Higher Education creates a number of opportunities for students. But for many, the cost can be a barrier that is stopping them from achieving their academic goals. Adding to this, Education expenses, tuition fees, living expenses, cost of books, and flight charges, etc, can make students overwhelmed.

But worry not, there are some Government initiatives which can help students and make their Educational dreams a reality. In this blog, we will discover some of the important Education Loan schemes, such as Vidya Lakshmi portal, etc, initiated by the Narendra Modi and the Government of India.

What is Vidya Lakshmi Education Loan Portal

  • Vidya Lakshmi is one of its one-of-a-kind portals, started by the Government of India in 2015. This portal was initiated under the Ministry of Finance, Department of Education, and the Indian Banks Association(IBA).
  • The main idea to launch this initiative is to ensure that no student misses out on higher Education due to a lack of funds. These are collateral-free Loans.
  • This portal bridges the gap between students and banks, where students can apply for Education Loans. They can also view and track the application from anywhere, anytime by accessing the portal.

Key Features of the Vidya Lakshmi Portal

The following are the key features of the Vidya Lakshmi Portal

Information about Education Loan Schemes

With over 40 registered banks, this portal has an exclusive list of partnered banks, and information on the Education Loan Schemes of all the respective banks is also provided. Students can go through the Education Loans Schemes information thoroughly and apply to the one that fits them the best.

Common Application Form

This portal provides a Common Education Loan Application Form(CELAF) for students to apply for Education Loans. CELAF is prescribed by the Indian Banks Association (IBA)  and is accepted by all banks. Using the same application form, students can apply simultaneously to multiple banks, which saves a lot of time and effort.

Apply to multiple banks

In the Vidya Lakshmi portal, students can get access to apply to up to 3 banks simultaneously, from the list of banks provided by the portal. This brings transparency to the application process.

Access to track the Application status

Students can track the application status. Banks have the facility to upload the application and get updates on the same. This makes the loan tracking process stress-free for students.

Grievance redressal

The portal also has the facility for students to email grievances /queries related to Education Loans. It also has a quick resolving mechanism regarding the process and delays.

National Scholarship Portal Integration

It is also integrated with the National Scholarship portal, where students can get information and can also apply for government scholarships.

How to apply for Vidya Lakshmi Education Loans

Below are the steps to follow to apply for Vidya Lakshmi Education Loans.

Step 1

Register: Visit the Vidhya Lakshmi website, locate the Register option, fill in the details, submit, and complete the registration.

Step 2

 Login: After registration, you will be redirected to the main page of the Vidya Lakshmi portal, where you will find the Vidya Lakshmi student login.

Step 3

 Fill in the application form: After logging in with the registered email ID and password, you will find the Loan application form button, which is the common Loan application form.

Step 4

Search and apply for an Education Loan: Fill the common application form, search and apply for Education Loan Schemes.

Step 5

 Application status: Apply, track your application status, and check whether your loan application is approved, rejected, or under review.

Step 6 

Grievance: This option enables you to raise any grievances or queries related to the Education loan application.

                      Contact us to learn more about the Vidya Lakshmi portal


List of Central Government Subsidized Education Loan Schemes

The following is the list of central government-subsidized schemes.

National Backward Classes Finance and Development Corporation(NBCFDC)

  • The main objective of this scheme is to extend the Education Loans to students of the backward classes to pursue professional/ technical or vocational courses. 
  • These Loans are available for students who are pursuing their graduate or higher-level studies in India or abroad.
  • This scheme covers 90% of the course fees to study in India and 85% for abroad. The scheme offers a maximum of 15 lakhs for students who study in India and 20 lakhs for abroad.
  • NBCFDC scheme covers expenses of admission fees, tuition fees, books, stationery, and other requirements for the course, such as examination fees, accommodation, etc.

Padho Pardesh Scheme (Discontinued)

  • Previously, this scheme used to provide interest subsidies for students belonging to the minority community who want to pursue Master's, MPhil, or PHD courses abroad.
  • But because of limited benefits, overlapping, and easier access to education loans at a lower interest rate, the scheme has been discontinued from 2022-2023.

Dr.Ambedkar Central Sector Scheme of Interest Subsidy on Educational Loans

  • This initiative is launched to support students from Other Backward Classes(OBC) and Economically Weaker Sections(EWS).
  • The objective of this scheme is to offer an interest subsidy to meritorious students. And to provide them with better opportunities for higher education abroad and enhance their employability.
  • Under the scheme, interest payable by the students in Education loans during the moratorium period shall be borne by the Government of India.

Central Sector Interest Subsidy Scheme(CSIS)

  • This is designed to provide interest subsidy on Education loans for students from economically weaker sections. This scheme is for students who are pursuing technical and professional courses in India
  • This scheme is linked to the Indian Bank Association's (IBA) model Education Loan scheme.
  • The main eligibility criterion is that the annual family income is up to 4.5 lakhs.

Eligibility criteria for Pradhan Mantri Education Loans

The student has to meet the following eligibility criteria to avail of the loans under the schemes.

Indian citizenship: The student must be an indian citizen.

Proof of admission: The student must have secured admission from a recognized university.

Academic performance: A good academic record is necessary for most of the Education Loan schemes.

Income status: For some schemes, the annual family income has to be below 4.5 lakhs to get interest subsidies.

Courses: The course that the student chooses must be from a recognised university. This may include undergraduate, postgraduate, PHD, or any professional courses from recognized universities in India or abroad.

Conclusion:

In this blog, we have explored the Education Loans schemes initiated by the Government of India, about the Vidya Lakshmi Education Loan Portal. Certainly, we have also covered the list of schemes that the central government is offering subsidies on Education Loans.

However, the right guidance can simplify the Education Loan process. At WeMakeScholars, we have a dedicated financial officer who can guide and support you throughout the Education Loan process. Reach out to us to choose the right Education Loan.