Cabinet approves PM-Vidyalaxmi for collateral-free education loans
On 6 November 2024, the Union Cabinet approved PM-Vidyalaxmi, a new Central Sector scheme for collateral-free, guarantor-free education loans to students admitted to top higher education institutions.
Summary
On 6 November 2024, the Union Cabinet chaired by PM Narendra Modi approved PM-Vidyalaxmi, a new Central Sector scheme stemming from NEP 2020. It covers students admitted to the top 860 quality higher education institutions (by NIRF), more than 22 lakh students a year, through collateral-free, guarantor-free loans. Loans up to ₹7.5 lakh get a 75% government credit guarantee, and students with family income up to ₹8 lakh get 3% interest subvention on loans up to ₹10 lakh. The outlay is ₹3,600 crore for 2024-25 to 2030-31, with 7 lakh fresh students expected to get interest subvention.
Key facts
- Approved
- 6 Nov 2024, Union Cabinet
- Type
- Central Sector scheme (NEP 2020)
- Coverage
- Top 860 HEIs; 22 lakh+ students a year
- Credit guarantee
- 75% on loans up to ₹7.5 lakh
- Interest subvention
- 3% on loans up to ₹10 lakh, family income up to ₹8 lakh
- Outlay
- ₹3,600 crore, 2024-25 to 2030-31
Practice MCQs 4 questions
Under PM-Vidyalaxmi (approved 6 November 2024), education loans up to ₹7.5 lakh get what level of government credit guarantee?
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Correct answer: A — 75%
PIB (Cabinet): loan amounts up to ₹7.5 lakh will be provided a 75% credit guarantee by the Government of India.
Under PM-Vidyalaxmi, 3% interest subvention is available to students with annual family income up to:
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Correct answer: D — ₹8 lakh, on loans up to ₹10 lakh
PIB (Cabinet): students with up to ₹8 lakh annual family income get 3% interest subvention on loans up to ₹10 lakh (in addition to full subvention for income up to ₹4.5 lakh under existing schemes).
What is the outlay for PM-Vidyalaxmi for 2024-25 to 2030-31?
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Correct answer: B — ₹3,600 crore
PIB (Cabinet): an outlay of ₹3,600 crore has been made during 2024-25 to 2030-31; 7 lakh fresh students are expected to get interest subvention.
PM-Vidyalaxmi covers students admitted to how many top quality higher education institutions?
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Correct answer: C — 860
PIB (Cabinet): loans to meritorious students admitted to the top 860 quality HEIs, covering more than 22 lakh students every year.