The loan was introduced under the Pradhan Mantri Vidya Lakshmi Karyakram, which was initiated to improve the literacy rates in the country. This scheme is a completely IT-based Student Financial Aid Authority to administer and monitor Scholarship as well as Educational Loan Schemes.

This encourages the students to complete their higher education despite having a financial deficit. The scheme helps the students procure the loans as soon as possible and bridges the gap between the required amount of funds to complete the course and the deficit amount.

The Vidya Lakshmi Education Portal is one of its kind and it was set up by various government bodies such as the Department of Financial Services, (Ministry of Finance), Department of Higher Education (Ministry of Human Resource Development) and Indian Banks Association (IBA).

This portal was developed by NSDL e-Governance Infrastructure Limited (NSDL e-Gov) and they are also responsible for the maintenance of this portal. With the help of this scheme, the students are enabled to easily apply for a loan and they can also track their loans at any point of time. This portal is linked with many National Scholarship Schemes.

Objective Of Vidya Lakshmi Portal Education Loan Scheme

The main objective of the scheme is to provide an opportunity for eligible students with an easy and effective system of accessing education loan in order to attain a quality education.

You can directly jump to the required details from the table below.

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Features of Vidya Lakshmi Education Loan

Vidya Lakshmi Education Loan is a provision given to students where they get access for the information and can also apply for various education loans and scholarship schemes. The features of Vidya Lakshmi Education Loan consists of:


Vidya Lakshmi Education Loan Eligibility

Courses Eligible for the Vidya Lakshmi Education Loan

 Courses in India

  • Graduation, Post-graduation including regular technical and professional Degree/Diploma courses conducted by colleges/universities approved by UGC/ AICTE/IMC/Govt. etc

  • Regular Degree/ Diploma Courses conducted by autonomous institutions like IIT, IIM etc

  • Teacher training/ Nursing courses approved by the Central government or the State Government

  • Regular Degree/Diploma Courses like Aeronautical, pilot training, shipping etc. approved by Director General of Civil Aviation/Shipping

Courses Abroad

  • Job oriented professional/ technical Graduation Degree courses/ Post Graduation Degree and Diploma courses like MCA, MBA, MS, etc offered by reputed universities

  • Courses conducted by CIMA (Chartered Institute of Management Accountants) - London, CPA (Certified Public Accountant) in the USA etc.

Student Eligibility

  • The student should have Indian Citizenship.

  • The students should have already secured the admission to either a professional or technical courses through an entrance Test/selection process conducted by the respective university.

  • If going for the abroad studies then the students should have compulsorily secured the admission to a university or an institute abroad.

  • There are no minimum qualifying marks stipulated in the last qualifying examination.

Application Process

  • The student should first register themselves and login to Vidya Lakshmi portal.

  • The Vidya Lakshmi Education Loan Application Form should be filled by the students. All the necessary details should be mentioned in the form.

  • After filling the form, the student can search for Educational Loan and apply for the education according to their needs, eligibility, and convenience.

  • The Common Educational Loan Application Form is the single form which students can fill 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 Vidya Lakshmi portal to apply for an Educational loan.

  • The students can view their loan status and processes through the applicant’s dashboard on the portal.

  • The amount of money applied for will be disbursed by the bank directly outside the portal.

Vidyalakshmi Education Loan Interest Rate

For Male Students:

  • Up to Rs. 7.5 Lacs – 10.00% p.a. as on 01.01.2017

  • Above Rs. 7.5 lacs – 10.75% p.a. as on 01.01.2017

For Female Students:

  • Up to Rs. 7.5 Lacs – 9.50% p.a. as on 01.01.2017

  • Above Rs. 7.5 lacs – 10.25% p.a. as on 01.01.2017


  • Co-obligation of parents and no seccurity is required for loans upto Rs. 7.50 Lacs

  • For loans above RS. 7.50 Lacs Co-obligation of parents together with collateral security of suitable value accepted by the bank.

Repayment and Moratotiam Period

The repayment period will only starts after 1 year of course completion or 6 months after securing a job.

Banks Registered with Vidya Lakshmi Education Loan

There 35 banks registered with Vidya Lakshmi Education Loan Scheme and there are 95 loan schemes offered. The following banks are registered with Vidya Lakshmi Education Loan Scheme.

Abhyudaya Co-Operative Bank Karnataka Bank Central Bank of India
Allahabad Bank New-India Co-operative Bank Canara Bank
Andhra Bank GP Parsik Bank Corporation Bank
Bank of Baroda RBL Bank DNS Bank
Dena Bank Tamilnad Mercantile Bank Ltd. Federal Bank
HDFC Bank United Bank of India Indian Bank
IDBI Bank Vijaya Bank Indian Overseas Bank [IOB]
State Bank of India [SBI] ICICI Bank UCO Bank
Karur Vysya Bank [KVB] Kotak Mahindra Bank
Pragathi Krishna Grameen Bank
Bank of Maharashtra Oriental Bank of Commerce Axis Bank
Punjab National Bank [PNB] Union Bank Syndicate Bank
Punjab and Sindh Bank [PSB] Bank of India [BOI]  

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