The bank offers two types of loans namely Federal Vidya Loan and Federal Special Vidya Loan to bright students for advanced studies in India and abroad.
Students must have Indian nationality who intend to join any approved Diploma / Degree / Post Graduate course in India / Abroad.
There are various undergraduate and postgraduate courses which are eligible for Federal Bank student loan. The courses should be offered by reputed institutions affiliated to universities and government statutory bodies. Academic courses such as Diploma, Graduate/Post-Graduate courses in Arts, Science and Commerce etc. Professional courses such as Diploma, Graduate/Post-Graduate courses in Engineering, Medicine, Dental Science, Agricultural Science, Veterinary Science, Computer Science, Nursing, Pharmacy, Business administration, Law etc.
Loan Amount offered by bank is Rs 0.50 Lakhs to Rs 25 Lakhs.
In Federal Vidya Loan, maximum education loan is Rs.25 lacs.
Under Federal Special Vidya Loan scheme, maximum education loan offered is Rs.7.5 lacs (Studies in India) and Rs.15 lacs (Studies abroad) respectively.
Loan is provided for initial expenses like admission fee, entrance fee caution deposit, security deposit etc. recurring expenses like tuition fee, exam fee, special fee, hostel fee, cost of books, uniform etc.
For Courses in India, no margin is required and for foreign studies 10 % margin is applicable. Loan Period: Minimum loan period is 3 years (course time + repayment period) and maximum loan period is 11 years (course time maximum of 6 years + repayment period maximum of 5 years).
Address proof, ID proof and DOB proof. Admission letter from the Institute along with a copy of Fees schedule, mark sheets and pass records of School & Degree courses and Photographs of both the parent and the student.
In Federal Vidya Loan, rate of interest up to Rs.4 Lakhs is 12.75% and above Rs.4 Lakhs, it is 14.25%.
Under Federal Special Vidya Loan scheme, up to Rs.4 Lakhs, rate of interest is 13.75 (BPLR)
Above Rs.4 Lakhs, rate of interest is 14.75 (BPLR + 1%)
In Federal Vidya Loan, eleven years is the maximum time period given for the repayment of loan. For Federal Special Vidya Loan, five to seven years of time is given to the candidates for paying back the loan. The loan is repayable in equal monthly instalments in 5 to 7 years after moratorium period.
Monthly / periodical interest during the holiday period to be serviced and balance at the end of the course to be repaid in equal monthly instalments. Repayment should begin when the student secures employment or within 12 months after the completion of the course, whichever is earlier.
Up to Rs.1 Lakh, Personal guarantee of two persons with Basic Pay Rs 5000/- or annual declared income Rs 1.25 Lakh is needed. Above Rs 1 Lakh, collateral security is needed. In case of immovable property, 200% of the limit is required.
Age of guardian should not exceed 60 years during the currency of loan (if post retirement income justifies there can be relaxation). If age is above 60 then an additional guarantor with same eligibility is required. Guardian can be father, mother, brother, or sister.
Initial expenses will be released at the time of admission and other expenses will be released at the beginning of each semester / year. Cost of computer for home assignment also can be included. If loan is availed within one month of date of admission & if documentary evidence can be produced for the payments made, the amount can be reimbursed within one month of admission.
There is a speedy loan approval. Loan can be availed for higher studies in India & Abroad excluding vocational training & skill development study courses. Minimal paperwork is required. No repayment during moratorium period. Repayment can be made in easy EMIs.
With Special Vidya Loan, Brilliant students are provided with an opportunity to pursue education with the financial support from the bank.
For further details please click on the link: Federal Bank Education Loans