Coimbatore: Bank fficials have urged students aspiring for higher education to familiarise themselves with the procedures involved in securing education loans, emphasising the role of the Vidya Lakshmi portal in streamlining the process.

To ensure students' higher education remains uninterrupted, banks offer education loans to eligible applicants, especially those enrolled in recognised institutions. Students must apply through the Vidya Lakshmi portal, submitting all necessary documents. First-generation graduates are eligible for concessions on tuition fees, and interest subsidies are extended to students pursuing vocational courses.

Officials clarified that while loans are granted for degree programs, certificate courses are not covered. Additionally, a key factor in loan approval is the CIBIL score of the student's parents, which is verified by the banks.

Explaining the broader framework, bank representatives noted that 40% of total loans fall under the priority sector category, which includes education alongside agriculture, housing, and business. There is no annual cap or target on the number of education loans; instead, all eligible students are expected to be supported.

Officials advised students to consult local bank branches with required documents to discuss their application. They added that certain banks might be constrained due to high non-performing asset (NPA) levels and may be unable to sanction new loans.

Submitting applications through the Vidya Lakshmi portal helps prevent rejection due to such limitations. In cases where loans are not granted by a particular bank, students are encouraged to approach other institutions.