Table of Content
- Features and Benefits:
- Eligible courses
- Loan Limit
- Rate of interest
- Processing Fee
- Management Quota (Non IBA):
- Expenses considered for loan
- Additional information
- Education Loan for Vocational & Training Course
- Eligible courses
- Loan Amount
- Rate of interest
- Expenses considered
- Central Scheme of Subsidy for Educational Loans
Vijaya Bank Indian and Foreign Education Loan – Vijaya Bank is one of the medium sized banks in India with considerable presence in most parts of the country. Vijaya Bank, a PAN India institute, bids a variety of attractive products and services to its customers including educational loans to awe-inspiring and meritorious students who are seeking to follow their education further in India and abroad.
Features and Benefits:
Vijaya Bank Educational Mortgage aims at providing finance to students who desire to pursue higher education in India and abroad.
Studies in India:
- Graduate or Post-graduate degree or diploma in technical and professional courses conducted by colleges/universities sanctioned by IMC, UGC, Govt., AIBMS, ICMR, AICTE,
- ICWA, CA, CFA courses.
- Degree or Diploma conducted by leading educational institutes such as IIM, IIT, NIFT, IISc, etc.
- Degree or Diploma for aeronautical, pilot training, shipping, etc. sanctioned by Director General of Civil Aviation or Shipping.
- Professional or technical graduation degree courses/post-graduation degree and diploma courses like MCA, MBA, MS, etc., from reputed universities.
- Courses conducted by CIMA-London, CPA in USA and so on.
- For studies in India, the maximum loan amount given is Rs.10 lakhs.
- For studies abroad, the loan limit is Rs.20 Lakhs.
- For students of Indian School of Business (ISB), and other Chief Institutes like IITs and IIMs, the maximum loan amount is Rs.20 Lakhs.
There is a Vijaya Bank education loan EMI calculator accessible online to support your estimation once-a-month installments on your loan amount.
Rate of interest
For students under the Indian Banks’ Association (IBA) Scheme, the Vijaya Bank Education Loan rate of interest is:
|Amount||Rate of interest|
|Up to Rs.4 lakhs||Base Rate + 1.80 = 12.05%|
|Rs.4 lakhs and above||Base Rate + 2.25 = 12.50%|
For other loans, the rate of interest is fixed irrespective of the loan amount.
|Type||Rate of interest|
|Management Quota (Non IBA)||Base Rate + 2.55% = 12.80%|
|Premier Institutions such as IIMs, IITs, etc.||11.75% ( Fixed)|
|IBA scheme||Up to Rs.4 Lakhs||Nil|
|Above Rs.4 Lakhs||
|Premier Institutions, IIMs, IITs, etc.||Up to Rs.4 Lakhs||Nil|
|Above Rs.4 Lakhs||15%|
|Management Quota (Non IBA)||Irrespective of loan amount||15%|
|ISB||Irrespective of loan amount||5%|
There are no upfront or processing fees.
The moratorium period for all mortgages except ISB is the period of the course plus 1 year or 6 months after employment, whichever is earlier.
For the students of ISB, the moratorium is the period of the course plus 18 months or soon after employment, whichever is earlier.
|IBA Scheme||Up to 10 years – Up to Rs.7.5 lakhs|
|Up to 15 years – Rs.7.5 lakhs and above|
|Management Quota (Non IBA)||Up to 10 years|
|Premier Institutions, IIMs, IITs, etc.||Up to 7 years|
|ISB||Up to 7 years|
- Mortgages up to Rs.4 lakhs do not necessitate security.
- For mortgages of Rs.4 lakhs to Rs.7.5 lakhs, a third party guarantor is required. If the bank is satisfied with the net worth or means of parents, it may at its own carefulness relinquish the need for a third party guarantor. The parents will be joint borrowers.
- Mortgages above Rs.7.5 lakhs require tangible collateral of acceptable value, along with the assignment of the student’s upcoming income towards reimbursement in installments.
Management Quota (Non IBA):
Irrespective of mortgage amount, tangible collateral in the form of Government Securities, Land, LIC Policies, Building, KVP, NSC, etc., of satisfactory value to the extent of 150% of the amount of the loan is required, along with the assignment of the student’s upcoming income towards reimbursement in installments.
Premier Institutes, IIMs, IITs, etc.:
- For loans up to Rs10 lakhs, only the task of the upcoming income of the student towards reimbursement in installments is compulsory.
- Loans above Rs.10 lakhs require tangible security of value to the full amount of the mortgage, along with the assignment of the student’s upcoming income towards reimbursement in installments.
International School of Business (ISB):
Only the task of the student’s forthcoming revenue towards reimbursement in installments is necessary.
Expenses considered for loan
- Tuition or course fees towards the college/hostel.
- Examination, library, laboratory fees.
- Caution deposit, building Fund, refundable Deposit (maximum 10% of the entire tuition fees).
- Travel expenditures and passage money for studies abroad.
- Purchase of computers- essential for completion of the course.
(For E and F, maximum 20% of the total tuition)
- A list of Central and State IHMs are accessible on the Vijaya Bank website.
- The Vijaya Bank education loan form is accessible online.
- Vijaya Bank education loan subsidy is obtainable for economically weaker sections.
Education Loan for Vocational & Training Course
Vijaya Bank bids educational loans specifically for vocational and training courses to Indian nationals who have secured admission for courses supported or run by the Department of Central or State or an institute sanctioned by the Government to do so.
Development courses of 2 months to 3 years run by an organization of the Government or supported by the Government or National Skill Development or State Skill Missions/Corporations, preferably foremost to a degree, diploma or documentation issued by a Government organization or by an organization sanctioned by the Government.
|Up to 3 months||Rs. 20,000/-|
|3 months to 6 months||Rs. 50,000/-|
|6 months to 1 year||Rs. 75,000/-|
|Above 1 year||Rs. 1, 50,000/-|
There is no margin or processing fees valid on this loan.
Third party guarantee or collateral is not obligatory. The parents must execute the loan jointly as co-borrower.
Rate of interest
The loan is accessible at a floating rate of interest of Base Rate + 1.8% = 12.05% p.a.
The Vijaya Bank education mortgage system moratorium period for mortgages up to 1 year is the period of the course plus 6 months. For courses more than 1 year period, it is 12 months after course completion.
|Up to 6 months||2 years|
|6 months to 1 year||3 years|
|Above 1 year||3 to 5 years|
- Course fees
- Caution deposit
- Examination, library, laboratory fee
- Books, equipment, instruments
- Any other reasonable expenditures compulsory to complete the course.
Central Scheme of Subsidy for Educational Loans
The Government of India provides sponsorships on the interest on Education mortgages to support economically weaker sections of society so that nobody is denied professional education. The Indian Banks’ Association (IBA) invented a wide-ranging plan for all banks to espouse in the interest of sponsoring educational mortgages. Full interest subsidy on the moratorium period is provided which is the period of the course plus 1 year or 6 months after getting a job, whichever is earlier.
- This scheme is valid only to Indian nationals who have sought mortgages from Scheduled Banks for seeking sanctioned technical and professional courses in well-known institutes in India after Class 12.
- There is no age restriction.
- Parents/family income must be below Rs.4.5 lakhs. A certificate issued by approved officers of State Government is compulsory.