The Vidyalaxmi Scheme is meant to offer comprehensive financial support i.e., education loan to students towards quality-driven higher education. This initiative is available to candidates who secure admission on merit to 860 identified Quality Higher Education Institutions (QHEIs) across India.
Key features of the scheme
• Eligibility: It is applicable to Indian nationals which also includes NRIs, and OCIs who are pursuing their undergraduation/post-graduation degree or diploma courses in QHEIs.
• Quantum of finance: They have a need-based financing.
• Margin: For AAA and AA Institutes there is no requirement of margin and for other Institutes, there is no margin requirement up to Rs. 4 lakh whereas it is 5 percent for amounts above ₹4 lakh.
• Revised interest rate: The interest rate is institute-specific, and it starts from 7.50 per cent.
• Security: There is no collateral required; however, the rules require parents and guardians to be joint borrowers
Subsidy benefits
Additionally, there are subsidy benefits which are offered. When the annual income is upto ₹4.5 lakh, there is 100 percent interest subvention for technical & professional courses, whereas for other courses, there is 3 percent interest subvention.
On the other hand, when the annual income is between ₹4.5 lakh to ₹8 lakh, there is 3 percent interest subvention (PM-Vidyalaxmi) for technical/professional courses and 3 percent subvention for other courses.
Documents required
these are the documents required for education loan:
A. KYC Details (student): These include Aadhaar, PAN ID and Address Proof.
B. Previous Qualifying self-attested copy of mark sheets.
D. Offer letter from institution along with fee structure.
E. Passport-size photographs
F. Previous / existing loan from banks/lenders, banks may obtain suitable documentary evidence.
G. Proof of family Income from designated public authority of the state.
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