PM-Vidyalaxmi Education Loan Portal

The government launched PM-Vidyalaxmi's education loan portal in 2015, in association with the Ministry of Finance, the Indian Banks Association (IBA), and the Ministry of Education. It acts as a medium between students and banks, which helps individuals access, apply for, and track their education loan application through a platform facilitated by NSDL e-Governance Infrastructure Limited. Under this scheme, students can choose to apply to up to 3 banks from 41 registered banks for an education loan.

If you are facing any doubts about the whole process, you can just comment below with your queries, or you can write an email to the Vidyalaxmi Portal support team at hello@wemakescholars.com; they are well-versed in the process and application process.

Applying for an education loan through the Vidyalaxmi Portal is a simple process that involves only three steps: 1) Registration, 2) Filling out the Common Form, and 3) Selecting/Applying to Multiple Banks of your choice. In this guide, we will provide you with complete details of each step, including how to tackle any complications that may arise during the process.

Be aware that the session expires after 15 minutes. So, kindly ensure to save and draft the form regularly; otherwise, you will have to fill the form again. In the meantime, if you are facing any complications during your application you can call our support team on the no. 9393344424. Let’s get started!

Registration on the Vidyalaxmi Portal is the initial step to getting an education loan in India for students. This section provides the pass and steps for registration and login and makes sure the details being entered are correct so that there will not be any problems in the future. By adhering to these guidelines, the students can easily go through their registration process and be in a position to navigate through the features contained in the portal for completion of loan application forms and tracking of their status as well as profile management. Keep reading to learn more:

Guidelines for your registration process

1. Kindly double-check that the registration details provided are accurate. Because you can not change the details once you submit the registration form.
2. Ensure the password is entered in the specified format (including both capital and small letters, special characters, numerical)  
3. For the "Name" field, kindly input the student's name in accordance with the 10th class mark sheet or as indicated in the mark sheet attached to your loan application.
4. When entering the mobile number, please provide a valid one. Students can use the mobile number of their parent/guardian if necessary.
5. For the "Email ID" field, please enter a valid email ID. Note that once entered, the email ID cannot be changed. All essential communications will be directed to this email ID.

Steps for the registration process

• Step 1 - Begin by visiting the Vidyalaxmi Website.
• Step 2 - Locate the ‘Register’ option at the top right corner of the website and click on it.
• Step 3 - Fill in the requested details, including your Name, Age, Date of Birth, Email ID, and Mobile Number.
• (Don't forget to read the Official Terms and Conditions! You can find them by clicking on the "website (clickwrap) agreement terms & conditions" text at the bottom of the registration page.) 
• Step 4 - Once your details are filled in, click the Submit button.
• Step 5 - Confirm your registration by clicking on the link sent to your email. Keep in mind that the link is valid for 24 hours only.

And there you have it – your registration process is complete.

After completing your registration process, you will be redirected to the main page of the Vidyalaxmi portal. From there, you have to follow a few steps to “Vidyalaxmi Portal Student Login” into your account. 

• Step 1 - Locate the “Login” option at the top right of the page. Click on it.
• Step 2 - Click on the Vidyalaxmi portal “Student Login” option out of the three options.
• Step 3 - Enter the ‘Login Email ID’ and ‘Password’ that you have generated during the registration process, and enter the Captcha Code shown in the text box below, then click on the “Login Button”

After logging in to your account, you will come across various options; let's first understand what all those options are and what their purposes are:

• Loan application form: This option allows you to fill out the common education loan application form (CELAF) that can be used to apply for education loans in multiple banks. The form requires you to provide information about your details, educational qualifications, and the course you wish to pursue.
• Search & apply for loan schemes: This option enables you to search for and apply to various education loan schemes offered by different banks. You can filter the schemes based on the bank, interest rate, loan amount, and other criteria.
• Application status: This option allows you to track the status of your education loan application(s). You can check whether your application has been approved, rejected, or is still under review.
• Grievance: This option enables you to raise any grievances or queries related to educational loans to banks. You can use this option to report any issues you face during the loan application process.
• Edit profile: This option allows you to edit your profile information such as name, email, phone number, etc. You can use this option to update your contact information or other details.
• Change password: This option allows you to change your password. You can use this option to update your password if you feel that your account has been compromised or if you want to change your password for any other reason.

