The PM Vidyalakshmi Yojana was approved in the Modi Cabinet meeting in New Delhi on Wednesday. In this, the Government of India will provide 75% credit guarantee on loans up to Rs 7.5 lakh for higher education.
Children of families with an annual income of Rs 8 lakh will also be given 3% interest subsidy on loans up to Rs 10 lakh. Students with annual income up to Rs 4.5 lakh are already getting full interest subsidy.
More than 22 lakh students of 860 major higher education centers of the country will come under the ambit of this scheme.
In a meeting of the Union Cabinet chaired by Prime Minister Narendra Modi, it was said that the objective of this scheme is to provide support to gifted students so that money does not become a hindrance to their studies.
The PM Vidyalakshmi Yojana is an extension of the National Education Policy, 2020.