Federal Bank Education Loan: Application, Eligibility, Interest Rate, Documents & Much More.

Federal Bank Education loan
Federal Bank Education loan

The Federal Bank is a major Indian commercial bank headquartered in Aluva, Kochi, Kerala. As of 2017, the Bank has 1252 branches and 1687 ATMs across the country. The services provided by Federal Bank are Credit cards, Consumer banking, Corporate banking, Private Banking, Wealth Management, Finance and Insurance, Mortgage loans,  Investment banking, Education loan etc. If you want Education Loan to pursue higher studies from Abroad or India, You are at the right place to collect every aspect of information related to Education Loan in India.

Federal Bank Logo

Read this full post on Federal Bank Education Loan for information Like Eligibility, How to apply, Interest Rates, Documents Needed, Different aspects of Education Loan, Interest Rates, Return Policy, General Instructions etc. Throughout the article, we will share information regarding Federal Bank Education Loan it’s Process to Apply and full detailed Information.


Federal Bank Education Loan


The major aim of the bank is to ensure anywhere and any time banking for the customer with the latest state-of-the-art technology. The Bank is very serious about its Education Loan Facility and by developing an effective customer-centric relationship it promises to emerge as a world-class education Loan provider. Before we share further, let us first have a brief review of the Bank.

Brief Review

Profile Description
Name of Bank  Federal Bank
Founded on 02 December 1949
Headquarter Aluva, Kochi, Kerala
Type of Bank  Private Bank
Number of Employees 1,252 branches (2017)
CEO Name Shyam Srinivasan
Maximum Loan Amount  Rs 20.0 Lakhs
Timeline for Loan Disposal Maximum 15 Working days
Annual Revenue Δ9,759.20 crore (US$1.4 billion) (2017)
Processing Fees No Processing Fee will be charged
Other Subsidiaries
  • Fedbank Financial Services Limited
  • Federal Bank Ltd.
  • Federal bank International
Category  Education Loan in India

Types of Federal Bank Education Loan

S.no. Scheme Description
1. Special Vidya Loan Education is indeed a basic need like food, clothing and shelter. Never miss an opportunity to learn and grow for want of finance. Carve out a bright future with our Special Vidya Loan.
The loan amounts up to Rs.10 Lakhs for studies in India and Rs.20 Lakhs abroad.
2. Fed Scholars Fed Scholars loan will provide financial support to deserving and meritorious students for pursuing various regular courses in select premier institutes.
Loan up to Rs.20 Lakhs without any collateral security.
3. Career Solutions Loan The loan is aimed to provide financial assistance to the needy and deserving young people to pursue higher education, vocational training courses, Pilot training, skill up gradation, diploma or degree courses offered in aviation, hospitality and travel management, executive development etc.
A loan amounts up to Rs.75 Lakhs for studies in India and Rs. 100 Lakhs abroad.
4. Bon Voyage Loan Bon Voyage loan is one of the tailors made loan schemes that help to meet the initial expenditure involved in going abroad for taking up employment for skilled/qualified persons such as, Doctors, Nurses, Engineers, IT professionals, Management consultants etc.
Loan amount up to Rs.5 Lakhs

How to Apply

Online

Offline

  • Visit the nearest branch of Federal Bank to get offline Education Loan form.
  • You may also download the form from official web handle.
  • Submit the Application Form to Nearest Branch along with document needed.

Eligibility

  • The applicant should be an Indian national.
  • Applicant must have secured admission in a government recognized educational institution.
  • Proof of admission to the proposed course/ programme
  • Age of applicant must be Minimum 18 years & maximum 45 years
  • Net worth -Minimum double the loan amount (combined with co-obligants)
  • Any resident Indian who has got a letter of appointment or a letter from a recognized overseas institution or recruitment agent establishing that a firm offer of employment abroad has been secured.
  • Foreign nationals (Persons of Indian origin or other holding foreign passports) are not eligible for the loan

Documents Needed

  • Mark sheet of last qualifying examination for school and graduate studies in India
  • Academic Records: 10th Result, 12th Result, Graduation result-semester Wise (if Possible) Entrance Exam Result through which admission is being taken
  • Proof of admission: Offer Letter, Fees structure or Admission Letter from the Institution.
  • Recent Passport size photograph
  • Proof of Identity (Passport / Voters ID card/ Driving License/PAN Card)
  • Address Proof (Ration card Tel/ Electricity Bill/ Lease agreement/ Passport/Trade license /Sales Tax certificate)
  • Details of admissible expenditure of course.
  • Evidence for selection to the course of study.
  • Copy of Passport or Visa.
  • Copy of Appointment Letter / Offer Letter from Employer.

