Daily Current Affairs : 7-November-2024
The PM Vidyalaxmi Scheme, approved by the Union Cabinet under the leadership of Prime Minister Narendra Modi, aims to support meritorious students in overcoming financial barriers to higher education. By providing financial assistance, the scheme ensures that the cost of education will not prevent deserving students from attending top institutions in India.
Objective of the Scheme
The primary goal of the PM Vidyalaxmi Scheme is to offer financial aid to students who demonstrate excellence but may lack the necessary resources to pursue quality higher education. This initiative ensures that no student in India has to drop out or miss opportunities due to financial constraints.
- Key Objective: To eliminate financial hurdles for meritorious students, enabling them to access quality higher education.
Eligibility Criteria
The scheme targets students who are admitted to the top 860 Higher Education Institutions (HEIs) in India, as listed in the National Institutional Ranking Framework (NIRF).
- Eligible Students: Those admitted to these 860 institutions.
- Annual Reach: The scheme will benefit over 22 lakh students every year.
Loan Features and Benefits
The PM Vidyalaxmi Scheme provides various attractive loan options to make higher education more accessible.
- Collateral-Free Loans: Students can avail loans without the need for any collateral or guarantor.
- Digital Application Process: The loan application process is simplified and available online, making it easier for students to apply.
Credit Guarantee and Interest Subvention
To encourage banks to offer loans, the government provides additional support:
- 75% Credit Guarantee: The government offers a 75% credit guarantee for loans up to ₹7.5 lakhs, helping banks expand loan offerings.
- Interest Subvention:
- 3% Subvention: Families with an annual income of up to ₹8 lakhs receive a 3% interest reduction on loans up to ₹10 lakhs.
- Full Subvention: Students from families earning up to ₹4.5 lakhs annually are eligible for full interest subvention under the PM-USP scheme.
Unified Portal for Easy Access
The scheme will be accessible through the PM Vidyalaxmi Portal, where students can apply for loans and process interest subvention through e-vouchers and CBDC wallets.
- Portal Features: Simplifies loan applications and provides a streamlined process for interest subvention.
Complementary Support through Existing Schemes
The PM Vidyalaxmi Scheme works in synergy with other schemes like CSIS and CGFSEL under the PM-USP framework. These complementary schemes provide additional support for students pursuing technical and professional courses in approved HEIs.
Important Points:
- PM Vidyalaxmi Scheme aims to provide financial support to meritorious students, eliminating financial barriers to higher education.
- Eligibility: Available to students admitted to the top 860 HEIs in India, as per the NIRF rankings, benefiting over 22 lakh students annually.
- Loan Features:
- Collateral-free and guarantor-free loans.
- User-friendly digital application process.
- Credit Guarantee: Government provides a 75% credit guarantee on loans up to ₹7.5 lakhs, encouraging banks to expand loan offerings.
- Interest Subvention:
- 3% interest subvention for families with annual income up to ₹8 lakhs on loans up to ₹10 lakhs.
- Full interest subvention for students from families earning up to ₹4.5 lakhs (under the PM-USP scheme).
- Unified Portal: Students can apply for loans and process interest subvention through the PM Vidyalaxmi Portal using e-vouchers and CBDC wallets.
- Complementary Schemes: Works alongside existing schemes like CSIS and CGFSEL under the PM-USP framework, supporting technical and professional courses in approved HEIs.
- Annual Reach: The scheme will support over 22 lakh students every year.
Why In News
The Union Cabinet, led by Prime Minister Narendra Modi, has approved the PM Vidyalaxmi Scheme, aimed at providing financial support to meritorious students, ensuring that financial challenges do not hinder anyone in India from pursuing quality higher education. This initiative will empower deserving students to access top educational institutions without the burden of financial constraints, fostering a more inclusive and equitable educational landscape across the country.
MCQs about PM Vidyalaxmi Scheme
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What is the primary objective of the PM Vidyalaxmi Scheme?
A. To provide free higher education to all students
B. To eliminate financial barriers for meritorious students pursuing higher education
C. To offer scholarships for overseas education
D. To provide loans only for students in technical fields
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How many Higher Education Institutions (HEIs) in India are eligible under the PM Vidyalaxmi Scheme?
A. 500 HEIs
B. 860 HEIs
C. 1,200 HEIs
D. 1,500 HEIs
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What feature of the PM Vidyalaxmi Scheme makes it easier for students to access loans?
A. Loans require collateral
B. Loans are only available for professional courses
C. Loans are collateral-free and guarantor-free with a digital application process
D. Loans are provided in the form of scholarships
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