PM Vidyalaxmi Scheme, Objective, Eligibility, How to Apply
The PM Vidyalaxmi Scheme has been launched by the government to offer financial support to students. The PM Vidyalaxmi Scheme will receive ₹3,600 crore for the financial years 2024-25 to 2030-31.
Deeksha Dixit8 Nov, 2024
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PM Vidyalaxmi Scheme : Recently Central Government has approved PM-Vidyalaxmi scheme to support meritorious students who want to pursue higher education in top-ranked institutions in India. This scheme offers students easy access to education loans without requiring collateral or a guarantor.
The PM Vidyalakshmi Scheme will supplement the Central Sector Interest Subsidy (CSIS) and the Credit Guarantee Fund Scheme for Education Loans (CGFSEL) initiatives under the Department of Higher Education. The government launched this scheme to ensure that all deserving students can achieve their dreams, regardless of their family’s financial background.What is PM Vidyalaxmi Scheme?
The PM Vidyalaxmi Scheme is a Central Sector scheme introduced by the Union Government to ensure financial assistance for students aspiring to higher education in Quality Higher Education Institutions (QHEIs). The scheme offers collateral-free loans without a guarantor requirement, supporting students who gain admission into top-ranked institutions across India. The PM Vidyalakshmi Scheme provides a 75% credit guarantee for loans up to ₹7.5 lakh. Additionally, students with a family income below ₹8 lakh are eligible for 3% interest subvention during the moratorium period for loans up to ₹10 lakh, provided they are not benefiting from other government scholarships or loan schemes.| PM Vidyalaxmi Scheme - Overview | |
| Aspect | Details |
| Purpose | To provide financial support for meritorious students. |
| Background | Part of the National Education Policy (NEP) 2020 |
| Eligible Institutions | Includes top Quality Higher Education Institutions (QHEIs), both government and private, ranked in the top 100 by NIRF, as well as state HEIs ranked 101-200. |
| Coverage | Initially 860 institutions, with more than 22 lakh students |
| Loan Amount | Students can get collateral-free, guarantor-free loans up to ₹7.5 lakhs. |
| Credit Guarantee | 75% credit guarantee on loans up to ₹7.5 lakhs |
| Interest Subvention | 3% interest subvention for loans up to ₹10 lakhs during the moratorium period for families with annual income up to ₹8 lakhs (if not covered by other schemes). |
| Preference Criteria | Priority is given to students from government institutions and those in technical/professional courses. |
| Financial Outlay | ₹3,600 crore (FY 2024-25 to 2030-31) |
| Application | At ‘PM Vidyalaxmi Portal ‘www.vidyalakshmi.co.in’ |
| Payment Method | Interest subvention payments are made through E-vouchers and Central Bank Digital Currency (CBDC) wallets. |
Objective of PM Vidyalaxmi Scheme
The primary goal of the PM Vidyalakshmi Scheme is to provide financial support to meritorious students , ensuring that financial constraints do not hinder their ability to pursue higher education in quality institutions. The scheme aims to make higher education accessible by offering collateral-free loans, credit guarantees, and interest subventions for students from economically weaker backgrounds.
PM Vidyalaxmi Scheme Eligibility
To be eligible for the PM Vidyalakshmi Scheme, students must meet the following criteria:-
Institutional Requirement
:
- Students must secure admission to Quality Higher Education Institutions (QHEIs) ranked in the top 100 in the NIRF rankings (across overall, category-specific, and domain-specific rankings), as well as state government institutions ranked between 101-200 and all central government institutions.
- The list of eligible institutions will be updated annually based on the latest NIRF rankings.
- Income Requirement: Students with a family income of up to ₹8 lakhs, who are not receiving benefits from other government scholarships or loan schemes, can receive a 3% interest subsidy on loans up to ₹10 lakh during the moratorium period.
- Course Preference: Priority is given to students who are pursuing technical or professional courses.
How to Apply for PM Vidyalaxmi Scheme?
This scheme will be accessible through a student-friendly digital application process at the “PM Vidyalaxmi Portal” . Here’s a step-by-step guide to applying for a PM Vidyalaxmi loan:- Registration : You will need to visit the PM Vidyalaxmi Portal ‘www.vidyalakshmi.co.in’ and create an account.
- Fill out the Application Form: Complete the Common Education Loan Application Form (CELAF) with your details.
- Search for Loans: Once the form is submitted, search for educational loans that match your needs.
- Submit Loan Application: After selecting a suitable loan, submit your application.
- Tracking and Processing: Track your application status on the portal.
PM Vidyalaxmi Scheme Salient Features
The PM Vidyalaxmi Scheme has several distinct features that make it an attractive option for students seeking higher education loans. Some key features include:- Collateral-Free Loans: Loans up to ₹7.5 lakhs are collateral-free and guarantor-free.
- Credit Guarantee: The government provides a 75% credit guarantee for loans up to ₹7.5 lakhs.
- Interest Subvention: For loans up to ₹10 lakhs, students from families earning up to ₹8 lakhs annually receive a 3% interest subsidy.
- Unified Digital Portal: A single platform for loan application, processing, and tracking, enhancing user experience.
- Wide Institutional Coverage : Applies to students from top-ranking NIRF institutions, covering over 860 institutions initially.
Benefits of PM Vidyalaxmi Scheme
The PM Vidyalaxmi Scheme offers numerous benefits to students and their families:- Ease of Access: With a digital portal, students can access loans without needing extensive paperwork or physical visits.
- Financial Relief: Interest subsidies and credit guarantees help ease the financial burden on students and families.
- Equal Education Opportunity: Enables students from financially weak backgrounds to enroll in top-ranked institutions.
- Encouragement of Skill Development: Prioritizes technical and professional courses, aligning with India’s growth in STEM fields.
- Future Economic Impact: By supporting education, the scheme indirectly strengthens the economy through a more skilled and educated workforce.
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PM Vidyalaxmi Scheme FAQs
What is PM Vidyalaxmi?
The PM Vidyalaxmi Scheme is a government initiative to provide collateral-free loans to students pursuing higher education.
Who is eligible for the PM Vidyalaxmi Scheme?
Students who secure admission to Quality Higher Education Institutions (QHEIs) ranked in the top 100 NIRF rankings (or top 200 for state institutions) are eligible.
What is the PM New Loan Scheme?
The PM New Loan Scheme under PM Vidyalaxmi offers collateral-free education loans with interest subventions to support students in accessing quality education.
How to apply for the PM Vidyalaxmi Scheme?
Students can apply through PM Vidyalaxmi Portal at ‘www.vidyalakshmi.co.in’, where students register, fill in details, and select suitable education loans.
Is there a list of colleges under the PM Vidyalaxmi Scheme?
Yes, eligible college list will be updated annually based on NIRF rankings, covering central, state, and top 100 private institutions in India.
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