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      Question

      The PM Vidyalaxmi Scheme, approved in late 2024 to

      support meritorious students in Quality Higher Education Institutions (QHEIs), provides a specific interest subvention for students from families with an annual income of up to ₹8 lakh. In this context, which of the following statements is/are correct regarding the interest subvention and credit guarantee under the scheme? 1. 3% interest subvention is provided on loans up to ₹10 lakh for students with an annual family income up to ₹8 lakh during the moratorium period. 2. Full interest subvention is offered to students with an annual family income of up to ₹4.5 lakh for technical/professional courses under the existing PM-USP CSIS. 3. The Government of India provides a 75% credit guarantee for loan amounts up to ₹7.5 lakh, irrespective of the student's family income. 4. The interest subvention benefit is transferred through an e-voucher/CBDC wallet mechanism under the PM Vidyalaxmi digital platform.
      A 1 and 3 only Correct Answer Incorrect Answer
      B 2 and 4 only Correct Answer Incorrect Answer
      C 1, 2, and 3 only Correct Answer Incorrect Answer
      D 1, 2, 3, and 4 Correct Answer Incorrect Answer

      Solution

      The PM Vidyalaxmi Scheme was launched to ensure that financial constraints do not prevent meritorious students from pursuing higher education in India's top 860+ QHEIs. Subvention Tiers: Students from families earning up to ₹8 lakh per annum receive a 3% interest subvention on loans up to ₹10 lakh. This is in addition to the full interest subvention already available for those with income up to ₹4.5 lakh under the PM-USP Central Sector Interest Subsidy (CSIS) scheme for technical courses. Credit Guarantee: To encourage banks to lend without collateral or guarantors, the government provides a 75% credit guarantee for loans up to ₹7.5 lakh. CBDC Integration: In a significant push for digital finance, the subsidy is credited to the student's CBDC (Digital Rupee) wallet via a dedicated app, which can then be redeemed to the loan account. Repayment: The loan has a repayment period of up to 15 years, and the interest rate is capped at the individual bank's Externally Benchmarked Lending Rate (EBLR) + 0.5%.

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