Need Suggestion – Best bank for Education Loan under PM Vidya Lakshmi Yojana

[Hope]

Hi everyone,
My brother has been allotted Maulana Azad National Institute of Technology (MANIT, Bhopal) through JOSAA counselling.
We’re now planning for his education loan under PM Vidya Lakshmi Yojana ( this college falls under eligible institute)

Total 5Y programme (B Arch)fee will be ~7-8L

In PM vidyalakshmi scheme this subsidy is available and annual income is 5L. ( anyone here availed this benefit ? Do bank ask father salary slip/itr ?)


• interest rates
Sbi :- 7.45% college comes under PMVL- Uttam

PNB:- found nothing i could understand on their website
Union: 7.85-8.05%


And if anyone have availed education loan any type please guide which bank will be good to go.

I am considering above three banks SBI/UNION/PNB and suggest if any other bank offers better rate.

Thankyou.

 

[Hope]

Tagging some legends fore better reach.

@praful47 @2025 @kuchbhi @drvirag @desiviru

 

[komal]

Whatever is written on website about this scheme is just for information.
Ultimately loan will be disbursed by the bank .
Better to approach directly to the banks and ask for the details .

Start with your parents bank .

 

[2025]

Hi everyone,
My brother has been allotted Maulana Azad National Institute of Technology (MANIT, Bhopal) through JOSAA counselling.
We’re now planning for his education loan under PM Vidya Lakshmi Yojana ( this college falls under eligible institute)

Total 5Y programme (B Arch)fee will be ~7-8L

In PM vidyalakshmi scheme this subsidy is available and annual income is less than 4.5L. ( anyone here availed this benefit ? Do bank ask father salary slip/itr ?)
View attachment 103721

• interest rates
Sbi :- 7.45% college comes under PMVL- UttamView attachment 103722

PNB:- found nothing i could understand on their website
Union: 7.85-8.05%
View attachment 103725

And if anyone have availed education loan any type please guide which bank will be good to go.

I am considering above three banks SBI/UNION/PNB and suggest if any other bank offers better rate.

Thankyou.

Tagging some legends fore better reach.

@praful47 @2025 @kuchbhi @drvirag @desiviru

I do not know much on this.

But in general would suggest you to visit bank/branch that are located inside/ close to the college campus and make an enquiry in other branch nearby.

 

[Hope]

I do not know much on this.

But in general would suggest you to visit bank/branch that are located inside/ close to the college campus and make an enquiry in other branch nearby.

College is 6-700km away.
Will visit nearby branches tomorrow maybe raining here all day.

 

[HumorSimpson]

@Vasuki ? ?

 

[Guddi]

Hi everyone,
My brother has been allotted Maulana Azad National Institute of Technology (MANIT, Bhopal) through JOSAA counselling.
We’re now planning for his education loan under PM Vidya Lakshmi Yojana ( this college falls under eligible institute)

Total 5Y programme (B Arch)fee will be ~7-8L

In PM vidyalakshmi scheme this subsidy is available and annual income is less than 4.5L. ( anyone here availed this benefit ? Do bank ask father salary slip/itr ?)
View attachment 103721

• interest rates
Sbi :- 7.45% college comes under PMVL- UttamView attachment 103722

PNB:- found nothing i could understand on their website
Union: 7.85-8.05%
View attachment 103725

And if anyone have availed education loan any type please guide which bank will be good to go.

I am considering above three banks SBI/UNION/PNB and suggest if any other bank offers better rate.

Thankyou.

You can go for SBI.
Since parent will be guarantor, they will ask for ITR/Salary slip, but it will not be used to determine loan amount. That will purely be on basis of Fee structure provided by college.

 

[komal]

You can go for SBI.
Since parent will be guarantor, they will ask for ITR/Salary slip, but it will not be used to determine loan amount. That will purely be on basis of Fee structure provided by college.

I would add more , I don't know how much it's correct but PSU generally prefer salaried person other than self- employed.

But as it's a premium college banks can give relaxation.

 

[desiviru]

@Hope Yes, your father's or per say gaurdian's salary slips and itr will be required by bank to establish you (person cocnerned) are eligible for scheme. Loan will be co-jointly provided i.e joint account. No guarantor required in this scheme.

Here income of all family is considered not just a single person. Family income should be less than 4.5L.

Paper work is much less but can take a day or more for completion of madatory requirements.

Loan repayment will start from course duration + 1 year and max. time is 15 years from loan disbursement. Interest will be charged as per loan availed in tranches during the period of course. No interest for course time + 1 year aka moratorium period.

The maximum subsidy is 3%. So 7.45 loan means 4.45 for you.

