PM-Vidyalaxmi Scheme

PM Vidyalaxmi Scheme Latest News

Amid a slow uptake of the PM Vidyalaxmi scheme, public sector banks (PSBs) recently raised several concerns regarding its implementation.

About PM Vidyalaxmi Scheme

• It is a Central Sector Scheme to provide financial support to meritorious students in their pursuit of higher education.
• Eligibility: 
  • The scheme targets students who have secured admission to any of India’s top 860 Quality Higher Education Institutions (QHEIs), both private and government, as ranked by the National Institutional Ranking Framework (NIRF).
  • Students who receive any other Central/State Government Scholarship, interest subvention plan, or fee reimbursement are not eligible for benefits under the PM Vidyalakshmi scheme. 
  • Students who stop their studies in between or are dismissed from the institution on disciplinary or academic grounds are not eligible for interest subvention or credit guarantee under this scheme.
  • Students can apply for the loans through the PM-Vidyalakshmi portal, which integrates with multiple banks for a seamless and digital application experience.
• How much loan can you avail under the PM Vidyalakshmi scheme?
  • There is no upper limit on the amount of education loan you can get under the PM Vidyalakshmi scheme. 
  • It will depend on course fees and other fees charged by the QHEI and other associated expenses like mess, hostel fees, other refundable and non-refundable fees of the institution, the cost of a reasonable-quality laptop, and a reasonable amount of living expenses required by the student during the course period.
• Interest subvention:
  • A student whose annual family income is up to Rs 8 lakhs and who is pursuing any course from QHEIs will be eligible to get 3% interest subvention for education loans up to Rs 10 lakhs. 
  • If the education loan amount is more than Rs 10 lakhs, interest subvention will be provided for the disbursed total principal amount of loan up to Rs 10 lakhs.
• Credit Guarantee: When the education loan sanction amount is up to Rs 7.5 lakhs, irrespective of family income, the student will be eligible for a credit guarantee where 75% of outstanding default will be covered by the government.

Source: BS

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