Federal Bank Education Loan: Interest Rates and Application

Federal Bank Education Loan

Federal Bank is a leading private sector bank in India that offers a variety of education loan options, including competitive interest rates and flexible repayment options, which ensure that financial barriers do not stand in the way of your educational aspirations.

This article will help you explore the comprehensive benefits of a Federal Bank Education Loan and discover how it can be the foundation of your academic success.

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Federal Bank Education Loan: Key Highlights

Here is a list of the important topics covered in the blog.

Feature	Details
Types of Federal Bank Education Loan	Special Vidya Loan Scheme, Fed Scholar Loan Scheme
Maximum Loan Amount for India	INR 10 Lakhs
Maximum Loan Amount for Abroad	INR 20 Lakhs
Security	No security needed up to INR 4 Lakhs for Special Vidya Loan; Third-party guarantee/ Collateral Security needed from INR 4 to INR 7.50 Lakhs
Repayment Period	15 Years
Eligible Courses	Graduate/ postgraduate degree/ diploma courses in India; Post-graduation courses/ Job Oriented Professional/ technical courses Abroad
Application Process	Via branch visit or visit the official website of Federal Bank
Special Features	Speedy Approval, Minimal Paperwork, Easy EMIs
Expenses Covered	Tuition fees, hostel fees, exam fees, cost of books, equipment, travel expenses, etc.
Eligibility	Indian nationals admitted to approved courses/institutions

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Benefits of Federal Bank Education Loans

One of the standout features of Federal Bank’s Education Loans is the flexibility in repayment options. These loans provide you with the necessary funds to achieve your academic goals.

Here are some of the key benefits of opting for a Federal Bank Education Loan.

Online Application: Convenient online application process with minimal paperwork for a seamless experience.
Quick Disbursement: An efficient and streamlined application process ensures fast approval and disbursement of funds.
Collateral-Free Loans: Provides loans up to 4 lakhs without the need for security, making it accessible for a broader range of students.
Dedicated Support: Offers personalised assistance throughout the loan tenure, ensuring a smooth and hassle-free experience.
No processing fees: You don't have to pay any upfront fees to apply for a Federal Bank education loan
Moratorium Period: Includes a grace period post-graduation before repayment begins, giving you time to secure employment.
Flexible Repayment Options: Provides multiple repayment plans, allowing you to choose a schedule that suits your financial situation.

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Types and Interest Rates of Federal Bank Education Loans

Federal Bank understands that each student's educational journey is unique, and caters to their financial needs by offering a range of education loan options at different stages of their academic and professional careers.

Federal Bank offers three different education loan options to suit the needs of different students. Have a look.

Special Vidya Loan

Available for students pursuing professional or technical courses in India or abroad (excluding vocational and skill development courses). The maximum loan amount is up to INR 10 lakhs for studies in India and up to INR 20 lakhs for studies abroad.

Fed Scholars Loan

Designed for students admitted to top universities in India or abroad. This loan offers up to INR 20 lakhs without requiring collateral security.

Federal Career Solutions Loan

Tailored for students seeking support for career-oriented education, providing comprehensive financial assistance to help achieve professional goals.

Here’s a table highlighting the three types of Federal Bank Education Loans and their specific features.

Loan Parameter	Special Vidya Loan	Fed Scholars Loan	Federal Career Solutions Loan
Maximum Loan Amount	- Up to INR 10 Lakhs (India) - Up to INR 20 Lakhs (Abroad)	Up to INR 20 Lakhs	- INR 75 Lakhs (India) - INR 100 Lakhs (Abroad)
Margin	- Zero Margin for loans up to INR 4 Lakhs - Above INR 4 Lakhs: 5% (India) and 15% (Abroad)	- Zero Margin for loans up to INR 10 Lakhs - Above INR 10 Lakhs: 5% Margin	10% onwards
Federal Bank Education Loan Interest Rate	12.55 (Repo Rate + 6.05) Onwards	12.55 (Repo Rate + 6.05) Onwards	12.55 (Repo Rate + 6.05) Onwards
Loan Security	- No security needed up to INR 4 Lakhs - Third-party guarantee/ Collateral Security needed from INR 4 to INR 7.50 Lakhs - Collateral security with stipulated margin needed from above INR 7.5 Lakhs	No collateral is required for loans up to Rs. 20 lakhs	Collateral is required
Loan Repayment Period	15 Years	15 Years	10 Years

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Fed Scholars Loan Scheme: Top Institutes

If you are opting for the Fed Scholars Loan to pursue your higher education in India you must get admission into a regular course in one of the top institutions. The list of institutions eligible under the Fed Scholars Loan scheme is as follows.

