Are you planning on taking an education loan to finance your higher education, and unsure of where to begin? Well, you are not alone, inquiring and gathering information on loan schemes offered by different lenders and finalizing the right one can be overwhelming at times. 

Acknowledging this, the Indian Government in the year 2015 launched the portal - Vidyalakshmi, where students can now compare and apply for education loans from multiple lenders. In addition to education loan schemes of various banks, students can also search for and apply to various scholarships for which they are eligible. 

This article will clear all your doubts related to the Vidyalakshmi portal procedure, schemes, issues, etc. So read it till the last, and if you do not feel like reading then you can also watch our 27th episode of the LoanFlix series below, which is on the same topic-

About the Vidyalakshmi Portal

In the year 2015, on the occasion of Independence Day i.e. 15th August, The Finance Ministry of the Government of India launched the portal - Vidyalakshmi - to provide single window access for students seeking educational loans and government scholarships.

Vidyalakshmi is a first-of-its-kind initiative for students seeking an education loan. This venture was started through the Pradhan Mantri Vidyalakshmi Karyakram. This portal has been developed under the guidance of the Department of Financial Services, (Ministry of Finance), Department of Higher Education (Ministry of Human Resource Development), and Indian Banks Association (IBA). Here, students can view, apply and track the education loan applications.

Some key features of the Vidyalakshmi portal

  • It is a single website where students can get information related to education loans and scholarships. 
  • There are 130 different education loan schemes from 39 registered banks.
  • Students need to fill in only one form, the Common Education Loan Application Form (CELAF), for both loan and scholarship.
  • Students can view, apply, and track education loan applications from the comfort of their homes.
  • Students can compare various loan schemes of all different banks on the portal.
  • Applicants, as well as banks, have the facility to upload/download application details on the dashboard.
  • Students can apply to 3 different banks simultaneously.
  • The Vidyalakshmi portal has a facility where students can write to banks regarding their grievances at any time. They can also check the status of their complaint on the Vidyalakshmi dashboard.
  • Students can apply for another education loan on the portal, however, this is possible only under certain terms and conditions.

Vidyalakshmi portal procedure for registration 

The first step to access loan-related services on the website is to register on the Vidyalakshmi login portal.

  1. Create your login ID and password on the Vidyalakshmi login portal.
  2. Once this is done, click on a confirmation link which will be sent to you on your registered e-mail ID. 
  3. After clicking on the confirmation link, you will be taken to the Vidyalakshmi login page. You will need to enter your credentials again on the login page.
  4. Voila! Your Vidyalakshmi portal application registration process is done. 

How to access the dashboard & search for loan schemes on the Vidyalakshmi portal?

Accessing the Vidyalakshmi Dashboard

  1. Revisit the Vidyalakshmi login page, select the 'Student Login' option, and log in to your account using your credentials.
  2. Remember, each login session lasts about 10 minutes. So make sure you don’t divert your attention to another website in the meanwhile.
  3. On logging in, you will be able to view the Vidyalakshmi dashboard for students. The portal provides an overview of the various services that you can avail.

Here is a view of the dashboard on the portal. 

How to access Vidyalakshmi dashboard

Searching for loan schemes:

  • To search for education loan schemes, click on the tab, ‘Search for loan schemes’. This tab is available on the dashboard as shown in the image.
  • On the loan search page, one can see different tabs on the topmost area of the page.
  • At the far left corner, you will get a dialog box that will give you three options.
    • Select the country of study
    • Select Course.
    • Select the loan amount required
  • Students can select the options as per their requirements from three drop-down boxes. Based on various search combinations, a list of banks and education loan schemes offered by them will be displayed on the right side of the page.

Selecting the loan scheme:

  1. To select the loan scheme, one can enter the details in the search box on the left side of the page and click on any loan scheme that is displayed.
    • For example, If you enter the following details into the dialog box;
    • Location of study: abroad
    • Course: post-graduation
    • Loan amount required: above 7.5 lakhs
  2. A list of banks meeting the entered criteria will be displayed along with the list of respective loan schemes on the right side of the bank loan portal.
  3. When you click on one of the loan schemes, a web page containing details about the selected loan scheme will be displayed.
  4. On this page, the terms mentioned below for the selected loan scheme are explained in detail.
    • Name of the loan scheme
    • A brief description of the loan scheme
    • Minimum criteria
    • Bank’s contact details
    • Documents list
    • Terms & Conditions
    • Repayment period
    • Repayment holiday/ Moratorium period
    • Interest rate
    • Processing fee
    • The maximum loan amount approved
    • Bank’s URL and Branch locator URL

