Education Loan Yojana: Types, Documents, Application Process

Education Loan Yojana is a scheme for students who can not afford higher education. It is a fully IT-based system that provides the aid that is introduced as the “Vidya Lakshmi Karaykaram”.

This system conducts scholarships and loans for students to pursue higher education. The government has also introduced an electronic system for education loan yojana through which the students can apply.

Education Loan Yojana

The education loan scheme is introduced by Pradhan Mantri. This initiative is taken on the behalf of needy students to pursue higher education.

The scheme conducts scholarships and provides loans for them. With this initiative every other student can avail higher education of their choice thus no one would be deprived of education in India.

What is Education Loan Scheme?

This yojana aims to provide student loans to establish a literate system in the country. This scheme is for all the students in India who want to proceed with their higher education.

Moreover, citizens can also apply for the scheme through the online portal. It is linked with 39 banks.

Types of Education Loan Yojana

This scheme has proved to be very beneficial throughout India the students avail the scheme to complete their education.

Here are the following types of education loan yojana in India:

1. Vidya Lakshmi Yojana

The Vidya Lakshmi Yojana is a scheme that provides loans to multiple institutes. Furthermore, the application is available through which one can apply for this education loan.

2. Padho Pardesh Scheme

The Padho Pardesh scheme is specially designed to provide financial aid to the students for their overseas education. In addition, it is started for the from monitory communities.

3. Dr. Ambedkar Central Sector Scheme of Interest Subsidy

This scheme offers loans for students coming from OBC and EBC communities to study abroad.

4. Central Scheme of Interest Subsidy for Education Loan:

The students from the EWS category can apply for professional and technical courses through this subsidy.

Documents Required to apply for Education Loan Scheme

It is very important to submit the correct documents for the education loan yojana to avoid sanction. Here is the list of documents that are required to apply for the education yojana:

  • Marksheet of the last degree such as SSC, or HSC
  • Admission letter (copy)
  • Fee Structure of the institute
  • Proof of address such as voter id, aadhaar card, passport, electricity bill
  • Proof of identity driving license, PAN card, aadhaar card
  • Proof of signature such as PAN card, passport
  • Proof of age such as birth certificate, aadhaar card, voter id, PAN card
  • Bank statement
  • Salary slips for the last two months
  • Qualification proof
  • Income tax returns for the last 2 years
  • Turnover proof
  • Passport-sized photographs (2)

How to Apply for Education Loan Yojana?

To apply for an education loan scheme you have to follow these simple steps:

  • Visit the official website of Vidya Lakshmi Portal
  • Fill out the Common Education Loan Application Form (CELAF) carefully
  • Provide all the necessary and correct details
  • After filling out the form, you can search for the educational loan and can apply as per your eligibility criteria
  • Attach the required documents with the application and click submit

Note: A student can apply to a maximum of three banks for the education loan yojana.

Benefits of Education Loan Yojana

Student Loan Yojana has benefited a large number of students all across India. This scheme not only eases the financial aspects of education but there is more to it.

Financial Benefit: Students who avail of this scheme are free from financial burdens because they do not have to spend their savings.

Pay after education: The scheme has a very flexible system that allows students to pay the loan after completing education. Thus there is no stressful thing.

Expense covered: if a student takes a loan for abroad studies the scheme will provide expenses for their laptop, and study material as well.

Easy payment terms: The repayment of the loan is a completely stress-free process. The HDFC bank provides convenience to the citizens so they can have some relief while focusing on studies.

Becoming Independent: The students can take this loan and pay their expenses without depending on someone else.


Education is the primary right of every citizen therefore making it an easy process is the most significant step. The government of India has introduced the Education Loan Yojana scheme to provide loans for higher education. Furthermore, the students who want to study abroad can also apply for this scheme.

Moreover, the repayment of the loan is a stress-free process that they will pay after completing their education.

Was this article helpful?

Thanks for your voting!

Leave a Comment