S. No	Name of the Institution
1	All India Institute of Medical Sciences (AIIMS), Delhi
2	Armed Forces Medical College (AFMC), Pune
3	Bangalore Medical College (BMC), Bangalore
4	Birla Institute of Technology & Sciences (BITS) - Pilani
5	BITS (Pilani) Goa Campus
6	Christian Medical College (CMC), Ludhiana
7	Christian Medical College (CMC), Vellore
8	Department of Industrial & Management Engineering, IIT Kanpur
9	Dept of Management Studies, IIT, Delhi
10	Indian Institute of Foreign Trade (IIFT), Delhi
11	Indian Institute of Foreign Trade (IIFT), Kolkata Campus
12	Indian Institute of Management (IIM), Ahmedabad
13	Indian Institute of Management (IIM), Kashipur
14	Indian Institute of Management (IIM), Ranchi
15	Indian Institute of Management (IIM), Rohtak
16	Indian Institute of Management (IIM), Udaipur
17	Indian Institute of Management (IIM), Bangalore
18	Indian Institute of Management (IIM), Indore
19	Indian Institute of Management (IIM), Kolkata
20	Indian Institute of Management (IIM), Kozhikode
21	Indian Institute of Management (IIM), Lucknow
22	Indian Institute of Management (IIM), Raipur
23	Indian Institute of Technology, Kanpur
24	Indian Institute of Technology, Mandi
25	Indian Institute of Technology, Patna
26	Indian Institute of Technology, Roopnagar
27	Indian Institute of Technology, Roorkee
28	Indian Institute of Technology, Bhubaneshwar
29	Indian Institute of Technology, Chennai
30	Indian Institute of Technology, Delhi
31	Indian Institute of Technology, Gandhinagar
32	All India Institute of Medical Sciences (AIIMS), Bhopal Campus
33	All India Institute of Medical Sciences (AIIMS), Raipur Campus
34	Indian Institute of Technology, Indore
35	Indian Institute of Technology, Kharagpur
36	Indian Institute of Technology, Guwahati
37	Indian Institute of Technology, Mumbai
38	Indian School of Business (ISB), Hyderabad
39	Indian School of Business (ISB), Mohali Campus
40	IT BHU (IIT Varanasi), Banaras
41	Jawaharlal Institute of Postgraduate Medical Education and Research (JIPMER), Pondicherry
42	Kasturba Medical College (KMC), Manipal
43	King Edward Medical College (KEMC), Mumbai
44	Marine Engineering & Research Institute, Kolkata
45	Madras Medical College (MMC), Chennai
46	Post Graduate Institute of Medical Education & Research (PGIMER), Chandigarh
47	S P Jain Institute of Management and Research (SPJIMR), Mumbai
48	SJMSOM, IIT – Mumbai
49	Xavier Institute of Management (XIM), Bhubaneswar
50	Xavier Labour Relations Institute (XLRI), Jamshedpur

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Now that you understand the different types of education loans offered by the Federal Bank, the next step is to know the eligibility criteria.

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Eligibility Requirements for Federal Bank Education Loan

To be eligible for a Federal Bank education loan, you must meet the following requirements.

Eligibility Criteria	Details
Citizenship	Must be an Indian citizen
Admission Requirement	Secure admission to a recognised educational institution through an entrance exam or merit-based selection
Course & Institution Approval	The course and institution must be properly approved and recognised
Co-Signer Requirement	Must have a co-signer who is a salaried or self-employed individual with a good credit history

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Documents Required for Federal Bank Education Loan

Here’s a list of important documents required for the loan application process.

Document Type	Details
Identity Verification	Passport, voter ID card, driver's licence, or PAN card
Address Proof	Lease agreement, Passport, Electricity Bill
Photograph	Self-attested passport-size photograph
Admission Proof	Official Letter of offer or admission
Educational Qualifications	Mark-list and essential qualifications
Fee Structure Evidence	Proof of the fee structure from the institution
Bank Account Statement	Latest bank account statement

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Minimal Documentation. Higher Chances of Approval. Easy Online Processes. Check Your Eligibility.

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How to Apply for Federal Bank Education Loan?

Applying for a Federal Bank Education Loan is a simple and hassle-free process designed to provide you with the financial support you need to pursue higher studies.

You can follow the below mentioned steps to apply for a Federal Bank Education Loan.

1. Choose Your Application Method

Apply online via the official Federal Bank website or visit any Federal Bank branch. Alternatively, apply through the Vidya Lakshmi Portal.

2. Download and Fill the Application Form

Navigate to the SME Loans Applications and Agreements section under Forms and Stationery on the website. Download the PDF application form and fill it out with the required information.

