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Eligibility for Federal Education Loans

Last Updated 20th May 2021

Particulars Eligibility
Loan amount ₹ 20 Lakh
Loan Tenure 7 months
Co-applicant Required Yes
Prepayment Charges Nil

Federal Education Loan Interest Rate Jun 2021

Every child needs a quality education in order to lead a complete, successful and comfortable life. Unfortunately, such education comes at a cost that not everyone who deserves it can afford. That is where education loans comes into play.Education loans are funds offered by banks and financial institutions to meritorious students to help them pursue their dream course.

Federal Bank Education Loan Interest Rate is quite competitive for education in India’s finest institutes and on studying abroad.Interest rates on Education Loans are floating, and vary with the changes in MCLR. Federal Bank Education loan interest rates are in the range of 10.05% and 10.05%.

Education Loan Federal

Determinants of Eligibility for Education Loans

  Courses in India Courses Abroad IIT, IIM, ISB Courses
Max Loan Amount ₹ 10,00,000 ₹ 20,00,000 ₹ 10,00,000
Interest Rates      
Loans upto ₹ 4,00,000 10.05 % , for Girls - 10.05% 10.05 % , for Girls - 10.05% 0.00 %
Loans ₹ 4,00,000 - ₹ 7,50,000 10.05 % 0.00 % 0.00 %
Loans > ₹ 7,50,000 10.05 % 10.05 % 0.00 %
Margin requirement (own contribution by student/ family)      
Loans upto ₹ 4,00,000 0% 0% 0%
Loans above ₹ 4,00,000 5% 15% 0%
Max Tenure Post Moratorium      
Loans upto ₹ 7,50,000 7 years 7 years 0 years
Loans above ₹ 7,50,000 7 years 7 years 0 years
Co-Applicant required (Y/N) Yes Yes Yes
Third Party Guarantee      
Loans upto ₹ 4,00,000 Not required Not required Not required
Loans ₹ 4,00,000 - ₹ 7,50,000 Required Required Required
Loans > ₹ 7,50,000 Not required Not required Not required
Collateral Security (Fixed deposit/ Property, LIC)      
Loans upto ₹ 4,00,000 Not required Not required Not required
Loans ₹ 4,00,000 - ₹ 7,50,000 Not required Not required Not required
Loans > ₹ 7,50,000 Required Required Required
Prepayment Charges (Y/N) Nil Nil Nil
Moratorium Period (lower of the two)      
After course period 12 months 12 months 12 months
After getting job 6 months 6 months 6 months

Federal Bank Education Loan

Education Loan amount can be used for a variety of purposes, covering all aspects of needs that a student might have with respect to his studies. These include:

  • Fee payable to College / School, Hostel, Tuition, Examination, Library, Lab
  • 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.

Federal Bank Student Loan Features

Federal Bank student loans come with the following attractive features:

  • Minimal paperwork and speedy loan approval
  • No repayment during moratorium period
  • Career Solutions loan scheme for Vocational Education and Training.

Federal Bank Education Loan Eligibility

Parameters Federal Bank Education Loan Eligibility Criteria
Age of the Applicant
  • Upto 35 years for non-employed personnels
  • Upto 45 years in case of working employees/ executives
Who can apply
  • An Indian National having secured admission to professional/technical courses in recognized institutions.
  • Permanent employees who are employed for not less than three years with any organisation and who intend to acquire higher professional qualifications and have secured admissions in a reputed institute.
Maximum Loan Amount
  • Upto ₹ 10,00,000 for studies in India.
  • Upto ₹ 20,00,000 for studies abroad.
  • Upto ₹ 10,00,000 for studies at IIT's, IIM's and ISB's.
  • These amounts are subjective to margin requirements as mentioned in the table above
Repayment Frequency
  • Quarterly or monthly rests.
  • Repayment in Education Loans typically starts 1 year after completing the course or six months after getting a job, whichever is earlier.
  • Loan interest re‐payment will start immediately after disbursement of the first installment of the loan.
Repayment Period
  • Tenure of an Education Loan consists of Duration of Study, Grace Period after the Study and Repayment Period.
  • For Indian courses repayment tenure is maximum of 7 years after the commencement of repayment.
  • For Abroad courses repayment tenure is maximum of 7 years after the commencement of repayment.

Federal Education Loan EMI Calculator

Federal Education Loan EMI (or equated monthly instalment) is a fixed amount of money paid by you to Federal against the loan taken. This is towards repayment of your loan to the bank. Every month, it is due on a fixed day of the month till your loan is fully paid back.

Federal Education Loan repayment calculator calculates EMI based on the loan amount you have applied for, interest charged on loan and the tenure for which you have applied. offers affordable and convenient education loans with loan EMIs as low as ₹ 14,768 per lakh for a 7 years tenure and lowest rate of interest of 10.05%.

FAQs

What is the procedure of education loan in Federal?

To borrow money for an education loan from Federal, all you need to do is visit the nearest Federal branch, fill the application form, submit the required documents. You can also apply for an education loan by visiting the official website of Federal.

Can we get an education loan without security?

To get an education loan upto ₹ 4 Lakh, you need to provide co-borrower security of your parents or husband and does not require any third-party guarantee or tangible security.

Is the property required for an education loan?

To get an education loan above ₹ 7.50 Lakh, you need to provide co-borrower security and tangible security equivalent to 100-133% of the loan amount as collateral. The tangible security is provided in the form of property, shares, fixed deposits etc.


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Federal Education Loan News - Jun 2021
  • 2021-01-06 : Federal Bank’s gross advances rise 6% YoY in Q3
    Federal Bank reported a 12% increase in total deposits which includes fixed and recurring deposits for the third quarter of the fiscal. Further the bank reported an increase of 6% rise in gross advances which includes home, personal, gold, car, two-wheeler and education loans along with business and mudra loans. CASA ratio stood at 34.48% at the end of December 31, 2020, from 33.38% as on September 30, 2020.
  • 2019-03-05 : Federal Bank extends financial support to Indian Armed Forces by launching welfare schemes
    Private sector lender, Federal Bank has announced the launch of two schemes in order to extend its support to the children of armed forces personnel. From the year 2019 -20 onwards, the children will receive a scholarship up to Rs. 1 lakh per year for pursuing higher studies abroad. The lender also has plans to provide education loans to them at a concessional rate to meet their education requirements in the near future.
*Terms and conditions apply. Credit at sole discretion of lender, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
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