Vidya Lakshmi Education Loan Portal & PM Vidyalakshmi Scheme

The Vidya Lakshmi portal, an initiative by the Government of India, offers a valuable solution for students looking for education loan options. 

This user-friendly platform, supported by the Department of Financial Services, the Department of Higher Education, and the Indian Banks Association, gathers a wide range of loan choices from different banks, hence you can apply to multiple banks with a single application eliminating the need to search across multiple banks/websites.

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What is Vidya Lakshmi Portal?

The Vidya Lakshmi Portal (VLP), established by the Government of India, serves as an online platform aimed at assisting students to apply for educational loans in a streamlined manner.

Launched by NSDL e-Governance Infrastructure Ltd., this portal is a collaborative effort involving the Department of Financial Services, the Department of Higher Education and the Indian Banks’ Association (IBA). It is intended to function as a comprehensive solution for students who wish to navigate and secure educational loans from various banks.

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Features of Vidya Lakshmi Education Loan Portal 

Vidya Lakshmi Education Loan provides the following striking features: 

1. One-Stop Platform

Instead of visiting different banks, students can apply and compare education loans from multiple lenders on a single platform.

2. Easy to Use

​​The portal is built to be simple and clear, making it easy to use even for those who aren't very tech advanced. Everything is laid out easily to avoid any confusion. 

3. Make Smart Choices

The portal lets you compare loan offers from different banks, interest rates, tenure, and eligibility, all in one place, so you can choose what fits you best.

4. Apply Anytime, Anywhere

No long lines or piles of paperwork—just apply online from your computer or phone, upload your documents, and you’re good to go.

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Explore other government-supported education loans like the scheme by Narendra Modi

One of the key Features of Vidya Lakshmi Education Loan Portal is its unified access to multiple lenders, including options for both domestic and international courses like those in Canada.

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Vidya Lakshmi Education Loan Interest Rates

Before discussing the interest rates on education loans, let’s understand an important term: MCLR. 

What is MCLR or Marginal Cost of Credit-Based Lending Rates?

MCLR, or Marginal Cost of Funds Based Lending Rate, is the minimum interest rate below which banks are generally not allowed to lend, except in certain cases permitted by the RBI. Introduced in April 2016, MCLR replaced the earlier base rate system to bring more transparency in how banks set interest rates and to ensure quicker transmission of RBI’s policy rate cuts to borrowers. 

It is based on the bank’s own cost of funds like the interest they pay on deposits and is reviewed monthly. When the RBI lowers repo rates, MCLR is expected to decrease, which can make loans more affordable for borrowers.

Vidya Lakshmi Education Loan Interest Rates Across Banks

This is a brief list of banks in Vidya Lakshmi portal. You can also Download List of Banks in PDF

Vidya Lakshmi Education Loan Interest Rates: Points to Remember

Here are a few points that you must take care while checking the interest rates and applying for Vidya Lakshmi Education loan: 

1. Look for the most recent rates before applying because most student loan interest rates are MCLR-based.
2. Your course and school determine interest rates on student loans.
3. Subsidies for interest rates must be requested individually; they are only sometimes granted.

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Funding your Future in Just 7 Days!

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Eligibility Criteria for Vidya Lakshmi Education Loan

To get an academic loan through the Vidya Lakshmi Portal, you need to meet certain eligibility criteria set by the banks involved. These conditions are important to make sure the money is used properly and can be paid back successfully. Then here are the main aspects you need to qualify:

Before applying, students must review the Eligibility Criteria for Vidya Lakshmi Education Loan, which are aligned with standard government and bank norms.

You can also check out this detailed article on Vidya Lakshmi Portal college

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Documents Required for Vidya Lakshmi Education Loan

The following documents are required to get a Vidya lakshmi Education loan:

Learn more about list of documents needed for your education loan application

The above guidelines are general and individual banks may have specific requirements. It's important to talk directly to the bank you are interested in to understand precisely what steps you need to take to secure your desired education loan. 

You can also check out the instant loan services provided by Propelld which is often considered a favored choice to financing education by students looking for quicker and efficient solutions.

