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Education Loan by Government

Vidya Lakshmi Education Loan Scheme is an initiative taken by the government that helps the children from economically weaker classes to pursue their higher studies without worrying about their finances. The Vidya Lakshmi portal enlists and monitors several education loans and scholarships.

Features of Vidya Lakshmi Education Loan

The following are the important features of the Vidya Lakshmi education loan:

  • Vidya Lakshmi portal helps the students to apply for an education loan easily.
  • The platform enlists different national scholarship schemes and education loans which help the students to get the loan easily. Hence, it reduces the financial gaps to pursue a course.
  • The education loan tenure varies from lender to lender. The moratorium period is six months after getting a job and one year after completing a course.
  • There is no collateral required for the loan amount of up to Rs.7.50 lakh. However, a guarantor and collateral are required for an education loan amount of over Rs.7.50 lakh

Eligibility Criteria

The following are the eligibility criteria to apply for a Vidya Lakshmi Education Loan:

  • Education loans should be taken under Indian Banking Association (IBA) Model Education Loan Scheme.
  • The annual incomes of the parents should be less than Rs.4/5 lakhs per annum.
  • Students enrolled in technical or professional courses only from National Assessment and Accreditation Council (NAAC) or technical/professional programmes accredited by Central Funded Technical Institutions (CFTIs) can avail education loans.
  • The students can avail the loan only once for either Under Graduation (UG), Post-Graduation (PG) or integrated courses.
  • The interest rates charged on the education loan shall be charged according to the Base Rate of the individual banks.

Eligible Courses Under the Vidya Lakshmi Education Loan Scheme

The following are the eligible courses under the Vidya Lakshmi Education Loan Scheme:

Courses in India

  • Regular UG, PG, and diploma courses provided by autonomous institutions.
  • Technical and professional diploma courses offered by education institutions approved by recognized authorities.
  • Nursing and teacher training courses approved by the government.
  • Degree or diploma courses like pilot training, shipping, and aeronautics approved by the Director-General of Civil Aviation or Shipping.

Courses Outside India

  • Job oriented professional degrees and diploma courses such as Master of Business Administration (MBA), Master of Computer Applications (MCA), Master of Science (MS), etc offered by reputed education institutes.
  • Courses such as Certified Public Accountant in the USA and Chartered Institute of Management Accountants from London.


  1. What is the use of the Vidya Lakshmi Education Loan?
  2. Vidya Lakshmi Education Loan Scheme was launched under the Pradhan Mantri Vidya Lakshmi Karyakram to increase the literacy rates in the country.

  3. How can I apply for an education loan from the Vidya Lakshmi portal?
  4. The students should sign up to register their names in the portal. Next, fill in all the necessary details on the Common Education Loan Application Form (CELAF).

  5. What is the interest rate of the Vidya Lakshmi Education Loan?
  6. The interest rates shall be charged as per the base rate on the individual banks.

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