The Central Government has given a big relief to lakhs of students in the country who dream of higher education but face financial difficulties. Now, under the Pradhan Mantri Vidya Lakshmi Yojana, students can get an education loan of up to 10 lakhs without any guarantor. This initiative ensures that talented students will not have to compromise on their studies due to a lack of funds.
Key Highlights of the Scheme
Loan Amount: Students can avail loans up to 10 lakhs without a guarantor.
Eligibility: Students must secure at least 50% marks in Class 10th and 12th.
Coverage: The loan can be used for higher education in recognized institutions in India as well as reputed universities abroad.
Interest Subsidy:
Families with an annual income of up to 4.5 lakhs – 100% interest subsidy.
Families with income between 4.5 lakhs and 8 lakhs – 3% interest subsidy on loans up to 10 lakhs.
Credit Guarantee: On loans up to 7.5 lakhs, the government provides a 75% credit guarantee to reduce the risk for banks.
The government has allocated a budget of 3,600 crore for this scheme, aiming to benefit around 7 lakh new students.
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Benefits of the PM Vidya Lakshmi Yojana
No Guarantor Required – Students can apply without pledging collateral or involving a guarantor.
Financial Security – Students from economically weaker families can pursue higher education without the fear of dropping out.
Support for Abroad Studies – The scheme covers education not only in top Indian colleges but also in high-ranking foreign universities.
Government Support – With interest subsidy and credit guarantee, repayment becomes easier for students and risk-free for banks.
Who Can Apply?
Must be an Indian citizen.
Should have at least 50% marks in both Class 10th and 12th.
The family’s annual income should not exceed 8 lakhs.
Admission must be secured in a recognized institution in India or abroad.
The student/family should not be under serious financial default during the loan period.
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How to Apply for the Loan?
Students interested in availing this scheme can apply through the Vidya Lakshmi Portal, a single-window online platform for education loans.
Steps to Apply:
1. Visit the official Vidya Lakshmi Portal.
2. Register as a student and log in.
3. Fill in the Common Education Loan Application Form (CELAF).
4. Upload required documents such as mark sheets, admission letter, income proof, and ID proofs.
5. Submit the application and track loan approval status online.
Once approved, the loan amount is directly disbursed by the bank, enabling students to begin their studies without financial stress.
Conclusion
The PM Vidya Lakshmi Yojana is a transformative step by the Government of India to support bright but financially weak students. With loans up to 10 lakhs without a guarantor, interest subsidies, and support for overseas education, this scheme ensures that financial challenges will no longer hold back the dreams of aspiring students.
Students aiming for higher education in India or abroad should take full advantage of this government-backed initiative and secure their future through quality education.
