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Vidyalakshmi is a …….
You might have heard the name Vidyalakshmi as a girl's name, but I am going to introduce you to a different kind of Vidyalakshmi.
Vidyalakshmi (www.vidyalakshmi.co.in) is a portal introduced by the central government that revolutionizes the way students apply for education loans. This platform allows learners to compare education loan options from different banks, eliminating the need to visit multiple banks. Vidyalakshmi provides the convenience of applying for an education loan online through a single application form. This system streamlines the loan application process, making it easier for students to access the financial support they need for their education.

To apply for an education loan, follow these steps:
1.Register on the Vidyalakshmi Portal: Students must first register on the Vidyalakshmi portal (www.vidyalakshmi.co.in) to access its services.
2.Compare Loan Options: The portal provides detailed information on education loans from all major banks in India, including interest rates, collateral requirements, and security terms. Students can compare these options to find the loan best suited to their needs.
3.Fill Out the Common Education Loan Application Form (CELAF): Based on their eligibility, students need to complete the CELAF. This form, approved by the Indian Banks' Association, is recognized by banks as a formal application for an education loan.
4.Apply to Multiple Banks: Through the Vidyalakshmi portal, students can apply to a maximum of three banks for an education loan using the CELAF.
This streamlined process simplifies the application procedure, allowing students to efficiently seek financial support for their education.
Along with the application form, students must provide several supporting documents. These include:

- Copies of Aadhaar and PAN cards
- A recent photograph
- A six-month bank statement
- An admission letter from the educational institution
- The fee structure
- Educational qualification documents starting from matriculation
- Income proof of the parents
- Asset and liability documents of the student and the parents (or the guarantor if the loan exceeds a certain amount)
Students can track the status of their education loan application online through the 'Student Dashboard' on the Vidyalakshmi portal. If the application status is marked as 'on hold,' additional documents may be required by the bank. The comments section on the dashboard will indicate which specific documents or information the bank needs to proceed with the application. Once these documents are submitted, students can check the dashboard to see if their loan has been approved.
After approval, students can proceed to finalize the education loan by submitting the required documentation specific to the chosen bank. These supporting documents will vary depending on the bank's requirements.
Banks offer education loans for a wide range of courses both within India and abroad. Some banks even provide loans at competitive interest rates for students admitted to prestigious institutions. It's important for students to understand the expenses covered by the loan and the margin prescribed by the bank for different types of loans.
Vidyalakshmi serves as an invaluable resource for students seeking educational loans, providing comprehensive information and facilitating the application process. It simplifies the journey for those pursuing higher education by offering clarity and accessibility to financial support.

Article By: Mujeebulla K.M
CIGI Career Team