No More Financial Barriers for Meritorious Students: Up to ₹10 Lakh Loan for Higher Education
No More Financial Barriers for Meritorious Students: Up to ₹10 Lakh Loan for Higher Education
To support meritorious students across the nation, the government has introduced an affordable loan program that will provide loans up to ₹10 lakh for higher education. This initiative aims to ensure that financial constraints no longer obstruct students' educational pursuits.
Under this new plan, eligible students from economically weaker families will be offered education loans at a minimal interest rate of 4% per annum. The program is expected to benefit around 22 lakh students enrolled in approximately 850 higher education institutions across the country.
Prime Minister Narendra Modi announced the "PM Vidya Lakshmi Yojana," which will facilitate education loans with reduced guaranteed requirements and simple repayment terms. The scheme, introduced during the Cabinet meeting, was elaborated upon by Education Minister Dharmendra Pradhan.
Key Points of the Scheme:
• Loan Details: Students pursuing higher education in India’s top 850 institutions will be able to avail of loans up to ₹10 lakh with flexible repayment terms.
• Low Interest: The loans will be offered at an annual interest rate of 4%, making it accessible for families with limited means.
• PM Vidya Lakshmi Yojana: This initiative guarantees minimal documentation requirements and reduced collateral, providing added convenience to students and their families.
Under the scheme, institutions ranked within the top 100 in the National Institutional Ranking Framework (NIRF) or other government-approved institutions will be eligible for this benefit. By 2030, the government aims to allocate ₹3,600 crore annually for these education loans. The program plans to cover 75% of tuition costs for students in top-ranking institutions.
This step aligns with the government’s objective to increase the enrolment rate in higher education to 50% by 2035, helping students from financially challenged backgrounds secure the necessary funds for quality education.
