Federal Bank Education Loan- Student Loan in India

Federal Bank Education Loan Amount

Rs.10 Lakhs for studies in India

Rs.20 Lakhs for studies abroad

Federal Bank Education Loan Eligibility
Students of Indian nationality who intend to join any approved Diploma / Degree / Post Graduate course in India / Abroad

Federal Bank Vidya Loan Quantum of finance

Quantum of finance is subject to repaying capacity of the parents / students.
Satisfactory performance of the student necessary for continued disbursal.

Expenses Covered under loan

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

Federal Bank Education Loan Margin

Up to Rs 4.00 L No Margin is applicable.  

For studies in India above Rs 4 Lakhs - 5%

For Studies Abroad above Rs 4 Lakhs - 15%

Federal Bank Education Loan Period

Moratorium period (+ 5 to 7 years).

(Moratorium period will be period of the course + one year / 6 months after getting job, whichever is earlier)

Federal Bank Vidya Loan Rates & Charges

Please refer rates & charges page on the Federal bank official website

Federal Bank Vidya Loan Repayment
Monthly / periodical interest during the holiday period to be serviced and Balance at the end of the course to be repaid in equal monthly installments. And repayment should begin when the student secures employment or within 12 months after the completion of the course, whichever is earlier.

Co-obligants:
Documents should be executed by the student and parent / guardian as joint borrowers

Federal Bank Vidya Loan Security
No security is needed Up to Rs 4 Lakhs.
Third party guarantee acceptable to bank / collateral security for loans up to 7.50 Lakhs
Above Rs 7.50 Lakhs, collateral security with stipulated margin is required

Federal Bank Vidya Loan Repayment
Repayment of the loan is made as Equated Monthly Installments (EMI).
You can use any one of the ways to repay the loan:

Other conditions & documents required

Age of guardian not to cross 60 during the currency of loan (if post retirement income justifies there can be relaxation) If age crosses 60, an additional guarantor with same eligibility is required. Guardian can be father, mother, brother, sister, etc.

Initial expenses will be released at the time of admission and other expenses will be released at the beginning of each semester / year. And 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.