News: The Union Cabinet has approved PM Vijaylaxmi scheme to provide financial support to meritorious students in their pursuit of higher education.
1. PM Vijaylaxmi scheme is a central sector scheme designed to provide collateral-free, guarantor-free loans from banks and financial institutions to cover the full amount of tuition fees and other expenses related to the course in higher education.
2. Any student who secures admission in any of the top 860 Quality Higher Education Institutions (QHEIs) is eligible to get benefits under the scheme.
3. The scheme will potentially benefit 22 lakh students.
4. It provides a 75% credit guarantee for loans up to Rs. 7.5 lakhs. There is also a provision for 3% interest subvention for loans up to Rs. 10 lakhs during the moratorium period for students with family income of up to Rs. 8 lakhs.
5. An allocation of Rs. 3600 crore has been made for the period 2024-25 to 2030-31.
