The Indian government has introduced the Vidyalakshmi Scheme 2024 to facilitate education loans for students seeking funding to study in India or abroad.
The Vidyalakshmi portal offers information on 139 education loan programs from 45 Indian banks. The departments of financial services and higher education, Government of India, and the Indian Banks Association has guided its development.
Objective And Benefit
Launched in August 2015, the Vidyalakshmi portal is a unique resource for students seeking financial aid to study in India or abroad. It provides information on 139 education loan initiatives offered by 45 banks and financial institutions, offering assistance throughout the application process. The Vidyalakshmi portal will help students compare and evaluate various student loan choices.
Eligibility And Required Documents
One has to be a resident Indian student, have a 12th-grade pass certification, and a valid Aadhaar card to be eligible for the scheme. Applicants must also provide a recent photograph, contact phone number, and income certificate. These documents are used for verifying the eligibility and streamline the application process, thus ensuring a smooth and efficient application process.
Loan Amount Sanctioned
For loans up to Rs 7.5 lakh, the student is also eligible for a credit guarantee of 75 per cent of the outstanding debt. This is to help banks make education loans available to students under the initiative.
Annual Household Income Below Rs 8 lakh
In addition, during the moratorium period, students with an annual family income of up to Rs 8 lakh who are not eligible for benefits under any other government scholarship or interest subvention schemes would get a 3 per cent interest subvention on loans up to Rs 10 lakh.
Educational Institutions Applicable
The PM Vidyalakshmi Scheme is applicable for top-quality higher educational institutions in India, as determined by the National Institution Ranking Framework (NIRF). This includes government and private higher education institutions (HEIs), state government HEIs, and central government-governed institutions. The scheme offers collateral and guarantee-free student loans for eligible applicants.
Online Application Through Vidyalakshmi Portal
To apply for the Vidyalakshmi Scheme 2024 online, students must register on the Vidyalakshmi website and create a new user profile.
They can then go to the official Vidyalakshmi website and select “New User?” and create a new account using their contact information.
A verification link will be sent to the registered email address, and students should click the activation link to validate their account.
After creating a new user account, students can apply for a Vidyalakshmi loan for their education. They can choose the option “Search and Apply for Loan”, choose the country of study (India or overseas), and decide the amount they will need to pay for their further education.
To apply for a Vidyalakshmi education loan, students must choose three preferred banks and appropriate repayment terms.
After completing all steps, they will need to review all the details filled and select ‘submit’.
