New Delhi [India], November 7 : Union Home Minister Amit Shah congratulated Prime Minister Narendra Modi and the nation's youth after the 'PM Vidyalakshmi' Scheme was approved in the Union Cabinet on Wednesday.
The new scheme is aimed at helping middle-class students overcome financial hurdles to higher education, the scheme provides collateral-free and guarantee-free educational loans.
In a post shared on X, Union Home Minister Amit Shah commended PM Narendra Modi for ensuring that financial constraints will no longer stand in the way of deserving students. Amit Shah wrote this scheme envisions a guarantee-free and collateral-free educational loan scheme, PM Modi has ensured that no student is deprived of the education they deserve.
"Congratulations to our youth on the approval of the 'PM Vidyalakshmi' Scheme in the Union Cabinet today, removing a major obstacle on their path to success. By envisioning a guarantee-free and collateral-free educational loan scheme, Modi Ji has ensured that no student is deprived of the education they deserve because of their financial condition," his post read on X
"My heartfelt gratitude to Modi Ji for the landmark decision to provide our youth with the nurturing to bloom as the pioneers of our nation's future," a post shared by Union Home Minister Amit Shah on X.
Earlier today, the Union Cabinet 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 higher education due to financial constraints.
The Department of Higher Education will prepare a list of high-quality Institutions every year that will include the Top 100 ranked institutes in the overall/ category-specific and/or domain-specific rankings in NIRF; plus the 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.