How can you get an Education loan In India? Full Guide

How can you get an Education loan In India? Full Guide

In today’s time quality education is much needed for a successful life. Especially in India, where there is a huge population of Young and talented brains.

To conquer the competition ; students work so hard to achieve their dreams. However the sad reality is that the cost of Education is increasing day by day.

For example,  An average Government MBBS Medical college charge ₹60k to ₹1lakh/per annum whereas MBBS in abroad will cost around ₹15-₹25lakh (for the whole course)

For a middle income family that’s too much. Even though parents invest their money in mutual funds (MFs), fixed deposits (FDs), unit-linked insurance plans (ULIPs), etc., for the long term but sometimes even that’s not enough.

This is why Government of India has launched various schemes for the students who want loan for their further study.

If you are looking for an education loan in india or education loan in india for abroad studies.

This article is for you.

We did a detailed research on various government schemes which were launched to provide students with education loan.

Pradhan Mantri Vidya Lakshmi Karyakram


Undoubtedly the most popular scheme for students who want financial aid directly via Government.

Shri Arun Jaitley, Honourable Union Finance Minister in his budget speech for FY 2015-16 said: “I propose to set up a fully IT based Student Financial Aid Authority to administer and monitor Scholarship as well Educational Loan Schemes, through the Pradhan Mantri Vidya Lakshmi Karyakram. We will ensure that no student misses out on higher education for lack of funds. The IT based mechanism under the Pradhan Mantri Vidya Lakshmi Karyakram is expected to provide to students a single window electronic platform for Scholarships and Educational Loans.”

Vidya Lakshmi scheme is a first of its kind portal for students seeking for a Education Loan in India.

This portal has been developed under the guidance of Mof (Ministry of Finance),Department of Higher Education (Ministry of Human Resource Development) and Indian Banks Association (IBA).

The portal has been developed and being maintained by NSDL e-Governance Infrastructure Limited. Students can view, apply and track the education loan applications to banks anytime, anywhere by accessing the portal.

Vidya lakshmi scheme

Eligibility & Requirementsfor Pradhan Mantri Vidya Lakshmi Karyakram


  • Student must be a resident of India.
  • Loan will be sanctioned only if student secured an admission to a recognized college/university.
  • Apllicant must have completed its schooling (Class XII)
  • There’s is no upper age limit for this scheme ( by RBI) , However a bank may have it.
  • You will have to show admission letter of the college/university, schooling certificates, fee structure of the institution to the respective bank who is willing to provide you a student loan under Vidya Lakshmi Scheme.

Will I have to submit a collateral under this scheme?


It depends!

For a loan upto ₹ 4 lacks, No collateral / third party gurantee is required. Bank once approval, will disburse that amount directly to that college/university.

However, for a loan above 7.5 lakhs, You have to provide collateral / third party guarantee to the bank. ( Some terms and conditions may vary from bank to bank).

What is the interest rate ?


Different banks charge different Rate of Interests for your loan with a processing fee of around 0.15% of the loan amount.

We will recommend you to kindly go through the terms and conditions of the respective bank before applying for the loan.