Union Cabinet okays Vidyalaxmi scheme

New Delhi: The Union Cabinet on Wednesday approved the PM-Vidyalaxmi scheme to provide monetary support to meritorious students for pursuing quality higher education. As per the scheme, anybody who gets admission in Quality Higher Education Institutions (QHEIs) will be eligible to get collateral-free, guarantor-free loan from banks and financial institutions to cover the full amount of tuition fees and other expenses related to the course. "A big boost to making education more accessible.

The Cabinet has approved the PM-Vidyalaxmi scheme to support youngsters with quality education. It is a significant step towards empowering the Yuva Shakti and building a brighter future for our nation," Prime Minister Narendra Modi said in a post on X. An outlay of Rs 3,600 crore has been approved for the scheme under which education loans will be facilitated to students securing admissions in top 860 QHEIs of the country based on the National Institutional Ranking Framework (NIRF). This will cover more than 22 lakh students every year.

Earlier, at a press conference here, Union minister Ashiwini Vaishnaw said, "The Cabinet has approved PM-Vidyalaxmi scheme to provide financial support to meritorious students so that financial constraints do not prevent any youth of India from pursuing quality higher education." The scheme will be applicable to the top QHEIs as determined by the NIRF rankings, including all HEIs, government and private, that are ranked within the top 100 in NIRF in overall, category-specific and domain-specific rankings, state government HEIs ranked in 101-200 in the NIRF and all central government-run institutions.

"This list will be updated every year using the latest NIRF ranking, and to begin with 860 qualifying QHEIs, covering more than 22 lakh students to be able to potentially avail benefits of PM-Vidyalaxmi, if they so desire," an official statement said. For loan amount up to Rs 7.5 lakh, the student will also be eligible for a credit guarantee of 75 per cent of outstanding default. "This will give support to banks in making education loans available to students under the scheme.