Vidya was born in Palghat, Kerala, India. Her family consists of her dad, P.R. Balan, who is the Vice-President of ETC Channel; mom - a home-maker, and an elder sister, Priya, who is married to Kedar. She also has an aunt by the name of Raji Raju.
The Balan family re-located to live at Road No. 11, near Ambedkar Garden, Chembur, Bombay, when Vidya was very young. She studied in St. Anthony's Convent School, and thereafter in St. Xavier's College from where she obtained a degree in Sociology. She then went on to obtain a Masters degree in Sociology from Bombay University.