PM Vidyalaxmi education loan scheme: Key features, eligibility, and application process explained | Mint
Source: Live Mint
For any student aspiring to pursue higher education, having a good score is crucial to getting admission to any good institution. Apart from good scores, having enough finances to fund education is equally important. However, many students in India cannot afford higher education. In order to help such students, the government of India has stepped in to help meritorious students who lack enough finances to fund education.
The Union Cabinet approved the Pradhan Mantri Vidyalaxmi (PM Vidyalaxmi) scheme in November 2024. This Central Sector Scheme will provide loans to meritorious students who cannot afford quality higher education.
Through this scheme, the government plans to provide financial support to students for admission into the top 860 higher educational institutes, which will benefit more than 22 lakh students every year.
Interest rate of the PM Vidyalaxmi scheme
The interest rate for loans under PM-Vidyalaxmi will be less than the interest rate charged by the bank on education loans not covered under PM-Vidyalaxmi. Individual banks will be free to charge interest lower according to their policy.
Repayment period of PM Vidyalaxmi scheme
The repayment period of the education loan is up to 15 years, excluding the moratorium period. If the loan amount is above a certain threshold, to be decided by individual banks, the bank may take life insurance cover of the student borrower. The insurance premium can be included in the education loan amount, depending on the request of the borrower.
In conclusion, the PM Vidyalaxmi scheme is a move towards providing high-quality education to aspiring students. It is essential for students to know the process, requirements and other features of the scheme to avail the loan timely.
(Note: Raising a loan comes with its own risks. So, due caution is advised)
