Education Loan Scheme by Narendra Modi

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best education loan in india

Narendra Modi has launched various schemes in different fields ever since he was elected as Prime Minister of India. To improve the education system and help those in need PM Narendra Modi launched Vidya Lakshmi Portal for providing financial assistance in terms of education loans, scholarships all under one portal. Let’s explore the education loan scheme by Narendra Modi or popularly known as Modi Education Loan.

Also Read: Loans to Study Abroad

Vidya Lakshmi Portal

Vidya Lakshmi Portal was launched on 15th August 2015 by the joint efforts of the Finance Ministry of India, HRD of India, Department of Higher Education, and Indian Bank Association. This portal was launched to help students find information regarding education loans in India and also apply for the same on a single portal. Before this portal was launched, students had to apply at different banks, with different forms and the process was uneasy, hectic and the process was long. Vidya Lakshmi portal has made it easy for students to apply, check eligibility, track & access the information education loan in India for higher education. There are almost 38 banks registered and 127 different loan schemes.

Courtesy: Vidya Lakshmi, Twitter

Click Here to Apply for Modi Education Loan

Also Read: Student Loan for UK

Types of Education Loans

The education loan scheme by Narendra Modi is not just limited to one particular course of the stream or to institutions in India. You can apply for technical, professional, vocational, degree courses from Indian universities or study abroad. You can apply for a loan amount of below Rs.4 Lacs, In between Rs.4 Lakh to Rs. 7.5 Lakh or above Rs. 7.5 Lacs and apply to 38 banks with a single application on the Vidya Lakshmi Portal. Education loan by Modi is helping thousands of students fulfill their dream of studying abroad.

Also Read: Documents Required for Education Loan

Registration Process

If you want to apply for this education loan scheme, you have to register yourself on the Vidya Lakshmi portal. Here is the process to apply online for Narendra Modi Education Loan Scheme:

  1. Visit the official website of Vidya Lakshmi Portal to apply for an education loan by Modi
  2. Click on the register new option
  3. You will be redirected to a new page to enter all the required details
  4. Submit and you will receive a confirmation mail and login details on your registered mobile number or email id
  5. Now you can apply for an education loan or related scholarships
Credits – Indian Banker

Interest Rates

Different banks are under the education loan by Modi scheme with different interest rates. There are about 36 banks registered at present under the education loan scheme by Narendra Modi. Interest rate depends on the bank you are applying to, loan schemes, institution, courses & amount of loan as well. Most of the banks charge 2% – 6% above the MCLR. You can also calculate the monthly EMI by visiting the official website of the bank. However, the interest rates range between 7% – 13% depending on various factors.

Also Read: Here are the Best Education Loans for MBBS Students!


The repayment of the education loan by Modi will start after the moratorium period has expired. The moratorium period is the duration of the course plus one additional year or six months after an applicant has secured a job. The applicant has to pay the EMIs beyond the period of the moratorium.

Also Read: Avanse Education Loan

Banks registered under Education Loan Scheme by Narendra Modi

There are 38 banks that provide financial assistance under this scheme by Narendra Modi. You can apply for a Modi education loan from these banks. Here is the list of banks under the Education Loan Scheme by Narendra Modi: 

Also Read: Education Loan for MBA

Modi Education Loan Scholarships

Vidya Lakshmi Portal is not just for education loans but offers various scholarships as well. You can check the latest scholarship details on the home page of the Vidya Lakshmi portal. You can also apply for international scholarships. Just go to the end of the home page and click on scholarships. You will be redirected to a new page where you can log in and get detailed information about scholarships.

Narendra Modi Education Loan Subsidy

To help the students of economically weaker sections and backward societies that can’t afford the cost of education of higher studies, an education loan interest subsidy scheme announced by Narendra Modi. The applicants can get loans without any collateral up to Rs. 7.5 Lakhs. The family income should be less than Rs.4.5 Lacs & this subsidy can only be claimed once. 

Also Read: Best Education Loan in India


Can we claim an education loan scheme by Narendra Modi for admission into foreign universities?

Yes, the education loan scheme by Narendra Modi can be used for admission to foreign universities.

Can I apply to various banks at the time with a single application for Modi Education Loan?

Yes, You can apply to various banks with a single application.

Is the Modi education loan just restricted to education loans at the undergraduate level?

No, it is applied for courses at the undergraduate level, postgraduate & doctorate level.

What banks are associated with the Modi education loan?

UCO Bank, HDFC Bank, SBI, IDBI are some of the banks associated with the education loan scheme by Narendra Modi.

How much loan is granted under the education loan scheme by Narendra Modi?

You can get a loan of more than Rs. 7. 5 lakhs under the education loan scheme by Narendra Modi. 

We hope that all your queries regarding the education loan scheme by Narendra Modi are solved through this blog. If you require more extensive abroad admission support, like choosing the right university, identifying the suitable loan, and creating the perfect application to target your dream universities, our counsellors at Leverage Edu can help you.

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  1. I want to get loan for my daughter but my source of income is cash assistance being provided by the government because we are registered as migrants . What proof of income should I attach

  2. एन टीबी कॅटेगिरी मध्ये समाविष्ट असून माझ्या मुलीचे बी फार्मसी मध्ये प्रवेश घेतला असून मला कर्ज मिळू शकते का मी एका खाजगी शाळेत नोकरी तसं माझं उत्पन्न सुद्धा कमी आहे ते मला सहकार्याची अपेक्षा आहे माझ्या मुलीचे उज्ज्वल भविष्यासाठी मला कर्ज मिळू शकते का

    1. नमस्कार. आपण 1800572000 वर आमच्या तज्ञांशी संपर्क साधू शकता आणि सर्वोत्कृष्ट शिक्षण कर्ज शोधू शकता.

    1. Hi Swati!

      Please feel free to contact our experts at 1800572000 and they will clear all your doubts and help you get the best education loans! Hope this helps!
      Thank you

    1. Hi Shruthi!

      Please feel free to get in touch with our experts at 1800572000 to know more about applying for education loans. Hope this helps!
      Thank you for reaching out to us!

  3. from morning I am applying for loan.There is no response.How our children can get good education

  4. Dear sir,
    My son wants to study MS from USA…but because of financial difficulties we are unable to send. He is very bright stud dent and completed his BTech in Computer science. if we apply for education loan but we are unable to get through becasue we dont have any colleteral asset to show in the bank. I m single mother….do u have any scheme of PM where we get loan and he will repay later.
    thanks u and regards

    1. Hi, Sujeeta!
      Hope you have gone through the article thoroughly. The Vidya Lakshmi Portal might be suitable for your situation. You can avail loan up to 4 lakhs with no collateral or margin is required. The repayment can also be done 5 -7 years later!
      For more information contact us at 1800 57 2000!

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