Around 2.2 million students across India have expressed gratitude to Prime Minister Narendra Modi for the PM Vidyalakshmi Scheme, which now allows them to pursue their studies without financial burdens or the need for collateral. Students only need to prove their dedication by performing well academically. The scheme, approved by the Union Cabinet, offers interest-free and collateral-free loans, with the central government covering 75% of the loan guarantee. Eligible students can receive up to ₹10 lakh without collateral for higher education.
The PM Vidyalakshmi Scheme aims to provide financial support to economically challenged students, ensuring they can pursue higher studies at over 860 premier institutions across the country. Assistance extends to students in both government and private institutions, focusing on those who demonstrate academic excellence. The scheme, part of the National Education Policy initiative, will benefit around 100,000 students each year through interest subsidies.
Additionally, the Cabinet approved a ₹10,700 crore capital investment for the Food Corporation of India (FCI) as working capital for the financial year.
Students pursuing selected technical and professional courses at educational institutions can apply for these loans and interest subsidies through a simple, universal application process accessible at all banks. Interest subsidies will be provided via e-vouchers and Central Bank digital currency wallets, simplifying financial access for students.
