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Lakshmi Vilas Bank Education Loan

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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.

Purpose of Loan

The objective of education loan from Lakshmi Vilas bank is to provide financial assistance to students aspiring to pursue a course of their choice at recognised institutions in India and abroad. The loan offered comes with reasonable rates and terms which makes it an accessible financing option for further studies.

Feature & Benefits of Education Loan from Lakshmi Vilas Bank:

Quantum of 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.

LVB is open to considering a higher quantum over the current ceiling for programs from reputed national institutions such as IIM, IIT etc.

Interest Rates & Subsidy Scheme:

Loan Amount

Male Students

Female Students

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.

Loan Margin:

The contribution from the borrower for loans up to Rs.4 lacs is nil. For all other loans above this limit, the required margin is 5% in case of inland studies and 15% for all overseas courses.

  • The borrower can include scholarships in their share as margin.
  • Meritorious/deserving students can be eligible for reduction in margin for a minimum of 3% & 8% for studies in India & abroad respectively.
  • Margin can be laid out on a year to year basis or/and when disbursements are made by the bank on pro rata basis.

Loan Repayment Tenure:

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.

Processing Fees:

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

Loan Security:

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

  • Married applicants can introduce their spouse or in laws as joint borrowers.
  • The loan documents will be executed in the names of the student & co borrowers(parents, grandparents, spouse, guardian)
  • The security includes both tangible and intangible assets such as land, building, Govt. securities, public sector bonds, NSC, KVP, LIC policy, jewels, bank deposit which should be in the name of the student, co borrowers or third party guarantor.

Documents Required for Education Loan from LVB:

Understanding the paperwork is key juncture since a range of documents form the crust of the loan application. List of documents required has been provided below.

  • 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.

Lakshmi Vilas Bank Education Loan FAQs:

  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?
  2. 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.
  3. What is the turnaround time (TAT) for loan processing?
  4. 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.
  5. Is there a prepayment penalty levied by the bank for paying off the education loan account before the due date?
  6. 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.
  7. Does the bank charge an overdue fee on education loan?
  8. Penalty at the rate of 2% per annum is billed for all loan amount above Rs. 2 lacs for the overdue period.
  9. Should the third party guarantor to the loan be a relative of the student?
  10. 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.

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Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

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