Points you should look out for while searching for loans

While searching for loan schemes, keep the following points in mind;

  1. Maximum loan amount
  2. Minimum education loan interest rate
  3. The minimum margin for loan repayment
  4. Maximum moratorium period

Vidyalakshmi portal application - Procedure

After finalizing the education loan scheme you want to apply for, the further Vidhyalakshmi portal application process includes the following steps:

  1. To apply for the selected loan scheme, click on the ‘Apply Now' button. This tab is available right next to the list of loan schemes on the portal.
  2. Fill up the Common Education Loan Application Form (CELAF) on the portal. It is accepted by all the associated banks.
  3. Once the application form has been filled, you'll be able to track whether your application has been accepted or rejected by the respective bank, on the portal.
  4. While on the loan application page, you may also check your eligibility for the Central Sector Interest Subsidy Scheme (CSIS). A brief outline of CSIS will be discussed later in this article. There is a link on the loan application page that will help you check your eligibility to avail the same.
  5. You must keep a digital copy of the scanned documents handy.
  6. Please read the document checklist thoroughly.
  7. Make sure to save your details at every step while filling out your details on the Vidyalakshmi loan application portal.

This ensures that you don’t lose the filled information in case of discontinuity. (Power outage, loss of internet connection, unavailability of documents at the moment, etc.)

Here is how the application form would look like, on the portal:

Vidya Lakshmi Education Loan application form

What are the interest rates of the loan schemes available on the Vidyalakshmi portal?

The Vidyalakshmi education loan portal gives you information on 130 different loan schemes offered by 39 registered banks across India. The interest rates will depend on the bank and the loan scheme selected by a candidate and the MCLR (Marginal Cost of Funds based Lending Rate) set by the bank.

See here for a full list of banks with interest rates and terms- Education loan interest rates- Comparison between public and private sector banks in India

Which banks provide loans on the Vidyalakshmi portal?

Loan schemes from all private and nationalized banks associated with the Indian Banks Association are available on the Vidyalakshmi portal. Some of the prominent banks and the loan schemes offered by them are:

  1. The State Bank of India
    • SBI Student loan scheme
    • SBI Global Ed-Vantage scheme
    • SBI Scholar loan scheme
    • SBI Skill loan scheme
  2. Bank of Baroda 
    • Baroda Gyan
    • Baroda Scholar
    • Baroda education loan to students of premier institutions
    • Baroda Vidya
    • Baroda education loan for executive development programs (India)
    • Baroda education loan for executive development programs (Abroad)
    • Skill loan scheme
  3. Canara Bank
    • IBA's Model Education Loan Scheme for study in India and abroad
    • IBA skill loan scheme
  4. ICICI Bank Education loan
  5. Axis Bank Education Loan Scheme
  6. The Punjab National Bank
    • PNB Kaushal
    • PNB Saraswati
    • PNB Pratibha
    • PNB Udaan
  7. HDFC Bank Education Loan
  8. IDBI Bank 
    • Education Loan for Vocational Courses
    • Education Loan Scheme for Other Management Quota Students
    • Education Loans for students studying in Premier Education Institutes
    • Education Loan for Courses offered by the ICAI
    • Education Loan for Special Courses
    • Education Loan to Physically Challenged Persons under the NHFDC scheme
    • Education Loan for Non-Vocational Courses
  9. Federal Bank
    • Federal Special Vidya Loan Scheme
    • FED Scholars
  10. Kotak Mahindra Bank Education loans

To know better about the complete list of education loan schemes offered by banks, visit the Vidyalakshmi Portal homepage.

Read More on Top Indian banks offering an education loan for studying abroad

General guidelines to be followed while filling the Common Education Loan Application Form on the Vidyalakshmi portal

  1. Please fill every field in the Common Education Loan Application Form (CELAF) very carefully after reading the general guidelines.
  2. While applying for a loan, keep in mind that a candidate can only apply to one loan scheme from one bank and a maximum of three loan schemes from three different banks at a time.
  3. Save your details before moving on to the next page so that information is not lost.
  4. Enter your mobile number in the Common Education Loan Application Form. In case of any clarification, the bank will contact you on this number.
  5. Once a candidate applies and submits the loan application form, no changes can be made. Hence, go through the eligibility criteria for any loan scheme thoroughly and only then apply.
  6. Select the Bank branch carefully. Once selected, the branch cannot be changed on the portal.
  7. Check the inbox of your registered e-mail ID as well as your Vidyalakshmi dashboard periodically to avoid missing important reminders and updates from banks.
  8. And also while filling the Common Education Loan Application Form, please check the required dimensions for each scanned document carefully to avoid any inconvenience.

