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Education Loan

Vijaya Bank is one of the fastest growing public sector banks in our country. Headquartered in Bangalore, Karnataka, it is one of the nationalised public sector banks in the country. Vijaya Bank has a pan-India presence and offers a wide range of personalised and online banking services and products to its customers. Its offerings include savings accounts, current accounts, credit cards, debit cards, scheme for education loans, mortgages, car loans, etc.

The student loan scheme offered by Vijaya Bank is of two categories. The Vijaya Bank education loan is given to commendable and meritorious students aspiring to pursue higher studies from recognized education institutions in India or abroad. One is the loan for vocational education while the other is a loan for higher studies in India and abroad. Let us see the details of both the Vijaya Bank education loans in depth.

IBA Model (India and Abroad)

  • Features: This Vijaya Bank education loan has various features which are mentioned in the pointers below:
  • Vijaya Bank student education loan is given to Indian nationals with a good educational track record so that they can pursue higher education either in India or abroad
  • The Vijaya Bank student loan scheme is offered for certain eligible courses which include courses conducted by the premier institutes of our country.
  • Vijaya Bank education loans also cover admission to other courses taken in India like approved graduate or post-graduate degree or diploma courses conducted by recognized institutions.
  • For studying abroad, the student loan scheme is granted for covering courses like job-oriented professional or technical graduation courses conducted by reputed institutes, post-graduation courses like MBA, MCA, MS, etc., specified courses conducted by CIMA, London or CPA USA, degree or diploma courses like aeronautical, shipping, pilot training if they are recognized by competent regulatory bodies in India or abroad and which would provide employment in India or abroad
  • The Vijaya Bank education loan would cover all education related expenses which might be the fees which is payable to the college, school or hostel, the cost of purchasing books, equipment, instruments or uniforms, any travel expenses or passage money if the study is taken abroad, any fee payable for examination, library or laboratory, any type of Caution Deposit, Building Fund or Refundable Deposit if it is supported by the bills or receipt of the institution, purchase of a computer required to complete the course, cost of any other thing required for the course completion like study trips, project work, thesis, etc., insurance premium for the student borrower wherever applicable, etc.
  • If the student has received any scholarship then it is taken into account at the time of computing the quantum of loan required.
  • The maximum limit of loan amount which is extended to a student is Rs. 10 lakh if the student is seeking education in India or Rs. 20 lakh if the education is taken abroad. A higher quantum of loan may be granted by the bank if the student can pledge a security of the equivalent amount and fulfil any other criteria laid down by the bank.
  • The bank allows a repayment holiday which is also called the moratorium period to be granted on the repayment of the loan amount. The period is equivalent to the course period + 1 year after which the instalments are to be repaid. Interest would accrue during the moratorium period and such would be payable in the instalments from the commencement of the repayment tenure
  • The maximum repayment tenure excluding the moratorium period is up to 15 years through 180 monthly instalments for this loan for courses given by the bank
  • There is no requirement of a margin if the Vijaya Bank student scheme is taken up to the value of Rs. 4 lakh. For loans above this value, a margin of 5% for studies in India and a margin of 15% for studies taken abroad would be kept by the bank. If the loan is covered under the Credit Guarantee Scheme, loans of values up to Rs. 7.5 lakh would not require a margin
  • If the student obtains admission in one of the top rated educational institutions in India or abroad, as per the bank’s specifications, the rate of interest on the loan would equal One year MCLR + 0.20%. If admission is taken in other domestic institutions or for foreign education, the rate of interest would depend on the quantum of loan. For amount of education loan up to Rs. 4 lakh, the rate is 1 year MCLR + 1.70%, for loans above Rs. 4 lakh and up to Rs. 7.5 lakh, the rate is 1 year MCLR + 2.20% and for loan amount above Rs. 7.5 lakh, the rate is 1 year MCLR +1.70%. Only simple rate of interest would be charged on the loan during the course period and the moratorium period.
  • There are two additional concessions in the rate of interest. One is a 1% concession if the interest is paid in the moratorium period and the other is a 0.50% concession for the girl child.
  • For ‘Top Rated Educational Institutions’, there is no requirement of pledging a security for loans up to Rs. 10 lakh. The parents would only have to act as co-borrowers. For loans above Rs. 10 lakh, a tangible security should be pledged as collateral of an equivalent value of the loan. Moreover, the student’s future earning is also required to be assigned to the bank along with the parents acting as co-borrowers.
  • For loans for other domestic institutions or foreign education, security requirement is not applicable for loans up to Rs. 4 lakh. For loans above this amount and up to Rs. 7.5 lakh, a suitable third party guarantee would be sufficient as a security and even that is waived if the Vijaya Bank education loan is taken under the credit Guarantee Scheme. For loans above Rs. 7.5 lakh, an equivalently valued tangible security is pledged as collateral and the student’s future earning is also required to be assigned to the bank. Parents would have to act as a co-borrower in all of loan amount taken.
  • The minimum education loan eligibility is that student should be a citizen of India.

