The country’s major government bank Punjab National Bank (PNB) on Tuesday announced a reduction of 20 basis points in the interest rate of education loan received under the PM Vidyalakshmi Yojana. According to the bank, after the amendment, the education loan rates will start at 7.5%, which will be fixed according to the quality and category of the institute.
Now bail and guarantee will get a loan up to ₹ 7.5 lakh
The purpose of the scheme approved under NEP 2020 – Higher education reaches every qualified student
The aim of the PM Vidyalakshmi Yojana, which was approved by the Cabinet in November last year under the National Education Policy (NEP) 2020, is not to be deprived of higher education due to financial shortage.
Under this scheme, students can get a loan of up to ₹ 7.5 lakh without bail and guarantee. If a student is unable to repay this loan, then the government will give 75% of the amount of insurance coverage.
More than 860 reputed institutions were involved
Top 100 and top government institutions in NIRF rankings received recognition
More than 860 quality Higher Education Institutions (QHEIs) have been included under the purview of the scheme. These include institutions that are in the top 100 in the overall, category or subject-specific rankings in the National Institutional Ranking Framework (NIRF).
Also, the state government -run institutions which are between 101 and 200 in the ranking, and all the central institutions are also included in the scheme.
Those with annual income up to ₹ 8 lakh will get 3% interest subsidy
One lakh students will get the benefit of subsidy every year, applicable only till Mortorium period
Students whose annual income of the family is up to ₹ 8 lakh and they are not taking advantage of any other scholarship, they will be given 3% interest subsidy during the moratorium period on loans up to ₹ 10 lakh. The Ministry of Education said that one lakh students will get this assistance every year.
