Vidya Lakshmi Loan Scheme: Features, Documents and Eligibility

Higher education is costly, and only some of us can finance it independently. Keeping this in mind, the Government of India initiated the Vidya Lakshmi Education Loan scheme to provide a platform for interested borrowers and ease the need for educational finance.

The Vidya Lakshmi scheme is the first of its kind. It is the first platform ever introduced by the Government to help students with education loans. The Department of Financial Services, the Department of Higher Education, and the Indian Banks Association (IBA) guided the design of this portal. Protean of Technologies Limited (formerly NSDL eGovernance Infrastructure Limited) developed and maintained the portal. You can view, apply for, and track your bank education loan applications anytime and from any location by visiting the portal.

Are you interested in knowing more about this portal and how it may help you? This article will help you understand the initiative by providing you with ample knowledge about the portal’s features, the documentation required, and the eligibility criteria to qualify under this scheme.

What is the Vidya Lakshmi Scheme?

The Honourable Union Finance Minister, Late Shri Arun Jaitley, stated in his budget speech for FY 2015-16 that with more than 54% of the population under 25, India is one of the youngest countries in the world. For employment in the twenty-first century, youth must be educated and skilled. The Prime Minister has discussed the importance of coordinating Make in India with Skill India. He also said that less than 5% of our workforce receives formal skill training today to remain competitive.

He proposed establishing a fully IT-based Student Financial Aid Authority to manage and supervise Educational Loan Schemes and Scholarships, allowing poor and middle-class students to pursue higher education without financial restrictions. The “Pradhan Mantri Vidya Lakshmi Karyakram” was in charge of this authority. His goal was to ensure that every student could pursue higher education owing to financial difficulties. In addition, the system will give students a single platform for scholarships and student loans.

What are the Features of the Vidya Lakshmi Loan Scheme?

Let’s discuss some of the unique features of the Vidya Lakshmi scheme:

1. If you have registered on the Vidya Lakshmi portal, you can access the information of the 37 banks registered on the website to offer education loan programmes. You can make an informed choice by comparing the various banks’ schemes.
2. You can submit applications to up to three banks of your choice using the Vidya Lakshmi Portal application form.
3. Banks have access to your eligibility information and can download your loan applications. Following this, they update the Vidya Lakshmi portal’s loan processing status.
4. The entire loan application process on the Vidya Lakshmi portal is online, and you can contact banks electronically with complaints or questions about education loans.
5. You will be given a URL to the National Scholarship Portal, where you can apply for government scholarships.

Vidya Lakshmi Portal

The Vidya Lakshmi Portal helps to provide easy access to your loan-related needs. You can access the portal at any moment to monitor and follow the status of your bank education loan applications. Alongside this, you can get a complete list of banks and the education loan programmes they offer through the Vidya Lakshmi Portal. 

Numerous education loan programmes offered by India’s biggest banks are available for you to browse, investigate, and compare. Moreover, because the application procedure is entirely online, it is simpler for students who cannot visit the branch or have transportation concerns. You may also obtain information about the Central Sector Interest Subsidy Scheme (CSIS).

CSIS is a one-of-a-kind programme centred on the idea that no student pursuing higher education should be denied the chance because of financial constraints. This scheme provides affordable higher education to all categories of financially deprived students studying professional/technical degrees in India.

Key Features of the Vidya Lakshmi Loan Scheme

The key features of the VidyaLakshmi Loan Scheme are as follows:

1. If you have registered on the Vidya Lakshmi portal, you can access the information of the 40 banks registered on the website to offer education loan programmes. You can make an informed choice by comparing the various banks’ schemes.
2. You can submit applications to up to 3 banks of your choice using the Vidya Lakshmi Portal application form.
3. Banks have access to your eligibility information and can download your loan applications. Following this, they update the Vidya Lakshmi portal’s loan processing status.
4. The entire loan application process on the Vidya Lakshmi portal is online, and you can contact banks electronically with complaints or questions about education loans.
5. You will be given a URL to the National Scholarship Portal, where you can apply for government scholarships.
6. The loan process on the Vidya Lakshmi portal is online, and students can submit their grievances or queries digitally to the banks regarding education loans. 

Eligibility Criteria to Apply for a Vidya Lakshmi Loan

An individual needs to fulfil the following criteria for availing of the benefits of the Vidya Lakshmi education loans: 

• Citizenship: The applicant must be a citizen of India.
• Minimum Expected Score: The applicant should have passed their high school (Intermediate/+2/equivalent) exam with a minimum of 50% of the score.
• Necessary Documentation: The applicant should have all the required documentation to provide when prompted. 
• Admission: The applicant should have secured admission to the university or institution for which they have requested the loan. 
• Location of Education: Any student who is willing to apply for a loan from universities to study abroad and in India is eligible.

Documents Required to Apply for Vidya Lakshmi Loan

The applicant needs to submit the following standard documents for applying for a loan on the Vidya Lakshmi Portal:

• Submit the completely filled and self-attested Vidya Lakshmi Portal application form.
• Passport-size photos of both the loan applicant and the co-applicant.
• For KYC requirements, you need identification documents such as a voter ID card, PAN card, or Aadhar card.
• You must provide Proof of Birth, such as a 10th-grade transcript/grade certificate (SSC/ CBSE/ ICSE) or birth certificate.
• A list of your academic credentials (such as 10th grade, 12th grade and a degree).
• Submit an admission letter from the relevant university.
• Last six months’ statements of Bank Passbook.

