All About Vidya Lakshmi Portal Education Loan: Features, Eligibility, Processing Time

Vidya Lakshmi Portal Education Loan

Vidya Lakshmi Portal is a one-of-a-kind portal for all students who are looking for education loans, It has been developed under the Department of Financial Services and the Indian Banks Association (IBA) guidance. An Indian citizen can easily apply for an education loan with interest rates starting from 8.40% for a tenure of 15 years. An applicant can apply for an education loan on the Vidya Lakshmi Portal in three simple steps. 

In this blog, we will discuss how to make an application through the portal and answer the following questions- how to register, how to complete the application, when and when not to apply through the portal, what to expect after you make an application on the same, and how the mistakes on the Vidya Lakshmi portal application can put your future or dreams at stake. Read more to find out! 

Also read: Check all about the Delhi Government education loan for abroad studies- who can apply, eligibility criteria, and list of documents required.

What is Vidya Lakshmi Portal?

Vidya Lakshmi is a platform for students looking for an education loan. The Department of Financial Services (Ministry of Finance), the Department of Higher Education (Ministry of Education), and the Indian Banks Association collaborated on the creation of this portal (IBA). The portal is created and managed by NSDL e-Governance Infrastructure Limited. Students can access the software and display it. Students can use the platform to view, apply for, and monitor education loan applications to banks at any time and from anywhere. The links to the National Scholarship Platform can also be accessed on the portal.

Why was it started?

For students, the government has launched two portals: the national scholarship platform( and the Vidya Lakshmi Portal for education loans. The main goal of launching these two websites was to track how many students were applying for scholarships and student loans.

The monitoring helps the government determine how many scholarships to open the next year based on different metrics. In contrast, on the college loan side, the government repays outstanding student loans to banks if the student is actually unable to repay them.

This government scheme is only valid if you take a loan of up to 7.5 lacs to study in India and is known as the government’s guarantee cover scheme for Indian banks. As a result, it is recommended that anyone seeking a loan to study in India apply only via the Vidya Lakshmi portal.

When it comes to study abroad education loans, the government does not assume responsibility for the repayment of student loans taken out overseas. As a consequence, there is no need to submit through the Vidya Lakshmi Portal.

Features of Vidya Lakshmi Portal

Multiple Banks on a Single Platform: The Vidya Lakshmi platform, which offers students a wide range of loan lenders to select from, has several banks associated with it. 45 banks have enrolled with the platform as of right now. Axis Bank, Bank of Baroda, Central Bank of India, HDFC Bank, IDBI Bank, Syndicate Bank, State Bank of India, Canara Bank, Bank of India, IOB, J&K Bank, GP Parsik Bank, and other financial institutions are a few examples of registered banks.

Security: The Vidya Lakshmi portal is maintained by NSDL e-Governance Infrastructure Limited. The Vidya Lakshmi portal is entirely safe and trustworthy since it was developed with the approval of the Ministry of Finance, the Indian Banks Association (IBA), and the Ministry of Education. Applying for education loans with it is secure. 

Easy Application Process: Applying for a loan using this platform is simple for students. Banks promptly update loan status information. As a result, checking the status of a loan is simple and you may skip the bank lines.

Eligibility Criteria

The eligibility criteria for education loan varies depending on the bank and the program you apply to. Students are required to check the criteria with each bank. However, some of the general criteria are:

  • The student requesting a loan through the Vidya Lakshmi site must be an Indian national.
  • Must have completed an entrance test or received merit-based admission to the university.
  • Should have obtained a 10+2 or a comparable degree.
  • Students who want to study abroad and in India can apply for loans from colleges.

Also Read: Did you know that you can get an income tax rebate on education loans? Check out how to avail, calculate, and claim tax deductions.

Mistakes to Avoid on the Vidya Lakshmi Portal

Nothing can be modified in a Vidya Lakshmi Portal application once it has been developed. At the same time, new or duplicate accounts on VLP are not allowed, as the portal is not like a social media site, and we need a PAN card number and an Aadhar number to be connected to an account. As a consequence, any attempt to construct a new application would result in an error.

Make certain of the following:

Mentioned below are important points to remember:

  • Entering the correct university or country
  • Selecting correct bank
  • Selecting the correct branch of the bank

Is it Faster to Get a Loan Sanctioned if Applied via the Vidya Lakshmi Portal?

The Vidya Lakshmi Portal functions as a monitoring device, allowing users to see the banks’ progress in real time. Applying via the Vidya Lakshmi Portal does not guarantee the sanction’s timeline or the portal’s most recent status. As a result, the application phase time is not reduced.

How to Register?

The first step in using the Vidya Lakshmi Portal’s loan-related services is to create an account on the login portal.

  • On the Vidyalakshmi login portal, create your login ID and password.
  • A confirmation link will be sent to your registered e-mail address once you’ve done so. In your inbox, look for a message from the Vidya Lakshmi portal. Click on the sent link.
  • You will be led to the Vidya Lakshmi login page after clicking the confirmation link. On the login tab, you must re-enter your credentials.