What to do if you are Unable to log in to your account

If your account is not activated, you can follow these simple steps to reactivate your account.

• Step 1 - Check out the Student Login Page again.
• Step 2 - Below the Login Button, click on the link ‘Resend Activation Link’.
• Step 3 - Type in your registration email address in the ‘User ID’ box.
• Step 4 - Click the button ‘Send Activation Link’.
• Step 5 - You'll receive an email from Vidyalaxmi Portal in your registered email inbox.

Follow the instructions in that email to reactivate your account.

This is the most important step of the complete application process, where you have to be fully focused and informed before filling out the Common Education Loan Application Form (CELAF). Once you input any wrong or incomplete information and submit it, you will have no option to edit it again for months. So, pay attention and read all the instructions carefully then only proceed with your loan application.

After logging into your account search for ‘Loan application form’  there you will see 6 steps. You have to fill in the details one by one. So let's start and understand requirements of every step in detail:

Step 1 - Basic Information:

1. Answer three questions:
   
   1. Are you pursuing higher studies in India?
   2. Is your parental income more than INR 4,50,000?
   3. Have you been admitted to an NAAC/NBA-accredited university?

Note: For applicants seeking education abroad, parental income limit and NAAC/NBA accreditation questions are not applicable.

Step 2 - Personal Information:

1. Provide details for yourself and your parents/husband.
2. Submit basic personal data, contact details, Address, parental income, PAN number, academic score in the last qualifying exam, academic qualification.

Step 3 - Present Banker Details:

1. Enter details of the bank handling your current transactions.
2. Answer questions about the IFSC code, account details, any liability with the bank, and any relationship with the present bank’s or any other bank’s chairman/director/employee.

Step 4 - Course Details:

1. Indicate whether admitted in merit quota or management quota in the drop down.
2. Specify the course and institution's name, along with starting and ending dates of the course.

Step 5 - Cost of Finance Details:

While filling in the cost details, you should keep in mind that you are providing exact tuition fees and other expenses of your college/university because we have seen various cases that banks later rejected the application form if it mismatches from what you filled on the portal and what is on your college fee structure.

So, you should go through your College fee structure and fill in all the details as mentioned there. You can get in touch with the Vidyalaxmi support team by sending mail given in the introduction of this blog. 

1. Provide details on:
   
   1. Tuition fees
   2. Exam fees
   3. Books, stationery, equipment, or computer expenses
   4. Hostel expenses
   5. Sundries or travel
2. State the total amount needed, mention your source or scholarship, and specify the annual loan required.
3. Include details of pledged security and propose a repayment period.

Step 6 - Upload Documents:

On the document uploading section, there are various documents list that you have to upload, but the thing is you can just upload "Mark sheet" and "Proof of admission to the course" and the rest of the documents you can submit directly to the bank after your application is accepted by the bank. Please remember that the overall size of all the documents you going to upload should not exceed 2 MB and the file should be in the format of jpeg, PNG, PDF, and tiff format only. 

The requirement of documents varies from bank to bank, so you can read this article on "Document Checklist of Education Loan" for an overall idea. If you still have any doubts just comment down, and we will try our best to resolve it.

1. The final section for uploading mandatory documents on the Vidyalaxmi portal.
2. Upload the following documents:
   
   1. Mark sheet
   2. Proof of admission to the course
   3. Proof of income
   4. Schedule of expenses for the course from the institution
   5. Form 16 (latest)
   6. Latest Income Tax returns
   7. Copy of land records
   8. Applicants/Parents/Co applicant's photos

Ensure all information and documents are accurate and complete before applying.