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‍Secure Your Higher Education. Apply Now

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Education Loan Application on Vidya Lakshmi Portal: Complete Process

This is how the Vidyalakshmi portal home page looks like: 

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How to Register on Vidya Lakshmi Portal?

Step 1: Visit the official website of Vidya Lakshmi

Step 2: Click on 'Register'

Step 3: Enter the basic details like name, mobile number, email ID, and password

Step 4: Enter the Captcha

Step 5: Agree to the terms and conditions and click on 'Submit'

Step 6: On doing so, an activation link will be sent to the email ID you provided

Step 7: You need to click on the link sent to your mail to activate the account

How to Login on Vidya Lakshmi Portal?

Step 1: Visit the official website

Step 2: Click on 'Login'

Step 3: Select 'Student Login'

Step 4: Enter the email ID, password created at the time of registration, and the captcha code displayed on the screen

Step 5: Select 'Login'

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How to Search for an Education Loan on Vidya Lakshmi Portal?

Step 1: Click on the 'Search for Loan' tab

Step 2: Login to the portal

Step 2: Select the appropriate option under the location of study, course, and loan amount

Step 3: After doing that, click on 'Search'

Step 4: On doing that, a list of banks will be displayed along with the respective loan schemes

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How to Apply for an Education Loan on Vidya Lakshmi Portal?

Step 1: You can choose to find the nearest bank branch or apply for an education loan when the loan listings are presented on the screen.

Step 2: On selecting the latter option, you will be redirected to fill in the Common Education Loan Application Form (CELAF) 

This is how the CELAF Form looks like: 

Step 3: Under "instructions," there are seven tabs, including "basic information," "personal information," "course details," "cost of finance data," and "upload papers."

Step 4: You must proceed and provide the requested information. Once you have finished filling out each tab's details, click "Submit," "Save," and then "Next." 

Step 5: The form will be used to apply individually to the respective bank and scheme chosen by you.

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Alternatively you can also follow these steps: 

Step 1: Select the “Search and Apply for Loan” option.

Step 2: Now, select the country where you want to study (India/Abroad)

Step 3: Select the course you want to pursue.

Step 4: Select the amount you need to finance your higher studies.

Step 5: Select suitable terms and conditions for repayment and select three preferred banks to apply for the Vidya Lakshmi education loan.

Step 6: Upload the required documents.

Step 7: Do a quick check on the details that you are going to submit.

Step 8: After following all the steps mentioned above, click on the “Submit” option.

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How to Check the Status of Your Application on the Vidya Lakshmi Portal?

Step 1: Visit the Vidya Lakshmi Student Login page.  

Step 2: Enter your username/email and password to log in to your account.  

Step 3: Once logged in, look for the option labelled ‘Application Status’ on the homepage of the portal.  

Step 4: Click on Application Status. After clicking on the application status, you will be directed to a page where you can view detailed information about the status of your loan application. This may include whether your application is under review, approved, rejected, or pending additional documentation.  

Step 5: If there are any remarks or comments from the bank regarding your loan application, they will be displayed along with the status. These remarks may provide insights into any issues or requirements related to your application. 

Step 6: If there is a provision to upload the study loan processing report on the portal dashboard, you can do so according to the instructions provided. This step may be relevant for students in remote areas facing communication challenges.

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How to Cancel Education Loan on Vidya Lakshmi Portal?

Step 1: Access your account on the Vidya Lakshmi portal using your login credentials. 

Step 2: Find the section or page where your loan applications are listed. 

Step 3: Identify the specific loan application you wish to cancel from the list. 

Step 4: Look for an option or button that allows you to cancel or withdraw the application. 

Step 5: Click on the cancel or withdraw option and follow any prompts or instructions provided. 

Step 6: Confirm the cancellation when prompted. Make sure to receive a confirmation message or notification stating that your loan application has been successfully cancelled. 

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How to Edit Education Loan on the Vidya Lakshmi Portal?

Step 1: Sign in to your account on the Vidya Lakshmi portal using your login credentials. 

Step 2: Navigate to the section or page where your loan applications are displayed. 

Step 3: Locate the specific loan application form that you want to edit. 

Step 4: Look for an option or button that allows you to edit the application form. Click on the edit option and make the necessary changes to the form as required. 

