Vidya Lakshmi Portal Education Loans: Eligibility, Application, Documents Required & More

Established in August 2015, under the Pradhan Mantri Vidya Lakshmi Karyakram, the Vidya Lakshmi Portal is an online portal for students to explore, compare, and apply for educational loans and scholarships. 

The Vidya Lakshmi platform was launched by the Indian government to simplify the process of availing educational loans and scholarships. It serves as a one-stop solution for students seeking financial assistance to pursue higher education in India or abroad. The portal provides a user-friendly interface, enabling students to browse through various loan schemes and scholarships offered by different banks and government bodies.

To use the Vidya Lakshmi portal, students need to follow the following steps to outline how to log in:

• Visit the Vidya Lakshmi website.
• Locate the 'Register' option in the top right corner.
• Register on the portal by creating a login ID and password.
• Check your email inbox and click on the verification link sent to you. Remember that the link is valid for only 24 hours.
• After successful verification, you will be redirected to the Vidya Lakshmi portal. Click on the 'Login' option located at the top right corner of the page and select 'Students Login'.
• Enter the login credentials you created during the Vidya Lakshmi registration process.
• Once logged in, you will be directed to the Vidya Lakshmi dashboard.

The Vidya Lakshmi dashboard consists of six orange tabs that serve different purposes:

1. Loan application form: This tab allows you to fill out the loan application form, which is the initial step for applying to Vidya Lakshmi education loan. It is a standardized document required for all loan applications on the Vidya Lakshmi portal.
2. Search & apply for loan schemes: Through this tab, you can search and discover suitable education loan schemes. Utilize the filter options available in the top left corner to customize the loan options displayed on your dashboard. It is important to complete the loan application form before applying for specific schemes.
3. Application status: The Application Status tab provides real-time updates on the progress of your education loan application. It displays the current status of your application at each processing stage. The portal also facilitates communication with the bank, ensuring timely updates and information on your dashboard.
4. Grievance: This tab enables you to raise grievances related to your loan application. You can select the type of grievance you have and submit it through the portal. The concerned bank will review your grievance, and you can track the status of your complaint on the portal.
5. Edit profile: You have the option to edit your profile information on the Vidya Lakshmi portal. However, please note that the details in your profile do not directly impact your education loan application. While filling out the loan application form, you will be required to provide personal information separately.
6. Change password: If you wish to update your Vidya Lakshmi login password, you can do so by accessing the 'Change Password' tab. This allows you to modify your password for security purposes or in case you want to set a new password.

By understanding the functionality of each tab on the dashboard, you can effectively navigate the Vidya Lakshmi portal for your education loan-related activities.

To search and apply for education loans on the Vidya Lakshmi portal dashboard, follow these steps:

Step 1: Start by filling out the Common Education Loan Application Form (CELAF). This is a crucial initial step for your loan application. Access the dashboard and click on the 'Loan Application Form' tab.

Step 2: Next, click on the orange tab labeled 'Search and Apply for Loan Scheme' on the dashboard. This will allow you to explore and apply for various education loan schemes available.

Step 3: Use the provided filters to refine the search results according to your specific requirements. You can filter the schemes based on factors such as whether it is for domestic or international study, the level of the course, and the desired loan amount.

Step 4: Once you have applied the filters, a list of suitable loan schemes will be displayed. Each scheme will have an option to apply for it.

Step 5: Click on a particular scheme that interests you, and you will be redirected to a page providing detailed information about that specific scheme. Review the details carefully to ensure it aligns with your needs.

Important Note: Keep in mind that you can apply for a loan from a maximum of three banks, and only one scheme per bank can be selected for the application.

Information required to apply for an education loan on the Vidya Lakshmi portal

As mentioned, you must first fill out the Common Education Loan Application Form (CELAF) to apply for education loans on the Vidya Lakshmi portal. There are 6 sections you must fill in to complete an education loan application. They are:

1. Basic information

This section includes three questions: are you pursuing higher studies in India or not; is your parental income more than INR 4,50,000; have you been admitted to a NAAC/NBA accredited university or not? If you are applying for education abroad, the questions regarding your parental income limit and NAAC/NBA accreditation are not applicable. 

• Personal information

This section asks for the applicant’s and his/her parent’s details. You must submit the details, including basic personal data of you and your parent/husband, contact details, parental income, PAN number, and your academic score in the last qualifying exam. 

