PM-Vidya Laxmi Scheme

The Union Cabinet chaired by the Prime Minister approved a new Central Sector scheme, PM Vidya Laxmi for Higher Education support.

About PM Vidya Lakshmi Scheme

Objective: To provide financial support to meritorious students for pursuing higher education by offering easy access to loans.
- The scheme builds on the foundation set by the National Education Policy (NEP) 2020.

Objective: To evaluate and rank Indian institutions across various parameters for quality improvement and informed student choice.
Launch: Established by the Ministry of Education in November 2015.
Ranking Parameters: Institutions are ranked on five parameters
- Teaching, Learning & Resources (30%)
- Research & Professional Practice (30%)
- Graduation Outcomes (20%)
- Outreach & Inclusivity (10%)
- Perception (10%).
Categories: NIRF ranks institutions in diverse categories such as ‘Overall’, ‘Research Institutions’, ‘Universities’, ‘Colleges’, and specific fields like engineering, management, pharmacy, law, etc.
2024 Additions: Introduced new categories; State Public Universities, Open Universities, Skill Universities and also incorporated an “Innovation” ranking.

Eligibility: Students admitted to top 860 Quality Higher Education Institutions (QHEIs) in India, including top-ranked institutions in National Institutional Ranking Framework (NIRF) and select State and Central government HEIs.
Digital and transparent process: The scheme will be administered via a dedicated PM-Vidyalaxmi portal, providing a fully digital application system.
- Payment of interest subvention will be made through E-voucher and Central Bank Digital Currency (CBDC) wallets
Loan Features:
- Collateral-Free Loans: Students can avail loans without collateral or guarantors to cover full tuition and course-related expenses.
- Credit Guarantee: Loans up to ₹7.5 lakh have a 75% credit guarantee, encouraging banks to extend loans.
- Interest Subvention: For students from families with an annual income up to ₹8 lakh, a 3% interest subsidy on loans up to ₹10 lakh during the moratorium period.
- Preference for technical/professional courses in government institutions.
Beneficiaries: Aimed at benefiting around 22 lakh students, with 1 lakh students receiving interest support annually.
Budget: An outlay of ₹3,600 crore for 2024-25 to 2030-31, targeting 7 lakh new students under the interest subvention program over this period.

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