PM-VidyalaXmi Scheme

Syllabus: Prelims Unit V - Indian Economy and Development Administration in Tamil Nadu

• Objective: To support meritorious students in pursuing higher education in Quality Higher Education Institutions (QHEIs), both private and public, by providing financial aid. The scheme primarily focuses on making education more accessible and affordable, especially for students from economically weaker sections.
• Duration and Allocation:
• A total allocation of ₹3,680 crore has been approved for the PM-VidyalaXmi scheme over five years.
• The scheme aims to benefit students admitted to QHEIs.
• Key Features of the Scheme:
• Expanding Access to Quality Higher Education:
• The scheme facilitates expanding access to quality higher education institutions across India.
• Collateral and Guarantee-Free Loans:
• The scheme will provide loans without the need for collateral and guarantees.
• Loan Coverage:
• Financial assistance covers up to ₹10 lakh for each student.
• Students from families with an annual income of up to ₹8 lakh will receive a subvention of 3% interest on their loans.
• Credit Guarantee:
• A credit guarantee of 75% on outstanding loans up to ₹7.5 lakh will be provided to help minimize financial risk for lending institutions.
• Target Institutions:
• The scheme focuses on students admitted to high-ranking institutions.
• Top 100 HEIs ranked in the NIRF (National Institutional Ranking Framework).
• Top 200 HEIs of state and UT governments.
• Department of Higher Education's Role:
• The department will prepare a list of high-quality institutions every year to ensure the scheme benefits students across top-tier educational institutions.
• Target Beneficiaries:
• The scheme targets students from families with an annual income of up to ₹8 lakh.
• The scheme also supports students whose families earn up to ₹4.5 lakh through the PM-USP CSIS (Central Sector Interest Subsidy) programme. This programme provides interest subvention on loans up to ₹10 lakh during the moratorium period.

Equity Infusion in FCI (Food Corporation of India)

• Equity Infusion:
• The government has approved ₹10,700 crore as equity infusion for the Food Corporation of India (FCI) during FY 2024–25.
• Capital Enhancement:
• The authorised capital of FCI will be enhanced to ₹21,000 crore from the earlier ₹10,000 crore.
• Stock Holding Value:
• The value of FCI’s stock holdings over the past five years is estimated to be ₹80,000 crore.
• Food Subsidy Allocation:
• From 2014 to 2024, a total of ₹2.15 lakh crore has been disbursed as food subsidies, reflecting the government's commitment to ensuring food security across the country.
• Impact and Benefits:
• The PM-VidyalaXmi scheme is expected to benefit more than 22 lakh students by providing easier access to education loans without the burden of collateral and guarantees.
• The scheme aligns with India’s larger vision of promoting quality education and equal opportunities for all, particularly for students from economically disadvantaged backgrounds.
• The focus on top-ranking institutions ensures that meritorious students gain access to the best educational resources and environments in the country.
• Government Vision:
• The scheme is a significant step towards empowering the next generation and building a brighter future for the nation, in line with Prime Minister Narendra Modi’s vision of “Shakti and building a brighter future for our nation.”