Cabinet clears PM-Vidyalaxmi scheme for collateral-free loans to students on 6th November,2024.

Tags: Government Schemes

PM-Vidyalaxmi Scheme

Why in news?

• Cabinet clearsPM-Vidyalaxmi schemefor collateral-free loans to students on 6th November,2024.
• An outlay of Rs 3,600 crore has been made for the scheme for 2024-25 to 2030-31 period and around 7 lakh fresh students are expected to benefit from the interest subvention offered under the scheme.

Aim:

• Facilitate to get  admission in Quality Higher Education Institutions (QHEIs) eligible for a collateral-free and guarantor-free education loan.

Key features:

• Students will be provided a 75% credit guarantee by the central government for loans up to Rs 7.5 lakh. 
• Students, with an annual family income of up to Rs 8 lakh,who are ineligible for benefits under any other government scholarship or interest subvention schemes, will beprovided 3% interest subvention for loan up to Rs 10 lakhduring the moratorium period.
• “The interest subvention support will be given to 1 lakh students every year.
• It will be a significant step towards empowering the Yuva Shakti and building a brighter future for our nation,”