SRINAGAR: In a bid to make higher education more accessible and affordable, the Government of India has launched two key schemes offering interest subsidies on educational loans, benefitting numerous students across the country. The Pradhan Mantri Uchchatar Shiksha Protsahan (PM-USP) Central Sector Interest Subsidy Scheme (PM-USP CSIS) and the newly approved PM-Vidyalaxmi scheme are providing substantial financial relief to students seeking loans for higher education.
Under the PM-USP CSIS, the government provides interest subvention on educational loans for students pursuing higher studies. This initiative aims to reduce the financial burden on students from economically disadvantaged backgrounds. Additionally, the PM-Vidyalaxmi scheme, designed specifically for students with an annual family income of up to Rs 8 lakh, offers a three per cent interest subsidy on loans of up to Rs 10 lakh. This scheme is expected to help students from lower-income families access quality education without worrying about steep interest rates.
The Ministry of Education has made the details of these schemes easily accessible on their official website, allowing beneficiaries to access information and apply for the subsidies. Students across various states have benefited from these schemes, with the government providing detailed state-wise data on the number of beneficiaries, which is also available on the Ministry’s portal.
The government has also taken significant steps to increase the budgetary allocation for education. The total expenditure on education for the year 2021-22 amounted to Rs 9.67 lakh crore, which is 4.12 per cent of India’s GDP, surpassing the Incheon Declaration’s recommended target range of four to six 6 per cent of GDP for education. The Ministry of Education’s allocation for 2023-24 has seen a 21.1 per cent increase from Rs 93,224 crore in 2021-22 to Rs 1,12,899 crore, indicating the government’s commitment to improving the education sector. The National Education Policy (NEP) 2020 has also set an ambitious target of raising public investment in education to 6 per cent of GDP, further underlining the government’s dedication to enhancing the education system.
These efforts, including the interest subsidy schemes and increased budget allocation, reflect India’s commitment to making higher education more accessible and affordable, particularly for students from lower-income backgrounds. With such schemes in place, the government aims to empower the next generation with the knowledge and skills needed to drive the country’s development.
