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Last Modified : June 06, 2018
Vijaya Bank is one of the nationalised banks in India which is 87 years old. The public sector bank has been on a constant growth with 2031 branches and 2001 ATMs across country.
Vijaya Bank, to eliminate financial burden over students head, have launched multiple education loan schemes viz. Vijaya IBA Education Loan Scheme and Vijaya IBA Skill Loan Scheme. It also offers Vijaya Bank Education Loan for Abroad for students aspiring to study abroad.
Education is a basic right of any individual and one should not lack due to monetary deficiency. Thus, Banks offer Education Loans for India and Abroad to meet the financial needs of these students. Interested students can also avail for schemes like CSIS, Padho Pardesh, and ACSISOBC to ease their loan liability.
The loan scheme has been launched to provide financial assistance to meritorious students who wish to pursue their higher studies in India. The loan is extended with few concessions if they secure admissions to top premier institutes in India viz. IITs ,IIMs, IISc, IIFT, XLRI, etc.
Eligibility to avail Vijaya IBA Model Education Loan
Key Points of Vijaya IBA Model Education Loan
Present Rate of Interest
Amount of Loan | Rate of Interest applicable |
Amount upto and inclusive of INR 4 Lacs | 1 year MCLR + 2.15% = 10.65% |
Amount above INR 4 Lacs upto INR 7.50 Lacs | 1 year MCLR + 2.15% = 10.65% |
Amount above INR 7.50 Lacs | 1 year MCLR + 2.00% = 10.50% |
Students admitted to top institutes | 1 year MCLR + 0.95% = 9.45% |
Margin | Upto INR 4 Lacs: Nil Above INR 4 lacs: 5%
|
Maximum Loan Limit | INR 10 Lacs |
Security | For students who are admitted to top-rated institutes: No security For other students: Less than INR 4 Lacs: No Collateral required From INR 4 to 7.5 Lacs: Guarantee of bank approved third party Above INR 7.5 Lacs: Collateral Security equal to amount of loan Assignment of students future salary towards the bank |
Moratorium Period | Course Period + 1 year |
Repayment (Maximum) | Repayment of the loan can be done after the moratorium period by mode of EMI 15 years |
Prepayment Charges | Nil |
Courses covered under Vijaya IBA Model Education Loan
Expenses covered under Vijaya IBA Model Education Loan
IBA Model Loan Scheme has been taken up by Vijaya Bank to provide financial support to students who wish to pursue skill development courses. Skill Development courses are those that will help students enhance their skills which in return will help them in their career.
Eligibility to avail Vijaya IBA Model Skill Loan Scheme
Present Rate of Interest
Present ROI for all amounts under IBA Model Loan Scheme is 1 year MCLR + 1.65% = 10.15%
Margin | 5% |
Maximum Loan Limit | INR 1,50,000 |
Security | No collateral or security is required |
Moratorium Period | Course duration upto 1 year: Course period+6 months Course duration above 1 year: Course period+12 months |
Repayment (Maximum) | Loan upto 50,000: 3 years Loan between 50,000 to 1 Lac: 5 years Loan above 1 Lac: 7 years |
Prepayment Charges | Nil |
Courses covered underVijaya IBA Model Skill Loan Scheme
Expenses covered under Vijaya IBA Model Skill Loan Scheme
Documents required for Vijaya Education Loan Schemes
CSIS is an interest subsidy scheme launched by HRD Ministry, Government of India for economically weaker sections to promote basic education amongst them and to motivate them to study for better development. The scheme is extended to students pursuing approved professional course from institute/ university in India.
Key points of CSIS
Courses Covered under CSIS
Undergraduate and Post Graduate courses in:
Note: Post Graduate Diploma approved by AICTE/ UGC
Q. What schemes does Vijaya Bank considers for its education loans?
Answer: There are multiple other schemes offered by Vijaya Bank apart from the basic education loan. These are:
Q. In whose name is the loan granted?
Answer: The loan is granted in the name of the student
Q. Is the loan contract executed only in student’s name?
Answer: No, the loan can be executed both in name of student and co-borrower as both are equally responsible for repayment of loan.
Q. What is the age limit for availing loan in Vijaya Bank?
Answer: There is no age restriction as stated by Vijaya Bank. Borrowers must fulfil other eligibility criteria mentioned.
Q. Are minors eligible to apply for Vijaya Bank Education Loan?
Answer: Yes, Minors aspiring for further studies can apply for education loan with help of legal representation from parents/ guardians.
Q. What does margin on any loan mean?
Answer: Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.
Q. Should the student’s margin be paid upfront in the starting?
Answer: Margin can be paid on a year to year pro rata basis whenever bank disburses loan amount as per requirement.
Q. Where can I avail Vijaya Bank Education Loan?
Answer: You can either contact your nearest branch for the application form or details regarding the loan or apply online from the official website.
Q. Is there any provision to apply for loan online?
Answer: : Yes, you can apply online through Vidyalakshmi portal to avail for this loan.
Q. Can I view my loan statement online if I am an existing education loan borrower?
Answer: Yes, by creating a login on Vijaya Bank web portal, you can view all details related to education loan online.
Q. Is there any minimum aggregate marks to meet the eligibility criteria to avail Vijaya Bank education loan?
Answer: Yes, a student must have secured a minimum aggregate marks in their last qualifying examination (10+2 or Graduation). Relaxation in the marks is given to SC/ ST students
Q. What is the discount/ rebate offered by Vijaya Bank?
Answer:
Q. What all is included in tangible collateral security?
Answer: Mostly Vijaya Bank asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of Vijaya Bank. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.
Q. Can I place my family property as collateral?
Answer: Yes, but it will need consent of all family members involved.
