How to Apply for the Vidya Lakshmi Process for an Education Loan?

Education loan

To increase accessibility to financing options for educational purposes, the Finance Minister of India announced the Vidya Lakshmi education loan scheme during FY 2015-16. With guidance from Indian Banks Association, Department of Higher Education, and Department of Financial Services, NSDL e-Gov developed the Vidya Lakshmi portal. 

Steps to apply for a Vidya Lakshmi education loan

Before applying for a Vidya Lakshmi education loan, individuals must first register themselves on the Vidya Lakshmi portal. Individuals must follow the below-mentioned steps for registration after visiting the official portal: 

Step 1: Register with the help of a login ID and password

Step 2: Enter all necessary details like name, age, date of birth, phone number, and email ID. A confirmation link is sent to the registered email ID after submission of the details

Step 3: Click on the received confirmation link

After completing the registration procedure, input the login details again and search for Vidya Lakshmi education loan details per requirements.

Individuals willing to apply for a study loan need to fill up the Common Education Loan Application Form (CELAF) available on the portal. After this, individuals can identify the best available options.

Features of Vidya Lakshmi portal

Besides providing information regarding several education loan scheme, there are several other features of the Vidya Lakshmi portal. These are illustrated below:

  • Students and financial institutions can use the portal’s dashboard to upload and download their application details.
  • Users can compare various financing options and then choose the most appropriate one.
  • Individuals can apply for an education loan for the second time if they fulfil certain terms and conditions.
  • Students can use this portal to correspond with financial institutions regarding their queries or grievances. They can also check the status of their query or grievance via the dashboard on the portal.

Students must note that they can use a single application form to apply with up to three lending institutions. However, they should ensure to opt for a reputed one as that will allow them to benefit from several offers. This includes pre-approved offers extended on secured and unsecured financial products that help simplify and accelerate the lending process. Applicants can check their pre-approved offers by providing a few details, such as their names and contact numbers. 

Besides this portal, the Government of India launched other education loan subsidy schemes for eligible individuals. These help borrowers acquire an education loan with an interest subsidy applicable for the moratorium period.

Individuals can also acquire an education loan on a property to fund educational expenses as this credit instrument comes with no end-use restrictions. 

This is one of the various types of loan against property and offers a substantial amount to borrowers that can be used for various educational purposes. These include funding expenses for higher studies in a foreign country, tuition fees, etc.

Eligibility criteria of a loan against property

The loan against property eligibility criteria is different for self-employed and salaried individuals. Both these are illustrated below:

For self-employed individuals:

  • Applicant must be a self-employed individual earning a steady income from business
  • Age must be between 25 and 70 years
  • Individual must be an Indian resident who owns and lives and in a property located in any of these cities – Nagpur, Vijayawada, Chennai, Cochin, Ahmedabad Bangalore, Madurai, Surat, Mumbai, Jaipur, Delhi & NCR, Lucknow, Hyderabad, Indore, Pune

For salaried individuals:

  • Individuals applying for a loan against property must be a salaried employee in an MNC or a private or public sector organisation
  • Age must be between 28 and 58 years
  • Applicant must be an Indian resident who owns and lives and in a property located in any of these cities – Pune, Ahmedabad, Hyderabad, Bangalore, Delhi &NCR, Mumbai & MMR, Chennai

Along with the eligibility parameters, individuals must also keep in mind the list of documents required while applying for this credit instrument.

Thus, individuals must keep in mind the above-mentioned facts related to the Vidya Lakshmi education loan.

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