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Since he was elected as India’s Prime Minister, Narendra Modi has introduced numerous programs in various fields. PM Narendra Modi launched the Vidya Lakshmi Portal to offer financial aid in the form of student education loan and scholarships to those in need while also enhancing the educational system. Let’s investigate Narendra Modi’s education loan program, also known as the Modi Education Loan.

Table 1: Student Enrolment in Standalone Institutions in Tamil Nadu – 2018-19

Poly technicPost Graduate Diploma in ManagementNursingTeacher’s trainingParamedicalHotel Management and CateringTotal
Number of Institutions
Tamil Nadu49691112922910
Student Enrolment
Tamil Nadu3,34,1804839,0037,8633,53,7167,05,245
Source: All-India Survey on Higher Education, 2018-19, Ministry of Human Resource Development, Government of India.

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Vidya Lakshmi Portal – Portal for education loan scheme by Narendra Modi

Education loan scheme by Narendra Modi

The Indian Bank Association, the Department of Higher Education, the Finance Ministry of India, and the HRD of India collaborated to launch the Vidya Lakshmi Portal on August 15, 2015. This website was created to make it easier for student education loan apply for and find information on education loans in India. Prior to the launch of this portal, students had to apply at various banks using various forms, and the procedure was complicated, hectic, and time-consuming. Students can now easily apply, determine their eligibility, track their education loan details, and access information about education loans in India for higher education thanks to the Vidya Lakshmi portal. Nearly 38 banks have registered, and 127 different loan schemes exist.

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Types of Education Loans – Education loan details

education loan scheme by Narendra Modi is not just restricted to one specific stream of study or to Indian educational institutions. You can apply to technical, professional, vocational, degree, or study abroad programs offered by Indian universities. On the Vidya Lakshmi Portal, you can submit a single application to 38 banks for a loan of less than Rs. 4 Lacs, between Rs. 4 Lacs and Rs. 7.5 Lacs, or more than Rs. 7.5 Lacs. Numerous students are now able to pursue their dreams of studying abroad thanks to education loan scheme by Narendra Modi.

Process of registering – Education loan details

You must create a Vidya Lakshmi account in order to apply for a student education loan program. The steps for applying online for the Narendra Modi Education Loan Scheme are as follows:

  1. In order to apply for an education loan scheme by Narendra Modi, go to the Vidya Lakshmi Portal website.
  2. Select “Register New” from the menu.
  3. You will be directed to a new page where you can enter all the required data.
  4. After submitting, you will receive a confirmation email and login information on your registered mobile number or email address.
  5. You can now apply for a student loan or a scholarship related to student education loan.

Interest Rates – Education loan details

Under the government education loan scheme, various banks charge various interest rates. The Narendra Modi education loan scheme currently has about 36 banks registered. The bank you are applying to, loan programs, institutions, courses, and loan amount are all factors that affect interest rate. The majority of banks charge 2% to 6% more than the MCLR. You can determine the monthly EMI by going to the bank’s official website. However, depending on a number of variables, interest rates can range from 7% to 13%.

Repayment – Education loan details

After the moratorium period has ended, Modi will begin making payments on his government education loan scheme. The moratorium period is equal to the length of the course plus an extra year, or six months after a candidate has found employment. The applicant must continue making EMI payments after the moratorium has ended.

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Banks enrolled in education loan scheme by narendra modi – Education loan details

As part of Narendra Modi’s program, 38 banks offer financial assistance. These banks accept applications for Modi education loans. The following is a list of banks participating in education loan scheme by narendra modi:

  • 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

Education loan scheme by Narendra Modi and Scholarships

The Vidya Lakshmi Portal provides numerous scholarships in addition to student education loan. On the Vidya Lakshmi portal’s home page, you can view the most recent scholarship information. Additionally, you can apply for worldwide scholarships. Simply click on scholarships at the bottom of the home page to get started. You’ll be taken to a new page where you can log in and access education loan details information after being redirected from the previous one.

