THE JHARKHAND STORY DESK
New Delhi, Nov 6: The Union Cabinet has approved the PM Vidyalaxmi scheme, a new initiative aimed at supporting middle-class students who aspire to pursue higher education but struggle with financial barriers.
Any student who gains admission to higher education institutions and seeks an education loan to fund their studies will be eligible for the PM Vidyalaxmi scheme.
Union Information Minister Ashwini Vaishnaw informed reporters following the Cabinet meeting that the loans provided under the PM Vidyalaxmi scheme will be both collateral-free and guarantor-free.
Also Read- I am no stranger to difficult poll races, says Jharkhand BJP chief Babulal Marandi
Students from families with an annual income of up to Rs 8 lakh will be eligible for a three per cent interest subsidy on education loans of up to Rs 10 lakh.
The scheme will cover up to one lakh students annually.
Loan applications will be reviewed, monitored, and approved for disbursement via the PM-Vidyalaxmi portal.
Loans up to Rs 7.5 lakh will be eligible for a credit guarantee covering 75 percent of the outstanding default amount.
