PM Vidyalakshmi Yojana: How It Differs From Education Loans, Who Will Get benefit? Know Difference!

The central government approved the Pradhan Mantri Vidyalakshmi Yojana (PMVY). PMVY will ensure that no youth will be hindered in getting better higher education due to financial problems. launched by Prime Minister Narendra Modi , PM Vidyalaxmi Scheme has brought a new opportunity for the students. This scheme has been specially designed keeping in mind to provide financial assistance to meritorious students for higher education. So that no student is deprived of higher education due to lack of money.

Although it is a financial assistance scheme like education loans, this scheme is different from traditional education loans in many ways. Let us know how PM Vidyalakshmi Yojana is different from 'education loan' and what are its benefits.

Loan Without Guarantor

Under the Pradhan Mantri Vidyalakshmi Yojana, any student who takes admission in a quality higher education institution will be able to get a loan from a bank or other financial institution without any loan or collateral for the entire expenditure incurred in pursuing education.

Students can apply online to get financial assistance. Its system has been made very easy and transparent for the students. Which can be operated digitally.

Education Loan With Scholarships

PM Vidyalakshmi Yojana not only provides loans but also scholarships. Along with education, students also get other financial assistance services under this scheme, such as bank loans, scholarships and concessions on loans. On the other hand, education loans only provide a loan facility, which has to be paid later with interest. There is no provision for scholarship in this.

How Much Loan Will You get?

Under this scheme, students will be entitled to get a loan of Rs 10 lakh. Out of which students will also be entitled to get a credit guarantee for default of up to Rs 7.5 lakh i.e. 75% of the loan amount. That is, if 75% of the student loan amount will be paid.

The loan amount under the PM Vidyalakshmi Yojana is determined according to the education institute and course of the students. This scheme provides sufficient funds to meet most educational needs.

However, the loan amount in education loans is decided by the bank, and this amount is usually according to the educational needs of the students. In some cases, students can get a higher loan amount for higher education.

Discount On Education Loan Interest

Under the PM Vidyalakshmi Yojana, students can get special concessional interest rates as it is funded by the government. The aim of this scheme is to provide loans to students at low interest rates so that they can easily complete their education.

Students whose family's annual income is less than Rs 8 lakh or students who are not eligible for any other scholarship scheme will also be given a waiver of 3% interest on loans up to Rs 10 lakh during the moratorium period.

At the same time, the interest rates in education loans are decided by the bank or financial institution. Although there may be some concessions on the loans provided by the government, the interest rate is high.

Who Will Get Priority?

Under this scheme, a plan has been made to provide the benefit of interest waiver to about one lakh students every year. For this, priority will be given to those students who are pursuing technical/professional courses from government institutions.

Government's Education Goal

The Modi government made a budget for this scheme that Rs 3600 crore will be spent from the financial year 2024-25 to 2030-31. At least seven lakh new students will be given financial assistance during this period.