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PM Vidya Laxmi Scheme

About Vidyalaxmi Scheme

  • It is a new government initiative designed to provide financial assistance to students pursuing higher education in Quality Higher Education Institutions (QHEIs).

Key Features and Eligibility

  • Collateral-Free Loans:
    • Students enrolled in QHEIs can access collateral-free and guarantor-free loans that cover the full tuition fees and related course expenses.
    • Loans up to ₹7.5 lakh are backed by a 75% credit guarantee provided by the central government.
  • Interest Subsidy for Priority Groups:
    • Students with an annual family income up to ₹8 lakh qualify for a 3% interest subsidy on loans up to ₹10 lakh during the moratorium period.
    • Priority will be given to those pursuing technical or professional courses in government institutions.
  • Institutions and Ranking Criteria:
    • The scheme applies to selected higher education institutions identified based on National Institutional Ranking Framework (NIRF) rankings:
    • Top 100 Institutions: All government and private higher education institutions (HEIs) ranked within the top 100 in overall, category-specific, and domain-specific NIRF rankings.
    • State Government HEIs: Institutions ranked 101-200 in NIRF rankings.
    • Central Government Institutions: All centrally run HEIs are eligible under the scheme, regardless of their NIRF rank.
  • Unified Application Portal: The Department of Higher Education will establish a dedicated ‘PM-Vidyalaxmi’ portal.
  • Reimbursement System: Banks and financial institutions will be reimbursed for the subsidies via E-vouchers and Central Bank Digital Currency (CBDC) wallets.

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