Vidya Lakshmi Education Loan Interest Rate for Banks (2024)

About Vidya Lakshmi Education Loan

The most incredible resource for students looking for an education loan is Vidya Lakshmi. It is being created by the Indian Banks Association, the Department of Higher Education, and the Department of Financial Services (Ministry of Finance). The organization responsible for developing and managing this portal is NSDL, or e-Governance Infrastructure Limited. Additionally, using the site, students can monitor, apply, and follow the status of their education loan applications at any time and from any location.

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Interest Rates for Education Loans

The interest rate on Vidya Lakshmi education loans begins at 8.40%. They may, however, apply for school loans up to INR 4 lakh for a maximum 15-year term without requiring any security.

Banks provide different interest rates for Vidya Lakshmi education loans, and your pay rate also depends on the loan plan. The purpose of the loan is to motivate the students to finish their postsecondary education even while they are in debt.

• Students can apply for educational loans to further their studies.
• Students may only apply online via the Vidya Lakshmi website.
• An education loan's interest rate begins at 8.40%. 

Students may apply to a maximum of three banks at once. The loan amount may be disbursed within 15 days of submitting the application form.

The RBI and the Indian Banking Association set the regulations and guidelines for student loans offered by all Indian banks."Marginal cost of credit-based lending rates" refers to these rates. Every student loan interest rate, ROI, is calculated by adding a percentage to these base rates. Every bank adds between 2 and 6 per cent more than their assigned MCLR. Students aware of these MCLRs can independently analyze the projected interest rates for education at different banks. The following are the MCLR rates for Vidya Lakshmi Education Loan Banks. You can revisit them to get the most recent monthly updates of MCLR rates for different banks. They are updated every month.

Note: Each bank qualified to provide the loan has a different interest rate.

Safety

Parents must co-obey, and no security is needed for loans up to INR 7.50 lakh. Additionally, the bank will accept collateral security of a suitable value and the co-obligation of parents for loans above INR 7.50 lakhs.

Payment Terms and Moratorium

The repayment period begins after completing the course and lasts a year or six months after landing a job.

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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. 

1. Abhyudaya Cooperative Bank Limited
2. Allahabad Bank
3. Andhra Bank
4. Andhra Pragathi Grameena Bank
5. Axis Bank
6. Bank of Baroda
7. Bank Of India
8. Bank Of Maharashtra
9. Canara Bank
10. Central Bank Of India
11. Corporation Bank
12. Dena bank
13. Development Credit Bank Ltd
14. Dhanlaxmi Bank
15. Dombivli Nagri Sahakari Bank ltd
16. Federal Bank
17. GP Parsik Bank Ltd
18. HDFC Bank
19. ICICI Bank
20. IDBI Bank
21. Indian Bank
22. Indian Overseas Bank
23. J&K Bank
24. Karnataka Bank Ltd
25. Karur Vysya Bank Ltd
26. Kerala Gramin Bank
27. Kotak Bank
28. Nainital Bank
29. New India Bank
30. New India Cooperative Bank Ltd
31. Oriental Bank of Commerce
32. Pragathi Krishna Gramin Bank
33. Punjab and Sind Bank
34. Punjab National Bank 
35. RBL Bank Ltd
36. State Bank of India
37. Syndicate Bank
38. Tamiland Mercantile Bank
39. Uco Bank
40. Union Bank of India
41. United Bank of India
42. Vijaya Bank
43. Yes  Bank 

The most incredible resource for students looking for an education loan is Vidya Lakshmi. It is being created by the Indian Banks Association, the Department of Higher Education, and the Department of Financial Services (Ministry of Finance). The organization responsible for developing and managing this portal is NSDL, or e-Governance Infrastructure Limited. Additionally, using the site, students can monitor, apply, and follow the status of their education loan applications at any time and from any location.

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Vidya Lakshmi Education Loan Interest 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, sometimes referred to as ROI, 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 return to see the monthly changes in MCLR rates for different banks since they are updated monthly.

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Benefits from Interest Paid on Education Loans Co-applicants and applicants for Study Loans are eligible to get tax benefits on Interest paid. As a result, the Interest paid on the loan may be subtracted from the applicant's or co-applicants total taxable income if they make school loan EMI payments. The following are a few oddities 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 may I apply for the Income Tax Benefits of 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 claim the deduction; 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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Interest Rate on Education Loans: Crucial Reminders

Look for the most recent rates before applying because most student loan interest rates are based or 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.

Frequently Asked Questions

Which bank offers student loans with lower interest rates? 

An education loan of Rs 20 lakh with a seven-year repayment period is available at 6.9 per cent APR from Punjab National Bank, Canara Bank, and IDBI Bank. The interest rate on an education loan from the Bank of Maharashtra starts at 7.05 per cent, with an EMI of Rs 30,234.

Who is qualified for an education loan from Vidyalakshmi?

An overview of the features and advantages of the Vidya Lakshmi Portal

Typical qualifying standards established by banks include Indian Citizenship: To apply for an education loan through the Vidyalakshmi portal, a candidate must be an Indian citizen. Level of Education: To be qualified to apply for a loan, the candidate must possess a 10+2 completion certificate.

Are loans from Vidya Lakshmi interest-free? 

Can I obtain interest-free loans using the Vidya Lakshmi portal? No is the response to this query. None of the lending plans offered on this site allow for interest-free loans. Approximately 44 banks that provide 138 loan plans are registered on the platform.

What is the Indian interest rate on student loans?

Most information about interest rates on student loans may be found on the bank's official websites; however, accessing all of the information requires browsing across multiple websites. Interest rates on student loans are often influenced by the type of school and the courses taken, but they are also modified for applicants who identify as minorities and girls. The following are the standard interest rates for college loans:

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What is an interest subsidy on student loans? 

A study loan subsidy enables students to make up for the costs incurred in repaying the loan. Student loan applicants can benefit from favorable interest rates through government initiatives and private bank programs. According to RBI and Central Government guidelines, education loan subsidies are often given as interest-rate compensation. This subsidy is a full, partial, or cash refund of interest paid to the applicant during the course.