Since Narendra Modi assumed office as India’s Prime Minister, he has introduced a multitude of transformative initiatives spanning various sectors.
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One such pioneering effort, the Vidya Lakshmi Portal, aims to enhance the education system and provide vital support to individuals seeking financial assistance for their educational pursuits. This comprehensive platform consolidates resources related to education loans and scholarships, simplifying access to these crucial financial resources. Let us explore the enlightening Modi Education Loan scheme and its role in fostering educational aspirations.
Education Loan Scheme by Narendra Modi (Vidya Lakshmi Portal)
On August 15, 2015, a collaborative effort between India’s Finance Ministry, the Ministry of Human Resource Development (HRD), the Department of Higher Education, and the Indian Bank Association resulted in the launch of the Vidya Lakshmi Portal.
This visionary platform was created to alleviate the challenges faced by students when applying for education loans in India. Prior to its introduction, the process involved submitting applications to multiple banks using different forms, making it cumbersome and time-consuming. Thanks to the Vidya Lakshmi Portal, students now have a centralized platform to apply, check eligibility, track applications, and access comprehensive information on education loans for higher education. Currently, there are 38 registered banks offering a total of 127 distinct loan schemes on this platform.
Scope of Education Loans
Narendra Modi’s Education Loan scheme is all-encompassing, covering a broad spectrum of courses and institutions both within India and abroad. Aspiring students can pursue technical, professional, vocational, or degree programs at Indian universities or international educational institutions.
Loan amounts vary, with options available for those needing less than Rs. 4 Lakhs, between Rs. 4 Lakhs and Rs. 7.5 Lakhs, or more than Rs. 7.5 Lakhs. Remarkably, applicants can apply to any of the 38 participating banks by submitting a single application on the Vidya Lakshmi Portal. Modi’s initiative has effectively empowered countless students to pursue their dreams of overseas education.
Vidya Lakshmi portal Registration Process
To benefit from the Education Loan scheme, students must first register on the Vidya Lakshmi portal. The following steps outline the online application process:
- Visit the official Vidya Lakshmi Portal website to initiate the application process.
- Select the “register new” option.
- Provide the required information on the subsequent page.
- Upon submission, receive a confirmation email containing login credentials via the registered mobile number or email address.
- Use these credentials to apply for an education loan or explore relevant scholarship opportunities.
Student Education Loan Interest Rates
Under Narendra Modi’s Education Loan scheme, 36 registered banks currently offer loans at varying interest rates. The interest rate applied depends on factors such as the chosen bank, specific loan scheme, educational institution, course, and loan amount. Most banks charge an interest rate 2% to 6% above the Marginal Cost of Funds Based Lending Rate (MCLR). To calculate the monthly Equated Monthly Installment (EMI), applicants can visit the bank’s official website. It’s important to note that interest rates can range from 7% to 13% based on various variables.
Vidya Lakshmi portal Repayment
Repayment of the education loan begins once the moratorium period concludes, which includes the course duration and an additional year or six months following an applicant’s employment. Responsibility for making EMIs rests with the applicant after the moratorium period concludes.
Banks Participating in Narendra Modi’s Education Loan Scheme
The Education Loan Scheme by Narendra Modi encompasses a total of 38 banks offering financial assistance. Applicants interested in obtaining a Modi education loan have the flexibility to apply through any of these banks. Here is a comprehensive list of participating banks:
- Abhyudaya Cooperative Bank Limited
- Allahabad Bank
- Andhra Bank
- Axis Bank
- Bank Of Baroda
- Bank Of India
- Bank Of Maharashtra
- Canara Bank
- Corporation Bank
- Central Bank Of India
- Dena Bank
- Dombivli Nagari Sahakari Bank Limited
- Federal Bank
- GP Parsik Bank Ltd
- HDFC Bank
- ICICI Bank
- IDBI Bank
- Indian Bank
- Indian Overseas Bank
- Karnataka Bank
- Kotak Bank
- Karur Vysya Bank
- New India Cooperative Bank Limited
- Oriental Bank Of Commerce
- Pragathi Krishna Gramin Bank
- Punjab And Sind Bank
- Punjab National Bank
- RBL Bank
- Syndicate Bank
- State Bank of India
- Tamilnad Mercantile Bank Limited
- UCO Bank
- Union Bank
- United Bank of India
- Vijaya Bank
- YES Bank
PM Modi Education Loan Scholarships
In addition to education loans, the Vidya Lakshmi Portal offers a wide range of scholarships. Users can find the latest scholarship details on the portal’s homepage. International scholarships are also available. By clicking on the “scholarships” section at the end of the homepage, users can access comprehensive scholarship information upon login.
Government Education Loan Subsidy
Narendra Modi has introduced an education loan interest subsidy scheme aimed at supporting economically disadvantaged students and underprivileged communities unable to bear the costs associated with higher education. Under this scheme, eligible applicants can avail loans of up to Rs. 7.5 Lakhs without the need for collateral. It is important to note that family income should be below Rs. 4.5 Lakhs, and this subsidy is applicable only once.
Conclusion
The Vidya Lakshmi Portal, launched under the leadership of Prime Minister Narendra Modi, is a groundbreaking initiative that simplifies access to education loans and scholarships. This platform has significantly reduced the complexities associated with education loan applications, making higher education more accessible and affordable for countless students. Modi’s Education Loan scheme empowers individuals to pursue their dreams of education both in India and abroad, contributing to their personal growth and the nation’s development.