Step 5: Review the updated information thoroughly and ensure its accuracy. Save the changes before exiting the form.   

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Points to Remember during Registration on Vidya Lakshmi Portal

During the registration on Vidya Lakshmi Portal, you must take care of the following things: 

1. Please enter student name as mentioned on 10th standard mark sheet or the mark sheet attached with your loan application.
2. Enter a valid mobile number. Students can provide a mobile number of parents/guardians.
3. Enter a valid email ID. Email ID is not allowed to be changed later. All necessary communications will be sent on this email ID.

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‍Dream College? We’ll Fund It

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What is the Processing Time for Vidya Lakshmi Loan?  

Well, it can vary. The time taken to process Vidya Lakshmi Education Loan depends on factors like loan amount, eligibility, financials, location of institute etc. However, the processing time is usually defined depending on the two types of college locations: 

Vidya Lakshmi Loan Processing Time for Study in India

For an education loan taken to study in India, the processing time is usually 15 days for a loan up to 7.5 lakhs. You have to respond to the bank communication and clear your application within 15 days. If not done, the application is marked as rejected by the bank after 15 days and  you need to reapply. However, for a loan exceeding 7.5 lacs, this time limit is 30 days. 

Vidya Lakshmi Loan Processing Time for Study Abroad

Studying abroad requires a higher loan amount, usually more than 7.5 lacs and more documentation. Hence, the time taken for processing of this loan is usually 30 days when applied through the Vidya Lakshmi portal. 

How to Get my Vidya Lakshmi Application Processed Faster? 

Here is what you can do to have your application processed hassle free and on time: 

1. Keep checking your application status on the Vidya Lakshmi portal
2. Contact your bank if you haven't received any correspondence within a few days after applying. 
3. Keep a check on any communication received from the bank and respond immediately with the details or documents as required. 
4. In case the application is on hold, clear the requirements immediately. 

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‍100% Course Fee Covered. Apply Now!

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Banks Listed on the Vidya Lakshmi Portal

This is a list of banks that are registered on the Vidya Laxmi portal. These banks offer education loans, which students can apply for. 

Get your Loan 10 Times Faster than Banks. Apply Now.

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Got Rejected for Vidya Lakshmi Education loan?

If your application for an education loan from Vidya Lakshmi didn't go through, don't worry! Here is what you can do: 

Explore other Banks on the Portal

Check out the loan schemes offered by other banks on the portal. There are as many as 44 other banks and programs you can check out. Check out the complete features, interest rates, repayment terms and other details to find the best suited deal. Submit your application to another bank.

Explore NBFCs

Alternatively, you can also check out the loan schemes offered by NBFCs like Propelld. Get your loan approved in 7 days with Propelld. Not just that, let your academics be your guarantee with Propelld. We consider your academic performance as part of  our approval process, thus , better academics earning you better chances of approval.  All these student-first factors make us a great alternative. With Propelld, you can get education financing without any hassle and with clear terms. 

Learn more about student loan rejection reasons and improve your financial profile.

Don't let a rejection get you down, come to Propelld for your education needs!

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Loan Approved on Your 12th Marks

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‍How to Reapply for Vidya Lakshmi Education Loan?

There can be numerous reasons that may get your application canceled. But that's not the end of the story, you can always reapply the loan. To do so, follow these steps:

1. Contact Your Bank

Contact your bank and know the exact reason for loan rejection. This will help you rectify the gaps in the next application. Also, ask your bank to close your existing loan application. You can do this through mail or by visiting the bank in person. 

2. Closure Request

Submit a closure request for your existing loan application to your bank. Once the bank accepts your closure request, it will be updated on the portal. make sure to track this closure because you will not be able to reapply until the existing application gets closed. 

3. Edit the Application Form

Once your previous application is cancelled by the bank, you can reapply on the portal. Visit the portal and go to the “Reapply for Loan Scheme” tab. This will take you to the new application form where you can make the changes if required. 

4. Reapply to New Loan Scheme

Post filling the application form, you can check out the loan schemes offered by all 44 banks on the portal. Check the features, interest rates, eligibility criteria, repayment options and other details. Compare and select an option that suits your requirements. Submit your application to the selected bank. 