Subsidy for Narendra Modi’s student education loan 

Narendra Modi announced an education loan scheme interest subsidy program to assist students from economically disadvantaged groups and underdeveloped societies who cannot afford the cost of higher education. The applicants are eligible for loans up to Rs. 7.5 lakhs without any form of collateral. The family income must be less than Rs. 4.5 Lacs and only one application for this subsidy is permitted.

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Vidya Lakshmi Educational Loans’ sponsors are who?

Vidya Lakshmi is undoubtedly a creation of the Modi administration, but a number of groups contributed to its realization and shaping. NSDL e-Governance Infrastructure Limited created the website. The company is in charge of maintaining the website. However, other organizations were involved in offering the direction required for the portal’s development. These bodies consist of:

  • Indian government’s ministry of finance.
  • The Indian government department is responsible for financial services.
  • The Indian government department responsible for higher education
  • The Indian government’s ministry of human resource development is known as HRD.
  • IBA is short for Indian Banks’ Association.

Principal Characteristics of Vidya Lakshmi Educational Loans

The government of India has introduced a special portal with some really intriguing features, making it the country’s first project of its kind. The portal is anticipated to eventually assist numerous aspirant students in completing their higher education without having to consider the financial obstacles that typically discourage students from pursuing higher education. The features of the portal will be quickly examined.

● Informational hub

Students can access the portal as a resource centre. Through these portals, they can learn more about the education loan scheme availability.

● Forms

Common Educational Loan Application Form is a thing that exists. All students who want to apply for a education loan scheme can do so using this. Students can apply for loans easily and with the least amount of paperwork by using a standard form.

● Multiple banks are available

The fact that the Vidya Lakshmi portal makes it simple to access all banks that provide educational loans is one of its greatest advantages. It is not really necessary for students to physically visit each and every bank to learn about the loan facility. They can easily apply with any bank or a number of banks of their choice because every bank is listed.

● Students are accessible to banks

On the one hand, all participating banks will have direct access to all student applications through the portal, where students can easily access all banks. They can quickly download the applications and check to see if the students adhere to the rules and regulations.

● An update from the banks

The status of loan applications can be quickly updated by banks using the Vidya Lakshmi portal.

● Complaints or inquiries

Before submitting a loan application, students may have questions. Students have access to an email service that they can use to send questions to the banks of their choice. Additionally, students may have complaints after taking out the loans. Through the email service offered on the Vidya Lakshmi portal, students can quickly contact banks with their complaints.


1. Can we use Narendra Modi’s education loan program to gain admission to universities abroad?

Ans. Yes, you can apply for admission to foreign universities using Narendra Modi’s education loan program.

2. Is it possible for me to submit one Modi Education Loan application to multiple banks at once?

Ans. Yes, you can submit a single application to multiple banks.

3. Is the Modi education loan only available for loans for undergraduate degrees?

Ans. Not at all; it applies to doctoral, postdoctoral, and undergraduate courses.

4. What financial institutions are involved in the Modi education loan?

Ans. UCO Bank, HDFC Bank, SBI, and IDBI are a few of the banks involved in Narendra Modi’s education loan program.

5. What amount of loans are made available through Narendra Modi’s education loan program?

Ans. With the help of Narendra Modi’s education loan program, you can obtain a loan worth more than 7. 5 lakhs rupees.

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6. How many banks are available for simultaneous applications?

Ans. It’s a bummer, that’s for sure. The number of banks you can apply with, despite claims to the contrary, is limited to three. Therefore, you are limited to applying for loans from no more than three banks at once when using CELAF. If you want to submit a loan application to another bank, you must do so outside of the portal.

7. How can I find out the loan status after I’ve submitted my loan application?

Ans. It’s very easy! You can find the status of all of your applications by clicking the Application Status option on the dashboard after logging in. In essence, the banks will update the status on their end and display it on the dashboard of the corresponding students.

8. What happens if the applications are declined?

Ans. That’s certainly a possibility, and it would be awfully bad if it did. You won’t be able to get in touch with a bank for more information if it rejects your application. You’ll just have to accept that your application was denied. It is therefore recommended that you review all terms and conditions before applying with banks to ensure that you meet all requirements.

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