Explained: PM Vidyalakshmi Scheme and Portal

Inspiration Study Circle Explained: PM Vidyalakshmi Scheme and Portal

The Indian government has launched a portal, Vidya Lakshmi, for students seeking educational loans. Five banks, including SBI, IDBI Bank, and Bank of India have integrated their systems with the portal. Vidya Lakshmi was launched on the occasion of Independence Day, 15 August 2015, for the benefit of students seeking educational loans.

Vidya Lakshmi was developed under three departments of India i.e., the Department of Financial Services, the Department of Higher Education, and the Indian Banks Association (IBA). Vidya Lakshmi Portal has been developed under the Pradhan Mantri Vidya Lakshmi Karyakram and announced by the finance minister Shri Arun Jaitley in the budget speech of FY 2015–16. As of August 15, 2020, 37 banks were registered on the Vidya Lakshmi Portal and offered 137 loan schemes

The PM Vidyalakshmi Scheme, launched by the Indian government, aims to provide easy and hassle-free education loans to students. Here are some key points about the scheme:

Objective: The main objective of the PM Vidyalakshmi Scheme is to provide financial assistance to students who want to pursue higher education in India and abroad by offering them education loans at affordable interest rates.
Features:
- Loans for various courses: Under this scheme, students can avail loans for a wide range of courses, including professional, technical, and non-professional courses.
- Collateral-free loans: For loan amounts up to Rs. 7.5 lakhs, no collateral or third-party guarantee is required.
- Interest subsidy: Interest subsidy is available for students from economically weaker sections (EWS) and low-income families.
- Moratorium period: The scheme provides a moratorium period for repayment, allowing students time to secure a job before starting to repay the loan.
Eligibility:
- Indian nationals
- Students who have secured admission to a recognized institution for higher studies in India or abroad
- Students who have a good academic record
Application Process:
- Students can apply for education loans through the PM Vidyalakshmi portal (vidyalakshmi.co.in).
- The portal allows students to apply to multiple banks for education loans and track the status of their application online.
Interest Rates:
- Interest rates for education loans under the PM Vidyalakshmi Scheme are competitive and vary from bank to bank.
- Interest subsidy is available for eligible students as per the scheme guidelines.
Repayment: The repayment period for education loans typically starts after the completion of the course or after the student secures employment, as per the terms agreed upon with the lending institution.

If you are considering applying for an education loan under the PM Vidyalakshmi Scheme, you should visit the official portal for detailed information and guidance on the application process.

Vidya Lakshmi Portal for Educational Loans

Vidya Lakshmi Portal provides a single window for students to access information and make application for Educational Loans provided by Banks. Students can view, apply, and track education loan applications to banks anytime, anywhere by accessing the portal. The portal also provides linkages to the National Scholarship Portal.

This portal has been developed under the guidance of the Department of Financial Services (Ministry of Finance), the Department of Higher Education (Ministry of Human Resource Development), and the Indian Banks Association (IBA).

Features of the portal

Information about Educational Loan Schemes of Banks
Common Educational Loan Application Form for Students
Apply to multiple Banks for Educational Loans
Facility for Banks to download Students Loan Applications
Facility for Banks to upload loan processing status
Facility for Students to email grievances/queries relating to Educational Loans to Banks
Linkage to National Scholarship Portal for information and application for Govt Scholarships

How to apply for an Educational Loan through Vidya Lakshmi?

The applicant must register and log in to the Vidya Lakshmi portal and then fill out the Common Education Loan Application Form (CELAF) by providing all the necessary details.
After filling out the form, the applicant can search for an Educational Loan and APPLY as per his/her needs, eligibility, and convenience.
Alternatively, the applicant can also search for an Educational Loan after login and apply for a suitable Educational Loan by filling in the CELAF.

Common Educational Loan Application Form (CELAF):

The Common Educational Loan Application Form is the single form that students can fill out to apply for Educational Loan to multiple banks/schemes. CELAF is the application form prescribed by the Indian Banks Association (IBA) and accepted by all banks. This form is provided on the Vidya Lakshmi portal to apply for an Educational Loan.