Reapply Here

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No Collateral? No Problem. Apply Now

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Vidyalakshmi Education Loan Portal is a convenient, transparent, and efficient solution for students seeking educational financing. Its main USP being that it provides a single platform for applying to multiple lenders, thus optimising your application time. 

However, if your application is rejected on the portal, and if you are looking for a more efficient and hassle free solution to your education financing, Propelld has got your back. 

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Expenses Covered by Vidya Lakshmi Education Loans

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Vidya Lakshmi Portal College List

‍On the Vidya Laxmi Portal, students can review the specifics of 139 student loan programs provided by 45 Indian banks. The approved colleges on the Vidya Lakshmi Portal are chosen according to the most recent National Institutional Ranking Framework (NIRF) rankings.

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Check out how to see the Vidya Lakshmi Portal College List on the portal. You can also download the Vidya Lakshmi Portal College list in pdf here.

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Tax Benefits on Vidya Lakshmi Education Loan Interest Rate

Benefits from Interest Paid on Education Loans Co-applicants and applicants for Study Loans are eligible to get tax benefits under Section 80E on Interest paid.

However, the following are a few limitations about tax benefits on college loan interest rates:

1. The interest tax benefit on education loans is limited to eight years of claimable income.
2. The deduction is limited to the entire amount of the section 80E deduction; if the loan is paid off before the eight years have passed, the benefit cannot be claimed for the remaining time.
3. Only the EMI-paying applicant may claim the tax benefit from an education loan interest subsidy; the tax benefit cannot be claimed if an interest subsidy is already claimed.

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How to Claim Income Tax Benefits on Vidya Lakshmi Education Loan Interest Under Section 80E?

There is no unique procedure for receiving a deduction for Interest paid on student loans. Individuals are the only entities eligible to get education loan tax benefits,  corporations or businesses are not. The procedure is the same as for any other income tax deduction application. To claim this tax deduction, follow these quick steps:

1. Obtain an interest payment certificate for the student loan from the relevant bank branch.
2. If the applicant has accessed online banking, they can also download this interest certificate from the bank's official website. 
3. Only the information on Interest paid for the current fiscal year should be included.
4. It needs to be validated with a seal or bank stamp.
5. When filing an income tax return, note the interest amount paid under Section 80E deductions.
6. Attach your ITR documentation and a copy of the interest certificate.

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‍Loan Sanctioned in Just 2 Days

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PM Vidyalakshmi Education Loan Scheme

Launched on November 6, 2024, the Pradhan Mantri Vidyalakshmi (PM-Vidyalakshmi) Scheme is a central government initiative that helps ensure students aren't held back from higher education due to financial limitations. 

• It provides collateral-free and guarantor-free education loans with a fully digital application process, accessible to students admitted on merit to eligible institutions, with no upper limit on the loan amount.
• Students whose family income is up to ₹8 lakhs per year can get a 3% interest discount on education loans up to ₹10 lakhs during the repayment-free (moratorium) period. 
• The benefits are given to students studying in Quality Higher Educational Institutions (QHEIs) in India. These are top colleges based on NIRF rankings and government guidelines. For 2024–25, the list includes 860 such institutions.
• The scheme provides a 75% credit guarantee on education loans up to ₹7.5 lakhs. It is managed through the PM-Vidyalakshmi portal, which helps students apply for loans, receive funds, and ensures that no one gets duplicate benefits from other government schemes by using Aadhaar-based verification.

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Benefits of Vidya Lakshmi Education Loan Portal

Vidya Lakshmi Portal lets students compare and choose education loans based on their needs and eligibility. It is backed by the Government of India, which offers a guarantee cover for loans up to ₹7.5 lakhs taken for studies in India. If a student is unable to repay, the government covers the repayment. Loans through the portal may also qualify for Section 80E tax deductions, reducing long-term financial stress.

Here are some major benefits of ‍Vidya Lakshmi Education Loan Portal: 

• The Vidya Lakshmi Education Loan Portal lets students compare and apply for education loans from multiple banks in one place.
  
• It is backed by the Government of India under a guarantee scheme, if a student borrows up to ₹7.5 lakhs to study in India and can’t repay, the government may cover the loan.
  
