Context 

• The Union Cabinet has approved the PM-Vidyalaxmi scheme, outlying Rs 3,600 crore for the period from 2024-25 to 2030-31.

About the scheme

• The PM Vidyalaxmi is a Central Sector scheme that seeks to provide financial support to meritorious students who pursue higher studies. 

• Under the scheme, any student who gets admission in Quality Higher Education Institution (QHEIs) will be eligible to get collateral free, guarantor free loan from banks and financial institutions.  
• The Quality higher education institutions (QHEIs) will be determined by NIRF rankings. 

• The scheme will be applicable to all institutions, including government and private, in the top 100 in overall and in other domain-specific rankings as well as, State government institutions ranked 101 to 200, and additionally all Centre-run institutions.
• The list will be updated based on NIRF rankings each year. Initially, 860 qualifying QHEIs will be covered under the scheme.

• The scheme outlines the narrative of the National Education Policy, 2020, which had recommended that financial assistance should be made available to meritorious students through various measures in both public and private HEIs. 

Eligibility Criteria 

The following categories are eligible for this scheme,  

• Students having an annual family income of up to ₹ 8 lakhs and not eligible for benefits under any other government scholarship or interest subvention schemes. 
• Also, preference will be given to students who are from government institutions and have opted for technical/ professional courses. 

Implementing Agency

• The Union Ministry of Education (MoE) is primarily responsible for the implementation and monitoring of the PM-Vidya Lakshmi Scheme.
• Alongwith, the Department of Higher Education will have a unified portal “PM-Vidyalaxmi” on which students will be able to apply for the education loan as well as interest subvention.