Overview Federal Bank Education Loan:
Launched from the pre-independence age, Federal Bank is a top Indian business bank from the private industry. Headquartered at Aluva, Kerala, the lender has a powerful network of over a million branches and ATMs spread throughout the country.
Education is a method of life. It's a simple requirement that assists you evolve as a individual and expand their view. Federal Bank assists the young minds out of not overlooking a chance to educate themselves because of lack of fund. Federal Bank provides Education Loan to help the financial needs needed for instruction of your son or daughter. Shape your kid's potential with Federal Bank's Education Loan called Special Vidya Loan.
Goal of Federal Bank Education Loan:
Special Vidya Loan (Federal Bank's Education Loan) provides an chance for students to pursue education, by providing financial support. The loan may be availed for various educational classes in India and abroad. But this loan cannot be availed for vocational training and skill development study courses are not eligible for this loan.
Features and Benefits:
Expenses Considered for Federal Bank’s Education Loan:
To maximize the benefit for students, Special Vidya Loan covers the following items –
- Tuition fee payable to the student's college/school for the purpose of evaluation, library, lab, etc..
- Hostel charge payable is also covered in case the school/college the debtor selects supplies residential facilities to its students.
- Price of the notebook (only if necessary for your class ), books, uniform, equipment and instruments needed for the class and travel expenses of the student.
- Expenses incurred for job work, study tours, thesis, etc..
- Caution deposit fee charged by the establishment, amount payable towards the institution's building fund, any other refundable deposit. All these have to be supported by bills/ receipts, and cannot exceed 10% of the tuition fee of this program.
Amount of Education Loan:
For courses in India, the loan amount is up to Rs.10 lakhs and for courses abroad, the sum is Rs.20 lakh. This loan can not be availed to get vocational training and skill development classes, whether in India or overseas. The loan quantum depends upon the repayment capacity of their student or parents. To ensure a continued disbursal of the loan, the pupil needs to deliver a satisfactory performance throughout the course.
- No margin is applicable on loan amount up to Rs.4 lakhs.
- 5% margin is applicable on loan amount above Rs.4 lakhs, for studies in India.
- 15% margin is applicable on loan amount above Rs.4 lakhs, for studies abroad.
Rate of Interest:
For the convenience of students and parents, Federal Bank offers education loans at affordable rates of interest. With effect from 16 September 2018, the MCLR ranges from 10.90% to 15.30%. Only simple interest is charged during the moratorium period.
Repayment towards the loan can be made in easy EMIs. No payments will need to be made during the moratorium period. The moratorium period is the length of the class + one year/six months after the student receives a job, whichever is sooner. The following methods can be used to repay the loan, in Easy Monthly Installments-
- Standing Instructions at your Federal bank branch/automated payment through ECS.
- Through the bank’s internet banking facility called FedNet
- Mobile Banking
The loan period is the moratorium period + 5 years to 7 years. The moratorium period is that the length of the course one year/six months after the student gets a job, whichever is earlier.
- For loan amount up to Rs. 4 lakhs, no security is required.
- For loans up to Rs. 7.50 lakhs, bank accepts third party guarantee and collateral security.
- If a loan above Rs. 7.50 lakhs has been availed, then collateral security with a stipulated margin is needed.
To avail an Education Loan from Federal Bank, you need the following documents –
- Proof of Identity issued by the government – passport, driving license, PAN card, etc.
- Proof of Residence – ration card, electricity bill, lease agreement, etc.
- Offer letter/admission letter from the educational institution
- Basic qualification certificate and marks card
- Proof of fee structure from the educational institute
In case of co-obligation, documents should be executed by the parent/guardian and the student, as joint borrowers.
Federal Bank Education Loan Eligibility and Loan Application Procedure:
Following are the eligibility Standards to avail Federal Bank's Particular Vidya Loan-
- Applicant ought to be a citizen of India.
- Applicant should secure entry to the professional/technical course (where the loan is availed) via an official entry test/selection procedure.
- The educational institution and class have to maintain a government approval/recognition.
- Vocational instruction and skill development classes aren't qualified to avail this loan.
- A class certificate has to be issued by a body shaped from the enactment of Parliament/ Government Department/University.
To make an application for the loan, then you may download the loan application form from your lender's official site and then submit it to the closest division, after filling this up. Federal Bank's customer support executives and division representatives may also help you through the whole procedure.
Federal Bank Provides Central Government Interest Subsidy Scheme for Educational Loans. Please see the lender's site or visit the closest bank branch to achieve more clarity with this particular scheme.