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:

1. 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.
2. 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.
3. 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
4. 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.
5. 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.
6. 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.