India
Easy education loan from government for people from families earning less than Rs8L/yr | India News – Times of India
Under this scheme, eligible students can secure education loans without collateral and guarantees of up to Rs 10 lakh, backed by an interest subvention.
It aims to simplify the education loan process for students admitted to institutions ranked under the National Institutional Ranking Framework (NIRF), including the top 860 Quality Higher Education Institutions (QHEIs). With an initial outlay of Rs 3,600 crore for two years, the scheme is expected to impact up to 22 lakh students annually. In a post on
The impact of the scheme will be felt mainly among students from central and state government and private institutions ranked in the top 200 of the NIRF. A unified portal will streamline the application process, allowing students to access both the loan and interest subsidy through a simple digital platform.
Education Minister Dharmendra Pradhan praised the plan and highlighted its potential to empower millions of students by addressing financial constraints that previously hindered access to quality higher education. “Prime Minister Vidyalakshmi will maximize access to higher education for deserving students and ensure that financial barriers do not deter students from achieving their goals,” he stated.
Under Prime Minister Vidyalakshmi, students have to pay interest only during their study period. For loans up to Rs 7.5 lakh, the scheme offers a 75% credit guarantee on outstanding defaults, thereby supporting banks in lending. In addition, eligible students will receive a 3% interest subsidy during the moratorium period, with priority given to those enrolled in technical and professional courses. If the family income is less than Rs 4.5 lakh, there is no upper limit for interest subsidies.
The scheme will run from 2024-25 to 2030-31 and is expected to benefit seven lakh new students every year, providing a much-needed financial lifeline to the aspiring youth.
