Government’s Vidya Lakshmi Education Loan Scheme: Online Application Form, Eligibility

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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:

  1. Ease of Application: The Vidya Lakshmi portal simplifies the education loan application process, making it more accessible for students.
  2. 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.
  3. 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.
  4. 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:

  1. IBA Model Loan Scheme: Education loans must be sought under the Indian Banking Association (IBA) Model Education Loan Scheme.
  2. Income Limit: The annual income of parents or guardians should not exceed Rs. 4/5 lakh per annum.
  3. 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.
  4. One-time Usage: Students can avail the loan only once for either Under Graduation (UG), Post-Graduation (PG), or integrated courses.
  5. 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:

  1. ICICI Bank
  2. Indian Bank
  3. RBL Bank Limited
  4. State Bank of India
  5. Andhra Pragathi Grameena Bank
  6. Bank of Baroda
  7. Canara Bank
  8. Punjab National Bank
  9. Union Bank of India
  10. IDFC FIRST Bank
  11. Dombivli Nagari Sahakari Bank Limited
  13. Punjab And Sind Bank
  14. Tamilnad Mercantile Bank Limited
  15. HDFC Bank
  16. New India Cooperative Bank Limited
  17. Chhattisgarh Rajya Gramin Bank
  18. Bank of India
  19. Indian Overseas Bank
  20. Axis Bank
  21. Canara Bank – Erstwhile Syndicate Bank
  22. Kerala Gramin Bank
  23. Abhyudaya Cooperative Bank Limited
  24. GP Parsik Bank Ltd
  25. The Kalupur Commercial Co Op Bank Ltd
  26. Karnataka Bank Limited
  27. Kotak Mahindra Bank Limited
  28. UCO Bank
  29. YES BANK
  30. Federal Bank
  31. Central Bank of India
  32. Bank of Maharashtra
  33. Karur Vysya Bank
  34. IDBI Bank
  35. Oriental Bank of Commerce
  36. Bank of Baroda
  37. Bank of Baroda – Branches of erstwhile Vijaya Bank
  38. United Bank of India
  40. Indian Bank – Erstwhile Allahabad Bank
  41. 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.


I'm Munna Sinha, a 35-year-old from Silchar. I'm the founder of "Silchar Job News," dedicated to connecting job seekers with local opportunities. My mission is to contribute to our community's growth and prosperity by bridging the gap between job seekers and employers.

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