Federal Bank Education Loan

Initially Federal bank Limited was known as the Travancore Federal Bank. Officially in the year 1947 the name Federal Bank Limited was announced. Federal Bank Limited was founded by Mr.Kulangara Paulo Hormis with an authorized capital of Rs. 5000. Federal Bank education loans were launched to provide financial assistance to meritorious students willing to pursue their higher education. Federal Vidya Loan and Federal Special Vidya Loan are two types of loans offered by Federal Bank.

The purpose of providing loan is to undergo higher studies in India & Abroad.
Students of Indian nationality who intend to join any approved Diploma / Degree / Post Graduate course in India / Abroad 

• Students should have Nationality Indian
• Come with mark sheets of the qualified exam and the admission proof.

No security is needed Up to Rs 4 Lakhs.
For Courses in India 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

Minimum loan period- 3 years(course time + repayment period)

Maximum loan period- 11 years (course time maximum of 6 years + repayment period maximum of 5 years)

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.

• To be Indian national.
• Must take secured admission to technical or professional courses through the entrance test or any selection procedure
• Those studies abroad, secured admission must be taken to the institutes or the universities.
• The courses and institutes should be recognized.

The purpose of this is to provide commendable students with opportunity to get higher studies in India as well as in abroad and provide financial support with some terms and conditions.

• The amount of loan is Rs. 30.00 lakh for studies in India.
• The amount of loan is Rs. 40.00 lakh for studies abroad.

Up to Rs 4.00 Lakh No Margin is applicable and
for studies in India above Rs 4 Lakhs to 7.5 Lakh- 5%
For loans above Rs.7.50 lakh - Co obligation of parents together with tangible collateral security .Collateral security in the form of NSC /KVP/ LIC Policy/ Immovable properties/ Bank Deposits in the name of student/Parent/Guardian or any other third party with suitable margin. Wherever the land/ building is already mortgaged the unencumbered portion can be taken as security on second charge basis provided it covers the required loan amount. In case the loan is given for the purchase of computer , the computer has to be hypothecated to the bank..

• Course period plus five to seven years
• Repayment is done equally that is in equal installments monthly within 5 to 7 years after the moratorium period
• (Moratorium period will be period of the course + one year / 6 months after getting job, whichever is earlier)

Federal Towers,
Aluva 683 101,
Kerala, India
Phone - (0484) 2623620 to 29
Fax - (0484) 2622672
Website - www.federalbank.co.in

Note:

Since the rules, regulations, eligibility conditions, repayments and interests rates etc. are revised by the banks from time to time in keeping pace with the changing capital market conditions, students and parents are advised to thoroughly check the terms and conditions of educational loan scheme on offer at the time of application.