PM Vidyalaxmi Scheme: 76% Applications Pending, Banks Flag Issues
Why in the news
The PM Vidyalaxmi Scheme, funding higher education for meritorious students from low and middle-income families, is clearing few applications because of portal and process problems.
Key facts
- Loan: collateral-free and guarantor-free up to ₹7.5 lakh, with 75% credit guarantee.
- Subvention: 3% for family income up to ₹8 lakh a year.
- Full interest subsidy: income up to ₹4.5 lakh, under PMUSP CSIS.
Status on 1 April 2025
| Total | Pending | Sanctioned | Rejected |
|---|---|---|---|
| 2,963 | 76% | 20% | 4% |
Concerns raised by PSBs
- Server errors, login failures and auto-logouts.
- Old leads not fully migrated; no MIS access or data download.
Way forward
- Turnaround time of 3-5 days; allow correction of minor errors; accept college-issued certificates.
- Finance Ministry: awareness drives, clear portal timelines, flexible documentation.
Exam angle
- Guarantee: 75%; limit: ₹7.5 lakh; terms: subvention, TAT, MIS.