Lok Sabha Question No. 128 (UNSTARRED), answered on 2025-02-03
Subject: Expansion of  the Vidyalakshmi Scheme
Ministry: EDUCATION
Asked by: Thiru D M Kathir Anand

## GOVERNMENT OF INDIA MINISTRY OF EDUCATION DEPARTMENT OF HIGHER EDUCATION

## LOK SABHA UNSTARRED QUESTION NO. 128

ANSWERED ON- 03/02/2025

## EXPANSION OF THE VIDYALAKSHMI SCHEME

## 128 SHRI THIRU D M KATHIR ANAND:

Will the Minister of EDUCATION be pleased to state:

a) the details of the effective measures taken by the Government to expand the Vidyalakshmi scheme to students outside top-ranked institutions;

b) the time by which the scheme is expected to be fully operational, and whether there is any interim  support  to  students  currently  struggling  with  financial  constraints,  if  so,  the  details thereof;

c) whether the Government has any plans to relax the norms and conditions with regards to CIBIL score for poor students to get loans under the said scheme, if so the details thereof;

d) the manner in which the Government ensure the sustainability of this scheme and whether there  is  a  roadmap  for  increasing  or  adjusting  the  budget  allocation  as  the  number  of beneficiaries grows, if so, the details thereof; and e) whether there are any provisions to ease loan repayment terms or provide loan waiver for students who face financial challenges after graduation, if so, the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF EDUCATION (DR. SUKANTA MAJUMDAR)

(a) to (c): The PM Vidyalaxmi, a new central sector scheme has been launched on 6 th  November 2024.  Under  the  scheme,  collateral-free  and  guarantor-free  education  loan  is  provided  to students getting merit-based admission in top Quality Higher Education Institutions (QHEIs). These QHEIs are selected based on the following criteria:

-  Top 100 ranked HEIs in the overall/ category-specific rankings in latest list of NIRF published by the Ministry of Education; plus
-  Top 200 ranked HEIs under the governance of state/UT governments in the latest list of NIRF published by the Ministry of Education; plus
-  all remaining HEIs under the governance of Government of India.

The NIRF 2024 ranking has been considered to prepare the list QHEIs for academic year 202425 and 860 QHEIs have been selected for this. CIBIL score of students is not a criterion for sanction of education loans under the PM Vidyalaxmi scheme.

(d) Further, for students with annual family income up to ₹ 8 lakh, the scheme provides 3% interest subvention on loans up to ₹ 10 lakhs. Up to one lakh fresh students not getting any other scholarship or interest subvention on education loan will get this interest subvention. Duration of this interest subvention is the moratorium period, i.e., course period plus one year. Total outlay of interest subvention from 2024-25 to 2030-2031 is ₹ 3,600 crore.

(e) Under  the  Pradhan  Mantri  Uchchatar  Shiksha  Protsahan  Credit  Guarantee  Fund Scheme for Education Loans (PM-USP CGFSEL) of the central government, credit guarantee is provided for education loans sanctioned up to ₹ 7.50 lakh. The guarantee cover is up to 75% of outstanding default. Further, under the model education loan scheme of the Indian Banks Association, the repayment period for education loan is up to 15 years after moratorium period (course period plus one year).

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