PM Vidyalaxmi Scheme
The Indian Government has introduced the PM Vidya Laxmi Scheme, a key initiative under the National Education Policy 2020. This program aims to provide financial assistance to deserving students, remove economic hurdles and enhance access to quality higher education.
What is the PM Vidyalaxmi Scheme?
The PM Vidyalaxmi Scheme enables students admitted to Quality Higher Education Institutions (QHEIs) to access collateral-free, guarantor-free loans from banks and financial institutions. These education loans cover the full tuition fees and other course-related expenses.
Objective of the PM Vidyalaxmi Scheme
The primary aim of the scheme is to empower talented students from all socioeconomic backgrounds by offering the financial means to pursue higher education. It ensures accessibility through a user-friendly, fully digital application process, promoting transparency and simplicity.
Collateral-Free Student Loans
The PM Vidyalaxmi Scheme offers collateral-free education loans for students to pursue higher education in quality educational institutions. Students can apply for education loans without any collateral in this scheme. It is also guarantee-free, making the Vidyalxmi scheme an easy and affordable loan scheme for students from all economic backgrounds.
How to Apply for the PM Vidyalaxmi Scheme?
Students can apply for education loans and interest subvention through the unified PM-Vidya Lakshmi portal, developed under the Department of Finacial Services, the Department of Higher Education, and the Indian Banks Association (IBA). It is maintained by Protean eGov Technologies Limited. This platform simplifies the application process across all banks. Interest subvention payments are facilitated through e-vouchers and Central Bank Digital Currency (CBDC) wallets.
Steps to Apply for the PM Vidyalaxmi Scheme
- Register and Login: Begin by registering and logging into the Vidya Lakshmi portal.
- Complete CELAF: Fill out the Common Education Loan Application Form (CELAF) with all required details.
- Search and Apply for Loans: After completing the form, search for educational loan options and apply based on your needs, eligibility, and preferences.
- Alternative Option: Alternatively, you can search for and apply for educational loans after logging in by directly filling out the CELAF.
Eligibility Criteria for the PM Vidyalaxmi Scheme
- Institution Eligibility: The scheme is open to students admitted to Quality Higher Education Institutions (QHEIs) and Higher Education Institutions (HEIs) in India. Institutions ranked among the top 100 in the National Institutional Ranking Framework (NIRF), and State government HEIs ranked 101-200 are also eligible to apply for the scheme. covering both public and private institutions. The list of eligible institutions is updated annually.
- Income Criteria: Students from any income bracket are eligible to apply for the scheme.
- Institutions Covered: Initially includes 860 NIRF-ranked institutions, with yearly updates.
Eligible Educational Institutions for the PM Vidyalaxmi Scheme
The scheme applies to top-tier educational institutions as identified by NIRF rankings. This includes:
- All higher education institutions (HEIs), both government and private, ranked within the top 100 in NIRF overall, category-specific, or domain-specific rankings.
- State government HEIs ranked between 101-200 in NIRF.
- All central government-managed institutions.
Loan and Financial Support Under PM Vidyalaxmi Scheme
- Loan Amount: Students can secure loans covering the full cost of tuition and other course-related expenses.
- Credit Guarantee: For loans up to Rs. 7.5 lakh, a 75% credit guarantee on outstanding defaults is provided, facilitating easier loan approvals by banks.
Interest Subsidy for Lower-Income Families
- Income-based Support: A 3% interest subvention is offered on loans up to Rs. 10 lakh for families earning up to Rs. 8 lakh annually.
- Moratorium Period Benefit: This interest subsidy applies only during the moratorium period.
- Target Beneficiaries: The scheme aims to assist one lakh students annually, prioritizing those in government institutions and technical or professional courses.
Unified Digital Platform for PM Vidyalaxmi Scheme Applications
The scheme operates through a unified digital portal managed by the Department of Higher Education, where students can apply for education loans and interest subsidies.
Payment Mechanism: Interest payments are streamlined through e-vouchers and Central Bank Digital Currency (CBDC) wallets.
Complementary Government Schemes for Enhanced Access
The PM Vidyalaxmi Scheme complements other government programs such as:
- CSIS and CGFSEL: These include the PM-USP Central Sector Interest Subsidy (CSIS) and the Credit Guarantee Fund Scheme for Education Loans (CGFSEL), supporting low-income students pursuing professional courses.
- Integrated Support: Together, these schemes offer a robust support system, including full interest subsidies on loans up to Rs. 10 lakh for families earning up to Rs. 4.5 lakh annually.
Financial Allocation and Impact
The government has allocated Rs. 3,600 crore for the scheme from 2024 to 2031, targeting 7 lakh new students by 2031. This initiative aims to benefit over 22 lakh students annually through loans and interest subsidies.
FAQs on PM Vidyalaxmi Scheme
- What is the PM Vidyalaxmi Scheme?
The PM Vidyalaxmi Scheme is an initiative under NEP 2020 that provides collateral-free, guarantor-free loans to students admitted to top-tier institutions. It covers full tuition fees and course-related expenses, removing financial barriers to higher education.
- Who is eligible for the PM Vidyalaxmi Scheme?
Students admitted to institutions ranked among the top 100 in NIRF (overall, category-specific, or domain-specific rankings) or state government HEIs ranked between 101-200 are eligible. The applicant's income is not part of the eligibility criteria. Additionally, the annual family income must be at most Rs. 8 lakh.
- Which educational institutions are covered under the scheme?
The scheme is applicable to Higher Educational Institutions (HEIs), which are ranked among the top 100 in the NIRF rankings, state government institutions ranked between 101 and 200 in the NIRF, and all institutions managed by the central government.
- How can students apply for the PM Vidyalaxmi Scheme?
Students can apply through the unified PM-Vidya Lakshmi portal managed by the Department of Higher Education. This portal allows students to submit applications for both education loans and interest subvention.
- What financial assistance is provided under the scheme?
The scheme offers loans that cover the full cost of tuition fees and other course-related expenses. Additionally, it provides a 3% interest subvention on loans up to Rs. 10 lakh for students from families with an annual income of up to Rs. 8 lakh.
- Are there any credit guarantees for these loans?
Yes, for loans up to Rs. 7.5 lakh, the scheme offers a 75% credit guarantee on defaults, encouraging banks to approve loans more easily.
- What is the repayment benefit under the PM Vidyalaxmi Scheme?
The 3% interest subvention is applicable during the moratorium period, easing the financial burden on students while they are studying.
- How are interest subvention payments processed?
Interest payments are processed through e-vouchers and Central Bank Digital Currency (CBDC) wallets, ensuring transparency and efficiency in the payment process.
- How does the scheme complement other government initiatives?
The PM Vidyalaxmi Scheme works alongside programs like the Central Sector Interest Subsidy (CSIS) and Credit Guarantee Fund Scheme for Education Loans (CGFSEL). Together, these initiatives provide robust financial support to students from lower-income families.
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