest National Institutional Ranking Framework (NIRF) list, he concluded.
