The Union Cabinet, led by Prime Minister Narendra Modi, approved PM-Vidyalaxmi scheme. This scheme is designed to provide financial support to meritorious students, ensuring that financial constraints don’t hold them back from pursuing higher studies. Under the PM Vidyalaxmi scheme, students admitted to quality Higher Education Institutions (QHEIs) can access collateral-free and guarantor-free loans from banks and financial institutions to cover their entire tuition fees and other course-related expenses.

The new scheme will be managed through a cutting-edge, digital platform that’s designed to be super user-friendly, transparent, and easy to navigate.

PM-Vidyalaxmi Scheme – Key Details

The new scheme will be available to top-notch higher educational institutions in the country, based on National Institutional Ranking Framework (NIRF) rankings. Eligible institutions include-:

• All higher education institutions (HEIs), whether government or private, that rank within the top 100 in NIRF’s overall, category-specific, and domain-specific rankings.
• State Government HEIs: State government institutions ranked between 101-200 in NIRF.
• Central Government Institutions: All central government-governed institutions.

The PM Vidyalaxmi scheme is set to benefit over 22 lakh students across 860 top-quality higher educational institutions (QHEIs) in India. The list will be updated every year using the latest NIRF ranking.

Students borrowing up to Rs 7.5 lakhs under PM-Vidyalaxmi will receive a credit guarantee of 75% of outstanding default. Students from families with an annual income of ₹8 lakhs or fewer, and not receiving benefits from other government scholarship or interest subvention schemes, will receive a 3% interest subvention on loans up to Rs 10 lakhs during the moratorium period.

The PM Vidyalaxmi scheme will provide interest subvention support to 1 lakh students every year. Students from government institutions pursuing technical or professional courses will be prioritized for benefits under the PM Vidyalaxmi scheme. The government has allocated Rs 3,600 crore for the PM Vidyalaxmi scheme from 2024-25 to 2030-31, which will benefit approximately 7 lakh new students with interest subvention.

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