 "Single window platform for education loans, scholarships")
Are you a student looking to take an education loan and wondering which bank has the best option? Would you also like information about the several national scholarships available? You can log in to Vidyalakshmi.co.in, the web-based portal jointly launched by the Department of Financial Services, (Ministry of Finance), Department of Higher Education (Ministry of Human Resource Development) and Indian Banks' Association (IBA). The portal has been developed and is being maintained by NSDL e-Governance Infrastructure Limited.
Students can view the various loan schemes available and apply for loans. Once a student applies, banks will upload the loan processing status on the website. So, students can also track the status of their applications. There is also a provision for sending emails about grievances or loan-related queries to banks.
There are also links provided to the National Scholarship Portal for information and application for government scholarships. Currently, 13 banks have registered on the portal and there are 22 loan schemes available for students to choose from.
“The ease and convenience of applying to multiple banks simultaneously is the biggest advantage for students. One application is tracked by all banks at the same time,” says S K V Srinivasan, executive director at IDBI Bank, one of the banks that has registered on the portal.
In order to apply, one has to first register on the website and log in. Then search for a suitable loan and apply by filling the Common Education Loan Application Form (CELAF). This is a single form for multiple banks and schemes. It is prescribed by IBA and accepted by all banks. A student can apply to a maximum of three banks.
Students can view the status of their application on the dashboard. If the loan is rejected, the student will have to contact the individual bank for more details. In case the bank puts the application on hold because it requires additional information, that will be indicated in the dashboard, which students will come to know when they log in to the portal. The loan, once approved, will be disbursed directly by the bank outside the portal.
While choosing an educational loan, check if the bank offers additional services such as insurance, and whether repayment conditions are flexible.
“Some banks allow students additional time for repayment based on their earning capacity after completing the course. Some banks also offer insurance along with the loan, which will help parents in repaying the loan, if something untoward happens to the student,” says Srinivasan. Education loans up to Rs 10 lakh fall in the priority lending segment for banks. For loans up to Rs 4 lakh, banks are not allowed to take any collateral. For loans of higher amounts, banks can ask for collateral, guarantor or both.
According to V N Kulkarni, counsellor with counselling centre Abhay, the portal will help reduce the turnaround time for processing of loan applications. In addition, banks will not insist on collateral or guarantor for loans below Rs 4 lakh, since this is a public platform.
“Some banks insist on collateral or guarantor for smaller loans, although it is not required. Often, it is only because of the attitude of the concerned official at that particular branch. And since students are not aware of this, many of them don’t bother approaching another bank. We get several cases like this,” says Kulkarni.
Currently, information about the tie-ups that banks have with educational institutions is not available on the portal. But it could be included going ahead, Srinivasan adds.
ALSO READ: Web-based portal for education loans launched
ALSO READ: Getting education loans despite tougher norms
Students can view the various loan schemes available and apply for loans. Once a student applies, banks will upload the loan processing status on the website. So, students can also track the status of their applications. There is also a provision for sending emails about grievances or loan-related queries to banks.
There are also links provided to the National Scholarship Portal for information and application for government scholarships. Currently, 13 banks have registered on the portal and there are 22 loan schemes available for students to choose from.
More From This Section
While approving an education loan, banks look at the institute the student is applying to, the course, the student’s grades, job prospects after completing the course and so on. Since the list of approved institutions vary from bank-to-bank, students may have to apply to several banks separately before finally getting a loan.
“The ease and convenience of applying to multiple banks simultaneously is the biggest advantage for students. One application is tracked by all banks at the same time,” says S K V Srinivasan, executive director at IDBI Bank, one of the banks that has registered on the portal.
In order to apply, one has to first register on the website and log in. Then search for a suitable loan and apply by filling the Common Education Loan Application Form (CELAF). This is a single form for multiple banks and schemes. It is prescribed by IBA and accepted by all banks. A student can apply to a maximum of three banks.
Students can view the status of their application on the dashboard. If the loan is rejected, the student will have to contact the individual bank for more details. In case the bank puts the application on hold because it requires additional information, that will be indicated in the dashboard, which students will come to know when they log in to the portal. The loan, once approved, will be disbursed directly by the bank outside the portal.
While choosing an educational loan, check if the bank offers additional services such as insurance, and whether repayment conditions are flexible.
“Some banks allow students additional time for repayment based on their earning capacity after completing the course. Some banks also offer insurance along with the loan, which will help parents in repaying the loan, if something untoward happens to the student,” says Srinivasan. Education loans up to Rs 10 lakh fall in the priority lending segment for banks. For loans up to Rs 4 lakh, banks are not allowed to take any collateral. For loans of higher amounts, banks can ask for collateral, guarantor or both.
According to V N Kulkarni, counsellor with counselling centre Abhay, the portal will help reduce the turnaround time for processing of loan applications. In addition, banks will not insist on collateral or guarantor for loans below Rs 4 lakh, since this is a public platform.
“Some banks insist on collateral or guarantor for smaller loans, although it is not required. Often, it is only because of the attitude of the concerned official at that particular branch. And since students are not aware of this, many of them don’t bother approaching another bank. We get several cases like this,” says Kulkarni.
Currently, information about the tie-ups that banks have with educational institutions is not available on the portal. But it could be included going ahead, Srinivasan adds.
ALSO READ: Web-based portal for education loans launched
ALSO READ: Getting education loans despite tougher norms