PRADHAN MANTRI VIDYA LAKSHMI KARYAKRAM ( PMVLK) : VIDYA LAKSHMI PORTAL FOR EDUCATION LOAN

SINGLE PORTAL FOR EDUCATION LOAN IN INDIA

Govt. of India has set-up a fully IT based Student Financial Aid Authority to administer and monitor Scholarship as well as Educational Loan Schemes, through the Pradhan Mantri Vidya Lakshmi Karyakram (PMVLK) to ensure that no student misses out on higher education for lack of funds. The launch of the aforesaid Portal is a first step towards achieving this objective.

The IT based mechanism under the Pradhan Mantri Vidya Lakshmi Karyakram is meant to provide students a single window electronic platform for Scholarships and Educational Loans.

Vidya Lakshmi is a first of its kind portal for students seeking Education Loan. This portal has been developed under the guidance of Department of Financial Services, (Ministry of Finance), Department of Higher Education (Ministry of Human Resource Development) and Indian Banks Association (IBA).The portal has been developed and being maintained by NSDL e-Governance Infrastructure Limited. Students can view, apply and track the education loan applications to banks anytime, anywhere by accessing the portal. The portal also provides linkages to National Scholarship Portal.

The Vidya Lakshmi portal has been made live on 15.08.2015. The students can apply online for Education Loan to any Bank, in the application format designed by IBA through the subject portal i.e. www.vidyalakshmi.co.in. The Bank to which the application is directed by the NSDL portal has to download the same from their web site through the interface software and forward to concerned branches for logical closure of the application.

The salient features of the Vidya Lakshmi portal are as under:

Primary objective is to provide students with easier access to loans and Govt. scholarships through a single portal.

The portal serves as a single entry point for availing education loan in the Country.

The portal provides linkage to various Govt. scholarship portals.

The portal has provision for common Education loan application loan form for all banks.

The portal facilitates all member banks to access applications made by students through common loan application forms.

How to claim Interest Subsidy in Education loans from Banks

According to vidya scheme by Central government one can claim Interest Subsidy by submitting two documents at the branch where you have availed education loan

First know your eligibility for availing Interest Subsidy:

1. Your family income should be less than Rs. 450000.
2. Loan period should be in moratorium which means course should not have finished.

Moratorium period is course period + 1 year if the student have not got the job or course period + 6 months if the student has got the job within 6 months of completing the course.

3. Course should be in India and technical course which means from university recognized by UGC or Indian Government. Students studying abroad are not eligible.

Documents required to be submitted at the branch once during the tenure of the loan or validity of the documents.

1. Agreement executed with Rs. 200 e-stamp paper executed between you and bank

2. Income certificate given by Tahsildar should be submitted in original to the loan branch

All the formats for above documents are available at all branches which you need to execute with concerned authorities.

How to avail Education Loan from Banks & Documents Required

To avail education loan is easy especially if your requirement amount is below 4 lacs.

Following are the details regarding security which is common to every bank and no bank can change it as it is set by RBI to ensure good service to citizens. Please ref

https://rbi.org.in/scripts/NotificationUser.aspx?Id=369Security

Particular	Security
Upto Rs. 4 lacs loan amount	Only Parent/ Guardian as co-borrower
Above Rs. 4 lacs to Rs. 7.50 lacs loan amount	Parent/ Guardian as co-borrower and Collateral security in the form of suitable third party guarantee*. *Third Party Guarantee can be replaced with Parent/Guardian as co-borrower provided the Gross Annual Income of Parent/Guardian (co-borrower) as given in latest Income Tax Return is 3 times of the loan amount.
Above Rs. 7.50 lacs loan amount	Parent/ Guardian as co-borrower and tangible collateral security

In case of married person, co-obligator can be either spouse or the parent(s)/ parents-in-law

Documents Required (List is common to every bank including private banks)

• Original Letter of admission

• Completely filled in Loan Application Form

• 2 passport size photographs

• Original Statement of cost of study which is FEES STRUCTURE given by college

• PAN Card of the student and Parent/ Guardian not mandatory for student in most of the bank 

• AADHAR Card of the student and Parent/ Guardian

• Proof of identity (Driving Licence/Passport/Aadhar/ any photo identity)

• Proof of residence (Driving Licence/Passport/Electricity bill/Telephone bill)

• Student/Co-borrower/ guarantor's bank account statement for last 6 months

• IT return/ IT assessment order, of previous 2 years of Parent/ Guardian/ other co-borrower (if IT Payee) or Income certificate given by STATE government to poor people whose children want to pursue higher education

• Brief statement of assets & liabilities of Parent/ Guardian/ other co-borrower

• Proof of income (i.e. salary slips/ Form 16) Parent/ Guardian/ other co-borrower

For people who doesn't earn above 4 lacs can avail interest subsidy from government time to time.

Every bank need to process or reject education loan in 15 days as time line set by most of the banks and closely monitored by RBI.