Loan can be taken from anywhere and any participating bank and later fee can be transferred to college account through NEFT/RTGS by visiting branch or if it is near you can collect cheque and deposit to college.

List of Docs:


KYC Details (Student) – Aadhaar, PAN ID and Address Proof.


Previous Qualifying self-attested copy of Mark sheets.


Entrance Exam Result.


Offer letter from Institution along with Fee Structure.


Passport-size photographs.


Previous / existing loan, if any, from Banks/Lenders, banks may obtain suitable documentary evidence.


Proof of family Income from designated public authority of the state.

 

[desiviru]

Best Bank ito go with is Canara Bank. Someone I know has it but it all depends of branch and its people. SBI is good too.

Pradhan Mantri Vidyalaxmi Scheme | Canara Bank

Explore the Pradhan Mantri Vidyalaxmi Scheme by Canara Bank, offering financial assistance to students for higher education with easy loan options.

canarabank.com

 

[Hope]

Proof of family Income from designated public authority of the state.

I have income proof of 3L but father's salary is 5L P.A
I think this will definitely create issue.

 

[drvirag]

AFAIK 1 of parent usually father will be co borrower. U have to submit all documents of income and wealth of ur father. Or they will ask for some security.
N u r wrong if u r thinking u can choose bank of ur choice. Its not easy to get an unsecured loan from psu bank. That too education loan for which repayment start after 5 year. U should choose the bank who has less requirements.

 

[desiviru]

I have income proof of 3L but father's salary is 5L P.A
I think this will definitely create issue.

Then your total family income is already 8L which makes ineligible.

If somehow you become a non-part i.e not residing with family then loan can still be taken by your father under 4.5L-8L slab but subsidy will be less unlike below 4.5L.

 

[Hope]

Best Bank ito go with is Canara Bank. Someone I know has it but it all depends of branch and its people. SBI is good too.

Pradhan Mantri Vidyalaxmi Scheme | Canara Bank

Explore the Pradhan Mantri Vidyalaxmi Scheme by Canara Bank, offering financial assistance to students for higher education with easy loan options.

canarabank.com

Interest rate is on higher side 8.75 fixed 8.25 floating
but can get 0.5% concession on canara aspire.

If somehow you become a non-part i.e not residing with family then loan can still be taken by your father under 4.5L-8L slab but subsidy will be less unlike below 4.5L.

Not 8L father's income proof certificate is 3L but real income is 5L
Apart from him no one earns.

 

[desiviru]

Interest rate is on higher side but can get 0.5% concession on canara aspire.

Not 8L father's income proof certificate is 3L but real income is 5L
Apart from him no one earns.

Okay. I thought you wrote you have income proof of 3L and father's income is 5L. Then no worries.

Income proof is 3L and actual is 5L. Where this 2L coming from? If it is some agri based or in case not reported/unaccountable then also no worries. Go with whatever proof you have. But yes this 2L should have no traces. 🙂

 

[Guddi]

Interest rate is on higher side 8.75 fixed 8.25 floating
but can get 0.5% concession on canara aspire.

Not 8L father's income proof certificate is 3L but real income is 5L
Apart from him no one earns.

You can also ask the college if they have tie-up with any bank, that will make the loan process much easier.

 

[Hope]

Okay. I thought you wrote you have income proof of 3L and father's income is 5L. Then no worries.

Income proof is 3L and actual is 5L. Where this 2L coming from? If it is some agri based or in case not reported/unaccountable then also no worries. Go with whatever proof you have. But yes this 2L should have no traces. 🙂

If we calculate from salary slip its ~43k ×12 = ~5L Father said tehseel guy for income certificate first he made 30k/A later father said to increase to 3L/A

And since needed at time of registration i filled since it takes 2-3 day. Now stuck in this situation.

 

[desiviru]

If we calculate from salary slip its ~43k ×12 = ~5L Father said tehseel guy for income certificate first he made 30k/A later father said to increase to 3L/A

And since needed at time of registration i filled since it takes 2-3 day. Now stuck in this situation.

This is an actual issue. Because from PAN_Data banks can access income these days. Better stay away from this tehseel guys.

This page has detailed things:

https://www.iob.in/PM-Vidyalaxmi

If loan amount is more than 7.5L then a mandatory insurance in name of borrower is required to cover risk in case of any mishappenings. That is for bank's loan safety. Insurance company will pay bank in case of mishap.

 

[Hope]

Lets see what happens. First will visit sbi then pnb last union since have vehicle loan from union branch will do something if ineligible.

 

[drvirag]

Lets see what happens. First will visit sbi then pnb last union since have vehicle loan from union branch will do something if ineligible.

why not union first. u have existing loan that makes process easier. if u get branch recommondation in psu then they can over ride any problems related to eligibilty.