PM-Vidyalaxmi Scheme

PM-Vidyalaxmi Scheme : Recently, the Public Sector Banks (PSBs) have raised concerns regarding the slow uptake and implementation issues of the PM Vidyalakshmi Scheme.

• About PM Vidyalakshmi Scheme: It is central sector scheme providing financial support for meritorious students pursuing higher education.

o Launched and managed under the Ministry of Education specifically through the Department of Higher Education.

• Eligibility: Applicable to students admitted to any of 860 Quality Higher Education Institutions (QHEIs) (govt. or private) ranked by NIRF.

o Students receiving other scholarships, interest subventions, or fee reimbursements are not eligible.

o Students who drop out or are dismissed on disciplinary/academic grounds are not eligible for interest subvention or credit guarantee.

• Loan Application: Loans can be applied for through the PM-Vidyalakshmi portal, integrated with multiple banks for a digital and seamless experience.
• Loan Amount: No upper limit on the loan amount. Loan depends on course fees, hostel/mess fees, other institutional fees, laptop cost, and living expenses.
• Interest Subvention: Students with annual family income up to ₹8 lakhs are eligible for 3% interest subvention on education loans up to ₹10 lakhs.
• Credit Guarantee: For loans up to ₹7.5 lakhs, credit guarantee covers 75% of outstanding default, regardless of family income.