And that’s it! You’re all set to begin your application with the Vidya Lakshmi Portal!

Account created
Image Source: Vidya Lakshmi Portal

Also Read: Are you facing financial hardship due to higher interest rates? Check out the Benefits of Education Loan Restructuring.

How to Make an Application on the Vidya Lakshmi Portal?

To make an application on Vidya Lakshmi Portal you need to follow the steps mentioned below:

Search for loan schemes:

You must search for schemes in the beginning.

  • Select the ‘Search for loan schemes’ choice to look for education loan schemes. As shown in the picture, this tab is available on the dashboard.
Vidya Lakshmi Portal - how to make an application
Image Source: Vidya Lakshmi Portal
  • On the topmost area of the website, once you’ve arrived at the loan search page, you’ll see various tabs.
  • A dialogue box in the leftmost corner will provide you with three choices.
  1. Select the country of study
  2. Select course
  3. Select the loan amount required
Course of Study
Image Source: Vidya Lakshmi Portal

For example, if you enter the following details,

Location of Study: Abroad
Course: Post-Graduation
Loan Amount Required: Above 7.5 lakh

  • On the right-hand side of the bank loan portal, a list of banks that meet the entered requirements, as well as a list of corresponding loan schemes, will be shown. When you pick one of the loan schemes, a web page with information about that loan scheme will appear.
  • After you’ve decided on the education loan programme you want to apply for, you’ll need to complete the following steps:

Filling out the loan application form:

  • Click on ‘Loan Application form’ on the dashboard.
  • Fill up the Common Education Loan Application Form (CELAF) on the portal. This form is supported and accepted by all the associated banks.
Filling The Application Form - Vidya Lakshmi Portal
Image Source: Vidya Lakshmi Portal

Also Read: If you are planning to pursue an undergraduate course in Germany and want to take an education loan, check this blog on How To Get an Education Loan without Collateral in Germany.

How Can I Know My Loan Application Status?

Banks can upload a progress report of a candidate’s loan application to the Vidya Lakshmi portal dashboard, and candidates can view their application status. This function is beneficial for students who live in rural areas where commuting is difficult. If there is a problem with the loan application, the bank will notice it in the ‘Remarks’ column on the ‘Application Status page.’

Processing Time

Banks usually take 15 days to review and authorise a loan application after receiving a properly completed application form and supporting documentation. Again, the time it takes for a loan to be approved varies by bank. The pace at which a candidate’s application is approved is determined by the bank’s processing time.


What distinguishes Vidya Lakshmi Portal from others? 

Students can access information and apply for Educational Loans and Government Scholarships through the Vidya Lakshmi Portal, which serves as a single point of contact for them. It exhibits the following characteristics:
– Information on Bank Educational Loan Programs
– Common Educational Loan Application Form for Students
– Apply for educational loans from a variety of banks.
– Banks can now download student loan applications.
– Banks can upload loan processing status, and students can email banks with complaints or questions about educational loans.

How can I apply for an Educational Loan through Vidya Lakshmi?

The applicant must first register and log into the Vidya Lakshmi portal and then fill out the Common Education Loan Application Form (CELAF) with all of the required information. The applicant will then check for Educational Loans and APPLY based on their needs, eligibility, and convenience after completing the form.

What is the Common Educational Loan Application Form (CELAF)?

The Common Educational Loan Application Form is a single form that students can use to apply for educational loans from various banks and programs. CELAF is the Indian Banks Association’s (IBA) application form, which all banks approve. This form is available on the Vidya Lakshmi portal for seeking an educational loan.

What if I forget the password of my Login ID?

You can use the Forgot password option on the Vidya Lakshmi portal’s Login page, and you’ll be asked to enter your registered email address. Vidya Lakshmi portal will send a system-generated password through an e-mail.

How will I know once an Education Loan is approved?

On the Vidya Lakshmi portal, the Bank will change the status of the submission. On the applicant’s dashboard on the portal, students can check the status of their submission.

Why was my loan application rejected?

You may not be considered if you don’t meet the bank’s criteria. For more details, please contact the banks mentioned.

What is the hold status of a Loan application?

If the bank requests additional details or paperwork from the student, the bank will place the loan application on hold. The requirement will be noted in the Remarks column, and students will check it on the dashboard.

How many applications for Educational Loans can be submitted by a student?

Through the Vidya Lakshmi portal, a student can apply to a maximum of three banks using CELAF.

What is the rate of interest for the Educational loan?

The interest rate starts from 8.40% but varies from bank to bank and scheme to scheme.

We hope that this blog has provided you with all of the requisite information in preparation for your education loan application for the Vidya Lakshmi Portal.

To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.

About Monika Gupta

Hi, I am Monika! I have 3 years of experience as a Content Writer and Copywriter. I have worked with Ed-tech companies, digital marketing & ad agencies where I helped my team with SEO content, social media marketing, script writing, copywriting, sales & marketing campaigns. Not only this, I've also worked on landing pages, website content and brochures of some reputed brands.

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