Education is a crucial part of personal development, helping mould the youth of tomorrow. However, the cost of education steadily increases every year, whether you opt for higher education domestically or overseas. These expenses are a roadblock to many and lead to a lack of formal training, leaving many youth unemployable.
Education loan is the loan which is most often taken by the people in every family to Finance your child’s expenses for higher studies like moving to a new city or country, tuition fees, activity charges, living expenses and more.
Thankfully, funding options like an education loan can provide much-needed financial assistance. To make the process more efficient and effective, the Government of India launched the VidyaLakshmi Scheme in August 2015.
The Vidyalakshmi portal aims to make education accessible to aspiring students who might be facing financial shortcomings.
It is a unique, one-of-a-kind, central IT-based loan portal that students can use to access education-related financial services with ease. The online platform allows students to easily explore loan schemes and scholarships, compare them, and apply through a common Vidyalakshmi loan application form (CELAF).
To know about the VidyaLakshmi Scheme in detail, the documents required for Vidyalakshmi loan applications, and a breakdown of the application process, read on.
Objectives of Vidyalakshmi scheme
The primary objective of the Vidyalakshmi scheme is to ensure that students don’t give up on education without exhausting all available options. To that end, it provides easy access to various loan schemes from reputed banks and allows students to explore government scholarships. To complement this, the other objective is to serve as a digital hub for information about these instruments and provide students with a simplified loan application solution.
Vidyalakshmi education loan is an initiative launched by the Indian government to extend loans and scholarships to eligible students to finance their education. The government runs a web portal named Vidyalakshmi wherefrom students can avail all the information related to these funds and education loans. This portal lists a total of 22 education loan schemes.
Features of the Vidyalakshmi portal
- CELAF: This is the Common Education Loan Application Form that allows students to apply for multiple education loans by filling just one form
- Information hub: The portal houses information about different education loan offers, allowing students to compare and pick as per needs, features, and eligibility
- Scholarship portal: This portal links to the National Scholarship Portal. Here, students can easily identify those they qualify for and apply for the same accordingly.
- Status updates: The portal allows students to track their education loan application status directly, as banks have a facility via which they can upload the loan processing status.
Documents required for Vidyalakshmi Loan
Once you register on the Vidya Lakshmi portal and start filling the CELAF, you will get the list of mandatory loan documents. Providing them at this time makes it easier during the time of approval. Here are the documents generally required to apply for an education loan.
- KYC documents
- Domicile proof
- Address proof
- Past academic reports
- Entrance exam score sheet
- Mark sheet of last qualifying exam
- Proof of admission
- Letter of admission containing the name of institution and course
- Conditional offer letter
- Counselling seat allocation certificate
- Financial documents
- Academic fees demand letter
- Bank statement
- Proof of income/ assets (if any)
- Collateral documents
- Of student/ parent/ guarantor
Steps to apply for loans using the Vidyalakshmi portal
To apply for education loans via the portal, these are the steps to follow.
- Visit the official website
- Register by creating an ID and password
- Verify your registration via the link sent to your email
- Log in to the account and start identifying suitable loan offers
- Fill the Common Education Loan Application Form (CELAF)
You can also fill the CELAF first and then search and apply for education loans.
The Vidyalakshmi scheme gives you access to loans, but the interest rates differ from one bank and scheme to the next. Make sure to note these and use an education loan calculator before you pick any loan offer.
Big-ticket loans require careful planning and using an education loan calculator as you fill out the Vidyalakshmi loan application form is a good way to go about it.