PM Vidya Lakshmi Yojana: Education is the key to a better future. But for many Indian families, especially those with low or middle incomes, the cost of education is a major challenge. To help with this, the Indian government introduced the PM Vidya Lakshmi Education Loan Yojana. This program offers affordable loans for higher education, supporting students from financially weaker backgrounds to reach their academic dreams.
Approved by Prime Minister Narendra Modi’s cabinet on November 6, 2024, this scheme allows students to apply for loans up to ₹10 lakh without needing any collateral. It also offers an interest subsidy, making the loan even more affordable.
Advertisement
- PM Vidya Lakshmi Yojana
- Benefits of the PM Vidya Lakshmi Yojana 2024
- Eligibility Criteria for PM Vidya Lakshmi Yojana
- PM Vidya Lakshmi Loan Yojana Apply Online
- Difference Between PM Vidya Lakshmi and Other Government Education Loans
- FAQs on PM Vidya Lakshmi Education Loan Yojana
PM Vidya Lakshmi Yojana
| Scheme Name | PM Vidya Lakshmi Education Loan Yojana |
| Launched By | Prime Minister Narendra Modi |
| Launch Date | November 6, 2024 |
| Purpose | To provide affordable loans for higher education to financially weaker students |
| Priority Courses | Technical or vocational courses, especially in government institutions |
| Annual Budget | ₹3,600 crore (goal to support 7 lakh students by 2031) |
| Difference from Other Schemes | Includes a broader interest subsidy, unlike PM-USP CSIS and PM-USP CGFSEL |
| Vidya Lakshmi Site | Official website |
The Pradhan Mantri Vidya Lakshmi Yojana aims to make quality higher education accessible to all. Here are the major highlights:
- Loan Amount: Up to ₹10 lakh for eligible students.
- Interest Subsidy: 3% discount for families with annual incomes up to ₹8 lakh.
- No Collateral Required: No security or guarantee needed for the loan.
- Eligibility: Available to students admitted to India’s top 860 educational institutions.
- Priority for Technical Courses: Preference given to students in technical or vocational programs at government institutions.
- Limited Availability: Interest subsidy offered to 1 lakh students per year.
- Full Interest Waiver: Families earning up to ₹4.5 lakh per year get a complete interest waiver on loans up to ₹10 lakh.
Benefits of the PM Vidya Lakshmi Yojana 2024
The PM Vidya Lakshmi Education Loan Yojana offers several benefits to students and their families, as shown in the table below:
Advertisement
| Feature | Details |
|---|---|
| Loan Amount | Up to ₹10 lakh |
| Interest Discount | 3% for families earning up to ₹8 lakh |
| Full Interest Waiver | Available for families earning up to ₹4.5 lakh |
| Collateral Requirement | None |
| Eligible Institutions | 860 top institutions |
| Annual Beneficiaries | 1 lakh students |
| Application Mode | Digital application via PM-Vidyalakshmi portal |
This initiative aims to provide relief to around 7 lakh students by 2031, thanks to a budget of ₹3,600 crore allocated by the government.
Eligibility Criteria for PM Vidya Lakshmi Yojana
Here are the eligibility criteria for the PM 20204 Vidya Lakshmi Loan Yojana:
- Annual Family Income: Students from families earning up to ₹8 lakh per year are eligible.
- Admission to Top Institutions: The student must be admitted to one of the top 860 institutions ranked by NERF.
- Priority for Technical or Vocational Courses: Preference is given to students pursuing technical or vocational courses, especially in government institutions.
- No Other Scholarships: Students already receiving government scholarships are not eligible for this scheme.
PM Vidya Lakshmi Loan Yojana Apply Online
Here’s a simplified guide to applying for the Education Loan PM Vidya Lakshmi Yojana:
Advertisement
- Visit the PM-Vidyalakshmi Portal: Go to the official portal provided by the Higher Education Department.
- Click on “Apply Now”: On the portal homepage, select the “Apply Now” button.
- Fill Out Personal Details: First Name, Middle Name (Optional), Last Name, Mobile Number, Email ID, Password, Confirm Password, Enter the Captcha, then click Submit.
- Complete the Application Form: Provide all the necessary details in the application form.
- Upload Required Documents: Aadhar Card, Passport-Sized Photo, Previous Education Certificates, Admission Letter from the Institution, Institution ID Card
- Apply for Interest Waiver: Eligible students can apply for the interest waiver on the portal.
- Verification and Approval: The application will undergo verification. Once approved, the interest waiver is granted through an e-voucher and a Central Bank Digital Currency (CBDC) wallet.
Difference Between PM Vidya Lakshmi and Other Government Education Loans
The PM loan Vidya Lakshmi Education Yojana stands apart from other loan schemes under the PM-USP (Prime Minister’s Unnat Shiksha Protsahan) program, which includes:
- Central Sector Interest Subsidy (PM-USP CSIS): This provides a full interest waiver on loans up to ₹10 lakh for students from families earning up to ₹4.5 lakh annually.
- Credit Guarantee Fund Scheme for Education Loans (PM-USP CGFSEL): Offers a credit guarantee for educational loans, reducing the financial risk for lenders.
The PM Vidya Lakshmi Yojana is broader, reaching more students and adding an interest subsidy to make higher education more accessible for economically weaker families…
FAQs on PM Vidya Lakshmi Education Loan Yojana
Q1: What is the maximum loan amount available under the PM Vidya Lakshmi Yojana?
A1: Students can receive a loan of up to ₹10 lakh under this scheme.
Q2: Is there an interest subsidy on this loan?
A2: Yes, students from families earning up to ₹8 lakh annually will receive a 3% interest discount. For families earning up to ₹4.5 lakh, a full interest waiver is available.
Q3: Do students need to provide collateral for this loan?
A3: No, this loan does not require any collateral or guarantee.
Q4: How can I apply for this education loan?
A4: Applications can be submitted digitally through the PM-Vidyalakshmi portal, where students can also apply for the interest waiver.
Q5: Is there a limit to the number of students who can receive the interest subsidy each year?
A5: Yes, the interest subsidy is available to 1 lakh students each year.
Q6: Can students who already have a government scholarship apply for this scheme?
A6: No, students who are already receiving government scholarships are not eligible for the PM Vidya Lakshmi Yojana
The PM Vidya Lakshmi Education Loan Yojana is a powerful initiative to make higher education more affordable and accessible for students across India. By providing financial support without requiring collateral, the government is opening doors for students to achieve their academic dreams. This scheme offers hope to families who want quality education for their children, ensuring that financial limitations don’t block the path to a brighter future.
Advertisement