IBA Model Skill Loans/ Loan for vocation education and training

  • Features: These vocational education loan and vocational training loan fund vocational education and training courses and have the following features:
  • The Vijaya Bank education loan is granted to Indian nationals who have secured admission in any eligible course conducted by eligible Training Institutions.
  • Eligible courses conducted by Institutes which are aligned to National Skill Qualification Framework (NSQF) would only be covered under the scope of the Vijaya Bank student loan scheme
  • The eligible institutes include the Industrial Training Institutes, Polytechnics or schools recognized by Central or State Education Boards, colleges affiliated to recognized universities, training partners affiliated to NSDC, Sector Skills Council, State Skill Mission, State Skill Corporation and the courses should preferably lead to a certificate or a degree or a diploma issued by such approved institutions as per the criteria of NSQF.
  • The loan for vocational education and training covers the tuition fee which would be directly paid to the institute. Other expenses include examination fee, library or laboratory charges, caution deposit, purchase of books, equipment and instruments required and lodging or boarding expenses if any.
  • The Vijaya Bank loan for vocational and training can be availed for as low as Rs. 5,000 and up to a maximum of Rs. 1.5 lakh
  • If the course duration is limited to 6 months or less, the moratorium period would be 6 months post the completion of the course. If the duration is above 6 months, the moratorium period would be 12 months post the completion of the course.
  • For loan amount up to Rs. 50,000 a repayment period of up to 3 years is given to the borrower. For loans above Rs. 50,000 but up to Rs. 1 lakh, the repayment tenure of loan is extended to a maximum period of 5 years and for loans above Rs. 1 lakh, the repayment tenure is 7 years
  • 5% of the total expenses of the course would be kept as margin by the bank under this Vijaya Bank vocational education and training loan.
  • A floating rate of interest is charged on the loan for vocational education which is equivalent to 1 year MCLR + 1.70% resulting in a total rate of 11.15% per annum. Girl students can claim a 0.50% discount in the interest rate and borrowers paying the interest in the moratorium period can enjoy a discount of 1% in the rate of interest. Moreover, only simple interest would be charged on the loan during the course tenure and the moratorium period.
  •  There are no processing charges payable for taking the loan for vocational education and training
  • Security is also not required for availing any amount of loan up to the specified maximum limit. However, parents would have to act as co-borrowers in the vocational education and training loan.

Loan documents required for Vijaya Bank education loan:

Here is the list of documents required while applying for education loan from Vijaya Bank if you are giving it a good thought. Loan documents along with few necessary educational documents are essential for availing this student loan scheme.

Completed loan application form: The first thing that you need to do is to collect the loan application form from any of the branches of Vijaya Bank. You can also get it online as well on the bank’s official website. Collect the form and fill all the details which are asked in the form to complete it.

Documents for proof of age: You need to submit document to the bank which will verify your age. You can submit your birth certificate. However, make sure that the photocopy of the birth certificate is self-attested as it will not be considered as a valid proof without your signature.

ID Proof documents: For identity proof, you can submit following documents,

  • Aadhar Card
  • Passport
  • PAN Card
  •  Voter ID Card
  • Certificate of address having a photo issued by MP / MLA / Group-A Gazetted Officer in his or her letterhead
  • Certificate of address with photo from Government-recognized educational institutions
  • Ration Card
  • Driving Licence
  • Arms Licence
  • Certificate of photo identity issued by the Village Panchayat head
  • Current passbook of Post Office or any scheduled Bank with your photo on it

Address Proof Documents: For address proof, you can submit the following documents:

  • Voter ID Card
  • Certificate of address
  • Certificate of address with photo from Government-recognized educational institutions
  • Aadhar Card
  • Ration Card
  • Notarized Sale or lease Agreement
  • Current passbook of Post Office or any scheduled Bank with your Photo on it

Photographs: You need to submit passport sized photographs of applicant to the bank

Marks sheet: You have to submit photocopies of marks sheet of your highest qualification to the bank

Proof of Income of Parents or Guardians: ITR of parents or guardians of the loan applicant

Applying online for Vijaya Bank student loan scheme:

With increasing digitisation and stress on online document processing, people now try to get everything done over the web. To meet this demand of customers, Vijaya Bank has come up with an online application option for you to apply for a student loan scheme. You can log on to www.paisabazaar.com and use their eligibility calculator tool to look for all thesuitable education loan schemes.The bank will process the request once you fill the details and submit the form. A call back is done from the company to take it further. The basic details required are name, mobile number, email address, product interested, name of state, name of the city, existing customer or not, among others. Applying online is a hassle free process and allows you to apply for a Vijaya Bank education loan from the comfort of your home or school.