According to reports from the Vidyalakshmi website, almost 54% of the total population of India is below the age of 25, and less than 5% of the entire workforce receives appropriate training to stay employed.
The Vidyalaksmi scheme aims to provide a way for such students to continue their higher studies and learn proper employable skills. As an initiative, the program offers a website where students can search, apply and keep track of availed educational loans and scholarships.
Features and benefits of Vidyalakshmi scheme
Here are a few features provided by the online Vidyalakshmi scheme portal –
- Up to date information on educational loans offered by financial institutions. Details regarding eligibility, loan amount, repayment tenor etc. are listed on the website.
- Availability of the Common Educational Loan Application Form (CELAF) issued by the Indian Banks Association (IBA). It is a universal form accepted by financial institutions all across India.
- Applicants can apply to a maximum of 3 lenders via a single Vidyalakshmi loan application form or CELAF.
- Financial lenders can download information submitted by applicants for verification. They can also inform students of the loan processing status via the website.
- Applicants can address any grievances by directly sending an email to the financial institution.
- The website offers a total of 99 different types of educational loans.
However, educational loans are only known to cover tuition fees. Daily and accommodation expenses associated with studying in a different state or abroad can be expensive and can be easily covered by a simple loan against property for higher education.
Besides these features, the Vidyalakshmi scheme also offers some crucial benefits, such as:
- The website lists all information related to loans, scholarships, and lenders. This assures complete transparency between the lender and the applicant.
- The exclusion of any hidden charges.
- Students can keep track of their loans without having to visit the financial institution.
In order to apply for the Vidyalakshmi program, the applicant must fulfill these criteria:
- They should be an Indian citizen.
- Parental income up to Rs.4.5 lakh p.a.
- They should already have secured admission in their preferred educational institute. Similar terms apply for overseas education. If you wish to pursue your graduation in one of the best American universities, you would have to qualify in the entrance examinations before applying for the loan.
- Applicable for courses accredited by National Assessment and Accreditation Council (NAAC) and National Board of Accreditation NBA. Institutes that are not accredited have to be approved by respective regulatory bodies.
Created and maintained by the National Securities Depository (NSDL) e-Governance Infrastructure, here are the steps to apply for the Vidyalakshmi program –
- Account registration
Account registrations require the applicant’s name, email address and a phone number. After filling up the details, an email is sent to the registered email containing an activation code which is valid for 24 hours.
- Scheme selection
Applicants are advised to browse through these schemes before selecting a lender. They can also create a budget sheet to manage finances better if studying abroad or in a different part of the country.
- Form fill-up
The application process consists of these seven sections:
- Basic information.
- Personal information.
- Banker details.
- Course details.
- Cost of financial details.
- Upload documents.
Processing starts once you have successfully submitted all necessary details.
- Application status
The application status page allows applicants to follow up with lenders regarding the application status. They can email them or contact them directly through details listed on the website.
Documents required for Vidyalakshmi loan are as follows:
- Mark sheets.
- Proof of admission to a particular course.
- Income proof.
- List of expenses as provided by the institution.
- Form 16.
- Latest IT return.
- Copy of land records.
- Undertaking letter in absence of PAN and Aadhaar number.
- Photos of applicant, parent, co-applicant/guarantor.
The Vidyalakshmi website lists some of the top financial institutions offering educational loans to prospective students. However, educational loans do not cover daily expenses. Lenders, therefore, have introduced educational loans against property to ensure students can financially support themselves when they are studying away from home.
Bajaj Housing Finance Limited is an HFC that provides such loans with attractive rates on interests.
The company also provides pre-approved offers that simplify the process of availing a loan against property. Check your pre-approved offers simply in exchange for your name and mobile number.
The Vidyalakshmi scheme provides favourable solutions to students who do not have the means of acquiring appropriate educational funds. The information provided should help apply for the programme with relative ease.