PM-Vidyalaxmi Scheme

IAS Current Affairs

1 month ago

Source: PIB
GS II: Government Schemes

Overview

Why in the News?

Cabinet approves PM-Vidyalaxmi scheme to provide financial support to meritorious students.

The scheme will help those who have financial constraints that prevent any youth of India from pursuing quality higher education.
PM Vidyalaxmi is another key initiative stemming out of the National Education Policy, 2020.
Financial assistance should be made available to meritorious students through various measures in both public and private HEIs.

Under the PM Vidyalaxmi scheme, any student who gets admission in quality Higher Education Institutions (QHEIs) will be eligible to get collateral-free, guarantor-free loans from banks and financial institutions.
It will cover the full amount of tuition fees and other expenses related to the course.
The scheme will be administered through a simple, transparent and student-friendly system that will be inter-operable and entirely digital.

Eligible Educational Institutions

To begin start with 860 qualifying Quality Higher Education Institutions (QHEIs).
Applicable to the top-quality higher educational institutions of the nation
As determined by the NIRF rankings.
This includes all HEIs, government and private, that are ranked within the top 100 in National Institutional Ranking Framework (NIRF) in overall, category-specific and domain-specific rankings; state government HEIs ranked 101-200 in NIRF and all central government-governed institutions.
This list will be updated every year using the latest NIRF ranking.
For loan amounts up to ₹ 7.5 lakhs, the student will also be eligible for a credit guarantee of 75% of outstanding default.

Interest Subvention

students having an annual family income of up to ₹ 8 lakhs, and not eligible for benefits under any other government scholarship or interest subvention schemes, 3 percent interest subvention for loan up to ₹ 10 lakhs will also be provided during moratorium period.
The interest subvention support will be given to one lakh students every year.
Preference will be given to students who are from government institutions and have opted for technical/ professional courses.
Funding and Beneficiaries
- An outlay of ₹ 3,600 Crore has been made during 2024-25 to 2030-31.
- 7 lakh fresh students are expected to get the benefit of this interest subvention during the period.

Approved by the MHRD and launched by Minister of Human Resource Development on 29th September 2015.
Purpose: This framework outlines a methodology to rank institutions across the country.
The methodology draws from the overall recommendations broad understanding arrived at by a Core Committee set up by MHRD.
The parameters broadly cover
- Teaching, Learning and Resources
- Research and Professional Practices
- Graduation Outcomes
- Outreach and Inclusivity
- Perception

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