Vidya Lakshmi Education Loans: Basic Details Revealed

India is one of the youngest countries in the world with over half of the total population below 25 years of age. Considering this fact, the people must be both educated and employable for the jobs of the modern-day. Vidya Lakshmi Portal was established with a view to enable all poor and middle-class students to pursue higher education of their choice without any constraint of funds. In 2015, PM Narendra Modi set up a fully IT based Student Financial Aid Authority to administer and monitor Scholarship as well Educational Loan Schemes, through the Pradhan Mantri Vidya Lakshmi Karyakram. It ensures that no student will be missed out on higher education due to lack of funds and at the same time provides a single window electronic platform for Scholarships and Educational Loans.

Vidya Lakshmi is a digital portal for students seeking Education Loan. This portal has been developed under the guidance of the Ministry of Finance, Ministry of Education and Indian Banks Association (IBA). The portal is being maintained by NSDL e-Governance Infrastructure Limited. Students can view, apply and track the education loan applications anytime and anywhere by accessing the portal. The portal also provides a link to the National Scholarship Portal.

The Vidya Lakshmi education loan interest rates offered by various institutions follow the guidelines issued by RBI and IBA and they stick to the standard lending rates. While it may seem like a convenient financing option for higher education, it may not always cover the entire cost of education, especially if you are seeking admission overseas.

To apply for education loans on VidyaLakshmi Portal, follow the following steps.

Create a login ID and password.
Go to your email inbox and click on the verification link. The link is valid only for 24 hours.
Once verification is done, you will be redirected to the portal. Enter your details to log in to your account.
Search for the education loan according to your needs, eligibility, and convenience.
Apply for a suitable education loan by filling up a CELAF (Common Education Loan Application Form)
The Common Education Loan Application Form (CELAF) is a single form to apply for an educational loan to multiple banks and schemes, prescribed by the Indian Bank Association (IBA), and accepted by all banks.

Following documents are required to apply for an Education Loan (In India):

Mark sheet of last qualifying examination;
Proof of admission ( the name of institution and course is mandatory)
Proof of income/assets (if any)
Photos to be provided for Student/Parent/Guarantor, whose income details have been provided.

Here are some top lending options available

Name of Bank	Interest Rate (p.a.)	Loan Amount	Processing Fees
PNB	6.55% to 9.50%	Up to 15 Lakhs	1% of loan amount
SBI	6.85% to 8.65%	Up to Rs.1.5 crore	Rs.10,000 + tax
Axis	13.70% to 15.20%	Up to 75 Lakh	Nil to Rs.15,000 + tax
Bank of Baroda	7.85% to 9.85%	Up to 4 Lakh and above	1% of the loan amount up to Rs.10,000
HDFC	9.55% to 13.25%	Max Approval	Up to 1.5% of loan amount + tax
Tata Capital	10.99% onwards	Up to 30 Lakh	Up to 2.75% of loan amount + tax
Kotak Mahindra Bank	Up to 16%	For courses in India: Up to Rs.10 lakh. For courses abroad: Up to Rs.20 lakh	Contact the bank
ICICI Bank	10.50% onwards	For courses in India: Up to Rs.50 lakh For courses abroad: Up to Rs.1 crore	Contact the bank

There are several benefits of the portal as listed below-

The Vidya Lakshmi portal provides a complete list of banks and education loan schemes offered by them. Students can explore hundreds of schemes, compare them, and apply for the relevant ones.
It makes it easy for students to apply for education loans to three different banks at the same time with the help of one application form. This saves the precious time of students.
The entire process is online, making it easier for the students who are unable to visit the branch or have transportation issues.
It becomes convenient for students to track the status of their education loans. The status is updated at every stage by the bank so that students can stay updated on their loan applications.
Students can also read about the subsidy schemes like Central Sector Interest Subsidy Scheme (CSIS).
Students can send their complaints regarding the education loan of a particular bank through the portal itself.

As you can see, the entire process of finding and providing the best education loan has been streamlined by the Government of India. It is a very good initiative as all the information can be obtained on the portal. The digital process has made it easier for students to accumulate information and track their loans.