About Education Loan Scheme by Narendra Modi

Narendra Modi's educational reforms have made a substantial impact by introducing government education loan schemes that provide financial assistance to students, particularly those from economically weaker sections. 

These reforms introduced government education loan schemes, including offering loans exceeding Rs. 7.5 lakhs with no collateral. These loans support undergraduate, postgraduate, and doctoral studies, including foreign universities. With 38 banks involved, the initiative targets students with family incomes below Rs. 4.5 lakhs, offering interest rates from 7% to 13%. Repayment begins after a moratorium period, easing financial burdens. As of 2024, these schemes empower students, ensuring inclusive education with loans up to Rs. 7.5 lakhs without collateral and manageable interest rates.

Find out more about Education Loans without collateral. 

Alternatively, you can also explore the Scholarships that you can avail here.

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Vidya Lakshmi Portal

The Vidya Lakshmi Portal, a central hub introduced by Narendra Modi's education loan scheme, revolutionizes access to education loans and scholarships for students. This comprehensive platform enables students to effortlessly compare and apply for various loan schemes and scholarships from different banks and government programs all in one place. 

Developed through a collaborative effort among the Department of Financial Services (Ministry of Finance), Department of Higher Education (Ministry of Education) and the Indian Banks Association (IBA), the PM student loan portal makes education more accessible by simplifying the application process. Students can now easily evaluate different loan options side by side, choosing the one that best fits their financial needs and academic goals, and apply to multiple banks using a single application form. This initiative not only saves time and effort but also empowers students to make informed decisions, ensuring that financial constraints do not hinder their educational pursuits.

Explore other government-supported education loans like the Vidya Lakshmi Education Loan.

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Features of Education Loan Scheme by Narendra Modi

Eligibility: Support for Diverse Courses

• Targets a wide range of academic pursuits, including technical, management, medical, arts, vocational, and degree courses.
• Open to students pursuing education both within India and abroad, ensuring global opportunities.
• Aims to support students at various levels of their educational journey, from undergraduate to postgraduate studies.

Profile not Suitable for Narendra Modi Education Loan? Learn More About eligibility criteria for various education loans.

Loan Amount Categories: Tailored Financial help

It offers structured loan amounts to cater to different financial needs:

• Up to Rs. 4 Lacs for basic education requirements, with no collateral required.
• Rs. 4 Lakh to Rs. 7.5 Lakh, designed for more significant educational pursuits with simpler collateral requirements.
• Above Rs. 7.5 Lacs for extensive education plans, including higher studies abroad, with more comprehensive collateral terms.
• Interest subsidy available for eligible applicants, making education more accessible.

Need a loan for a higher amount? Get Loans upto 50 lacs, disbursed in just 7 days. Check your eligibility with Propelld. 

Application Simplicity: Streamlined Process

• Introduces a single-window application process through the Vidya Lakshmi Portal, simplifying the application to multiple banks.
• Ensures a user-friendly experience, enabling students to easily manage their loan applications and track their status online.
• Promotes transparency and ease of access, making the financial aspects of education less daunting for students and their families.

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How to Apply for a Prime Minister Education Loan?

Navigating the registration and application process for the education loan scheme by Narendra Modi is a seamless journey, thanks to the centralized Vidya Lakshmi Portal. Here's a concise guide to getting you started:

1. Visit the Portal: Begin by heading to the Vidya Lakshmi Portal, the one-stop destination for your education loan needs, designed under the PM Student Loan framework.
2. Create an Account: Register by providing essential details such as your name, email address, and mobile number. Verification of these details ensures a secure and personalized experience.
3. Complete the Application Form: Once registered, log in to fill out the Common Education Loan Application Form (CELAF), which is recognized by all banks and streamlines the process of applying to multiple banks simultaneously.
4. Document Upload: Prepare and upload the documents as specified on the portal. This step is crucial for the verification process and speeds up loan approval.
5. Loan Selection and Application: Browse through various government education loan schemes, including the Prime Minister Education Loan, and apply to the ones that best fit your educational needs and financial situation.
6. Track Application Status: Stay updated with real-time notifications regarding your application status directly on the portal.

*Remember, applying early and providing accurate information will expedite the approval process, bringing you one step closer to achieving your educational aspirations under the Narendra Modi Education Loan Scheme.

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Interest Rates on Prime Minister Education Loan

The interest rates on the  education loan scheme by Narendra Modi vary from 7% to 13%.

Here are some notable features about these rates: 

• They are influenced by a myriad of factors, including the choice of bank, specifics of the loan scheme, the type of institution, the course of study, and the loan amount. 
• The public sector banks often offer slightly more favorable rates as part of the government's effort to make education more affordable. 
• Notably, courses in STEM fields may attract lower interest rates due to their higher employability rates, reflecting a lower risk for lenders. 