Q. Is scholarship or assistantship included in the margin?
Answer: Yes any scholarship or assistantship will be a part of margin charged on education loan.
Q. What is Moratorium Period?
Answer: Course Period plus one year, or six months after getting a job
Q. What is tenure of an education loan?
Answer: Tenure of education loan provided by Vijaya Bank is maximum 15 years
Q. What does MCLR stands for?
Answer: MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.
Q. What all expenses are covered under this course?
Answer: Expenses covered by Vijaya Bank education loan are:
Q. I have taken admission through management quota. Am I eligible?
Answer: Yes, the bank has a provision to consider students who have secured admission through management quota. The terms of loan stands different for such students. You can contact the bank for further details.
Q. What do you mean by reputed or recognized institutes?
Answer: Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, banks provide the list of institutes they consider for loan. (You can contact nearest branch for the same)
Q. Are there any special benefits if I have secured admission to one of the top premier institutes?
Answer: Vijaya Bank offers 1% concession to students who secure admission to top premier institutes. Also, there is no margin implied and no collateral security asked while availing education loan from Vijaya Bank.
Q. What is the processing fee or prepayment charges?
Answer: The education loan offered by Vijaya Bank does not carry any prepayment charges/ processing fee/ documentation charges for loan amount upto INR 10 Lacs. For amount exceeding INR 10 Lacs, 0.75% + GST is implied on the loan amount.
Q. Will cost of my computer be covered under the loan sanctioned?
Answer: Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course.
Q. Why is Pan Card necessary?
Answer: Pan Card is one of the mandatory document required by banks these days. It is mandatory because:
Q. Are diploma or certificate courses considered under Vijaya Bank education Loan (both for India and Abroad)?
Answer: Diploma courses are eligible under Vijaya Bank Education Loan. Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping.
Q. Is a co-borrower necessary for loan?
Answer: Yes, it is mandatory to have a co-borrower to avail loan from Vijaya Bank.
Q. Who can be my co-borrower?
Answer: Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income, and a good credit history.
Q. What all documents are required from the co-borrower?
Answer: Documents required from the co-borrower are:
Q. How many guarantors do I need to borrow loan from Vijaya Bank?
Answer: You need at least 2 guarantors to avail loan from Vijaya Bank.
Q. What is the KYC requirement in education loan?
Answer: KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.
Q. What are maximum term for repayment?
Answer: The maximum term for repayment of Vijaya Bank Education Loan is 15 years.
Q. How can I repay the loan?
Answer: You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.
Q. What is EMI? How are they calculated?
Answer: EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below
Q. What are the charges for late EMI payment?
Answer: 24% per annum on outstanding amount is charged for the late EMI payment and INR 500 for every bounced cheque.
Q. Is the loan disbursed in name of individual applicant or to the institute/ university directly?
Answer: The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee
Q. If I am unable to complete my course in given tenure, will my repayment term be extended?
Answer: It is completely on the banks discretion to extend the moratorium period or not. It can be extended for maximum 2 years based on student’s reason. You can contact your nearest branch for more details.
Q. What is method of application of interest on education loan?
Answer: The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance.
Q. If I am joining the course soon after current course, can I get an extension?
Answer: Mostly, in such cases, you do not get an extension and even if you do there is a possibility that interest rates are higher
Q. What is interest rate of education loan?
Answer: Interest rate on education loan scheme provided by Vijaya Bank are:
Amount of Loan | Rate of Interest applicable |
Amount upto and inclusive of INR 4 Lacs | 1 year MCLR + 2.15% = 10.65% |
Amount above INR 4 Lacs upto INR 7.50 Lacs | 1 year MCLR + 2.15% = 10.65% |
Amount above INR 7.50 Lacs | 1 year MCLR + 2.00% = 10.50% |
Students admitted to top institutes | 1 year MCLR + 0.95% = 9.45% |
Q. What is interest subsidy on education loan?
Answer: Vijaya Bank offers
Q. What documents do I need to submit to avail interest subsidy scheme?
Answer: The documents that need to be submitted are:
Q. What is employment verification in an education loan?
Answer: The bank takes the responsibility to cross verify all the employment details of the applicant and co-borrower. If the banks fails to cross verify every detail provided, it might reject the loan application.
Q. Are there any tax benefits in education loans?
Answer: Under Section 80E of Income Tax Act, loan borrowers can avail the tax benefits. This benefit is only available over and above INR 1,50,000. Tax benefits can be availed once the borrower starts paying interest on loan. The deduction is available until borrower pays off full interest amount on loan or for maximum of 8 years (whichever is earlier).
Q. Is it necessary to have bank account with the bank while availing loan from that particular bank?
Answer: It is not necessary to have a bank account while availing the loan but it makes it easier for the borrower to get loan application approved.
Q. Why do banks require insurance policy as security?
Answer: The banks require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned. In case of untimely demise of the borrower, the bank recovers the amount from the insurance policy
Q. Are there any additional benefits on availing loan from Vijaya Bank?
Answer: Vijaya Bank does not provide any additional benefit mentioned on the website. You can contact the nearest branch for more intricate details.
Q. What is credit score? Is it important for education loan?
Answer: Credit Score is inclusive of various factors such as credit history (Loan history or credit card). If a student does not have a credit score, banks calculate it by considering factors such as University, College and the Course of admission. Banks consider the academic background of student and credit history of co-borrower.
Q. If a student have any query, where or whom to contact?
Answer: student can reach out to the nearest branch in case of any query.
Customer Care Number: 1800 425 5882/ 9992/ 4066
Local rates apply on every call
Customer Care Id: customercomfortcell@vijayabank.co.in
