The Union cabinet approved the PM-Vidyalaxmi scheme that aims to cover over 22 lakh students a year.

❖ The scheme will provide the financial support to meritorious students so that financial constraints do not prevent anyone from pursuing higher studies.

❖ For students looking at loans of up to Rs 7.5 lakh, the government will provide credit guarantees to the tune of 75 per cent of the outstanding defaults.

❖ Students belonging to economically-weaker families with an annual income of up to Rs 8 lakh — will be entitled to a three per cent interest subvention on loans of up to Rs 10 lakh.

❖ The ministry’s department of higher education will set up a unified portal, PMVidyalaxmi

 ❖ This will allow the students to apply for the education loan as well as interest subvention to all the banks.