Driver in fatal Vic crash had no licence

A 23-year-old unlicensed driver crashed head on into a minibus on the Mornington Peninsular, leaving one elderly woman dead and eight injured.

Police say the man's car was seen driving erratically before it hit the minibus carrying senior citizens on Wednesday morning at Rosebud shortly after they had set off on a day trip to Mornington beach.

He received minor injuries but an 88-year-old woman on the minibus died at the scene.

Seven others on the bus were also injured, including a 91-year-old woman who was airlifted to Melbourne's The Alfred Hospital with critical injuries.

The bus was carrying two staff members from Ti Tree Lodge aged care facility and seven residents aged between 71 to 94.

Police believe the car driver from Coburg, who had a disqualified learner's permit, lost control of his car.

"This car was seen driving erratically prior to the crash," Sergeant Darren Williams told AAP.

Police are investigating whether drugs or alcohol were a factor in the crash, and the driver has undergone a blood test.

Six of the injured people are being treated for non life-threatening injuries at local hospitals.

The driver remains under police guard in hospital where he is being treated for minor injuries.