EconomyGS2-Governance
Student Loan Surge and PM Vidyalakshmi Scheme
Education loans are growing at a notable pace, with the PM Vidyalaxmi scheme expected to boost them further.
November 25, 2024
Key Points
- 1Education loan growth touched 17.6% year-on-year for the fortnight ending September 20.
- 2The PM-Vidyalaxmi scheme offers collateral-free, guarantor-free education loans.
- 3The scheme aims to benefit 22 lakh meritorious students annually.
- 4The scheme includes an interest subvention of 3% on loans up to â¹10 lakh for students with an annual family income of up to â¹8 lakh.
- 5NBFCs are also driving growth in education loans.
- 6NBFCs' education loan assets under management (AUM) rose to about â¹43,000 crore as on March 31, 2024.
Important Terms
Education loansPM Vidyalaxmi schemeNBFCsAUMSTEM courses
UPSC Current Affairs
Last Updated: 5/31/2025