After you have gone through the exercise of completing your education loan form, you are now at the final stage. This step is very important as it helps in the process of identifying and applying for the best education loan scheme. How to go about this step can be a bit tricky but if done as Methodically as possible then the process should go without any complications. Let’s break down the steps involved in finding and applying for the most suitable education loan scheme:

• Step 1: Go to the dashboard and find the 'Search and Apply for Loan Scheme' option. Click on it to start exploring and applying for different education loan options.
• Step 2: Use the filters provided to narrow down your search results based on your specific preferences. You can filter by factors like whether the loan is for study in India or abroad, the level of the course (Undergraduate, Post - Graduation, Professional Course, Vocational Course), and the amount of loan you need ( Below Rs 4 Lakhs, Between Rs. 4 Lakhs to 7.5 Lakhs, More than Rs. 7.5 Lakhs)
• Step 3: After applying the filters, a list of suitable loan schemes will appear. Each scheme will have an option to apply for it.
• Step 4: Select a scheme that interests you, and you will be taken to a detailed information page about that specific loan. Review the details carefully to make sure it meets your requirements before proceeding with the application.
• Step 5: Provide a few details such as the Bank Name, City, Branch Name, and IFSC code  of the selected bank scheme
• Step 6: You can apply for a maximum of 3 banks and for only one scheme of that bank. So you can repeat Step 4 and Step 5 simultaneously for applying to multiple banks. 

Note- As you only have the option to apply for a maximum of 3 banks (including only public and private banks), this minimizes your possibility of getting an education loan. On the other hand, if you are processing your education loan through WeMakeScholars you get an option of more than 14+ banks (including public banks, private banks as well as NBFCs) to choose from and all these you can get for free of cost.

Check the Education Loan Application Status

All student loan applicants need to have a smooth journey through the application process. Checking your application status is a key part of this, and we've simplified the steps for you. Follow these simple guidelines to stay updated on your Vidyalaxmi Education Loan:

Step 1 - Log in to your Vidyalaxmi Student account to access your dashboard.
Step 2 - Once on the Student Home Screen, easily locate the 'Application Status' option.
Step 3 - Click on the option to view the current status of your loan application.

Be informed that most banks typically respond within 15 days or less to address any queries and request additional documents or undertakings if necessary.

Note: If you receive any emails, phone calls, or SMS requests from the bank seeking valid details, it's important to respond within 15 days of receiving the communication. Neglecting this step may result in the cancellation of your Education Loan. Your cooperation ensures a smooth and successful application process.

The Vidyalaxmi Education Loan Portal was launched in 2015 and with it, CGFSEL was also launched. Under this scheme, students are provided with education loans of up to 7.5 lacs without requiring any collateral. The unsecured loan provided through CGFSEL charges a relatively lower ROI than most other unsecured education loans.

The Eligibility Criteria required to apply for an education loan through Vidyalaxmi portal depends on the scheme they are going through. However, here are the general eligibility criteria requirements.

• The student applying for an education loan must be an Indian citizen
• The student should have obtained admission into a university in India or abroad through merit or entrance exams.

The interest rate for an education loan through the Vidyalaxmi portal varies from scheme to scheme. The CGFSEL scheme offered through the Vidya Lakshmi portal has a lower rate of interest than the education loan schemes offered by other lenders, but it usually depends on the banks and various other factors. Generally, the education loans of any bank start from 8.40% and go up to 14% based on the requirements of the students.

There are no platform charges for applying for an education loan. The processing fee for education loans through the Vidyalaxmi portal varies from scheme to scheme and bank to bank. The usual processing fee for an education loan through most of the public banks is 10k+1800 GST, whereas if you are opting for a private bank, the processing fee is around 1-3% of the total loan amount.

Students can apply to multiple banks and different education loan schemes through the Vidyalaxmi portal. Here is the list of banks and schemes where you can apply through the Vidyalaxmi education loan portal.

