Cabinet approves PM Vidyalaxmi scheme for students to avail easy loans for higher education

Union Cabinet has approved a caller strategy PM Vidyalaxmi, targeting middle-class students who privation to get admittance into higher acquisition institutions but look fiscal constraints.

Any pupil who secures admittance to higher acquisition Institutions and wishes to avail of acquisition loans to prosecute higher acquisition successful these institutions volition beryllium eligible to get the indebtedness done the PM Vidyalaxmi scheme

"Such loans volition beryllium collateral-free and guarantor-free" Union Information Minister Ashwini Vaishnaw informed reporters aft the Cabinet meeting.

A maximum of 1 lakh students each twelvemonth volition beryllium covered nether the scheme.

A pupil having yearly household income up to Rs 8 lakh shall beryllium eligible to get 3 per cent involvement subvention for acquisition loans up to Rs 10 lakh.

This is successful summation to the afloat involvement subvention already offered to students with up to Rs. 4.5 lakh yearly household income.

The authorities said that nary meritorious pupil volition beryllium denied of higher acquisition owed to fiscal constraints.

The Department of Higher Education volition hole a database of high-quality Institutions each twelvemonth that volition see Top 100 ranked institutes successful the overall/ category-specific and/or domain-specific rankings successful NIRF; positive Top 200 ranked HEIs of the State/UT Govt. successful NIRF; positive each remaining HEls nether Gol.

Loan applications shall beryllium processed for approval, monitoring and disbursal done the PM-Vidyalaxmi portal.

Loans up to Rs 7.5 lakh shall beryllium eligible for a recognition warrant of 75 per cent of outstanding default.