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Vidyalaxmi Student Loan (Vidya Lakshmi Student Loan) is an education loan scheme by the government of India for poor and middle class students. It was launched on 15th August 2015 to help poor and middle class family students who are seeking higher education but facing lack of funds. Vidyalaxmi Student Loan scheme is being managed by Vidyalaxmi Student Loan portal. It is a joint initiative of the Department of Financial Services (Ministry of Finance), Depart of Higher Education (Ministry of Education), and Indian Bank Association (IBA). The main objective of this Vidyalaxmi Student Loan scheme and portal is to ease the education loan process for poor and middle class students.
No country can be developed without educating their youth. And as we know India is home to the youngest population. Hence certainly this Vidyalaxmi Student Loan is a kind of gift of government for poor and middle class students who aspire to avail higher education.
Under this government education loan scheme portal, almost all small to large private and government banks are listed. And the education loan process has been made much more convenient with transparency. Everything is online, a student doesn’t need to run from one branch to another bank branch to file an education loan application and inquire about the status.
Students just need to go to the Vidyalaxmi student loan website, register themselves there/ create an account and after verifying their account they can fill the online application as per their requirement of education loan. Based on the provided information banks will review the application and approve the education loan.
Students will be able to track their student loan application status online by simply login in to the Vidyalaxmi website. During filling applications students can choose their nearest bank branches from where they are interested to borrow the loan.
The main advantage of this initiative is that students have peace of mind and their education loan application will be processed within minutes online from one Vidyalaxmi Portal and their education loan application reaches almost all banks of India who are offering education loan to students. The interest rate is also reasonable and competitive with a moratorium period of course duration plus one year extra.
So students do not need to worry about monthly EMI while they are studying and they can focus on their study with peace of mind. Once their course is complete then they can find their job and can start paying the education loan. So simple and so convenient. The only thing we do not like about Vidyalaxmi Student Loan is that it is for students whose parents’ income is up to or below ₹ 4.5 lacs per annum. This threshold should have been increased a little more so that more students can take advantage of this education loan scheme.
Vidya Lakshmi Loan Terms and Conditions
The eligibility criteria to borrow student loan through Vidya Lakshmi Student Loan subsidy scheme are –
- Student must be an Indian Citizen
- Education Loan must be availed under the Indian Banking Association Education Loan Model
- Student’s Parental income must not exceed more than ₹ 4.5 lacs per annum.
Documentation Required For Vidya Lakshmi Education Loan Application
- Last six months bank statements
- KYC documents, such as Aadhar Card, Pan Card etc.
- Marksheets of class 10th, 12th and or Degree courses
- Optional Guarantor Form
- Admission letter copy of the college or university with complete fee details of course.
Interest Rate of Vidyalakshmi Student Loan
The reasonable interest rate varies depending on the bank to bank who are approving the loan application. Therefore students can check on the Vidyalakshmi portal by signing in to their account. However it starts with a minimum 8.40% per annum.
VidyaLakshmi Education Loan / Vidyalaxmi Student Loan FAQs
What is Vidyalakshmi’s education loan interest rate?
Vidyalakshmi education loan interest rates vary depending on the bank from whom students are borrowing loans. However it starts with a minimum 8.40% per annum.
How Much Loan Can I Borrow From VidyaLakshmi Student Loan Subsidy Scheme?
You can borrow student loans from Vidyalakshmi student loan subsidy scheme up to ₹ 4 Lacs without any collateral.
What is the maximum loan repayment tenure of Vidya Lakshmi Student loan scheme?
The Maximum repayment tenure for VidyaLakshmi Student Loan is up to 15 years.
What is the moratorium period for Vidya Lakshmi Student Loan?
The moratorium period or Vidya Lakshmi student loan is a course period plus one year extra.
Conclusion
Certainly the Vidyalaxmi Student Loan or Vidya Lakshmi Student Loan subsidy scheme is a good initiative by the Modi government to provide poor and middle class students financial assistance for their higher education. But the loan amount is very less. Students can not borrow more than ₹ 4 Lakhs under this scheme. Which is very less if we compare it with the current educational fee trend. In almost every higher education or vocational professional education especially in IT education courses fees are very high which I doubt that any student will be able to rely on this loan amount only.
The threshold of the lending amount should have been increased a little more so that it was easy for the students to cover the complete course fees. And also the parental income threshold should have increased too because as per the scheme if a student’s parental income is above ₹ 4.5 Lakh per year then they are not eligible to apply for the education loan under this scheme.
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