New Delhi . PM Vidyalakshmi Yojana launched by Prime Minister Narendra Modi has brought a new opportunity for students. This scheme is specially designed keeping in mind those students who are looking for financial assistance to pursue higher education. Although it is a financial assistance scheme similar to an education loan, the scheme is different from a traditional education loan in many ways. Let us know how PM Vidyalakshmi Yojana is different from 'Education Loan' and what are its benefits.
Pradhan Mantri Vidyalakshmi Yojana is an initiative of the Government of India, which aims to provide easy financial assistance to students for higher education. Under this scheme, students are provided access to scholarships, loans and other financial services. This scheme gives an opportunity to Indian students to get the necessary financial assistance for higher education both abroad and domestically.
On the other hand, education loan is a loan given by banks or other financial institutions to students for their higher education. This loan is provided to cover tuition fees, books, living arrangements, travel and other expenses related to various education institutions. This loan usually has to be repaid within a specified time period, and it also has interest associated with it.
PM Vidyalakshmi Yojana not only provides loans but also scholarships. Along with education, students also get other services of financial assistance under this scheme, such as bank loans, scholarships and loan concessions. Whereas, education loan only has the facility of loan, which has to be repaid later along with interest. There is no system of scholarship in this.
Students can get special concessional interest rates under PM Vidyalakshmi Yojana, as it is funded by the government. The objective of this scheme is to provide loans at low interest rates to the students, so that they can easily complete their education. Whereas, the interest rates in education loan are decided by the bank or financial institution. Although there may be some concessions on loans provided by the government, the interest rates are usually higher.
PM Vidyalakshmi Yojana gives students the opportunity to apply for various loans and scholarships at one place. For this, a centralized online portal has been arranged, from where students can apply for loans and scholarships from various institutions. At the same time, the application process for education loan varies from bank to bank. Most banks have their own specific eligibility conditions and application process. To get a loan from a certain bank, students have to follow its terms and conditions.
PM Vidyalakshmi Yojana provides financial assistance to students for various education expenses, including tuition fees, living expenses, travel expenses, books, and other necessities like laptopcomputer. At the same time, in education loan, banks mainly cover tuition fees, coaching fees, book expenses, hostel fees, and other related expenses to the students. Loans for laptops and other devices are also provided by some banks, but it only depends on the policies of some banks.
The loan repayment process under PM Vidyalakshmi Yojana is simple and flexible. This also gives students the flexibility to repay the loan after completion of their education, or in some cases during their education. Concessions are given in some schemes and the loan repayment period can be longer. At the same time, the process of repaying the loan under education loan usually starts after the student completes his education. In this, a “cooling period” is given to the student by some banks, but it comes with strict rules for repaying the loan. Along with this, interest rates also apply.
The loan amount under PM Vidyalakshmi Yojana is determined according to the educational institution and course of the students. The scheme provides adequate funds to meet most educational needs. However, in education loan, the loan amount is decided by the bank, and this amount is usually according to the educational needs of the students. In some cases, students can get higher loan amount for higher education.
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Image Credit: KhasKhabar.