Union Minister for Education Dharmendra Pradhan praised the Union Cabinet’s approval of the PM Vidyalaxmi scheme on Wednesday. This initiative aims to financially support meritorious students. The scheme will reduce financial barriers and expand higher education access for India’s youth.
“With a fund allocation of Rs 3,600 crore, PM Vidyalaxmi will empower India’s youth to pursue their dreams without limits,” Pradhan stated, stressing the government’s focus on education for all.
Interest-Free, Collateral-Free Loans
Under PM Vidyalaxmi, students from families earning up to Rs 8 lakh annually can get a 3% interest subsidy on loans up to Rs 10 lakh. Loans up to Rs 7.5 lakh will also have a 75% credit guarantee. Pradhan noted that these loans will remove financial constraints for deserving students. The process will be digital, transparent, and simple to use for students across all banks.
Supports NEP 2020’s Goals
Pradhan highlighted that PM Vidyalaxmi meets a key recommendation from the National Education Policy (NEP) 2020. This policy calls for financial aid for talented students. The scheme will support students in the top 860 educational institutions based on NIRF rankings, benefiting over 22 lakh students each year.
The Department of Higher Education will also launch a unified ‘PM-Vidyalaxmi’ portal. Students will use this platform to apply for loans and interest subsidies online. “PM Vidyalaxmi will uplift millions from poor and middle-class families,” Pradhan concluded.
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