Vijaya Bank


"Vijaya Bank, a PAN India institution, offers a variety of attractive products and services to its customers including educational loans to commendable and meritorious students who are seeking to pursue their education further in India and abroad."

Loan Interest Rates:

For students under the Indian Banks' Association (IBA) Scheme, the Vijaya Bank Education Loan rate of interest is:
AmountRate of interest
Up to Rs.4 lakhsBase Rate + 1.80 = 12.05%
Rs.4 lakhs and aboveBase Rate + 2.25 = 12.50%

For other loans, the rate of interest is fixed irrespective of the loan amount.
TypeRate of interest
Management Quota (Non IBA)Base Rate + 2.55% = 12.80%
ISB11.75% ( Fixed)
Premier Institutions such as IIMs, IITs, etc.11.75% ( Fixed)

Education Loan For Vocational Training:
"The loan is offered at a floating rate of interest of Base Rate + 1.8% = 12.05% p.a."

Loan Eligibility:

Courses Eligible For Loan:
  • Graduate or Post-graduate degree or diploma in technical and professional courses conducted by colleges/universities approved by UGC, AICTE, IMC, Govt., AIBMS, ICMR, etc.
  • Degree or Diploma conducted by premier educational institutions such as IIT, IIM, NIFT, IISc, etc.
  • Degree or Diploma for aeronautical, pilot training, shipping, etc. approved by Director General of Civil Aviation or Shipping.
  • ICWA, CA, CFA courses.
  • 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.

Education Loan For Vocational Training:
"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 leading to a degree, diploma or certificate issued by a Government organization or by an organization authorized by the Government."
Documents Required:

Candidate Education Loan Eligibility:
  • This scheme is applicable only to Indian nationals who have sought loans from Scheduled Banks for pursuing approved technical and professional courses in recognized institutions in India after Class 12.
  • There is no age restriction.
  • Parents/family income must be below Rs.4.5 lakhs. A certificate issued by authorized officers of State Government is needed.

Processing Fees:
"This loan does not carry any processing fee or any other charges."

Expenses Covered under Education 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 expenses and passage money for studies abroad
  • Books/Equipment/Instruments/Uniforms
  • Purchase of computers- essential for completion of the course
  • (For E and F, maximum 20% of the total tuition)

For Vocational Training:
  • Course fees
  • Caution deposit
  • Examination, library, laboratory fee
  • Books, equipment, the course.instruments
  • Any other reasonable expenditure necessary to complete

Loan Repayment:

"The moratorium period for all loans except ISB is the duration of the course plus 1 year or 6 months after employment, whichever is earlier. For the students of ISB, the moratorium is the duration of the course plus 18 months or soon after employment, whichever is earlier."
Loan Type Repayment Period
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

For Vocational Course:
DurationRepayment period
Up to 6 months2 years
6 months to 1 year3 years
Above 1 year3 to 5 years

Security Required:

    1. IBA scheme:
  • Loans up to Rs.4 lakhs do not require security.
  • For loans 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 discretion waive the need for a third party guarantor. The parents will be joint borrowers.
  • Loans above Rs.7.5 lakhs require tangible collateral of acceptable value, along with the assignment of the student's future income towards repayment in instalments.
    2. Management Quota (Non IBA):
  • Irrespective of loan amount, tangible collateral in the form of Land, Building, Govt. Securities, NSC, LIC Policies, KVP, etc., of acceptable value to the extent of 150% of the amount of the loan is needed, along with the assignment of the student's future income towards repayment in instalments.
    3. Premier Institutions, IIMs, IITs, etc.:
  • For loans up to Rs10 lakhs, only the assignment of the future income of the student towards repayment in instalments is required.
  • Loans above Rs.10 lakhs require tangible security of value to the full amount of the loan, along with the assignment of the student's future income towards repayment in instalments.
    4. International School of Business (ISB):
  • Only the assignment of the student's future income towards repayment in instalments is required.


1.I live far away from Vijaya Bank. Can I apply online?
Ans. You can apply for an educational loan online, but you will be required to visit the nearest branch for verification and sanctioning of the loan. To apply online, Vijaya Bank requires your domicile or permanent residence to be not more than 10 kms from the nearest Vijaya Bank branch.

2.Does Vijaya Bank have any charges for applying online?
Ans. There are no charges as such but applications should purchase a DD/PO of Rs. 500 favouring Vijaya Bank. The DD/PO should preferably be from the same branch at which the educational loan is being availed. This is not refundable in case the loan is not sanctioned or not taken.

3.I am under the Central Scheme of Subsidy. Does this mean I don't have to pay the loan amount for the moratorium period?
Ans. The Central Scheme of Subsidy only covers the interest charged during the moratorium period. When this period is over, you will have to pay back your loan as usual. The only difference is that you will have the benefit of not paying any interest accrued while you were studying.

4.I am employed looking to study further, can I apply for a loan?
Ans. As long as you are gainfully employed, you are not eligible for a loan.

5.What is the maximum loan amount I can avail?
Ans. You can avail up to Rs. 10 lakhs if you plan to study in India. You can avail up to Rs. 20 lakhs if you want to study in ISB, IIMs, IITs, etc., or if you are going abroad.

6.Is there any prepayment penalty?
Ans. No, there is no penalty if you choose to prepay your loan.