.avif)
Vidya Lakshmi Education Loan Portal: Eligibility, ROI & How to Apply
Going for higher education is an important milestone, but it often comes with financial challenges. 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.
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.
Knowing how to apply for education loan in India involves understanding the steps like choosing the right lender, preparing necessary documents, and submitting your application through approved channels, and one such key platform is the Vidya Lakshmi Portal, a centralized system that simplifies the education loan application process by connecting students with multiple banks.
Benefits of Vidya Lakshmi Education Loan Portal
Vidya Lakshmi allows students to compare and select loans as per their requirement and loan eligibility, enabling them to pursue their academic goals without financial burden.
It is backed by the Government of India under the government’s guarantee cover scheme for Indian banks. If any student who borrowed 7.5 lakhs to study in India, is not able to repay the amount then the government will pay the amount.
Among the Benefits of Vidya Lakshmi Education Loan Portal is its integration with schemes that qualify for Section 80E tax deductions, helping reduce your long-term repayment load.
Here are some major benefits of Vidya Lakshmi Education Loan Portal:
1. Simplified Application Process
Streamlined steps for effortless loan requests. Apply to multiple banks through a single portal, ensuring ease and eliminating the cumbersome loan processes.
2. Efficient and Timesaving
The ability to apply to multiple banks through a single application and portal saves a lot of time and effort, thus streamlining the entire process.
3. Complete Information at One Place
The portal provides comprehensive information about various loan schemes by different banks - students can compare interest rates, and check eligibility to make an informed decision.
4. Integration with National Scholarship Portal.
The Vidya Lakshmi Education Loan portal has seamless integration with National Scholarship Portal, hence opening doors of scholarship opportunities too for the students apart from/along with education loans.
5. Convenience for Banks
With streamlined processes, banks benefit with better operational efficiency at all levels, ensuring smooth processing and enhanced customer service.
6. Direct Transfer
Secure and prompt fund disbursement directly to students’ account, without any intermediary, thus ensuring transparency and eliminating any delays or uncertainties.
7. Remote Service
Accessible assistance and support from anywhere, without the need to visit any branch, offering convenience regardless of location.
Features of Vidya Lakshmi Education Loan Portal
Vidya Lakshmi Education Loan provides the following striking features:
1. One-Stop Platform
Rather than running around to different banks, students can find and apply for loans from various banks all in one place. No more visiting multiple agencies or dealing with confusing websites.
2. Easy to Use
The portal is designed to be straightforward and easy even for the not-so-tech-savvy ones. Everything is laid out easily to avoid any confusion.
3. Make Smart Choices
With the portal, you can check loan offers from different banks. You can see and compare factors like interest rates, loan tenure, and eligibility requirements. This helps you pick the loan that is best suited to your requirements.
4. Apply Anytime, Anywhere
You do not have to fill out endless paperwork or stay around long lines. You can get a loan right from your computer or phone. Just complete the forms online and upload the required documents. Its quick and easy.
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.
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.
Education Loan Application on Vidya Lakshmi Portal: Complete Process
This is how the Vidyalakshmi portal home page looks like:
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'
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
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.
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.
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.
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.
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.
Guidelines for Registration on Vidya Lakshmi Portal
During the registration on Vidya Lakshmi Portal, you must take care of the following things:
- Please enter student name as mentioned on 10th standard mark sheet or the mark sheet attached with your loan application.
- Enter a valid mobile number. Students can provide a mobile number of parents/guardians.
- Enter a valid email ID. Email ID is not allowed to be changed later. All necessary communications will be sent on this email ID.
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:
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.
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:
- Keep checking your application status on the Vidya Lakshmi portal
- Contact your bank if you haven't received any correspondence within a few days after applying.
- Keep a check on any communication received from the bank and respond immediately with the details or documents as required.
- In case the application is on hold, clear the requirements immediately.
7 Days Disbursement. Get your Education Loan 10 times Faster than Banks. Apply Now.
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
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?
Based on standard lending rates established by the RBI and the Indian Banking Association, all Indian banks offer student loans. The Marginal Cost of Credit-Based Lending Rates is the name given to these rates. Each student loan interest rate, is calculated as a percentage added to these base rates.
Nearly all banks add amounts between 2% and 6% above their assigned MCLR. Understanding this MCLR enables students to independently analyze the projected interest rates for education at different banks.
The following are the Vidya Lakshmi Education Loan Banks' MCLR rates. You can check the monthly changes in MCLR rates for different banks since they are updated monthly.
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
Hassle Free Loans. 10 times faster than Banks. Apply Now!
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.
Higher Chances of Approval than Banks. Just 7 Days Disbursal. Apply Now.
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:
- The interest tax benefit on education loans is limited to eight years of claimable income.
- 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.
- 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.
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:
- Obtain an interest payment certificate for the student loan from the relevant bank branch.
- If the applicant has accessed online banking, they can also download this interest certificate from the bank's official website.
- Only the information on Interest paid for the current fiscal year should be included.
- It needs to be validated with a seal or bank stamp.
- When filing an income tax return, note the interest amount paid under Section 80E deductions.
- Attach your ITR documentation and a copy of the interest certificate.
Lesser Documents. Higher Approval Rate. Check Your Eligibility for Propelld Education Loan Now!
Vidya Lakshmi Education Loan Interest Rate: 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:
- Look for the most recent rates before applying because most student loan interest rates are MCLR-based.
- Your course and school determine interest rates on student loans.
- Subsidies for interest rates must be requested individually; they are only sometimes granted.
- Section 80E of the Income Tax Act allows taxpayers to deduct student loan interest.
Factors that Affect the Interest Rates on Vidya Lakshmi Education Loan
The interest rate for a loan you get through the Vidya Lakshmi Portal depends on many effects. Here is a simple breakdown of what affects the Vidyalakshmi education loan interest rate:
1. The Bank You Choose
Each bank on the Vidya Lakshmi Portal has its own interest rates. It's a good idea to check out what rate the different banks offer so you can pick the best one for you.
2. Loan Amount
If you are borrowing a lower amount, the interest rate might be a bit higher, compared to if you are taking a larger loan.
3. Your Credit History
If you've been good at paying back the debt in history and have a good credit score, you might get a lower interest rate. This shows the bank that you are responsible with money.
4. Collateral
You can offer an asset, like property, as a guarantee for the loan. That is because it makes the loan secured for the bank.
So, when you are thinking about getting a loan through the Vidya Lakshmi Portal, keep these factors in mind to make the best decision for your situation.
Interestingly, NBFCs like Propelld also consider a few more factors in their approval process. One such major factor that distinguishes it from other lenders is the academics of the student. We consider academics of the student as a major factor while approving their loan. Good academics is equal to better chances of approval.
In case you are yet to join a college you can know more about how to finance your college education after 12th grade.
Expenses Covered by Vidya Lakshmi Education Loans
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.
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.
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. We have a much higher chance of approval than banks and the disbursal process is also easier.
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!
Hassle Free Loans. No Collateral. Up to 100% Fees Financed. Apply Now
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.
Higher Approval. Lower Rejection. Check out Hassle Free Loans at Propelld. Apply Now.
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.
Why Propelld?
Are you parent of a JEE/NEET aspirant?
.svg)
