Cabinet approves PM Vidyalaxmi scheme for students to avail easy loans for higher education
This is in addition to the full interest subvention already offered to students with up to Rs. 4.5 lakh annual family income
Union Cabinet has approved a new scheme PM Vidyalaxmi, targeting middle-class students who wish to get admission into higher educational institutions but face financial constraints.
Any student who secures admission to higher education Institutions and wishes to avail of education loans to pursue higher education in these institutions will be eligible to get the loan through the PM Vidyalaxmi scheme
"Such loans will be collateral-free and guarantor-free" Union Information Minister Ashwini Vaishnaw informed reporters after the Cabinet meeting.
A maximum of one lakh students each year will be covered under the scheme.
A student having annual family income up to Rs 8 lakh shall be eligible to get three per cent interest subvention for education loans up to Rs 10 lakh.
This is in addition to the full interest subvention already offered to students with up to Rs. 4.5 lakh annual family income.
The government said that no meritorious student will be denied of higher education due to financial constraints.
The Department of Higher Education will prepare a list of high-quality Institutions every year that will include Top 100 ranked institutes in the overall/ category-specific and/or domain-specific rankings in NIRF; plus Top 200 ranked HEIs of the State/UT Govt. in NIRF; plus all remaining HEls under Gol.
Loan applications shall be processed for approval, monitoring and disbursal through the PM-Vidyalaxmi portal.
Loans up to Rs 7.5 lakh shall be eligible for a credit guarantee of 75 per cent of outstanding default.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
Retirement Planning: In how many years your Rs 25K monthly SIP investment will grow to Rs 8.8 cr | See calculations
Top 5 Small Cap Mutual Funds with best SIP returns in 1 year: See how Rs 25,000 monthly investment has grown in each scheme
Top 7 SBI Mutual Funds With Best SIP Returns in 1 Year: Rs 25,000 monthly SIP investment in No.1 fund has jumped to Rs 3,58,404
Top 7 Mid Cap Mutual Funds With up to 41% SIP Returns in 5 Years: No 1 fund has converted Rs 15,000 monthly investment into Rs 23,84,990
SBI 5-Year FD vs MIS: Which can offer higher returns on a Rs 2,00,000 investment over 5 years? See calculations
03:42 PM IST