How to Apply for Vidya Lakshmi Loan?

To apply for the Vidya Lakshmi Loan, the applicant needs to follow the mentioned steps:

Step 1: On the Vidya Lakshmi portal, create a student login ID and generate a password.

Step 2: Complete the email verification by clicking on the link received on your registered email address.

Step 3: Using the registered mail ID as your source, click on the verification link. The link will be only active for 24 hours.

Step 4: After verification, you will be redirected to the portal. Enter your login details to access your account. You can search the portal based on your requirements and eligibility and submit applications there.

Step 5: After choosing the loan programme, click on the “Common Education Loan Application Form” (CELAF) to complete the necessary information. Completing this form requires a student to apply for loans from various banks and institutes. 

Step 6: Enter your personal information, the course for which you have requested the loan, the total cost of the course, specifics of the security, potential future earnings after completing the course, supporting documentation, etc. 

**Note: Remember to save the form regularly because the session expires after 15 minutes.

Step 7: Once you have entered your information, click “submit” and choose the programmes you want to apply for. 

Step 8: After submitting a successful loan application, you can now check the status of your loan request, including whether the bank has rejected or approved it.

There may be a delay in your application while bank management updates your information online. However, if you enrol through VidyaLoans, you may avoid this since the processing officer assigned to you will assist you in filling out your loan application. He will also ensure that the banks update it within the allotted time frame.

Vidya Lakshmi Portal Login Procedure

To log in to your Vidya Lakshmi Account, follow the mentioned steps:

1. Visit https://www.vidyaloans.com/#online-application-form
2. Click on “Login”.
3. Select “Student Login”
4. Enter your login credentials, including email ID, password created at the time of registration, and the captcha code displayed on the screen. 
5. Select “Login.”

How to Check Application Status for Vidya Lakshmi Portal Education Loan?

Students can check their loan application status through the dashboard available on the portal after logging in. If documents are incomplete, the loan will be on hold, and this will be reflected on the dashboard. Similarly, loan approval will also also notified on the applicant’s dashboard.

Interest Rates of Vidya Lakshmi Portal

All Indian banks offering education loans to students throughout India need to abide by the fundamental standard lending rates established by the Reserve Bank of India and the Indian Banking Association. 

The marginal cost of credit is the basis of lending rates. Banks must not provide loans below the Marginal Cost-of-fund-based Lending Rate (MCLR). 

How to Search for Education Loan in Vidya Lakshmi Portal

After logging in to the portal, the applicant can search for education loans offered by different banks. To search the various available options, follow the steps mentioned below:

Step 1: Click on the ‘Search for Loan‘ tab.

Step 2: Login to the Vidya Lakshmi portal.

Step 3: Select the suitable options under the location of study, course, and loan amount.

Step 4: Click on ‘Search.’

Step 5: A list of banks will be displayed along with the respective loan schemes.

Vidya Lakshmi Education Loan Portal: Banks List

Around 40 banks are registered with the Vidya Lakshmi Education Loan Portal. The list is as follows:

1. State Bank of India
2. Bank Of Baroda
3. Bank Of India
4. Bank Of Maharashtra
5. Axis Bank
6. Central Bank Of India
7. Canara Bank
8. HDFC Bank
9. ICICI Bank
10. IDBI Bank
11. Indian Overseas Bank
12. Kotak Bank
13. Abhyudaya Cooperative Bank Limited
14. Punjab National Bank 
15. Dena bank
16. Dombivli Nagri Sahakari Bank ltd
17. Federal Bank
18. GP Parsik Bank Ltd
19. Indian Bank
20. Karnataka Bank Ltd
21. Karur Vysya Bank Ltd
22. Kotak Mahindra Bank Ltd
23. New India Cooperative Bank Ltd
24. Oriental Bank of Commerce
25. Pragathi Krishna Gramin Bank
26. Punjab and Sind Bank
27. Punjab National Bank
28. RBL Bank Ltd
29. State Bank  of India
30. Syndicate Bank
31. Tamilnad Mercantile Bank Ltd
32. UCO Bank
33. Union Bank of India
34. United Bank of India
35. Vijaya Bank
36. Yes Bank
37. Allahabad Bank
38. Dhanlaxmi Bank
39. Development Credit Bank Ltd.
40. Nainital Bank

Conclusion

The Vidya Lakshmi Education Loan initiative taken by the Government has benefited numerous people. The loan has assisted several people helping them meet their financial requirements for education. 

Since the loan application process is entirely online, anyone in India can apply. Students can get a complete list of banks and the education loan programmes they offer through the Vidya Lakshmi Portal. You can visit your preferred banks’ websites and, after getting the necessary documentation, follow the process and complete your application. You will be required to register with the Vidya Lakshmi Portal and the bank to apply for a loan per your requirements.

ntation, follow the process and complete your application. You will be required to register with the Vidya Lakshmi Portal and the bank to apply for a loan per your requirements.

Frequently Asked Questions (FAQs)