Lakshmi Vilas Bank Education Loan for Higher Studies

Looking for a Suitable Education Loan from Lakshmi Vilas Bank for Higher Education in India and Abroad?

Look no further. This page contains all the information you will need on Lakshmi Vilas Bank’s Education Loan.

Vidya Lakshmi Education Loan for Higher Studies in India and Abroad

This Lakshmi Vilas Bank study loan helps students finance their education and realise their dreams of pursuing higher education at recognised education institutions in India or abroad. The maximum loan amount you can get is Rs. 10 lakh for studying India and Rs. 20 lakh for studying abroad.

Features of Lakshmi Vilas Bank Vidya Lakshmi Education Loan

Why this Loan?

  • The loan is meant to help students who have secured admission into a higher education course in a recognised institution in India or abroad through Entrance Test or Merit-based Selection Process
  • This Lakshmi Vilas Bank Education loan is disbursed as a series of payments over the required number of years and not as a lump sum
  • The loan can be availed for all expenses directly related to the course including for fees, purchase of books, laptops, hostel fees, lab fees, examination fees, etc.
  • Students can get unsecured loans of loan amount up to Rs. 4 lakh

Loan Amount

  • The maximum loan amount you can get is Rs. 10 lakh for studying India and Rs. 20 lakh for studying abroad

Interest

  • Loans up to Rs. 7.5 Lakh Covered Under CGFSEL: The interest rate for loans covered under CGFSEL is Repo Rate + Operating Expenses + 3.75%. As of October 2020, the effective interest rate for this loan at 13.00%
  • Loans Above Rs. 7.5 lakh Not Covered Under CGFSEL: The interest rate for this quantum of loan is Repo Rate + Operating Expenses + 4.85%. As of October 2020, the effective interest rate for this loan at 12.85%. Girl students get a concession of 0.25% making the effective interest rate for them at 12.60%

Repayment

  • Loans up to Rs. 7.5 lakh: The repayment period for this loan is 10 years
  • Loans Above Rs. 7.5 lakh: The repayment period for this loan is 15 years
  • The loan amount for each year is repayable in 12 equated monthly instalments. The first instalment becomes due after the end of moratorium period
  • The moratorium period for this loan is course duration + 12 months or course duration + 6 months after employment, whichever is earlier

Security Needed

  • Loans up to Rs. 4 lakh: No security required
  • Loans Above Rs. 4 lakh to Rs. 7.5 lakh Covered: Parent/Guardian must be a joint borrower
  • Loans Above Rs. 7.5 lakh: Parent/Guardian must be a joint borrower. A third-party guarantee and a tangible collateral equivalent to the loan amount is required to avail this loan

Eligibility

  • The applicant must be an Indian national
  • The student should have gained admission into a recognised higher education course in a recognised institution in India or abroad through entrance test or merit-based selection process

Borrower Contribution to Total Cost (Margin Money)

  • Students studying in India need to pay 5% of total course expenses as margin money
  • Students studying overseas need to pay 15% of total course expenses as margin money

Note: Margin money refers to the amount the borrower contributes to the overall amount required. Suppose a house costs Rs. 40 lakh in which case the borrower usually has to provide a margin money percentage of 15-25% of the total house value while the lender bank offers the rest.

Processing and Other Charges

  • No processing charges need to be paid

Other Features to Know

  • The bank may ask for the student’s progress report to be submitted with the bank at regular intervals
  • The loan is disbursed directly to the school, book seller or publisher, computer seller, and so on and not to the applicant(s)
  • The applicant must pay applicable margin money upfront for each disbursement
  • There are no pre-payment charges for the loan

Documents Needed

  • Application Form duly filled and signed by applicant and/or guarantor along with details of applicant and/or guarantor and family
  • A declaration/ affidavit from the borrower confirming that, no educational loans have been availed from other banks
  • Two Passport Size Photographs of student, applicant and/or guarantor
  • Photocopy of PAN Card of the student that needs to be submitted at the time of application or during the course period
  • Personal Identification Proofs (Any One): Electoral I-Card, Passport, Driving License, PAN Card or Aadhaar Card
  • Residential Address Proof (Any One): Electricity Bill, Landline Telephone Bill, Electoral or Voter ID Card or Passport
  • Admission Letter, Course Details and Prospectus as proof of admission
  • Fee Details with Demand of Fee by the Institution
  • All Proofs of Past Academic Record including Mark Sheets and Certificates
  • For the co-borrower, documents as age, ID, signature, address, employment/business/income proofs are required
  • For studying abroad, a self-attested copy of the passport is also required along with a self-attested form issued by the institute for visa purposes

Reference Facts:

  • Lakshmi Vilas Bank Website: www.lvb.com
  • Headquarters: Chennai, Tamil Nadu
  • Call Centre Toll-Free Number: 1800 425 2233