Purpose/ Objective
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 finance
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)
Rates & Charges
Please refer rates & charges page
During moratorium period only simple interest will be charged
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.