Vijaya Bank Education Loan

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Vijaya Bank Education Loan

To cater to equal educational opportunities for everyone, Vijaya Bank, one of the largest banks of India, has introduced an Education Loan scheme that provides financial assistance to meritorious students planning to pursue undergraduate and postgraduate programs from universities in India and abroad. In comparison to other banks, Vijaya bank offers loans at lower rates of interest and provides numerous other benefits like simple repayment criteria. In this blog, we will cover the features, eligibility criteria, documents required, and application process of the Vijaya Bank Education Loan. 

Name of the Loan  Vijaya Bank Education Loan
Applicable For India and Abroad
Applicable Courses  Professional graduation and post graduation courses*
Eligibility Criteria Students who have secured the admission
Loan Tenure Up to 15 years
Loan Amount Up to 20 Lakhs
Interest Rate Multiple
Processing Fees Nil

What is Vijaya Bank Education Loan?

Vijaya Bank in a merger with Bank of Baroda offers a bunch of educational loans seeking which students can study the course of their choice in India as well as abroad. Minimum interest along with extra benefits are covered under the schemes of the Vijaya Bank Education Loan. The bank also offers free security loans for amounts up to INR 4 Lakh which is easily available for all Indian national students. 

Key Features of Vijaya Bank Education Loan

Below are some of the salient features of the Vijaya Bank Education Loan Scheme:

  • Vijaya Bank Education Loan is for Indian nationals who hold an impeccable academic record.
  • To avail the loan, the applicant should have secured admission in a course either through a merit-based selection process, an entrance test, or both. 
  • There is no age bar to apply for the loan. 
  • The scheme is available only for some selected courses including those offered by premier Indian and international educational institutes. 
  • The quantum of loan is Rs 10 Lacs for studies in India and Rs 20 Lacs to pursue education abroad. 
  • A moratorium period or the repayment holiday is offered by the bank on loan repayment. This period of repayment is equivalent to the course period plus one year after which the instalments are to be repaid.
  • The repayment time, excluding the moratorium period, is up to 15 years.
  • For loans up to Rs. 4 lacs, there will be no cost margin. But for loans above Rs. 4 lacs, a cost margin of 15 % for studies abroad and 5% for studies in India will be kept by the Vijaya Bank.  
  • For loans up to Rs. 4 lacs, the interest rate stands at 12.05 % per annum. For loans above Rs. 4 lacs, the interest rate is calculated at the Base Rate of 2.25 % which equals 12.50% per annum. 
  • If an applicant receives a scholarship then it will be added to the final estimates while computing the quantum of loan.
  • If the student wants to work in India after completing the course then, the licenses issued by the educational institutes abroad shall be converted to corresponding licenses in India.

Types of Vijaya Bank Education Loan 

Here are the popular types of loans offered by the Vijaya Bank that you use for educational purposes- 

Schemes Maximum Loan Amount Interest Rates (P.A.) (Starting at)
Baroda Vidya Rs.4 lakh 9.85%
Baroda Scholar Rs.60 lakh to Rs.80 lakh 8.25%
Baroda Gyan Rs.10 lakh to Rs.80 lakh 8.75%
Baroda Education Loan to Students of Premier Institutions Rs.7.5 lakh to Rs.80 lakh 7.60%
Skill Loan Scheme Rs.5,000 to Rs.1.5 lakh 8.25%

Now let us analyze the vital features of these education loans one by one-

Baroda Vidya (From Nursery to 12th Standard)

  • Interest Rate: 9.85% p.a. onwards
  • Processing Fee: Nil
  • Collateral: Nil
  • Loan Tenure: 12 monthly instalments with first instalment due one year after disbursement of each year’s first loan amount
  • Eligibility:
    • Indian nationals residing in India
    • Nursery to 12th standard in a recognised educational institution and board
    • Evening courses in state or central government-approved educational institutions

Baroda Scholar

  • Interest Rate: 8.25% p.a.
  • Processing Fee: Nil
  • Collateral: Nil for loan up to Rs.4 lakh; 10% for loan above Rs.4 lakh
  • Loan Tenure: 10 to 15 years
  • Moratorium: Course duration more than 1 year
  • Eligibility:
    • Indian national
    • Admission through merit or entrance to technical or professional courses abroad

Baroda Gyan

  • Interest Rate: 8.75% p.a. onwards
  • Processing Fee: Nil
  • Collateral: Nil for loan up to Rs.4 lakh; 5% for loan above Rs.4 lakh
  • Loan Tenure: 10 to 15 years
  • Moratorium: Course duration more than 1 year
  • Eligibility:
    • Resident Indian
    • Admission for approved courses in recognised educational institutions

