In India, the rising cost of education can be a big challenge for many families. To support students who dream of pursuing higher education in India or abroad, the Government of India offers a special facility called the Vidhya Laxmi education loan. It brings together multiple loan providers under one platform to help students compare, apply, and track education loans easily. This guide explains everything in simple terms — with tables, visuals, and step-by-step guidance.
What is Vidhya Laxmi Education Loan?
The Vidhya Laxmi education loan is a government-supported digital platform that allows students to apply for education loans offered by banks and financial institutions in India. Through one form — the Common Education Loan Application Form (CELAF) — students can apply to multiple banks without visiting each branch separately.
Key Features of Vidhya Laxmi Education Loan
| Feature | Details |
|---|---|
| Loan Amount | Up to ₹7.5 lakhs (India), up to ₹20 lakhs (abroad) |
| Interest Rate | Varies from 8.5% to 12.5% per annum |
| Moratorium Period | Course duration + 6 to 12 months |
| Repayment Tenure | Up to 15 years |
| Eligible Courses | Graduation, Post-graduation, Professional/Technical courses |
| Number of Banks Connected | 30+ including SBI, Bank of Baroda, Canara Bank, and more |
| Platform Fee | Free (no application charges) |
Interest Rate Comparison (Top Banks)
| Bank Name | Interest Rate (p.a.) | Max Loan (India) | Max Loan (Abroad) |
|---|---|---|---|
| SBI | 8.50% – 10.75% | ₹7.5 lakhs | ₹20 lakhs |
| Bank of Baroda | 9.15% – 10.90% | ₹7.5 lakhs | ₹20 lakhs |
| Union Bank | 8.75% – 10.25% | ₹7.5 lakhs | ₹15–20 lakhs |
| Canara Bank | 9.00% – 10.60% | ₹7.5 lakhs | ₹20 lakhs |
| PNB | 8.95% – 11.00% | ₹7.5 lakhs | ₹15–20 lakhs |
Note: Rates vary by course type, co-applicant income, collateral, and bank policies.
EMI Calculator
✅ Eligibility Criteria
- Indian national with confirmed admission
- Admission in recognized institutions in India or abroad
- Courses eligible: Graduation, Post-graduation, diploma, technical or professional courses
- Co-applicant (parent/guardian) is mandatory
- For loans above ₹7.5 lakhs, collateral/security may be required
📋 Documents Required
- Duly filled Common Education Loan Application Form (CELAF)
- Admission letter from institution
- Fee structure from college/university
- ID proof and address proof (student & co-applicant)
- Academic records (10th, 12th, degree certificates)
- Income proof of co-applicant
- Bank statement (last 6 months)
🧭 Step-by-Step Loan Application Process
Here is the easy-to-visualize process to apply for a Vidhya Laxmi education loan:
🏢 Step 1: Register on Vidhya Laxmi Portal
Create an account with valid student details (email, mobile, etc.).
📝 Step 2: Fill CELAF (Common Education Loan Application Form)
Enter academic, personal, course, fee, and bank preferences in one digital form.
📄 Step 3: Upload Necessary Documents
Attach scanned copies of ID, admission letter, marksheets, income proof, etc.
🏦 Step 4: Choose Preferred Banks
You can select up to 3 banks to apply simultaneously.
📤 Step 5: Submit Application Online
After final review, click submit. Your application is forwarded to chosen banks.
⏳ Step 6: Track Status and Respond
Banks may contact you for physical document verification or queries. You can track your application online via dashboard.
💰 Step 7: Loan Approval & Disbursement
Once approved, the loan amount is disbursed directly to the college/university for fee payment.
🧾 Repayment Terms
| Component | Duration |
|---|---|
| Moratorium | Course duration + 6 to 12 months |
| EMI Start | After moratorium ends |
| Total Repayment | Up to 15 years |
| Interest Subsidy | Available for students under EWS (via CSIS scheme) |
💡 Benefits of Vidhya Laxmi Platform
- ✅ Single window for multiple banks
- ✅ Digital, paperless initial process
- ✅ No fees or charges to apply
- ✅ Faster loan tracking
- ✅ Transparent comparison of loan offers
- ✅ Helps avoid multiple physical branch visits
🛡️ Tips Before Applying
- Keep all academic and financial documents scanned and ready
- Confirm course eligibility before applying
- Compare interest rates and terms across banks
- Ensure your co-applicant has stable income and credit history
- Respond to banks quickly to avoid delays
Final Thoughts
The Vidhya Laxmi education loan portal is a useful platform for students who need financial support for their academic journey. Whether you’re pursuing a degree in India or abroad, it provides access to trusted loan providers and helps make the process easy, fast, and transparent. With clear comparison tools and a paperless application system, Vidhya Laxmi makes educational dreams more reachable than ever.