PM-Vidyalaxmi Scheme

About PM-Vidyalaxmi Scheme:

• It is a Central Sector Scheme.
• Features
• Under this scheme any student who gets admission to a quality Higher Education Institution (QHEI) will be eligible to get collateral-free, guarantor-free loans from banks and financial institutions to cover the full amount of tuition fees and other expenses related to the course. 
• The scheme will be administered through a simple, transparent and student-friendly system that will be inter-operable and entirely digital.
• It will apply to the top quality higher educational institutions of the nation, as determined by the NIRF rankings - including all HEIs, government and private, that are ranked within the top 100 in NIRF in overall, category-specific and domain-specific rankings; state government HEIs ranked in 101-200 in NIRF and all central government governed institutions. 
• This list will be updated every year using the latest NIRF ranking, and to begin starts with 860 qualifying QHEIs.

• Loan provision
• For loan amounts up to ₹ 7.5 lakhs, the student will also be eligible for a credit guarantee of 75% of outstanding default. This will give support to banks in making education loans available to students under the scheme.
• In addition to the above, for students having an annual family income of up to ₹ 8 lakhs, and not eligible for benefits under any other government scholarship or interest subvention schemes, 3 percent interest subvention for loans up to ₹ 10 lakhs will also be provided during the moratorium period. 
• The interest subvention support will be given to one lakh students every year. Preference will be given to students who are from government institutions and have opted for technical/professional courses. 
• An outlay of ₹ 3,600 Crore has been made during 2024-25 to 2030-31.

• The Department of Higher Education will have a unified portal “PM-Vidyalaxmi” on which students will be able to apply for the education loan as well as interest subvention, through a simplified application process to be used by all banks. 
• Payment of interest subvention will be made through E-vouchers and Central Bank Digital Currency (CBDC) wallets.