Federal Bank

The Bank offers Federal Vidya Loan and Special Scheme Vidya Loan schemes that are detailed below:

Federal Vidya Loan

Purpose: The purpose of the loan is to make available financial assistance to the needy and deserving students of bright academic record so as to enable them to continue higher studies in India or Abroad either in diploma/graduation or post-graduation level in Arts, Science, Commerce, Management, Medicine and Engineering.

Eligibility:
Under this scheme the loan can be sanctioned to any student of Indian nationality who intends to join any of the approved courses in an Educational Institution recognised by the government or any University in India or Abroad.

Courses Approved:
A - Category:- Academic courses such as Diploma, Graduate/Post-Graduate courses in Arts, Science and Commerce etc.,
B - Category:- Professional courses such as Diploma, Graduate/Post-Graduate courses in Engineering, Medicine, Dental Science, Agricultural Science, Veterinary Science, Computer Science, Nursing, Pharmacy, Business administration, Law etc.,

Type of Loan:
The loan account shall be operated as a term loan. To facilitate flexibility in operation, future debits on account of recurring expenses in each semester/year can be made to this account.

Margin:
The margin is NIL for courses in India. For foreign studies a minimum margin of 10% is to be insisted on.

Amount of Loan:
Place of studies
In India0.505.00
Abroad0.5010.00(Rs in Lakhs)

Rate of Interest:
Upto Rs.5 lakhs13.5 %
Above Rs.5 lakhs14.5 %

Period of Loan:
The period of the loan consists of the period required for the completion of the course and that meant for repayment of the loan. The repayment should begin within 12 months on the completion of the course or after the student secures employment whichever is earlier.

Maximum period of the loan - 11 Years
Minimum period - 3 Years
 
Other Conditions and Documents:
Age of guardian not to cross 60 during the currency of loan (if post retirement income justifies there can be relaxation) If age crosses 60, an additional guarantor with same eligibility is required. Guardian can be father, mother, brother, sister, etc.

Initial expenses will be released at the time of admission and other expenses will be released at the beginning of each semester / year. And Cost of computer for home assignment also can be included.
If loan is availed within one month of date of admission & if documentary evidence can be produced for the payments made, the amount can be reimbursed within one month of admission.

 

Special Scheme Vidya Loan

Purpose:
Meritorious students are provided with an opportunity to pursue education with the financial support from the bank with affordable terms and conditions.
Can be availed for higher studies in India & Abroad excluding vocational training & skill development study courses.

Loan Amount:
Up to Rs 10 Lakhs for studies in India
Up to Rs 20 Lakhs for studies abroad

Eligibility:
Open for Indian Nationals who have secured admission to professional / technical courses through Entrance test / merit based selection process or have secured admission to foreign university / institutions (for studies abroad). Course & Institution should have necessary approval / recognition. And the bank nearest to the residence of the borrower must be Federal Bank.

Quantum of Loan:
Need based finance and subject to repaying capacity of the parents / students Fee payable to college / school / hostel for tuition / examination / library / lab etc Cost of books, equipments, instruments, uniform, travel expenses, computer (if essential for the course), expenses for study tours / project work / thesis, etc. Caution deposit, amount payable towards building fund, refundable deposit etc supported by bills / receipts but cannot exceed 10% of the tuition fee

Margin:
Up to Rs 4.00 L No Margin is applicable. and
For studies in India above Rs 4 Lakhs - 5%
For Studies Abroad above Rs 4 Lakhs - 15%

Period:
Moratorium period + 5 to 7 years
(Moratorium period – period of the course + one year / 6 months after getting job, whichever is earlier)

Repayment:
No repayment during moratorium period.
Equated Monthly Installments in 5 to 7 years after moratorium period

Co-obligants:
Documents should be executed by the student and parent / guardian as joint borrowers.

Security:
No security is needed Up to Rs 4 Lakhs.

Third party guarantee acceptable to bank / collateral security for loans up to 7.50 Lakhs.
Above Rs 7.50 Lakhs collateral security with required margin is required Single premium insurance policy on the life of the student to be taken covering the loan amount and period.

For processing fees, prepayment penalty, documentation charges, mortgage and other charges, please visit the bank website www.federalbank.co.in