We all know what a bank is, a bank is a financial institution which performs the deposit and the lending functions. A bank also provides money for those who are in need with interest rate. Thus, the bank acts as an intermediary between the saver and borrower. The bank offers a wide range of financial support to its customers. The Vijaya bank got emerged on 23rd October 1931 by its founder A.B. Shetty. Current CEO of this bank is R.A. Sankara Narayanan. Vijaya Bank is a nationalized bank.
Before getting into educational loan lets firstly know about a loan, a loan is lending money by one or more individuals to other individuals, the recipient incurs a debt and should pay the interest rate. Now lets know about the educational loan or students loan. An educational loan is a type of loan which is designed to help the students pay for post-secondary education and education-related expenses. The credit is offered to those who want to pursue higher education in India or abroad.
Lets merge Vijaya bank and educational loan and let us now know about Vijaya bank educational loan. Vijaya bank have two schemes in educational loan one is the IBA MODEL (INDIA OR ABROAD) and another one is the IBA MODEL SKILL LOAN SCHEME. They have an eligibility criterion (i.e.) student should be Indian and should have secured admission to get into higher education course either in India or abroad through entrance test admission process. Some institutions are considered by this bank for concession, they are – IITs, IIMs, IISc Bangalore, ISB Hyderabad, BITS, AIIMS, NITs, IIFT Delhi, IMI Delhi, ISM Dhanbad, IRM Anand, SIBM Pune, and XLRI Jamshedpur.
They provide loan on a term basis. Their minimum amount has no limit, but the maximum they can lend is 10 lakhs for the studies in India and 20 lakhs for the studies in abroad. The suitable or apt third party should guarantee to obtain for loans above four lakhs for the students who are going to study either in India or Abroad. Their security requirements are, parents should be a joint borrower for loans up to 4 lakhs and requires collateral security in the form of suitable third party guarantee to be taken for loans above four lakhs also taking parents as the borrower.
Tangible collateral security is acceptable to the bank along with the assignment of future income of the student for loans above 7.50 lakhs. The moratorium period is the course period + 1 year. The repayment of the loan can be made after 15 years after the moratorium period. Now we all know about the first scheme (i.e.) IBA MODEL (INDIA AND ABROAD). Now let us see the other scheme IBA MODEL SKILL LOAN SCHEME. Their eligibility criteria are the same as the first scheme and they are a term loan basis. Minimum amount they lend is Rs.5000 and the maximum amount they lend is Rs.150000. Repayment of the loan can be done up to three years for loans for Rs.50000 and up to 5 years for loans above Rs.50000.
To know more about the bank and the educational loan they provide, click https://www.vijayabank.com/Loans-and-Advances/Retail-Lending-Schemes/Education-Loans this website and check.