Pradhan Mantri Vidya Lakshmi Education Loan Scheme has been launched by the Ministry of Finance. Under the scheme government of India provides financial support to the students who want to do further studies and unable to get the admission in higher study course due to their financial condition. This portal is a gateway for all students to access funds and information related to educational loans as well as government scholarships. It provides a single window to students applying for loans or scholarship by filling up a single form. The portal provides 22 different education loan schemes.

The objective of  Vidya Lakshmi Education Loan Scheme

The basic objective of the scheme is to provide an easy and effective system of getting educational loans so that no student leaves his or her education mid-way due to lack of funds.

Eligibility Criteria

  • Minimum qualification completed higher secondary school or its equivalent.
  • Should be an Indian citizen
  • The student’s parents/guardian should meet the income criteria

Benefits of Vidya Lakshmi Education Loan Scheme

  • The students get information about educational loan schemes of banks.
  • A common educational loan application form is available to students.
  • There is a provision to apply to various banks for educational loans through a single form
  • The site is linked to the national scholarship portal for information and to apply for government scholarships.
  • Students can view the status of their loan application at any time and at any place with easy access to the dashboard facility of the website.
  • Banks can also upload loan processing status.
  • Banks can also download student’s loan applications.

How to apply for Education loan through the Vidya Lakshmi portal?

  • Register yourself on the portal www.vidyalakshmi.co.in
  • Fill up the Common Application form for scholarship referred to as the Common Education Loan Application Form (CELAF). This form is prescribed by the Indian Banks Association (IBA) and is accepted by all banks.
  • Based on the eligibility criteria, the portal itself suggests the various schemes for which a student is eligible.
  • The applicant can now choose Educational Loan as per his/her requirements, eligibility and convenience.

Once registration is done and the CELAF is filled, you will be updated about your loan approval or disapproval on the portal. If your loan is approved, the loan amount will be transferred directly to your account. If your loan is disapproved, you have to contact the bank itself. You may also get an ON HOLD update on your loan status. It means that the bank requires more information from your end, which will be mentioned in the remark column. E-mail and SMS alert will also be generated for processing of scholarship.

Names of banks which have integrated their system with the online portal are:

  • SBI
  • IDBI
  • Bank of India
  • Canara Bank
  • Union Bank of India
  • Corporation Bank
  • Dena Bank
  • Punjab National Bank
  • Punjab and Sindh Bank
  • Oriental Bank of Commerce
  • Central Bank of India
  • Kotak Mahindra Bank
  • Vijaya Bank
  • Punjab and Sind Bank
  • Bank of Baroda
  • Andhra Bank
  • Federal Bank
  • HDFC Bank
  • ICICI Bank
  • Axis Bank
  • UCO Bank
  • Indian Bank
  • Bank of Maharashtra
  • Indian Overseas Bank
  • RBL Bank
  • Syndicate Bank
  • Abhyudaya Co-operative Bank Limited
  • DNS bank
  • Karur Vysya Bank
  • Tamilnad Mercantile Bank Ltd

The students have the advantage of applying to three banks at a time. However, the interest rate will be as per the applicable rules of an individual bank. This reduces the student’s time of approaching different banks.

Also Read: Pradhan Mantri Vaya Vandana Scheme

Source: Pmil