3. Upload Required Documents

Ensure all necessary documents are uploaded as per the instructions provided.

4. Submit and Print the Application

Submit the completed form online and print a copy of the application for your records.

5. Visit Your Nearest Branch for Final Formalities

Visit your nearest Federal Bank branch to complete any remaining formalities.Also, do read about: How to Apply for Education Loan in India- Complete Process

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‍Federal Bank Education Loans vs Other Banks

‍Choosing the right education loan can significantly impact your financial planning for higher education. Federal Bank Education Loans are known for their customer-centric approach and competitive features. Here’s a comparison of the Federal Bank Education Loans with those offered by other leading banks to help you make an informed decision.

Loan Parameter	Federal Bank	Axis Bank
Maximum Loan Amount	Up to INR 10 Lakhs (India) Up to INR 30 Lakhs (Abroad)	Up to INR 10 Lakhs
Rate of Interest	Federal Bank Education Loan Interest Rate is 12.55 (Repo Rate + 6.05) Onwards	Up to 4 Lakhs: 16.50% Up to 7.5 Lakhs: 17.50% Above 7.5 Lakhs: 15.50%
Repayment Period	15 years	7 Years
Loan Scheme for Premier Institutions	Yes, Fed Scholar Loans	No
Margin	Zero Margin for loans up to INR 4 Lakhs Above INR 4 Lakhs: 5% (India) and 15% (Abroad)	Zero Margin for loans up to INR 4 Lakhs Above INR 4 Lakhs: 5% (India)
Age Limit	18 to 45 years	No age criteria
Collateral Security	Not required up to INR 4 Lakhs Third-party guarantee/Collateral security	Third-party guarantee/Collateral security
Processing Fees	No processing fees	No processing fees
Prepayment charges	Nil	Nil
Benefits	Minimal paperwork No repayment during the Moratorium period Repayment can be made in easy EMIs	No processing fee charged No pre-payment charges applied No pre-closure charges applied

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Federal Bank Education Loans Online EMI Calculator

The Federal Bank’s Education Loan Online Calculator helps you plan by estimating loan eligibility, EMIs, and repayment, ensuring you can focus on your studies.

Here are the steps to help you use the Federal Bank’s Education Loan Online Calculator.

Go to the Federal Bank’s Education Loan Online EMI Calculator page.
Enter the amount you wish to borrow and the duration over which you plan to repay the loan.
Click on the 'Calculate' button to process the information. The calculator will display the estimated monthly instalment (EMI) and the total interest payable over the loan tenure.
Use this information to plan your monthly budget and ensure timely repayments.

Here’s an example calculation to give you an idea of the process.

Let's assume you're planning to take a loan of INR 10 Lakhs for a tenure of 10 years at an interest rate of 12.55%.

Loan Amount: INR 10,00,000
Interest Rate: 12.55%
Loan Tenure: 10 years

After entering these details into the calculator and hitting 'Calculate,' you will receive:

EMI: INR 14,667
Total Interest Payable: INR 7,60,020
Total Payment (Principal + Interest): INR 17,60,020

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Get a no collateral Education Loan

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Federal Bank Education Loan Repayment Process

Repaying an education loan can be a manageable and straightforward process with Federal Bank's structured and flexible repayment plans. Understanding the repayment process ensures you stay on top of your finances and fulfil your loan obligations without undue stress.

Here are the key features of the Repayment Process.

Moratorium Period

No repayments are required during the moratorium, typically up to 1 year after course completion or until you secure a job.

Repayment Tenure

Loans can be repaid over a period of up to 15 years, reducing the monthly EMI burden.

Flexible Options

Multiple repayment options, including EMIs, allow you to choose a plan that fits your financial situation.

Federal Bank's education loans offer competitive interest rates, flexible repayment options, and a variety of schemes to support your studies in India or abroad. With loans like the Special Vidya Loan and Fed Scholar Loan, Federal Bank makes financing your education easier. If collateral is a concern, Propelld offers a simplified, collateral-free loan process to ease your worries.

If securing funds for your education is worrying you, especially due to collateral requirements, Propelld is here to simplify the process for you.

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Why Propelld?

Feature	Details
Max Loan Amount	50 Lacs
Collateral	Not Required
Moratorium	Available
Processing Time	10 Times Faster than Banks
Disbursal Time	7 Days
Approval Rate	Higher than Banks
Special USP	Marks Based Approval
% Financed	100% of Fees

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Contact us today to discover how we can make your educational dreams a reality without financial stress.

Disclaimer: The information provided in this blog is for informational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any decisions about your education loan.

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Federal Bank Education Loan: Interest Rates and Application

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