Read more on the - Education loan documents required by Private and Government banks

How can you know your loan application status?

  • On the Vidyalakshmi portal dashboard, banks can upload the progress report of a candidate’s loan application, and candidates can also check the status of their application.
  • This feature is especially beneficial for students residing in remote areas, where commutation is an issue. In case of any issue with a particular loan application, the respective bank updates it on the ‘Remarks’ column on the 'Application Status' page.

What is the loan processing time taken by the banks listed on the Vidyalakshmi portal?

After submitting the duly filled application form along with the relevant documents, it generally takes around 15 days for banks to process and approve the loan application. Again, the time taken to approve a loan will vary from bank to bank. The speed of approval depends on the processing time of the bank chosen by a candidate.

How to search and apply for scholarships on the Vidyalakshmi portal?

The Vidyalakshmi portal is also a gateway for candidates who want to avail scholarships offered by the MHRD (Ministry of HR Department). If you scroll down to the bottom of the homepage, you will find a link to the National Scholarship Portal. This portal lists all kinds of scholarship schemes offered by the MHRD of the Govt. Of India. Alternatively, you can also search and apply for International scholarships on WeMakeScholars.

What is CSIS? Who can avail it? 

The Central Sector Interest Subsidy Scheme is a unique scheme introduced by the Ministry of HR Department, Government of India. This scheme applies to those students who have no financial backing for their studies. Students from an economically weaker background can also take advantage of this for higher education in India only. Students whose gross annual parental/ family income is up to Rs. 4.5 Lakhs are eligible for interest subsidy under this scheme. For specific details, please click here. 

Some of the common problems faced by students on the Vidyalakshmi Portal 

  • We have come across many cases where students have not heard back from banks even after 15 days, as promised on the Vidyalakshmi Portal.
  • Sometimes, banks fail to update the loan application status on the portal and students are stuck there. One important point to be noted here is that once you submit your final application on the Vidyalakshmi portal, you won't be able to make a change in your application form like personal details, education loan scheme, branch, etc. 
  • Also, if you decide to discontinue your education loan process applied through the Vidyalakshmi portal, make sure to contact the head office of the chosen bank to close your application form. Many students couldn't do this from the portal.
  • WeMakeScholars works closely with 10+ banks and the NSDL in resolving a lot of education loan-related issues. If you are facing any grievances regarding abroad education loans, you can reach out to us with your grievances.

Grievance registration on the Vidyalakshmi Portal

  1. To register a grievance in the Vidyalakshmi Portal, please go through the ‘Contact Us’ link on the dashboard. You can write an e-mail stating your grievance to vidyalakshmi@nsdl.co.in
  2. Once the e-mail is sent, you will be provided with a ‘Grievance ID’ by the digital team at NSDL.
  3. You can follow up on the status of your complaint on the Vidyalakshmi dashboard by clicking on the ‘Grievances’ tab. Here, all information regarding the status of the grievance is available.

Overall, it can be said that the government has been trying to bridge the gap between a borrower and lenders through the Vidyalakshmi Education Loan portal. It is a huge step taken by our government in revolutionizing the loan application procedure. Since the online loan application process through a common portal is a relatively new concept for banks as well as applicants, there may be room for certain errors in the application procedure.

Also, the NSDL is taking continuous efforts to address the issues faced by applicants on the website. We hope that this article has helped you update your knowledge about the Vidyalakshmi education loan portal. We are very active online and would love to answer your comments. So, feel free to leave your comments at the end of this article.

If you have any other questions regarding an abroad education loan or any other related topic, feel free to request a call from the WeMakeScholars support team for clarifications.

Note: WeMakeScholars is an organization funded and supported by the Government of India that focuses on International Education finance. We are associated with 10+ public/Pvt banks/ NBFCs in India and help you get the best abroad education loan matching your profile. As this initiative is under the Digital India campaign, it’s free of cost. The organization has vast experience dealing with students going to various abroad education destinations like the US, Canada, UK, Australia, Germany, Sweden, Italy, New Zealand, France among others.