What is PM Vidyalaxmi Scheme 2024 (पीएम विद्यालक्ष्मी स्कीम 2024) : How to Apply, Eligibility and Benefits
PM Vidyalaxmi Scheme: A New Initiative for Accessible Higher Education in India
The Union Cabinet has greenlit the PM Vidyalaxmi Scheme, a major initiative to support financially constrained students aiming for higher education in India’s top institutions. With an allocation of ₹3,600 crore, the scheme aims to provide easy, collateral-free loans and interest subsidies to students enrolling in Quality Higher Education Institutions (QHEIs) ranked by the National Institutional Ranking Framework (NIRF). Over 22 lakh students are expected to benefit each year, empowering India’s youth to pursue education without financial obstacles. Here’s a breakdown of the scheme, its application process, eligibility, and the benefits it offers.
What is the PM Vidyalaxmi Scheme 2024?
The PM-Vidyalaxmi Scheme, recently approved by the Union Cabinet with a budget of ₹3,600 crore, is a government initiative designed to provide financial support to students pursuing higher education at India’s top institutions.
The scheme offers collateral-free and guarantor-free loans for tuition fees and other educational expenses, primarily targeting students admitted to Quality Higher Education Institutions (QHEIs) ranked within the top 860 institutions by the National Institutional Ranking Framework (NIRF).
The program is expected to benefit over 22 lakh students annually, breaking down financial barriers to accessing quality education.
PM Vidyalaxmi Scheme : How to Apply in 2024?
Students can apply for loans and interest subventions through the dedicated PM-Vidyalaxmi portal—a unified, user-friendly platform developed by the Department of Higher Education. Here’s how the process works:
The application process is standardized for all banks and financial institutions under the scheme, providing students a seamless experience.
Students must visit the official PM-Vidyalaxmi portal, where they will find the simplified application form.
After completing the application, eligible students can access their funds through e-vouchers or Central Bank Digital Currency (CBDC) wallets.
PM Vidyalaxmi Scheme : Eligibility
- Eligible Institutions: Students must be admitted to top-ranking QHEIs as per the latest NIRF rankings. This includes government and private institutions ranked within the top 100 overall or category-specific rankings, as well as state government institutions ranked between 101-200.
- Income Criteria: For additional benefits, students with a family income of up to ₹8 lakh per year, who are not eligible for other government scholarships, qualify for an additional interest subsidy.
- Annual Updates: The list of eligible QHEIs will be updated annually based on the latest NIRF rankings to ensure continued access to quality institutions.
Benefits of the PM Vidyalaxmi Scheme 2024:
- Collateral-Free Loans: Loans are provided without the need for collateral or guarantors, making it easier for students from various backgrounds to secure financing.
- Interest Subvention: A 3% interest subvention on loans up to ₹10 lakh is available during the moratorium period for students from low-income families (annual income below ₹8 lakh).
- Credit Guarantee: For loans up to ₹7.5 lakh, the scheme offers a 75% credit guarantee on outstanding defaults, ensuring banks remain supported in their lending.
- Transparent Disbursement: Interest subsidies are disbursed via e-vouchers and CBDC wallets, enhancing transparency and accessibility.
The PM-Vidyalaxmi scheme is a significant step toward universalizing higher education access in India, giving students the financial support needed to pursue their academic ambitions.
