Federal Bank education loans were launched to provide financial assistance to meritorious students willing to pursue their higher education. The bank offers two types of loans namely Federal Vidya Loan and Federal Special Vidya Loan.
Candidates applying for Federal Bank student loan should be Indian nationals. Applicants will be considered eligible only if they get admission to various professional or technical courses through merit based selection process or entrance examination.
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.
- Federal Vidya Loan - The maximum education loan offered under this scheme is Rs.25 lacs.
- Federal Special Vidya Loan - The maximum education loan offered is Rs.7.5 lacs (Studies in India) and Rs.15 lacs (Studies abroad) respectively.
Federal Bank charges various kinds of securities for issuing education loans.
Federal Vidya Loan-Co-obligant or collateral security is required for the bank to issue the education loan.
Rate of Interest
Federal Vidya Loan
- Up to Rs.4 Lakhs 12.75%
- Above Rs.4 Lakhs 14.25%
- Up to Rs.4 Lakhs 13.75 (BPLR)
- Above Rs.4 Lakhs 14.75 (BPLR + 1%)
- Federal Vidya Loan - Eleven years is the maximum time period given for the repayment of loan.
- 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 installments in 5 to 7 years after moratorium period.