In a significant move to empower students from economically weaker backgrounds, the government has launched the Vidya Lakshmi Education Loan Scheme. This initiative aims to provide students with the financial support they need to pursue higher education without the constant worry of financial constraints. The Vidya Lakshmi portal, the cornerstone of this scheme, not only enlists but also actively monitors various education loans and scholarships, streamlining the process for students across the nation.
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Key Features of Vidya Lakshmi Education Loan
The Vidya Lakshmi Education Loan Scheme boasts several key features that make it an attractive option for students seeking financial assistance for their higher education endeavors:
- Ease of Application: The Vidya Lakshmi portal simplifies the education loan application process, making it more accessible for students.
- Comprehensive Options: The platform catalogs various national scholarship schemes and education loans, facilitating easier access to financial aid and reducing financial barriers for aspiring students.
- Flexible Tenure: The tenure of the education loan can vary from one lender to another. Importantly, the scheme allows for a moratorium period of six months after securing employment and one year following course completion.
- Collateral Flexibility: For education loan amounts up to Rs. 7.50 lakh, there is no need for collateral. However, loans exceeding this amount require a guarantor and collateral.
Also Read: Cachar College Recruitment Notification
Eligibility Criteria
To apply for a Vidya Lakshmi Education Loan, students must meet specific eligibility criteria, including:
- IBA Model Loan Scheme: Education loans must be sought under the Indian Banking Association (IBA) Model Education Loan Scheme.
- Income Limit: The annual income of parents or guardians should not exceed Rs. 4/5 lakh per annum.
- Approved Courses: Students pursuing technical or professional courses accredited by the National Assessment and Accreditation Council (NAAC) or technical/professional programs endorsed by Central Funded Technical Institutions (CFTIs) are eligible for these loans.
- One-time Usage: Students can avail the loan only once for either Under Graduation (UG), Post-Graduation (PG), or integrated courses.
- Interest Rates: The interest rates applied to education loans are determined based on the Base Rate of individual banks.
Approved Courses Under Vidya Lakshmi Education Loan Scheme
The Vidya Lakshmi Education Loan Scheme covers a wide range of eligible courses, both in India and abroad:
Courses in India:
- Regular UG, PG, and diploma courses offered by autonomous institutions.
- Technical and professional diploma courses from education institutions approved by recognized authorities.
- Government approved nursing and teacher training courses.
- Degree or diploma programs in fields like pilot training, shipping, and aeronautics sanctioned by the Director-General of Civil Aviation or Shipping.
Courses Outside India:
- Job-oriented professional degrees and diploma courses such as Master of Business Administration (MBA), Master of Computer Applications (MCA), and Master of Science (MS) offered by renowned education institutes.
- Courses like Certified Public Accountant in the USA and Chartered Institute of Management Accountants from London are also covered.
A Wide Network of Participating Banks
The Vidya Lakshmi Education Loan Scheme collaborates with several banks to provide comprehensive financial support to students. Some of the participating banks include:
- ICICI Bank
- Indian Bank
- RBL Bank Limited
- State Bank of India
- Andhra Pragathi Grameena Bank
- Bank of Baroda
- Canara Bank
- Punjab National Bank
- Union Bank of India
- IDFC FIRST Bank
- Dombivli Nagari Sahakari Bank Limited
- JAMMU AND KASHMIR BANK LIMITED
- Punjab And Sind Bank
- Tamilnad Mercantile Bank Limited
- HDFC Bank
- New India Cooperative Bank Limited
- Chhattisgarh Rajya Gramin Bank
- Bank of India
- Indian Overseas Bank
- Axis Bank
- Canara Bank – Erstwhile Syndicate Bank
- Kerala Gramin Bank
- Abhyudaya Cooperative Bank Limited
- GP Parsik Bank Ltd
- The Kalupur Commercial Co Op Bank Ltd
- Karnataka Bank Limited
- Kotak Mahindra Bank Limited
- UCO Bank
- YES BANK
- Federal Bank
- Central Bank of India
- Bank of Maharashtra
- Karur Vysya Bank
- IDBI Bank
- Oriental Bank of Commerce
- Bank of Baroda
- Bank of Baroda – Branches of erstwhile Vijaya Bank
- United Bank of India
- THE SOUTH INDIAN BANK LTD
- Indian Bank – Erstwhile Allahabad Bank
- Karnataka Gramin Bank
With this extensive network, the Vidya Lakshmi Education Loan Scheme is poised to make higher education more accessible and affordable for students across India, unlocking the doors to a brighter future.
