New Delhi [India], November 6 : Union Cabinet has approved a new scheme PM Vidyalaxmi, targeting middle-class students who wish to get admission into higher educational institutions but face financial constraints.
Any student who secures an admission to higher education Institutions and wishes to avail education loans to pursue higher education in these institutions will be eligible to get the loan through the PM Vidyalaxmi scheme
"Such loans will be collateral-free and guarantor-free" Union Information Minister Ashwini Vaishnaw informed reporters after the Cabinet meeting.
A maximum of one lakh students each year will be covered under the scheme.
A student having annual family income up to Rs 8 lakh shall be eligible to get three per cent interest subvention for education 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 lakh annual family income
The government said that no meritorious student will be denied of higher education due to financial constraints
The Department of Higher Education will prepare a list of high-quality Institutions every year that will include Top 100 ranked institutes in the overall/ category-specific and/or domain specific rankings in NIRF; plus Top 200 ranked HEIs of the State/UT Govt. in NIRF; plus all remaining HEls under Gol.
Loan applications shall be processed for approval, monitoring and disbursal through the PM-Vidyalaxmi portal.
Loans up to Rs 7.5 lakh shall be eligible for a credit guarantee of 75 per cent of outstanding default.
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