Vidya Lakshmi Education Loan

May 12, 2023


Vidya Lakshmi Education Loan Scheme is a government initiative to provide financial assistance to students pursuing higher education. Under this scheme, loans are provided to students from different banks and financial institutions across India. The project was launched under the Pradhan Mantri Vidya Lakshmi Karyakram, an initiative to improve literacy rates in the country.

The Vidya Lakshmi Portal is a fully IT-based Student Financial Aid Authority proposed under the Pradhan Mantri Vidya Lakshmi Karyakram. The portal enables economically weaker sections to pursue higher education without financial constraints. It helps regulate and survey scholarships and educational loan schemes for students.

Current Update: Vidya Lakshmi Education Loan Scheme

As per the latest updates, the Vidya Lakshmi Education Loan Scheme has been extended to 39 banks and 130 loan schemes. The interest rate for the loan starts from 8.40%, and the loan amount can be up to INR 4 Lakh.

The process of applying for an education loan is fast and easy with the help of the Vidya Lakshmi Portal. It is a first-of-its-kind portal for students that gives access to all bank schemes, which is convenient for the applicants.

List of Banks in The Vidya Lakshmi Education Loan Portal

Below is a table showing the list of banks offering education loans in the Vidya Lakshmi education portal.

Bank Interest Rate
Allahabad Bank 8.40%
Andhra Bank 8.50%
Axis Bank 8.55%
Bank of Baroda 8.35%
Bank of India 8.35%
Bank of Maharashtra 8.50%
Canara Bank 8.35%
Central Bank of India 8.40%
Corporation Bank 8.50%
Dena Bank 8.25%
HDFC Bank 9.25%
ICICI Bank 9.30%
IDBI Bank 9.00%
Indian Bank 8.25%
Indian Overseas Bank 8.25%
Jammu and Kashmir Bank 9.00%
Karnataka Bank Ltd. 9.00%
Karur Vysya Bank Ltd. 9.00%
Kotak Mahindra Bank Ltd. 10.50%
Oriental Bank of Commerce 8.35%
Punjab & Sind Bank 8.35%
Punjab National Bank 8.35%
RBL Bank Ltd. 10.50%
South Indian Bank Ltd. 9.75%
State Bank of Bikaner & Jaipur 9.05% to 10.30%

Eligibility Criteria for Vidya Lakshmi Education Loan

Applicants must meet the specific standard eligibility criteria for the Vidya Lakshmi Education Loan Scheme.

Nationality Indian
Education Qualification Intermediate/+2/equivalent exam with a minimum of 50% of the score
Courses Eligible ●     Graduation ●     Post-graduation ●     regular technical ●     professional degree ●     diploma courses (conducted by colleges or universities approved by UGC, AICTE, IMC, or the Government)
The annual income of parents INR 4-5 lakhs p.a.

Primary Features of Vidya Lakshmi Education Loan

  • Online Platform: The scheme has an online portal where students can search, apply, and avail of education loans from various banks in India.
  • Multiple Banks: The scheme has partnered with numerous banks, including nationalised banks, private banks, and foreign banks, to provide student education loans.
  • Easy Application Process: The online portal provides an easy application process for students to apply for education loans. Students can fill out a single application form and apply to multiple banks.
  • Loan Amount: The scheme provides education loans ranging from Rs. 10,000 to Rs. 1.5 Crore depending upon the course and institute.
  • Interest Rate: The interest rate on education loans under this scheme is based on the bank’s norms and guidelines. The interest rate may vary from bank to bank and course to course.
  • Collateral-free Loans: Under this scheme, students can avail of education loans up to Rs. 7.5 lakhs without any collateral security or third-party guarantee.
  • Repayment: The loan repayment is based on the bank’s norms and guidelines. However, the repayment period may range from 5 to 15 years.
  • Moratorium Period: The scheme provides a moratorium period, which is the time when the student is not required to repay the loan. The moratorium period may range from 6 months to 1 year after the completion of the course.
  • Tax Benefits: The interest paid on education loans is eligible for tax benefits under section 80E of the Income Tax Act.

Registration Process of Vidya Lakshmi Education Loan

  • Navigate to the official portal of Vidya Lakshmi portal.
  • Click Register to create your account by filling in your basic details.
  • Accept the terms and conditions and click on ‘Submit.’
  • An activation link will be sent to your registered email ID. Click on it to activate your account.

Essential Documents for Vidya Lakshmi Education Loan

  • Aadhaar Card or any other valid government ID proof
  • Passport-size photograph
  • Mark sheets or certificates of 10th, 12th, and graduation or qualifying examination
  • Admission letter or an offer letter from the educational institution
  • Fee structure of the course
  • Income proof of parents or guardians (Salary Slip, Income Tax Returns, etc.)
  • Bank account statement of the applicant or the co-applicant


Who can apply for an education loan under the Vidyalakshmi scheme?

You must secure admission to your preferred course after qualifying for the relevant entrance exam to apply for an education loan under the Vidya Lakshmi scheme. Additionally, students must meet the eligibility norms laid down by the concerned lender.

How much loan can I get from Vidya Lakshmi?

The loan amount from Vidya Lakshmi Education Loan Scheme depends on the concerned lender. As per the web search results, the loan can be up to INR 4 Lakh. The loan amount is determined based on factors such as the cost of education, the applicant's academic background, the reputation of the institution, and other relevant factors.

Which bank gives Vidyalakshmi loans?

The Vidya Lakshmi Education Loan Scheme is a single-form application process that allows students to apply for an education loan from multiple banks and schemes. Thirty-nine banks and 130 loan schemes form the core of this project. However, the particular bank that gives the loan depends on the eligibility criteria laid down by the lender and the applicant's financial requirements.

Which bank approves an education loan easily?

It is impossible to determine which bank approves an education loan easily as it depends on various factors such as the applicant's creditworthiness, academic background, and financial requirements. However, students can use the Vidya Lakshmi portal, which all banks and schemes accept, to apply for an education loan. Researching and comparing the loan schemes and interest rates offered by various lenders before making a final decision is advisable.


Chitra is a stellar writer with over three years of experience writing about banking, financial services and insurance. She enjoys delving deeply into all the nitty-gritty of finance and associated topics that most people would rather avoid. With a master's in Computer Science, Chitra alchemises her analytical and creative prowess to manifest some of the most astounding articles for Urban Money.

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