Lakshami Vilas Bank


"Lakshmi Vilas Bank was founded in 1926 by a group of visionary businessmen in the town of Karur in Tamil Nadu with an objective to extend proficient banking and financial services to the the citizens of the trading hub and surrounding areas. Since then, it has expanded leaps and bounds marking its footprint across the country.LVB extends education loan for a variety of courses for aspiring students looking forward to pursuing further studies in India and abroad. The loan encompasses all charges and expenses incurred during the course along with funding the admission and routine (course) fees."

Loan Interest Rates:

Loan Amount Male Student Female Student
Up to Rs.4 lacs Base Rate + 3.25% Base Rate + 2.75%
Loans above 4 lacs Base Rate + 4.25% Base Rate + 3.75%
"Students from the EWS (Economically Weaker Section) with a gross family income of Rs 4.50 lacs per annum are eligible for subsidy on interest rates during the period of moratorium on education loan issued under select schemes from Ministry of HRD, Govt. of India.This subsidy is only applicable for professional and technical courses after 10 + 2."
Base Rates Are:

Loan Eligibility:

Courses Eligible For Loan:

Documents Required:
  • Certified copies of records of past academics which includes mark sheets, convocation certificates, diploma/degree certificates etc.
  • Details of syllabus and course along with schedule of charges involved in the course.
  • Copy of application and appraisal form.
  • Written testimonials from two faculty members of the institution last studied with.
  • Copies of IT/WT assessment orders of all the co borrowers including the student if he is also an assessed.
  • For overseas studies, passport copies, visa, valid proof of admission from the institute, details pertaining to scholarship/assistance is required.
  • Form 111 of the parent/guardian /grandparent/student upon request.
  • Report on valuation of the property pledged as collateral security.
  • Various stamped forms as required by the bank.

Candidate Education Loan Eligibility:

Processing Fees:
"No processing fee is billed by Lakshmi Vilas bank for handling the loan application or subsequent processing."

Expenses Covered under Education Loan:

"Appreciating the expenses involved in pursuing a course, the bank offers best ceiling on the loan amount. For studies in India, one can receive a study loan of up Rs.10 lacs and this doubles up for foreign studies at Rs.20 lacs. With such high quantum, the aspirant should be able to cover majority of the study fees and ancillary expenses."

Loan Repayment:

"The bank provides substantially higher loan repayment tenure options when compared to other banks in this segment." Repayment of loan amount (including interest charges accrued during the holiday period) is payable in Equated Monthly Installments (EMIs) as below:
  • Tenure of up to 10 years for loan amount up to 7.50 lacs.
  • 15 years for all other amounts above this limit.
  • Holiday Period is applicable on the basis of course period + 1 year or 6 months after securing employment, whichever occurs earlier.
  • An extension for a maximum of two years is permitted if the student is unable to complete the course within the stipulated time.

Security Required:

Loan Amount Security Required
Loan amount up to Rs.4 Lacs No security required. Co obligation of parents/grandparents is a requisite.
Amount from Rs.4 lacs to Rs.7.50 lacs
  • Co obligation of parents/grandparents is a requisite.
  • Collateral security by means of a guarantee from third party.
Borrowing over 7.50 lacs
  • Co obligation of parents/grandparents is mandatory.
  • Tangible collateral security commensurate to the loan amount.
  • Assignment of further income of the student towards repayment


1.I am looking forward to applying for a study loan with Lakshmi Vilas Bank. Am I allowed to change the course after availing the loan?
Ans. You must consult the bank representatives and seek their guidance in the regard. No self-decided alteration should be made without the bank's permission.

2.What is the turnaround time (TAT) for loan processing?
Ans. The bank can take up to a month to process loan applications for education from the date of receipt of application and documents. Any delay in TAT will be notified to the applicant at regular intervals.

3.Is there a prepayment penalty levied by the bank for paying off the education loan account before the due date?
Ans. There is no prepayment penalty or charges of similar nature applicable for early closures before the end of term at any time during in the tenure.

4.Does the bank charge an overdue fee on education loan?
Ans. Penalty at the rate of 2% per annum is billed for all loan amount above Rs. 2 lacs for the overdue period.

5.Should the third party guarantor to the loan be a relative of the student?
Ans. Not necessarily. A third party guarantor will be someone with sufficient financial assets commensurate to the amount of loan and is willing to sign as one.