1. The State Bank of India

• SBI Student Loan scheme
• SBI Global Ed-Vantage scheme
• SBI Scholar loan scheme
• SBI Skill loan scheme

2. Bank of Baroda

• Baroda Gyan
• Baroda Scholar
• Baroda education loan to students of premier institutions
• Baroda Vidya
• Baroda education loan for executive development programs (India)
• Baroda education loan for executive development programs (Abroad)
• Skill loan scheme

3. Canara Bank

• IBA's Model Education Loan Scheme for Study in India and Abroad
• IBA skill loan scheme

4. ICICI Bank Education loan

• Education Loan for Study in India 
• Education Loan for Abroad Studies

5. Axis Bank Education Loan Scheme

• Education Loan for Study in India 
• Education Loan for Abroad Studies

6. The Punjab National Bank

• PNB Kaushal
• PNB Saraswati
• PNB Pratibha
• PNB Udaan

7. HDFC Bank Education Loan

• Education Loan for Study in India 
• Education Loan for Abroad Studies

8. IDBI Bank

• Education Loan for Vocational Courses
• Education Loan Scheme for Other Management Quota Students
• Education Loans for students studying in Premier Education Institutes
• Education Loan for Courses offered by the ICAI
• Education Loan for Special Courses
• Education Loan to Physically Challenged Persons under the NHFDC scheme
• Education Loan for Non-Vocational Courses

9. Federal Bank

• Federal Special Vidya Loan Scheme
• FED Scholars

10. Kotak Mahindra Bank Education loans

• Education Loan for Study in India 
• Education Loan for Abroad Studies

Fill out a Common Education Loan Application Form(CELAF). All registered banks accept this form. Keep the following documents ready to submit in your selected branch along with the form filling.

Applicant’s Documents:

• PAN, Aadhar, or Passport(if going abroad) as proof of your identity
• Provide the latest address proof in the form of an Aadhar card, Voter ID card, or electricity bill

Co-applicant's documents:

• Latest payslips of 6 months if salaried
• Business transactions of last 1 year if self-employed

Applicant’s academic documents

• Mark sheets of 10th, 12th and degree
• Admission proof reflecting the duration of the course
• Fee structure
• Scorecard of language proficiency tests and of relevant competitive exams
• University ranking

Documents for financial co-applicant

• Last 3 months' salary slips
• Balance sheet, and profit and loss account for the last 3 years
• Address proof of the business

Other documents

• A letter mentioning that the leftover expenses will be taken care of by the co-applicant. You can get the format of the letter from a WeMakeScholars financial officer.

Additional documents

• Receipts of any payments made to the university
• Loan account statement of any pending loans
• Explain in a Rs 100 stamp paper, the reason for any gap that you have had in your studies

Collateral documents

Collateral documents are needed if you are going for a collateralized loan and they differ with the state you are applying from. You can go through the statewise articles given below or talk to a financial officer from WeMakeScholars for accurate information regarding collateral documents.

• Andhra Pradesh
• Karnataka
• MP and Chattisgarh
• Delhi
• Kerala
• Tamil Nadu
• Amritsar
• Hyderabad
• Mumbai
• Goa
• Jaipur
• Gujarat
• Pune
• Jharkhand
• West Bengal

Indeed Vidyalaxmi portal is a great initiative started by the government, however, there are certain drawbacks too and to save you from the drawbacks there are organizations such as VidyaLoans and WeMakeScholars. First, let’s see a few disadvantages of going through the Vidyalaxmi Portal

• We have come across many cases where students have not heard back from banks even after 15 days, as promised on the Vidyalaxmi Portal.
• Sometimes, banks fail to update the loan application status on the portal and students are stuck there. One important point to be noted here is that once you submit your final application on the portal, you won't be able to make a change in your Vidyalaxmi Portal application form like personal details, education loan scheme, branch, etc. 
• Also, if you decide to discontinue your education loan process apply through the Vidyalaxmi portal, make sure to contact the head office of the chosen bank to close your application form. Many students couldn't do this from the portal.

