A new initiative called the PM Vidyalaya Lakshmi Yojana has been launched by the central government. This program allows banks and financial institutions to offer loans to students enrolling in quality higher education institutions (QHEIs) without requiring any collateral or guarantees. The main goal of this scheme is to ensure that financial constraints don’t prevent anyone from pursuing higher education. The loans will cover tuition fees and other related expenses.
How to apply for the Vidyalaxmi Scheme?
1. The Higher Education Department will set up a portal named PM-Vidyalaya Lakshmi, where students can apply for education loans and interest subsidies.
2. The application process will be user-friendly, and the portal will be available to all banks. Students can access interest subsidies through e-vouchers and a Central Bank Digital Currency (CBDC) wallet.
3. First, applicants need to register on the Vidya Lakshmi Portal and log in.
4. Carefully fill out the Common Education Loan Application Form (CELAF) with the necessary details.
5. After completing the form, applicants can search for and apply for education loans based on their needs and eligibility.
Loan Facility
Students can receive a credit guarantee of 75% on the outstanding amount for loans up to Rs 7.5 lakh, which will assist banks in providing education loans under this scheme. Additionally, students with a family income of up to Rs 8 lakh who do not qualify for other government scholarships or interest subsidies will receive a 3% interest subsidy during the moratorium period on loans up to Rs 10 lakh.
This interest subsidy will be available to 100,000 students each year, with priority given to those from government institutions and those enrolled in technical or professional courses. A budget of Rs 3,600 crore has been set aside for the years 2024-25 to 2030-31. During this time, 700,000 students are expected to benefit.
Who can take part in this scheme?
This scheme is open to higher education institutions (HEIs) in India that have a strong NIRF ranking. It covers both government and private HEIs that fall within the top 100 rankings, whether that’s overall, by subject, or in a specific area. All institutions operated by the central government are also part of this.
Additionally, state government HEIs ranked between 101 and 200 are included as well. Initially, 860 eligible institutions will be part of PM-Vidyalaya Lakshmi, serving over 22 lakh students. The list will be refreshed annually based on the latest NIRF rankings.