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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.
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 |
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.
One of the major Benefits of Federal Bank Education Loans is the eligibility for tax deductions under Section 80E, reducing the overall repayment burden.
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.
Some Federal Bank loan products cater to international education—check the Education Loan for Canada post to understand how interest rates vary across study destinations and loan categories.
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 |
Get your Loan Disbursed 10 times Faster than Banks. Apply Now.
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 |
|
|
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 |
|
|
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 |
Now that you understand the different types of education loans offered by the Federal Bank, the next step is to know the eligibility criteria.
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 |
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 |
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.
If you're planning to borrow from Federal Bank, start by reviewing the Education Loan Eligibility and Application Process, which explains every step involved in applying for an education loan.
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
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 |
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
Get a no collateral Education Loan
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.
Why Propelld?
| Particulars | Details |
|---|---|
| Max Loan Amount | 50 Lakhs |
| Collateral | Not Required |
| Moratorium | Available |
| Processing Time | 10 Times Faster than Banks |
| Disbursal Time | 7 Days |
| Approval Rate | Higher than Other Banks |
| Special USP | Marks Based Approval |
| % Financed | 100% of Fees |
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.
