Government & Policy Updates in Education
Shri Dharmendra Pradhan lauds approval of PM
Vidyalaxmi by Union Cabinet
The PM Vidyalaxmi scheme, a new initiative under the Central Sector aimed at providing financial support to meritorious students, has been approved by the Union Cabinet chaired by Prime Minister Narendra Modi. The scheme will provide collateral-free and guarantor-free education loans to students securing admissions in the top 860 HEIs of India, covering over 22 lakh students every year. Students with annual family income of up to ₹8 lakh shall be eligible to get 3% interest subvention on education loans up to Rs10 lakh and eligible for 75% credit guarantee. The Minister of Petroleum and Natural Gas, Shri Dharmendra Pradhan, expressed gratitude to Prime Minister Modi for approving the scheme, which will help universalize access to higher education for India’s talented youth. The initiative is a significant step towards implementing the National Education Policy 2020, which emphasizes the need for financial assistance to be made available to deserving students through various mechanisms in public and private higher education institutions. The loan scheme will empower millions of students from the poor and middle class. The loans will be facilitated through a transparent, student-friendly, and digital application process common to all banks.
Cabinet approves PM-Vidyalaxmi scheme to
provide financial support to meritorious students
The Union Cabinet has approved PM Vidyalaxmi, a new Central Sector scheme that provides financial support to meritorious students. The scheme will be applicable to top quality higher educational institutions of the nation, as determined by the NIRF rankings. Students who get admission in quality Higher Education Institution (QHEIs) will be eligible to get collateral-free, guarantor-free loans from banks and financial institutions. This scheme will supplement the Central Sector Interest Subsidy (CSIS) and Credit Guarantee Fund Scheme for Education Loans (CGFSEL). The Department of Higher Education will have a unified portal for students to apply for the education loan and interest subvention.