PM Vidyalaxmi Scheme

The Pradhan Mantri Vidyalaxmi Scheme, approved by the Union Cabinet on 6 November 2024, provides collateral‑free, guarantor‑free education loans to meritorious students admitted to 1,425 designated Quality Higher Educational Institutions (QHEIs). Loans up to ₹7.5 lakh are backed by a 75 % government credit guarantee and carry interest capped at the bank’s Externally Benchmarked Lending Rate + 0.5 %. A 3 % interest subvention is offered to students whose family income is up to ₹8 lakh, in addition to the full interest subsidy for families earning up to ₹4.5 lakh under the PM‑USP CSIS. The scheme is administered through a unified digital portal and a CBDC wallet, with a budget of ₹3,600 crore allocated for 2024‑2031 and an expected 7 lakh beneficiaries over seven years.