• Loans availed through the portal are eligible for tax deductions under Section 80E, helping reduce long-term repayment pressure.
  
• Students can apply to multiple banks using just one application form, saving time and effort.
  
• The portal offers complete information on loan schemes, including interest rates and eligibility, to help students make smart choices.
  
• It is integrated with the National Scholarship Portal, opening access to scholarship opportunities alongside education loans.
  
• Banks benefit from a more efficient loan process, leading to quicker approvals and better service.
  
• Loan amounts are disbursed directly to the student’s account, ensuring transparency and timely access to funds.
  
• The portal is fully online, allowing students to apply and get support from anywhere without visiting a branch.

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Vidya Lakshmi Education Loan Portal brings everything a student needs into one place,easy loan applications, comparisons across multiple banks, real-time tracking, and access to scholarships. Backed by the Government of India, the platform simplifies everything. For those looking beyond traditional banks, students can also explore financing options from trusted education loan providers like Propelld, which offer flexible terms and digital-first processing tailored to students' needs. ‍

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FAQs About Vidya Lakshmi Education Loan

Who can get an education loan from Vidya Lakshmi?

If you're an Indian citizen who has finished high school or graduated from a recognized college in India, then you can apply for an education loan using Vidya Lakshmi.

How much money can I borrow from Vidya Lakshmi?

Vidya Lakshmi offers 135 loan options. You can get an education loan worth up to 1.5 Crore through Vidya Lakshmi.

Which bank is best for Vidya Lakshmi loan?

Here's a list of some of the banks you can find on the Vidya Lakshmi portal:

1. Canara Bank
2. Central Bank of India
3. Corporation Bank
4. Dena Bank

Is Vidyalakshmi loan interest-free?

Vidya Lakshmi doesn't offer interest-free education loans. All loan schemes on the platform have interest rates associated with them.

Does the Vidyalakshmi loan cover education in other countries?

Yes! Indeed, the Vidya Lakshmi Portal offers education loans for international study opportunities. The portal features 139 education loan schemes offered by 45 Indian banks. Through this platform, you can apply for loans to pursue various courses and enroll in institutions both within India and abroad.

What is the limit of Vidya lakshmi education loan? 

The limit of Vidya Lakshmi education loans varies depending on factors such as the course, institution, and the borrower's repayment capacity, with amounts ranging from a few lakhs to several lakhs of rupees. 

However, below 7.5 lacs, no collateral is required, but above that amount a collateral and guarantor is required. 

What is the tenure for Vidya lakshmi education loan?

Vidya lakshmi education loan has a maximum tenure of 10 to 15 years depending on the bank.

Is Vidya Lakshmi portal a good portal to apply for loans?

It is the best portal to apply for loans,gives access to all bank schemes which is really convenient. - Rohit Gupta Portal features are quite satisfying. - Ananya I found the portal of Vidya Lakshmi really helpful. 

Can student register multiple times on Vidya Lakshmi portal?

No, students should register only once using a valid email ID and password. If you’ve forgotten your login details, use the “Forgot Password” feature to reset your credentials instead of creating a new account. This ensures you retain access to your previous applications and loan tracking history.

Is there any fee to apply for loans through the portal?

No, applying through the Vidya Lakshmi portal is completely free.

What if I forget the password of my Vidya Lakshmi Portal Login ID?

You can reset your password by clicking on the Forgot Password option on the login page. An email with a reset link will be sent to your registered email ID.

 Which bank gives an education loan easily on the Vidya Lakshmi portal?

Loan approval depends on your eligibility, course, and the bank's policies. However, public sector banks like SBI, PNB, and Canara Bank generally offer quicker and more flexible loan options under government-backed schemes.

What is the subsidy offered under the PM Vidyalakshmi scheme?

The PM Vidyalakshmi scheme itself does not provide a direct subsidy but is linked to the Central Sector Interest Subsidy Scheme (CSIS). Under CSIS, eligible students from economically weaker sections (family income ≤ ₹4.5 lakh per annum) can get full interest subsidy during the moratorium period of their education loan.

Is there any charge to use the Vidyalakshmi portal?

No, the Vidyalakshmi portal is completely free of charge for students. You can apply for education loans, track applications, and access related schemes without paying any service fee.

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