The Narendra Modi government has launched many schemes for different sections of society during its 11 years in power. One such scheme is the Vidyalakshmi Yojana. This government scheme is for students. Under it, banks give education loans to deserving students at very low interest rates. Now, the public sector bank, Punjab National Bank (PNB), has given more relief to students under the Vidyalakshmi Yojana.
PNB Offers Relief on Education Loans
PNB has reduced the interest rate on education loans by 0.2 percent. The bank said this move shows its commitment to helping students access education. The Vidyalakshmi Yojana provides financial support to students pursuing higher education. PNB said this offer is for students who get admission based on merit to 860 identified quality higher education institutions in India. After the revision, education loans will start at 7.5 percent interest, depending on the institution.
Scheme Details
The PM Vidyalakshmi scheme was approved by the Union Cabinet in 2024. Its goal is to help meritorious students so that money problems do not stop them from studying. Any student admitted to a Quality Higher Education Institution (QHEI) can get a collateral-free and guarantor-free loan to cover tuition and other course expenses.
This scheme applies to top-ranked institutions in India, as per NIRF ranking. For loans up to ₹7.5 lakh, students can get a credit guarantee for 75 percent of any default amount. This helps banks give education loans to more students under this scheme.