• Present banker details

Here you have to give details of the bank which facilitates your current transactions. In this section, you will see questions for the IFSC code, account details, whether you have any liability with the bank, and whether you are related to the present bank’s or any other bank’s chairman/ director/ employee. 

• Course details

In this section, you must include whether you are admitted in the merit quota or in the management quota, the name of the course and institution, and starting and ending dates of the course. 

• Cost of finance details

In the cost of finance section, you must give details including the tuition fees, exam fees, books, stationery, equipment or computer, hostel expenses, sundries or travel, total amount needed, own source or scholarship, and loan required every year. You also have to fill in the details of the security that you pledge and a proposed repayment period.

• Upload documents

This is the final section of the application form where you upload all the mandatory Vidya Laksmi portal documents required. You must upload the following documents in this section: mark sheet, proof of admission to the course, proof of income, schedule of expenses for the course as given by the institution, form 16 (latest), IT returns (latest), copy of land records, undertaking letter if no PAN and Aadhar, and photos of the applicant, parent, and co-borrower. After uploading all these documents you submit the declaration, and your application is completed. 

As of 04 February 2023, there are 32 banks registered on the portal. Here is the complete list of banks with their education loan schemes:

Students often encounter issues with the Vidya Lakshmi portal, such as inadequate updates on their loan application status. This can occur when banks fail to provide timely updates or fail to respond within the designated 15-day period. However, it's important to note that this problem is not attributed to the portal itself but rather lies with the banks.

Another challenge students face on the Vidya Lakshmi portal is the requirement to submit collateral documents for loan amounts exceeding INR 7.5 lakhs. This may pose difficulties for students studying abroad, as INR 7.5 lakhs might not be sufficient for their educational expenses. Additionally, students who lack the necessary collateral security or mandatory documents have limited options for negotiation on the portal.

To address these challenges, GyanDhan offers assistance in securing education loans for studying abroad, with or without collateral. GyanDhan assesses your profile and connects you with suitable lenders while negotiating on your behalf to obtain the best education loan product. You can check your education loan eligibility and reach out to them for any inquiries related to studying abroad.

In summary, the Vidya Lakshmi portal's limitations in providing comprehensive loan updates and restrictions on collateral requirements and negotiation options can be overcome by seeking assistance from platforms like GyanDhan.

To select a loan scheme on the Vidya Lakshmi portal, register an account, log in, explore the available loan schemes, compare their features, select the desired scheme, and proceed with the application process. Follow the instructions provided by the respective bank, submit the required documents, and track your application through the portal. If you have any questions, contact the bank directly using the provided contact information. Remember to review the terms and conditions before applying.

To cancel loan applications on the Vidya Lakshmi portal, follow these steps:

1. Log in to your account on the Vidya Lakshmi portal using your credentials.
2. Navigate to the section or page where you can view your loan applications.
3. Locate the specific loan application you wish to cancel.
4. Look for an option or button that allows you to cancel or withdraw the application.
5. Click on the cancel or withdraw option and follow any prompts or instructions provided.
6. Confirm the cancellation when prompted.
7. Ensure that you receive a confirmation message or notification stating that your loan application has been successfully canceled.

To edit the loan application form on the Vidya Lakshmi portal, follow these steps:

1. Log in to your account on the Vidya Lakshmi portal using your credentials.
2. Navigate to the section or page where you can view your loan applications.
3. Locate the specific loan application form you want to edit.
4. Look for an option or button that allows you to edit the application.
5. Click on the edit option and make the necessary changes to the form.
6. Review the updated information and ensure its accuracy.
7. Save the changes before exiting the form.

Yes, you can apply for multiple education loan schemes available on the Vidya Lakshmi portal. However, you can only apply for a loan from a maximum of three banks, and only one scheme per bank can be selected.

You can track the status of your education loan application by logging into your account on the Vidya Lakshmi portal and clicking on the 'Application Status' tab. It will provide real-time updates on the progress of your application at various stages.

No, the Vidya Lakshmi portal is not limited to specific courses or institutions. Students can apply for education loans for a wide range of courses and institutions within India and abroad through the portal.

If you encounter any issues or have queries related to the Vidya Lakshmi portal, you can reach out to their support team for assistance. Contact information and support options can usually be found on the portal's website.

No, there is no fee or charge for using the Vidya Lakshmi portal. It is a free platform provided by the government to simplify the process of applying for education loans.