How does PM Vidyalaxmi differ from other schemes?

Sub: Schemes

Sec: Education

Context:

Recently, the Union Cabinet approved the PM Vidyalaxmi Scheme, a Central Sector Scheme aimed at providing financial support to meritorious students applying for higher education.

About PM Vidyalaxmi Scheme:

It is a Central Sector Scheme that offers collateral-free and guarantor-free loans for meritorious students applying to higher education institutions ranked under the National Institutional Ranking Framework (NIRF).

Coverage:

Only NIRF-ranked institutions (approximately 860) qualify.
Students with annual family income up to ₹8 lakh, who are not covered by other government scholarships.
Priority is given to students from government institutions pursuing technical or professional courses.

Loan Features:

Covers full tuition fees and related expenses.
Loans up to ₹10 lakh come with a 3% interest subvention during the moratorium period for 1 lakh students annually.

Comparison with previous schemes:

Broader coverage: Unlike earlier schemes, which focused on low-income groups, PM Vidyalaxmi extends support to middle-income families, irrespective of caste.
Eligible institutions:
- Earlier schemes required institutions to be accredited by NAAC (National Assessment and Accreditation Council) or NBA (National Board of Accreditation), covering about 20,000 institutions.
- PM Vidyalaxmi restricts eligibility to institutions within the top 100 in NIRF rankings, significantly reducing the number.
Simplified process: The centralized Vidyalaxmi portal ensures a more streamlined and transparent loan application process.