PM Vidyalakshmi Yojana: Who gets interest waiver on education loan under PM Vidyalakshmi Yojana?

Pradhan Mantri Vidyalakshmi Yojana can help if a student finds it difficult to raise the fees for higher education due to financial problems. Under the scheme, eligible students can avail education loans without any collateral or property mortgage. Also, depending on the income of the family, the benefit of subsidy on loan interest can also be availed. The entire process from application to status checking can be done through the online portal.

What is Pradhan Mantri Vidyalakshmi Yojana?

Pradhan Mantri Vidyalakshmi Yojana is an initiative of the Central Government, which aims to provide financial assistance to students deprived of higher education due to financial reasons. Eligible students taking admission on merit basis in recognized higher educational institutions can apply for education loan under this scheme. This initiative focuses on increasing access to higher education in line with the objectives of NEP 2020.

Education loans can be availed without collateral

Under this scheme, eligible students neither need a guarantor nor need to mortgage the property to avail the education loan. The central government offers a credit guarantee of up to 75 percent on loans up to Rs 7.5 lakh. This helps banks to provide collateral-free loans to eligible students.

Interest relief based on income

Under the scheme, interest relief is given according to the annual income of the family. Eligible students with annual income up to Rs 8 lakh can get 3 percent interest subsidy on education loans up to Rs 10 lakh. At the same time, eligible students from families with annual income up to Rs 4.5 lakh can be given the benefit of full subsidy on interest as per rules.

Which students will benefit?

Eligible students getting admission through merit in the higher educational institutions prescribed under the scheme can apply for this facility. This includes institutes selected under NIRF, state government institutes ranked 101 to 200 and central government institutes. There is no family income limit for education loans, but prescribed income and other eligibility conditions are required to avail the interest subsidy.

Apply online like this

To apply under Pradhan Mantri Vidyalakshmi Yojana, students have to first register on the official portal. After this the Common Education Loan Application Form has to be filled. After entering the required information and documents in the form, students can select the bank of their choice and submit the application. Students can check their education loan application status online through the portal.