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Vijaya Bank offers educational loan to Indian students

Vijaya Bank makes it easier for students to realise their dream of higher studies within India and abroad. The bank offers education loans to deserving students for degree courses as well as vocational courses at competitive interest rates. If you are looking for a student loan, consider the education loan schemes offered by the bank.

Vijaya Bank is a public sector bank with its headquarters in Bengaluru. The bank with branches pan-India offers various products to its customers, including education loan for studies in India and abroad. At present Vijaya Bank offers two study loans schemes to meritorious students who have secured admission for higher studies in Indian and foreign institutions, recognised by the bank. Here are in-depth details about both schemes.

Main features of the education loan

  • Indian students with an excellent academic record, who wish to pursue higher studies in India or overseas, are eligible for these loans
  • Student loan is granted for admission into specific courses conducted by reputed institutions in India, such as UG and PG courses and diploma courses
  • For overseas study loan is granted for job-oriented, technical/professional courses offered by top-notch institutions
  • MBA, MS, MCA and courses conducted by CPA in the US and CIMA in the UK are eligible, as are degree/vocational courses in shipping, aeronautics and pilot training etcetera, as long as they are accepted by competent regulatory authorities in the foreign country and in India
  • The loan covers every aspect of education including course fee, caution deposit/refundable fees, hostel/accommodation fees, cost of books/uniforms/equipment, library/examination/laboratory fee, cost for project work/study tours/thesis and travel expenses for study abroad
  • Scholarship if any is accounted for when the quantum of loan is being computed
  • For study in India the maximum loan amount offered is ten lakhs and the amount doubles to twenty lakhs for loans for overseas study
  • Higher loan amounts are sanctioned if collateral equivalent to the loan amount is provided
  • Students are given moratorium period ranging from six months to one year before they repay the loan. It is six months after starting on a job and/or one year on completion of the course, whichever happens first
  • However, interest will continue to accrue during this period
  • The maximum repayment period not taking into account the moratorium is fifteen years, spread over 180 EMIs
  • No margin is required for loans less than four lakhs. All other loans require margin amount – 5% for study in an institution in India and 15% for an institution overseas
  • No margin is required for loans up to seven and a half lakhs for loans covered by the Credit Guarantee Scheme
  • The interest rate on loans for admission into a high-ranked educational institution (as decided by the bank) in India or overseas currently equals an year's MCLR plus 0.2%
  • The interest rate on all other loans is calculated based on the loan amount. For a loan of up to four lakhs the rate is one year MCLR plus 1.7%. For loans between four lakhs and seven and a half lakhs the interest is calculated based on 1 year MCLR plus 2.2%. For loans above this amount it is 1 year MCLR plus 1.7%
  • Simple rate of interest is charged throughout the loan period
  • Girls applying for the loan are given a concession of 0.50%, while there is a 01.0% concession to anyone who pays interest during the moratorium period
  • No collateral is required for loans up to ten lakhs if admission is in a high ranking institute. However, parents will have to sign as co-applicants
  • Loans exceeding ten lakhs need collateral equal to the amount of the loan, along with the applicant's future earnings pledged to the bank

Student loan for vocational training

Students can apply for education loan for vocational education & training. Here are the salient features –
  • Loan is granted to Indian citizens who have secured a place in a recognised training institution
  • Courses that meet the National Skill Qualification Framework (NSFQ) are eligible for the loan
  • Students who secure admission in Polytechnics, ITIs or training institutions recognised by a government body, for degree, diploma or certificate course can avail the loan
  • The loan covers the cost of the training and other expenses including caution deposit, library or lab fees, examination fees, expenses for books and equipment and hostel fee
  • The loan amounts vary between five thousand and one and a half lakhs
  • The moratorium period depends on the duration of the course – six months for courses of six months duration and twelve months for longer courses
  • Loans of up to fifty thousand can be repaid within three years. Loan amounts between fifty thousand and one lakh can be repaid within five years, and larger loans can be repaid within seven years
  • There is margin of 5% for all loans for vocational education
  • A floating interest rate is applied, which works out to one year MCLR plus 1.7%, or 11.15% annually
  • Girl students get a 0.50% concession on the interest, and those who pay interest in the moratorium period enjoy a 1% rebate
  • Parents have to sign as co-applicants
  • The bank does not charge processing fee


The loan application with signatures of the applicant and co-applicant need to be submitted to the bank. The application can be downloaded or submitted online. Applicants are required to submit self-attested copies of academic documents and birth certificate as age proof. Apart from these copies of the following documents will also need to be attached –
  • Aadhar card
  • PAN card
  • Proof of address – passport/ration card/driving licence etcetera
  • Two passport size photographs of applicant and co-applicant
  • Proof of income of co-applicant – Form 16/salary slip/IT Returns

For more details log on to the official website of Vijaya Bank.

Article by Juana
Juana is a freelance writer, with years of experience, creating content for varied online portals. She holds a degree in English Literature and has worked as a teacher and as a soft skill trainer. An avid reader, she writes on a variety of topics ranging from health, travel, education and personality development.

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