Loan facility will be available without any collateral or guarantor.
Pradhan Mantri Vidyalakshmi Yojana was approved on Wednesday in an important cabinet meeting chaired by Prime Minister Narendra Modi. This is a new central scheme which aims to provide financial assistance to the meritorious students of the country so that no student is deprived of higher education due to financial constraints. PM Vidya Lakshmi is another important initiative emanating from the National Education Policy, 2020, which recommended that financial assistance should be provided to meritorious students in both public and private higher education institutions.
Loan facility will be available without any collateral or guarantor.
Under PM Vidyalakshmi Yojana, any student seeking admission in a Quality Higher Education Institution (QHEI) is eligible to avail a loan from banks and financial institutions without any collateral or guarantor to cover the entire amount of tuition fees and other expenses related to the course. Will be eligible for. Pradhan Mantri Vidyalakshmi Yojana will be operated through a simple, transparent and student friendly system which will be inter-operable and completely digital.
3 percent interest rebate will be available on loans up to Rs 10 lakh
Under the scheme, the student will also be eligible for credit guarantee of 75% of the outstanding default for loan amounts up to Rs 7.5 lakh. Credit guarantee means that when a student is unable to repay the loan, in such a situation the trust created by the government will repay 75 percent of the loan amount. This will help banks to provide education loans to students under the scheme. Additionally, students whose annual family income is Rs 8 lakh or less and who are not eligible for benefits under any other government scholarship or interest subvention scheme can avail 3 per cent interest on loans up to Rs 10 lakh during the moratorium period. Discount will also be provided.
One lakh students will get benefits every year
Interest waiver assistance will be given to one lakh students every year. Preference will be given to those students who are from government institutions and who have opted for technical/professional courses. The government will spend Rs 3600 crore on this scheme during the financial year 2024-25 to 2030-31 and 7 lakh new students are expected to get the benefit of this interest subvention during this period.
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