Benefits of the PM Vidya Lakshmi Scheme

The Vidyalakshmi scheme, as of my last update in September 2021, was a government initiative aimed at providing education loans to students. Here are some of the benefits associated with the Vidyalakshmi scheme:

Single Window for Education Loans: The scheme provides a single-window platform for students to access and apply for education loans from multiple banks according to their eligibility.
Transparent Process: It promotes transparency in the loan application process by allowing students to compare various loan options available from different banks.
Wide Coverage: The scheme covers a wide range of courses and educational institutions, including recognized universities and colleges in India and abroad.
Interest Subvention: Under certain conditions, the scheme offers interest subsidy benefits to students from economically weaker sections.
Flexible Repayment Options: Students can choose from various repayment options based on their financial situation, making it easier for them to manage their loan repayments after completing their education.
No Collateral for Loans Below a Certain Amount: For loans below a certain threshold, typically up to Rs. 4 lakhs, there might be no requirement for collateral, making it more accessible to students.
Digital Platform: The scheme operates through an online portal, making it convenient for students to apply for loans from anywhere and at any time.
Supports Skill Development: It can contribute to the overall development of skills and education by providing financial support to deserving students.

Some Common FAQs

Q1. How many applications for Educational Loans can be submitted by a student?

Ans. A student can apply to a maximum of three Banks through the Vidya Lakshmi portal using CELAF.

Q2. How will an applicant know the status of his/her application?

Ans. The Bank will update the status of the application on the Vidya Lakshmi portal. Students can view the status of the application on the applicant's dashboard on the portal.

Q3. How is the money/educational loan disbursed?

Ans. Approved Educational Loan of an applicant will be disbursed directly by the bank outside the Vidya Lakshmi Portal. To know more, contact the bank you have selected.

Q4. Which are the banks one can apply for an Educational Loan through the Vidya Lakshmi portal?

Ans. At present about 42 banks are registered with the platform.

Q5. Can students register multiple times on Vidya Lakshmi?

Ans. Multiple accounts by students are not allowed in the Vidya Lakshmi portal. Students can register only once on the Vidya Lakshmi Portal.

Q6. What is Sign up?

Ans. Students are required to complete the sign-up process to register on the Vidya Lakshmi portal. Only Students who have completed the "Sign up" / "Registration" process can apply for educational loans through the Vidya Lakshmi portal.

Q7. What if I forget the password of my Login ID?

Ans. You can click on Forgot password option provided on the Login page of the Vidya Lakshmi portal and you will be asked to provide your registered e-mail address. Vidya Lakshmi portal will send a system-generated password through an e-mail.

Q8. How will I know once the Education Loan is approved?

Ans. The Bank will update the status of the application on the Vidya Lakshmi portal. Students can view the status of the application on the applicant's dashboard on the portal.

Q9. What is on on-hold status of the Loan application?

Ans. The Bank will mark the loan application status on hold when the bank requires some further information or documents to be submitted by the student. The requirement will be indicated in the Remarks column and the Student can check the same in the dashboard.

Q10. How is the money/educational loan disbursed?

Ans. Approved Educational Loan of an applicant will be disbursed directly by the bank outside the Vidya Lakshmi Portal. To know more, contact the bank you have selected.

Q11. How many applications for Educational Loans can be submitted by a student?

Ans. A student can apply to a maximum of three Banks through the Vidya Lakshmi portal using CELAF.

Q12. How can I Reapply for the Education Loan?

Ans. To Edit the Loan Application Form and Reapply to the same scheme again, request all applied banks to Close/Reject your applications on Vidya Lakshmi. Once all applications get Closed/Rejected, the 'Reapply for New Loan Scheme' option will be enabled in the Loan Application Form tab.

Q13. What is the rate of interest for the Educational loan?

Ans. The interest rate varies from bank to bank and scheme to scheme. Therefore, the applicant/student is requested to check the same on the Loan Search page after login.

Q14. How can I apply for an Educational loan through Vidya Lakshmi?

Ans. The applicant must register and log in to the Vidya Lakshmi portal and then fill out the Common Education Loan Application Form (CELAF) by providing all the necessary details. After filling out the form, the applicant can search for an Educational Loan and APPLY as per his/her needs, eligibility, and convenience.

Alternatively, the applicant can also search for an Educational Loan after login and apply for a suitable Educational Loan by filling out the CELAF.

Disclaimer: The information and Statistics are taken from the following sources- Vikaspedia and Vidyalakshmi Government Official Portals.

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