The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved PM Vidyalaxmi, a new Central Sector scheme that seeks to provide financial support to meritorious students so that financial constraints do not prevent anyone from pursuing higher studies.
PM Vidyalaxmi is another key initiative stemming out of the National Education Policy, 2020, which had recommended that financial assistance should be made available to meritorious students through various measures in both public and private HEIs.
Collateral free, guarantor free loan
Under the PM Vidyalaxmi scheme, any student who gets admission in Quality Higher Education Institution (QHEIs) will be eligible to get collateral free, guarantor free loan from banks and financial institutions to cover 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.
Scheme will be applicable to top quality institutions, will cover 22 lakh students
The scheme will be applicable 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.
This list will be updated every year using the latest NIRF ranking, and to begin starts with 860 qualifying QHEIs, covering more than 22 lakh students to be able to potentially avail benefits of PM-Vidyalaxmi; if they so desire.
Credit guarantee of 75%
Loan amounts up to Rs 7.5 lakhs will be provided a 75% credit guarantee by the Government of India, to support banks to expand coverage
Furthermore, for students with up to Rs. 8 lakhs annual family income, the scheme will also provide for 3% interest subvention on loans up to Rs 10 lakh
This is in addition to the full interest subvention already offered to students with up to Rs. 4.5 lakhs annual family income
PM Vidyalaxmi will build on the scope and reach of initiatives taken over the last decade for maximizing access to quality higher education for the youth.
No comments:
Post a Comment