Expenses Considered

  • Tuition and course fee
  • Examination, library and laboratory fees
  • Caution deposit
  • Cost of books, Uniforms, Equipment and other instruments.
  • Travel Expenses

Return Policy

  • In the case of Federal Bank Education loan, repayment will start after the completion of course period +1 year or moratorium period. Repayment will also 6 months after securing a job. Whichever is earlier.
  • Moratorium period+ 15 years as the repayment period (Repayment period – maximum 120 months)
  • Periodical interest should be serviced during the course period and subsequent cushion period.
  • The outstanding balance at the end of the moratorium period shall be repaid in equated monthly instalments over a period of maximum 10 years.
  • If the borrower is discontinuing the educational programme, the loan shall be closed immediately.
  •  If a student fails for the course and is not in a position to obtain a degree or diploma within the period of completion of the course, the repayment of the loan should be made.

Federal Bank Education Loan EMI Calculator

EMI Calculator is used for calculating the periodic payment amount due on a loan. For calculating EMI one must input data like Amount, Interest Rate, tenure, Processing Fee etc.

  • If you want to calculate EMI for Federal Bank Education Loan: Click Here

Federal Bank Education Loan Security

  •  Up to Rs. 4 Lacs
    • Co-obligation of parents
    • No security
  •  Up to Rs.7.50 Lacs
    •Co-obligation of parents together with collateral security
    in the form of suitable third party guarantee.
  • Above Rs.7.50 Lacs
    •Collateral security with stipulated margin is required.

Contact Details

Head office  Federal Bank Ltd, Parackal Towers, Parur Junction, Aluva, Kochi, Kerala, India-683102
Official website www.federalbank.co.in
Apply for Loan  Click Here
Contact Number 1800-425-1199

 

Educational Loans FAQs

We hope that the information furnished above will guide you to get the best educational loan for your studies. In case of any doubt regarding the loan procedure and other related terms, read our FAQ’s section.

Q1. Who can be my co-borrowers?

Ans. Your parents/guardian can be a co-borrower as well as the spouse in case of a married applicant. The co-borrower should have a steady source of income and a good credit history in order to improve the applicant’s chances of a successful loan application.

Q2. How long does it take to process Educational Loan?

Ans. Generally, the time taken for the education loan to process is somewhat between 7-10 working days. Often, the whole process can be easily completed within 3 to 5  Working days, once the student fulfils all documentation.

Q3. What all expenses will be covered by education loans?

Ans. Apart from the tuition fees, other aspects of expenses such as hostel charges, equipment purchases and other course-related expenses may also be covered by the education loan.

Q4. What are the courses for which an education loan can be availed?

Ans. An education loan can be availed for all courses recognized by the UGC in case of India and all regular courses abroad. Each lender has its own list of educational institutions and courses that they would provide a loan for whether overseas or within India.

Q5. Can a student avail another loan for further studies?

Ans. Yes, this is possible. You can borrow a loan for a bachelor’s degree followed by one for master’s without repaying the first loan. This loan can be taken as a top-up loan against the already existing loan; however, it is subject to the lending bank’s discretion and the internal rules and regulations of the lender.

Q6. Do education loans have any Income Tax benefits?

Ans. Loan borrowers can avail tax benefits on interest paid on education loan under Sec 80E of the Income Tax Act. This benefit is available over and above the Rs. 150,000 deduction allowed under Section 80C. Tax benefits can be availed once the borrower starts paying the interest on the education loan. Further, the deduction is available until the borrower pays off the full interest amount on the loan or for a maximum period of 8 years, whichever is earlier.

Q7. Why do banks require an insurance policy?

Ans. Banks usually prefer that students avail a life insurance policy equivalent to, or more than, the loan amount. The policy acts as a security feature and forms a part of the collateral. In case of the untimely demise of the borrower, the bank recovers the outstanding loan amount from the student’s life insurance policy and the remaining amount, if any, is paid out to the beneficiary of the policy.

Q8. Is any incentive available for a girl student applying for education loan?

Ans. Banks generally provide a 0.5% concession on the applicable education loan interest rate to girl students pursuing higher education in India and abroad.

Q9. Are there any special privileges for students of SC/ST category who avail education loans?

Ans. Yes, eligibility criteria and loan margins on education loan are relaxed for Scheduled Caste/Scheduled Tribe students availing education loans in India. The eligibility criteria are lowered from first/second class to pass class for SC/ST category students seeking education loan for graduate and postgraduate studies, while, margin money is sometimes lowered than the regular percentage or nil.

Q10. Where can I avail on a Federal Bank education loan?
Ans. The loan is available from all branches in metro/urban areas as well as those having personal banking divisions.

Best of Luck..!!

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