Education has always been seen as a key to wealth-related development, social mobility and national progress. However, financial limitations can be a huge barrier for many Indian aspiring students to pursue higher education, especially when it comes to enrolling in elite universities to obtain a degree.
In response to this difficulty, the Government of India, led by the Prime Minister of India, Shri Narendra Modi, has launched the revolutionary PM VidyaLaxmi Scheme, which provides financial assistance to students belonging to underprivileged families.
For children who want to continue their studies by going to college, but do not have any financial support to do so, the program of this scheme provides an important lifeline.
Today in this article we are going to talk about Pradhan Mantri VidyaLaxmi Scheme, if you also want to know about this scheme in detail, then read this article till the end, so let’s start the article.
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What is PM VidyaLaxmi Scheme?
The main objective of the PM VidyaLaxmi Scheme is to enable talented individuals belonging to disadvantaged social wealth groups to receive a good and higher education without facing financial barriers. The scheme is a component of the larger objective stated in India’s National Education Policy (NEP), which aims to provide access to high-quality education to all students regardless of their financial status.
In a recent review, Dakshina Kannada MP Shri Brijesh Chowta has highlighted that the scheme is expected to provide substantial assistance to all students who are struggling financially.
According to him, the program will make it possible for thousands of deserving children from low-income families to attend respectable universities in India and even outside India. Under this scheme, children of families having annual income less than Rs. 8 lakh will be specially benefited.
PM VidyaLaxmi Scheme Key Features
1. Providing financial assistance for higher education
The main feature of PM VidyaLaxmi Scheme is that it provides financial assistance to needy students in the form of education loan for higher education. Under this scheme, students from families earning less than Rs 8 lakh per year are provided with collateral-free loans up to Rs 7.5 lakh.
75% of this type of loan is assured by the government, which will provide financial assistance to the banks. 75% of these loans will be guaranteed by the government, which reduces the financial crisis for the banks and also provides the convenience of financing for the students.
Along with this, under this scheme, students from families earning more than Rs 8 lakh per year are provided loans up to Rs 10 lakh with a subsidy of 3% interest. This scheme guarantees that this program is available to children from high-income families, even then they face financial difficulties.
2. Loan through VidyaLaxmi Portal
Vidya Laxmi Portal is a one-stop shop for students looking for education loan. This portal is an important and cutting edge feature of the scheme’s program. This IT-enabled portal streamlines the loan application process and also gives students access to information on school loan programs offered by a variety of banks. The main design of the portal is designed to make the process simple and clean.
Using a single application form, students can apply for school loans from a variety of banks and also check the real-time status of their applications. Through the integration of the platform with government scholarship programs, students can easily access a wide range of financial aid opportunities.
3. Loan guarantee and subsidy under PM VidyaLaxmi Scheme
As per the PM VidyaLaxmi Scheme, a very large amount of student loan is being provided by the government as a companion for the students of the poor class. Due to this scheme of the government, the crisis for the institutions giving student loans to the students has been reduced even more. It has become easier to provide loans under this scheme for students belonging to families who earn very little income in a year.
This is mainly very important. However, it is mandatory for the students to provide security on their behalf for loans above Rs 7.5 lakh. Despite this, the process of student loan has been made quite easy. Apart from this, a 3% APR discount is provided to the students for loans above Rs 8 lakh under the scheme.
This has reduced the financial burden on the students even more than before. Due to this scheme, it has become even easier for poor students to complete their higher education degree.
Eligibility Criteria for the PM VidyaLaxmi Scheme
Under the PM VidyaLaxmi Scheme, students belonging to poor families must fulfill some important eligibility criteria to get the benefit of the scheme. These criteria decide that the benefit of the scheme should be given only to those poor students who need this scheme the most.
1. Income Criteria
This scheme is mainly designed for those families whose annual income is less than Rs 8 lakh. Students belonging to these families will be provided a total collateral-free loan of Rs 7.5 lakh under this scheme by the government. Along with this, a maximum amount of Rs 10 lakh will be provided under this scheme to students from families earning an annual income of more than Rs 8 lakh, but to get this, they will have to fulfill some conditions.
2. Course Eligibility
To avail the benefits under PM VidyaLaxmi Scheme, students will have to pursue a degree in a specific course. These courses include many courses like engineering, medical science, law, management, and other professional and technical subjects. Apart from this, courses run by prestigious international institutions for students pursuing higher education abroad are also included under this scheme.
3. Circuit of Recognised Institutions
To avail the benefits under PM VidyaLaxmi Scheme, students must take admission in recognized institutions in India or abroad. The institutions must be approved by government bodies such as the University Grants Commission (UGC), the All India Council for Technical Education (AICTE), or similar regulatory bodies.
4. No Collateral for Loans Up to Rs 7.5 Lakh
Under the PM VidyaLaxmi Scheme, students are not required to provide any security for student loans up to Rs 7.5 lakh. However, for loans above Rs 7.5 lakh, banks may ask for proper security.
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Rate of interest of PM Laxmi Vidya Scheme
The interest rate for taking a student loan under the PM VidyaLaxmi Scheme depends on the lending bank and the loan amount taken. Under this scheme, the interest rates for student loans up to Rs 7.5 lakh have been generally fixed from 8.4% to 12.75%. The interest rate may be slightly lower for loans above Rs 7.5 lakh.
The repayment period for repaying the student education loan has been fixed up to 15 years, so that the student can repay the loan in installments even after completing his studies. The moratorium period of the loan is the time after which there is no need to make any repayment. Generally, it is one year after the completion of the course or six months after getting a job, whichever is earlier.
Benefits of the PM VidyaLaxmi Scheme
The PM VidyaLaxmi Scheme offers several key benefits to students:
- Easy Access to Loans: The VidyaLaxmi Portal provides a simplified and streamlined process for students to apply for loans from multiple banks.
- Reduced Financial Barriers: The collateral-free loans and interest subsidies reduce the financial burden on students and their families, making higher education more accessible.
- Wide Coverage of Courses: The scheme covers a broad spectrum of courses, both in India and abroad, enabling students to pursue their educational aspirations in their chosen field.
- Government Support: The loan guarantee and interest subsidy schemes provide additional support to students from economically disadvantaged backgrounds.
- Transparency and Tracking: The portal’s real-time tracking system ensures transparency, allowing students to monitor the status of their loan applications easily.
Conclusion
By providing students with loans without any collateral, the PM Vidyalaxmi Scheme increases students’ access to higher education. It reduces the financial burden of school expenses by supporting top NIRF-ranked universities and providing more financial aid options. If you want to continue your education, this scheme is a great way to get the funds you need by eliminating your money worries.