We at WeMakeScholars regularly talk to different students about getting them education loans and the above disadvantages were reported by students.

My Experience with Vidyalaxmi Portal

To generate feedback for users, I filled out the Vidyalaxmi Portal application form and applied to 3 banks- State Bank of India, Canara Bank, and Axis Bank. It has been 22 days since then but there has been no follow-up from any of the banks. Also, I haven’t received any email that states further steps on how to proceed with the process. The government of India did try to digitalize the education loan application for customers’ ease and help them track their application but for conventional banks, there is still a long way to adopt digitalization.

So, what is the alternative? WeMakeScholars and VidyaLoans are the alternatives. Read on to know more!

WeMakeScholars is an organization established to offer unbiased education loans to students wanting to pursue higher education in India or Abroad. We are supported by the Ministry of IT, the govt of India, and are partnered with 14+ banks(Public/Pvt). Here are a few advantages of going through WMS!

• Lower Rate of Interest: Students going through WMS have a reduced interest rate of up to 2% as we are partnered with the banks.
• Profile Analysis: WeMakeScholars financial officer thoroughly analyzes the profile of the student and suggests the best education loan options.
• End-to-end support: We at WeMakeScholars support students right from the education loan process until the repayment of the loan, even in a timezone that differs by 12 hrs.
• Tax benefits: The students applying for education loans are eligible for tax exemptions under section 80E. When you go through us, we make sure you avail all these benefits.
• Cashback: Students going through WMS are automatically eligible for a cashback of up to ₹3000.

Students wanting to apply for an unsecured education loan of up to 7.5 lacs can apply through Vidya Loans for a faster, hassle-free process!

VidyaLoans was created to deal with the 7.5 lacs unsecured education loan through the CGFSEL scheme. VidyaLoans was created to counter the inefficiency of the Vidyalaxmi portal. Here are a few benefits of going through VidyaLoans.

• Faster Loan Process: The Vidyalaxmi portal promises to process an education loan within 15 working days, however, students do not receive any responses even after 20 days of applying. VidyaLoans on the other hand processes your education loan in 15 working days.
• Tax benefits: VidyaLoans make students aware of tax benefits under section 80E and also about interest subsidy schemes so they can avail of maximum benefits.
• End-to-end support: VidyaLoans provide students with support throughout their education loan process.

The Indian government has introduced several interest subsidy schemes for students who are taking education loans that follow the IBA model.

Dr. Ambedkar Central Sector Scheme

This scheme is for students belonging to OBC and EBC categories. Here are the other eligibility categories. 

• The student should be looking for an education loan for abroad studies.
• EBC students applying for the subsidy must have an annual income of less than 5 lacs per annum.
• The OBC students must have an annual income of less than 8 lacs per annum

Padho Pardesh Subsidy Scheme

Provided interest subsidies on educational loans for overseas studies for students from minority communities in India.

• Objective: Support meritorious students from economically weaker sections of notified minority communities.
• Features: Interest subsidy for Masters, M.Phil, and Ph.D. levels, eligibility for students with an annual income of up to 6.00 lakh, and 35% of the seats earmarked for girl students.

NOTE-  The Padho Pardesh Scheme has been inactive since April 1, 2022. Existing beneficiaries continue to receive benefits.

Central Govt. Interest Subsidy Scheme (CSIS)

• Launched by the Ministry of Human Resource Development in 2009
• Provides full interest subsidy on education loans during the moratorium period
• For students pursuing technical or professional courses in India
• Eligible for students with annual gross parental or family income of up to Rs. 4.5 lakhs
• Subsidy credited directly to the student's loan account through DBT mode using PFMS
• Implemented through nodal banks; students can contact respective banks for details and benefits