‘I thank PM Modi for approving PM Vidyalaxmi scheme,’ says UGC Chairman

New Delhi [India], November 6 (ANI): Responding to the approval of the PM Vidyalaxmi scheme, University Grants Commission (UGC) Chairman M Jagadesh Kumar on Wednesday expressed gratitude to Prime Minister Narendra Modi, noting that the scheme will enable numerous students from socially and economically disadvantaged backgrounds to pursue higher education.
"I thank Prime Minister Modi for approving this scheme. It will provide students from socially and economically weaker sections with loans of up to Rs 7.5 lakh. Students can apply easily, with no need for a guarantor... This will benefit many students... We hope that this scheme will allow a large number of students from these backgrounds to pursue higher education," said the UGC Chairman.
Under the scheme, any student admitted to a higher education institution can apply for an education loan via the PM Vidyalaxmi scheme.
"These loans will be collateral-free and guarantor-free," stated Union Information Minister Ashwini Vaishnaw to reporters following the Cabinet meeting.
The scheme will benefit up to one lakh students each year.
Students with an annual family income of up to Rs 8 lakh are eligible for a three per cent interest subsidy on education loans of up to Rs 10 lakh. Additionally, a full interest subsidy is available to students with an annual family income of up to Rs 4.5 lakh.
The government has emphasised that no deserving student will be denied higher education due to financial constraints.
Each year, the Department of Higher Education will compile a list of high-quality institutions, including the top 100 ranked institutes in overall, category-specific, or domain-specific rankings in the NIRF, the top 200 state/UT government HEIs in the NIRF, and other HEIs under the Government of India.
Loan applications will be processed, approved, monitored, and disbursed through the PM Vidyalaxmi portal.
Loans of up to Rs 7.5 lakh will be eligible for a credit guarantee covering 75 per cent of any outstanding default. (ANI)