How different is PM Vidya Lakshmi Yojana from education loan? Know the answer to all your questions

PM Vidya Lakshmi Yojana: Prime Minister Narendra Modi PM Vidyalakshmi Yojana launched by PM has brought a new opportunity for the students. This scheme has been 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 the traditional education loan in many ways. Let us know how PM Vidyalakshmi Yojana is different from ‘Education Loan’ and what are its benefits.

Beneficial scheme for students
Pradhan Mantri Vidyalakshmi Yojana is an initiative of the Government of India, whose objective is 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 abroad as well as 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 given to cover tuition fees, books, accommodation, travel and other expenses related to different educational institutions. This loan usually has to be repaid within a specified time period and also has interest associated with it.

PM Vidyalakshmi Yojana not only provides loans but also scholarships. Along with education, students also get other financial assistance services under this scheme, such as bank loans, scholarships and loan concessions. At the same time, 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.

concessional interest rates
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, interest rates in education loan are decided by the bank or financial institution.

These things are covered
PM Vidyalakshmi Yojana provides financial assistance to students for various education expenses, including tuition fees, living expenses, travel expenses, books, and other necessities like laptop/computer. 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.

Bank rules are a bit strict
The process of repaying the loan under PM Vidyalakshmi Yojana is simple and flexible. With this, students get the convenience of repaying 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 may 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.

Loan as per need
The loan amount under PM Vidyalakshmi Yojana is determined according to the educational institution and course of the students. This scheme provides sufficient amount 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 more loan amount for higher education.

(Input – IANS)

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