Record 4,590 TN students availed loans under PM-Vidyalaxmi scheme

IANS June 21, 2025 584 views

Tamil Nadu leads southern states with 4,590 students availing loans under the PM Vidyalaxmi scheme. The state’s high Gross Enrolment Ratio and youth population contributed to this achievement. Officials credit career guidance programs for increasing enrolment in higher education. The goal is to reach 100% GER through financial aid and awareness campaigns.

"Our aim is to achieve a 100% GER in the coming years through improved access and financial support." – TN Higher Education Official
Chennai, June 21: A record 4,590 students from Tamil Nadu availed education loans of up to Rs 7.5 lakh under the Pradhan Mantri Vidyalaxmi (PM-Vidyalaxmi) scheme since November last year, making the DMK-ruled state a table-topper among five southern states, Union government data showed on Saturday.

Key Points

1

TN records highest PM Vidyalaxmi beneficiaries among southern states

2

Scheme offers Rs 7.5L collateral-free loans for higher education

3

State credits high GER and youth population for success

4

Career guidance boosts enrolment from 47% to 74% in govt schools

In comparison, Karnataka reported 4,403 beneficiaries, Andhra Pradesh 3,428, Telangana 2,590, and Kerala 2,070, placing Tamil Nadu ahead of its southern counterparts, according to data released by the Ministry of Education.

The PM-Vidyalaxmi scheme, launched by the Ministry in November 2024, is designed to ensure that financial limitations do not obstruct deserving students from accessing quality higher education.

It offers collateral-free and guarantor-free education loans of up to Rs 7.5 lakh, with a 75 per cent credit guarantee provided by the Centre to encourage participation from lending institutions.

Officials from the Tamil Nadu Higher Education Department attributed the state’s leading position to its consistently high Gross Enrolment Ratio (GER) and a significant youth population.

Tamil Nadu has a youth demographic of approximately 69.37 lakh in the 18–23 age group, a key determinant in the allocation of benefits under the scheme.

Officials said the number of beneficiaries is expected to rise in the coming years as the state intensifies efforts to promote higher education among economically weaker sections.

A key intervention in this direction has been the career guidance programme initiated by the School Education Department.

The programme supports Class 10 students in transitioning to higher secondary education and motivates Class 12 students, particularly from government schools, to pursue college degrees.

This initiative has had a measurable impact. The GER among government school students in Tamil Nadu has risen from 47 per cent to 74 per cent, a senior official noted.

“Our aim is to achieve a 100 per cent GER in the coming years through a combination of improved access, awareness campaigns, and financial support mechanisms,” the official added.

Reader Comments

P
Priya K.
This is fantastic news! As someone from Coimbatore, I've seen many bright students drop out due to financial constraints. The 75% credit guarantee will encourage more banks to participate. Hope other states learn from TN's implementation model 👍
R
Rahul S.
While the numbers look impressive, I wonder about repayment rates. Collateral-free loans are great but need proper monitoring. My cousin in Madurai took such a loan but couldn't find a job after graduation. The scheme should include skill development components too.
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Meena V.
Tamil Nadu's focus on education shows in these results! The career guidance program is especially praiseworthy. In my village near Trichy, many first-generation learners are now going to college because of such initiatives. Education is the real game-changer for our youth 🇮🇳
A
Arjun P.
Good scheme but why only up to ₹7.5 lakh? Professional courses like medicine and engineering cost much more. The limit should be increased to at least ₹15 lakh to be truly effective. Still, a step in the right direction.
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Saranya R.
As a teacher in Chennai, I've seen how these loans transform lives! Many of my students from modest backgrounds are now pursuing engineering and arts degrees. The state's high GER shows our cultural emphasis on education. But we need more awareness in rural areas about such schemes.
K
Karthik N.
The numbers are good but let's not forget the dropout rates later. The government should track these beneficiaries through their academic journey. Also, why is Kerala performing poorly compared to TN? Both have strong education systems. Needs deeper analysis.

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Tags:
PM Vidyalaxmi Tamil Nadu education loans Higher education scheme Gross Enrolment Ratio South India education