NEW DELHI: The government on Wednesday approved the PM-Vidyalaxmi scheme, allocating Rs 3,600 crore over five years beginning in the fiscal year 2024-25. The initiative aims to provide financial aid to meritorious students admitted to Quality Higher Education Institutions (QHEIs), both private and public.In another key decision, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved a Rs 10,700 crore equity infusion into the Food Corporation of India (FCI) for the financial year 2024-25.Addressing the media after the Union Cabinet meeting, Information and Broadcasting Minister Ashwini Vaishnaw said the PM-Vidyalaxmi scheme is designed so that deserving candidates “do not face financial constraint” in pursuing quality higher education. He highlighted that the scheme’s key features are rooted in the National Education Policy 2020.Students with an annual family income of up to Rs 8 lakh will be eligible for a 3 per cent interest subvention on education loans up to Rs 10 lakh. Additionally, there will be no requirement for collateral or a guarantor. Vaishnaw added that the process of availing of loan facilities will be fully digital, involving both public and private scheduled banks.Union Education Minister Dharmendra Pradhan praised the initiative, calling it “a significant measure to provide financial support to meritorious students under the Central Sector.” He expressed gratitude to PM Modi, emphasising that the scheme “will help universalise access to 21st-century higher education for India’s talented youth.”According to an official notification, the scheme, with a mission-oriented approach, will benefit over 22 lakh students annually. It will extend education loans to students enrolling in the top 860 prestigious higher education institutions across the country. The Rs 3,600 crore expenditure has been allocated for the period between 2024-25 and 2030-31.The Department of Higher Education will launch a consolidated portal called “PM-Vidyalaxmi,” through which students can apply for education loans and interest subvention from all banks.The scheme will complement the Central Sector Interest Subsidy (CSIS) and Credit Guarantee Fund Scheme for Education Loans (CGFSEL), both part of the PM-USP initiative. Under the PM-USP CSIS programme, students from families with an annual income of up to Rs 4.5 lakh, enrolled in technical or professional courses at approved institutions, will continue to be eligible for full interest subvention on education loans up to Rs 10 lakh during the moratorium period.“PM-Vidyalaxmi and PM-USP will together provide holistic support to all deserving students, enabling them to pursue higher education in quality HEIs and technical or professional education in approved institutions,” the statement added.
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