Prime Minister Shri Narendra Modi’s Union Cabinet has authorized PM Vidyalaxmi, a new Central Sector program designed to give financial aid to deserving students so that no student is prevented from pursuing higher education by financial limitations. The National Education Policy, 2020, which suggested that financial aid should be made available to deserving students through a variety of ways in both public and private HEIs, is the source of PM Vidyalaxmi, another significant program.
Any student who is accepted into a quality higher education institution (QHEI) under the PM Vidyalaxmi scheme is eligible to receive a loan from a bank or other financial institution that does not require collateral or guarantors to pay for all of their tuition costs and other course-related expenditures. In this article, we will provide you with all the details about this program.
Objective of PM Vidyalaxmi Scheme
The main objective of the PM Vidyalaxmi Scheme is to provide financial assistance to the meritorious students of the country. Through this scheme, the students will be given education loans to complete their higher education without any financial constraints. The scheme is aiming to cover around 22 lakh students every year. Under this program, a loan amount of up to 7.5 lakh will be provided a 75% credit guarantee by the government of India. The students whose annual family income is up to 8 lakh rupees, will be provided with the 3% interest subvention on loans up to rupees 10 lakh. Overall the scheme will be a great change in the field of education.
Helpful Summary of PM Vidyalaxmi Scheme
| Name of the scheme | PM Vidyalaxmi Scheme |
| Announced by | The central government of India |
| Beneficiaries | The students who want to pursue higher education |
| Benefits | The students can apply for an education loan up to 10 lakh rupees |
| Application Mode | Online |
| Year | 2024-25 |
| Number of Beneficiaries | 22 lakh per year |
| Official website | Will be launched soon |
Budget for PM Vidyalaxmi Scheme
The budget of the scheme has been estimated to be around 3600 crores in order to benefit students who want to pursue higher education.
Eligibility Criteria
The eligibility criteria for applying to this program is given below:-
- The applicant should be a permanent resident of the country of India.
- The applicant who gets admission in quality higher education institutions and wishes to avail education loan to pursue higher education will be eligible to get the loan under the Vidyalaxmi Scheme.
- The student should have passed the 12th class examination to apply for this scheme.
Benefits of PM Vidyalaxmi Scheme
The benefits of the PM Vidyalaxmi Scheme are given below:-
- The students who wish to achieve higher education after the completion of class 12th will get financial assistance under this program.
- The students can apply for education loans up to rupees 10 lakh under this scheme.
- The applicant whose family income will be 8 lakh rupees annually, will be provided with the 3% interest subvention under this program.
- The students don’t have to worry about their financial conditions to complete their higher education, thanks to this scheme.
No of Students
The number of students who will benefit from this scheme is approximately 22 lakh per year.
Educational institutions Covered
All government and private HEIs that rank in the top 100 overall, category-specific, and domain-specific rankings, state government HEIs that rank 101–200 in the NIRF, and all institutions under central government control will be eligible for the program, according to the NIRF rankings.
Also Check: Prime Minister Internship Scheme
Loan Amount and Interest Subvention
The students whose annual family income is up to 8 lakh rupees will be provided with the 3% interest subvention on the loan of 10 lakh rupees. In addition, the students whose annual family income is 4.5 lakhs will be given the full interest subvention under this scheme. The loan amounts up to 7.5 lakhs will be provided a 75% credit guarantee by the government of India.
Salient Features
The salient features of this scheme are given below:-
- The scheme will be administered through a simple, transparent, and student-friendly system which will be purely digital.
- Under this program the loans up to 10 lakh will get the 3% interest subvention, which will be exclusively for the students whose annual family income is 8 lakh rupees.
- The scheme’s budget is estimated around 3600 crores and the scheme is expected to benefit 7 lakh fresh students.
- The students can apply on the unified portal “PM-Vidyalaxmi” for an education loan and as well as submit a request for the disbursement of interest subvention.
- The students who will get admission in the top 860 quality higher education institutions will receive education loans under this program, the scheme will cover around 22 lakh students per year.
- The loan amount up to 7.5 lakh will be provided a 75% credit guarantee by the government of India, to support banks to expand coverage.
Also Check: pminternship mca.gov in Registration
Required Documents
The documents required for registering under this program are given below:-
- Aadhar Card
- Email ID
- Mobile number
- Marks sheet of class 11th and 12th
- Admission letter
- Residential proof
- Bank account details
- Passport size photographs
Selection Process
The applicant will be selected under this program by the below-given procedure:-
- The applicant should clear all the eligibility criteria for getting selected under this program.
- The applicant should be a permanent resident of the country of India.
PM Vidyalaxmi Scheme Apply Online
The Department of Higher Education will have a unified portal “PM-Vidyalaxmi” on which students will be able to apply for education loans as well as interest subvention. We will provide you the expected application procedure:-
Step 1:- firstly the candidate should visit the official website of the scheme to initiate the application process.
Step 2:- on the home page of the official website you need to click on the apply now button.
Step 3:- After this, you will be redirected to the new page where you need to provide your full name, address, email address, mobile number, etc.
Step 4:- Now you need to attach all the relevant documents in this step.
Step 5:- in this step, you need to enter the Captcha code and finally click on the submit button to complete your application process.
Tops Refrences
FAQs
What is the PM Vidyalaxmi Scheme?
The scheme has been announced by the central government to help meritorious students achieve higher education.
What are the benefits of this scheme?
Under this scheme, the students can apply for education loans.
What are the eligibility criteria for applying to this program?
The applicant should be a permanent resident of the country of India.
Can I apply online for this scheme?
Yes, you can apply online for this scheme by visiting the official website of the scheme.