Students and their families need to do their research to find the best loan rates. This way, they can make sure their education is affordable under the Vidya Lakshmi Portal program.

Tips on getting education loans at zero interest rate.

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Upto 100% Fees Financed. Competitive Interest Rates. Apply Now

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Loan Repayment Terms

Under the government education loan scheme introduced by Narendra Modi, the moratorium period offers borrowers either up to one-year post-course completion or six months after securing employment, whichever occurs first, to commence repayments.

This period is crucial for planning finances as it transitions from deferment to active repayment, typically beginning six months after graduation or course completion. This flexibility allows borrowers time to secure suitable employment, significantly increasing on-time repayments and enhancing borrower satisfaction and financial stability, as evidenced by recent reports from leading financial institutions.

Understand the benefits of an education loan moratorium period.

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List of Banks for Education Loan Scheme by Narendra Modi

Please find below the comprehensive list of 38 banks offering financial support under this scheme:

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

Apart from these, there are NBFCs also offering education loans. Find out the complete details about education loans by NBFCs in India.

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Scholarships and Subsidies

Under the education loan scheme initiated by Prime Minister Narendra Modi, the integration of scholarships with loans through the Vidya Lakshmi Portal significantly strengthens the student support system. This portal features over 200 scholarships across various disciplines, offering a comprehensive range of financial aid options to mitigate educational costs. 

Learn all about the Prime Minister Scholarship. Eligibility criteria, Benefits, Documents required, and application process for the PM scholarship program.

Moreover, the scheme includes a special subsidy for economically weaker sections, providing loans over Rs. 7.5 lakhs without collateral for families with incomes below Rs. 4.5 lakhs. This initiative aims to alleviate financial barriers and ensure inclusive access to education financing, enhancing opportunities for students from all backgrounds.

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Propelld: Financing the Future of Learning

Navigating the complexities of education loans to get through higher education’s financial requirements requires a trusted partner. 

Propelld, a trusted NBFC in the world of education financing in India, emerges as this partner. With over 2 Lacs customers, collaborations with 2500+ institutes, and more than 2000 Crores disbursed, Propelld is revolutionizing the way education is financed.

Propelld’s commitment extends beyond just loan disbursement. With no-collateral loans, moratorium availability, and a streamlined process that's 10X faster than banks, Propelld ensures your dream of quality education is within reach. Not just that, you get the support of our highly dedicated and empathetic staff that guides you throughout your financing journey to make it easy. 

Whether you're eyeing skill-up courses, coaching, college education, or schooling, our partnerships span a range of prestigious institutions and courses. 

Don't let financial barriers hold you back. Propelld's innovative approach, focusing on employability and less on traditional financial metrics, means higher approval rates and tailored support for your educational journey. Start with Propelld today, where empowering your educational dreams is our mission. Visit us now to take the first step toward your dream.

FAQs About Education Loan Scheme by Narendra Modi

Who is Eligible for Foreign University Loans?

For aspiring students eyeing education abroad under the education loan scheme by Prime Minister Narendra Modi, eligibility criteria play a crucial role. According to recent data from the Ministry of Education, candidates must meet specific academic requirements and secure admission to recognized foreign universities to qualify for the scheme. Additionally, proficiency in standardized tests like GRE, GMAT, or TOEFL may be necessary, depending on the course and institution.

How Can I Apply to Multiple Banks for a Loan?

The scheme features a centralized online portal that allows applicants to simultaneously apply for loans across multiple banks, facilitating a more efficient application process and increasing the chances of obtaining financial support.

What Educational Levels Does the Loan Cover?

The education loan scheme by Prime Minister Narendra Modi offers a broad spectrum of financial support, encompassing educational pursuits from undergraduate to doctorate levels. Recent statistics indicate that students can avail themselves of loans ranging from Rs. 20,000 to over Rs. 1 crore, depending on the course, institution, and financial assessment. This inclusive approach caters to diverse academic aspirations and empowers individuals to pursue higher education without financial constraints.

Which Banks Offer These Loans and How Much Can I Borrow?

A wide array of public and private banks are involved, with loan amounts varying up to INR 10 lakhs for studies within India and up to INR 20 lakhs for studies abroad, subject to specific course and institution requirements.

Who is eligible for Pradhan Mantri education loan Yojana?

The Scheme is applicable to students belonging to economically weaker sections having gross parental/ family income Up to Rs.4.5 lakh per annum from all sources.

What is the CSIS Scheme?

The CSIS (Central Sector Interest Subsidy) Scheme in India offers interest subsidies on education loans for economically weaker students, promoting affordability and access to higher education.

Who is eligible for the CSIS scheme?

The CSIS scheme is meant for students belonging to economically weaker sections with an annual gross parental/family income of not more than Rs. 4.5 lacs per annum.