Empowering Dreams: PM Vidyalaxmi Scheme Fuels Higher Education Access

The PM Vidyalaxmi scheme, approved by Prime Minister Modi, provides collateral-free education loans for socially and economically disadvantaged students. Eligible students can access up to Rs 7.5 lakh without a guarantor, benefiting up to one lakh students annually. A sliding scale of interest subsidies supports families with various income levels.

In a significant move to enhance educational accessibility, the PM Vidyalaxmi scheme has received the green light, drawing praise from UGC Chairman M Jagadesh Kumar. The scheme is a beacon of hope for students from disadvantaged backgrounds, offering loans up to Rs 7.5 lakh without collateral or a guarantor.

Union Information Minister Ashwini Vaishnaw confirmed that applicants to higher education institutions can seek these benefits, potentially aiding up to one lakh students annually. The scheme includes a three percent interest subsidy for students from families with annual incomes up to Rs 8 lakh, while those with incomes up to Rs 4.5 lakh receive a full interest waiver.

The initiative underscores the government's commitment to ensure no deserving student is deprived of higher education due to financial limitations. With a robust operational framework via the PM Vidyalaxmi portal, the scheme prominently features a 75 percent credit guarantee for default risks on loans up to Rs 7.5 lakh.

(With inputs from agencies.)