Single Portal Opens Wider Access to Student Loans
To ensure financial hardship does not disrupt higher education, the Centre has expanded student loan access for economically weaker sections through the Vidya Lakshmi Portal. This unified online platform connects students directly with multiple banks.
Officials said the initiative aims to stop meritorious students from dropping out due to a lack of funds. The portal lets applicants fill out one form and apply to up to three banks at the same time. This improves their chances of getting financial support. Students receive status updates on mobile and email after choosing their preferred lenders.
More than 36 public and private sector banks now operate on the platform. Students can apply at any time since there is no deadline.
The scheme offers education loans of up to Rs 10 lakh for higher studies. The Centre covers interest on loans up to Rs 4.5 lakh for eligible students. Applicants must have an annual family income of Rs 4 lakh or less. Students enrolled in recognised degree programmes, including engineering, MBBS, and other professional courses, can apply. Banks sanction loans after verifying the submitted documents.
Applicants must submit photographs, academic records, a transfer certificate, an admission letter, and a rank card, where needed. They must also provide scholarship details and the course fee structure. The form requires parent or guardian details and identity proof such as Aadhaar, PAN, Voter ID, or driving licence.
An education finance specialist said the system marks a shift in student credit access. Earlier, students approached multiple banks with little clarity. A single digital interface now saves time and reduces uncertainty for families under financial stress.
A higher education policy researcher said loan timing often decides whether a student joins a course. Delays in funding can cause students to lose seats. Faster processing through a central platform can help maintain enrolment.
A banking sector analyst said more lender participation remains important. When more banks join one system, service standards improve. Response time also becomes faster. Students gain more options instead of relying on one branch.
Officials said the portal streamlines procedures, cuts delays, and widens access to higher education for financially weaker students.