Skill Loan Scheme

  • Interest Rate: 8.25%
  • Processing Fee: Nil
  • Collateral: Nil
  • Loan Tenure: 3 years to 7 years
  • Moratorium: 6 months to 12 months from course completion
  • Eligibility:
    • Indian residents
    • Secured admission in ITI/polytechnics, or institutions affiliated to NSDC or other 

Baroda Education Loan to Students of Premier Institutions

  • Interest Rate: 7.60% p.a.
  • Processing Fee: Nil
  • Collateral: Nil up to Rs.40 lakh
  • Loan Tenure: 10 to 15 years
  • Moratorium: Course duration more than 1 year
  • Eligibility:
    • Indian national
    • Admission through merit or entrance to technical or professional courses abroad
    • Recognized universities

Check out Loans by Government

Vijaya Bank Education Loan Interest Rate

As you may have noticed that in combination with the Bank of Baroda, Vijaya Bank offers a bunch of education loans. Thus, there is no common interest rate for them. The interest rate for your Vijaya Bank Education Loan depends on the type of loan that you have chosen from the offered ones. The bank also offers periods of 10-15 years in which candidates can repay their loan using the preferred medium. Also, the option of moratorium has been provided by the bank owing to the current situation of pandemic.

Vijaya Bank Education Loan Apply Online

To apply for the Vijaya Bank education loan, candidates are requested to visit their nearest branch and get in touch with a finance official. You can download the application form of the loan from the official website and submit it to the bank along with a bunch of other important documents. 

Documents Required for Vijaya Bank Education Loan

You will be needing the following documents-

Proof of Identity

  • Aadhar card
  • Voter ID card
  • PAN Card
  • Driving license
  • Passport
  • Government department ID card

Proof of Income

  • Parent’s latest salary slip/Form 16 along with the latest salary certificate
  • Previous two years income tax returns

Proof of Residence (any one of the following)

  • Postpaid utility bill
  • Notarized registered rental agreement
  • Updated passbook/bank account statement
  • Driving license
  • Voter ID card
  • Valid passport

Other Additional Documents

  • Admission letter
  • Passing certificate
  • School leaving certificate
  • High school examination mark sheet
  • Educational documents
  • Copy of fee acknowledgement slip

EMI Payment Methods

Here are the ways you can make the EMI Payments: 

  • Standing Instruction: This type of EMI is the best for you if you have an existing account at the company. The EMI account will be automatically debited from your account every month. 
  • Electronic Clearing Service: This type of EMI is good for those who do not have a Vijaya Bank and would like their EMI to be debited automatically at the end of every month cycle. 
  • Post-Dated Cheque: You can submit post dated cheques from a non-Vijaya bank account at your nearest Vijaya Bank loan centre. 

Expenses Covered Under the Scheme

Vijaya Bank Education Loan scheme covers the following expenses: 

  • University tuition Fees
  • Examination, Laboratory, and Library fees
  • Books/Equipment/Uniforms
  • Travel Expenses 
  • Study Tours/Thesis/Projects
  • Laptops
  • Hostel, Accommodations, and Meals. 

Courses Under the Vijaya Bank Education Loan

Here are some of the courses covered under the Vijaya Bank Education Loan:

  • Undergraduate technical or professional degree programs offered by recognized universities and colleges.
  • Courses certified by CPA in the United States, CIMA (London), etc. 
  • Post-graduation courses like MCA, MBA, MS.
  • Pilot training courses offered by institutions that are recognized by competent authorities. 

Vijaya Bank Education Loan Repayment

Vijaya Bank has specified the following methods of repayments for those who have taken the loan:

  • Standing Instruction: For the existing Vijaya Bank account holder, this is the easiest method of loan repayment. The bank will automatically debit the EMI towards the month-end from the given account.
  • Electronic Clearing Service: For non-Vijaya Bank account holders. 
  • Post Dated Cheques

Vijaya Bank Education Loan Subsidy

To help the students from the economically weaker sections, Vijaya Bank offers certain subsidy schemes participating in which candidates can earn relaxation in the interest rate of the loan. Subsidies offered are-

  • Dr. Ambedkar Central Sector Scheme: Open for students belonging to Other Backward Castes (OBCs) and Economically Backward Castes (EBCs).
  • Padho Pardesh: Applicable for students from minority communities who wish to pursue studies abroad.
  • Central Scheme of Interest Subsidy for Education Loan: This scheme provides subsidy on education loan interest to students from economically weaker sections of society to study for professional or technical courses within the country.

Also Read:

Other Funding Options

You can also look for several scholarship options such as HDFC ScholarshipCanara Bank Scholarship, and Inspire Scholarship amongst others. that provide funding for studies in India and abroad. These have been given a run-down below.

Thus, we hope that this blog provided you with the important features of the Vijaya Bank Education Loan scheme. If you want to know about more such loan schemes both in India and abroad then you can reach out to our experts at Leverage Edu and we’ll help you in making an informed step to choose the right education loan. 

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