A Comprehensive Guide to Education Loan Application in Public Banks

5 minute read
Education Loan Application in Public Banks

Public sector banks in India are those in which the government owns more than 50% share of the stock. These are government-owned banks, with certain public sector undertakings. State Bank of India is one such example of a public sector bank in India. Now, when it comes to student education loans, students have the natural option of choosing public banks and seeking their aid to finance an education abroad. With this blog, we share information on this option for students, specifically on how to proceed with education loan application in public banks. So, interested? Read below to learn more. 

General Education Loan Application 

Let’s first understand the general process of applying for an education loan. As a student, you should first thoroughly do your research; wherein you explore and compare different banks and their rate of interest and other products, before coming to the decision of applying for an education loan with a certain bank. 

Now, there are two ways to apply for an education loan: online and offline. 


The online way is pretty straightforward. 

  1. The student can visit the official website of the bank, and look for the online application form that they will then fill out with the necessary details and documents. 
  2. You can also register yourself online, provide all the requested details and await for the bank representatives to get in touch with you about the loan before proceeding with the application. 


The offline way requires you to visit the nearest branch of the bank. 

  1. Talk to the bank representatives in person. Get to know about all the details, fill out the application form in person, and submit the same. 
  2. You can also start by calling the bank beforehand and discussing your intention of applying for the education loan beforehand, and then proceed to apply. 

* Please note that in both cases you need to check the eligibility first and then proceed with the application. Again, the aforementioned is just a general overview of education loan applications. 

Also Read: Allahabad Bank Education Loan

Applying for Education Loans at Public Banks

Now, let’s get a little specific. We shall focus on an education loan application in public banks. Students who are deciding to apply for education loans from public banks need to familiarise themselves with the Vidya Lakshmi Portal, a platform for students looking to apply for an education loan. Students are redirected to this portal for education loan application in public banks, which they can then view and also monitor the status of. 


First, the student must register themselves on the portal. Go to the official website of the Vidya Laksmi portal, and create your login ID and password from the register option. Check the confirmation link sent to you, click on it, and re-enter your credentials. Your registration is complete.

VidyaLakshmi Application Form 

Now before you arrive at the VidyaLakshmi Application Form, you will need to use the website to search for a loan scheme. This will be available on the dashboard. Then, you will be redirected to select three things on the left of the page: country of study, course, and loan amount. Once you have decided on the education loan programme, you will then fill out the VidyaLakshmi Application Form. 

Common Education Loan Application Form (CELAF) is what this application form is known as. In the form, you will find seven sections, which are mentioned below. 

  • Personal information
  • Particulars of Course
  • Present Bank Account details 
  • Prospects of earning after course completion
  • Cost of Course & source of finance 
  • Details of security offered
  • Supporting documents

*The section for Central Sector Scheme for Interest Subsidy can be filled in by students whose parent’s annual income is less than INR 4.5 lakh.

Expanding on the same below. 

  1. Personal Information: All important and personal details cannot be tampered with after submission of the form so please fill them out carefully. 
  2. Particulars of Course: Details such as commencement of the course, date of completion, etc, need to be mentioned for the course the loan is applied for.
  3. Present Bank Account Details: Here, the details of the bank account of the parent or guardian or co-applicant needs to be mentioned. Make sure the IFSC code etc is included. 
  4. Prospects of earning after course completion: You will also need to share the amount that you think you can earn and repay every month after course completion. 
  5. Cost of Course & source of finance: Here, mention the exact estimated cost of studying the course, including accommodation fee, exam fee, etc. Mention the amount that you require year-wise. 
  6. Details of security offered: If your education loan is more than INR 7.5 lakh, you will need to include collateral details. Please note that the collateral value is your estimate of your property, and since the property evaluator assigned by the bank might evaluate it at a lesser value, it’s better to pledge collateral of a higher amount. 

Also Read: Expenses Covered in Education Loan

Supporting documentation required for education loan application in public banks is mentioned as follows. 

Documents Required 

  1. The Admission letter to the university
  2. Course fee structure
  3. Applicant’s documents such as Aadhar, Passport, etc
  4. Address proof in the form of an Aadhar Card, Voter ID card etc
  5. Documents of co-applicant such as salary slip of last 6 months, business transactions of one year if self-employed 
  6. Applicant’s academic documents such as mark sheet of educational qualifications
  7. KYC documents 
  8. IT Returns (Latest)
  9. Copy of land records
  10. A statement of assets & liabilities of parent/guardian/co-applicant 
  11. 2 – passport size photographs of the applicant
  12. Photograph of co-applicant or guarantor or parent 
  13. Proof of income of co-applicant or guardian or parent 

Loan Application Status 

Students can check their application status online through the Vidyalakshmi portal dashboard. The banks upload the applicant’s progress report. Additionally, if there are any discrepancies in the education loan application, students can find them in the ‘remarks’ column on the page.  

Also Read: Unsubsidized Loans: What You Need To Know!

Mistakes to Avoid 

Some of the main mistakes to avoid are mentioned below. 

  1. Make sure you enter the correct university and country. 
  2. Don’t mistake a bank for another. Make sure the education loan scheme is of the one selected. 
  3. The branch of the bank should also be correctly selected. 


Which public bank is best for education loans?

Bank of India is one of the best public banks for education loans. 

Which student loan is the best option?

A subsidised student loan is one of the best options for students. 

Do students get 100% student loans?

Yes, students can get a 100% education loan which can help them cover their education costs. 

That was a Comprehensive Guide to Applying for Student Education Loans at Public Banks! For any Student Loan, Bank Account or Money Transfer related queries, contact our Fly. Finance Team. And you can also learn more about education loan application in public banks by contacting Leverage Edu counsellors.

Leave a Reply

Required fields are marked *