Federal Bank Education Loan: Interest Rates, Eligibility, Application Process & More

Federal Bank’s education loans are built for this very purpose, offering support to students aiming for degrees both in India and abroad. 

In the sections that follow, we’ll cover Federal Bank’s range of education loans, their interest rates, eligibility criteria, and the loan amounts you can expect based on your course and institution. 

We’ll also guide you through practical tools like the EMI calculator so you can plan your repayments effectively and avoid financial strain post-graduation.

Federal Bank education loan interest rates

Federal Bank offers several education loan products for students who want to study both in India and abroad. However, the interest rates vary based on the loan amount, course, and location of study. 

Here’s a breakdown of the rates and the specific factors that influence them:

Special Vidya Loan

Targeted for students pursuing education abroad, the interest rate on these education loans starts at around 11.95%, which is competitive for international education loans. It also provides a moratorium period covering the course duration plus one year, during which interest accrues but repayment is deferred.

Fed Scholars Loan

For students studying in premier institutions within India, this scheme offers loans with favorable terms, including a starting interest rate of approximately 11.95%. It covers tuition, living expenses, and other essential study-related costs.

Career Solutions Loan

This scheme aids in skill-building for professional growth, an option worth considering if career advancement is your goal. The interest rate is variable, depending on the course and your profile.

Our next step is to see how Federal Bank’s loan schemes compare, helping you identify the one that works best with your education goals.

Also Read: Education loan for Study Abroad Guide for Students

Compare Federal Bank education loan schemes for students

Below is a detailed comparison of their primary education loan schemes, focusing on purpose, loan limits, interest rates, and other key features.

Comparing Federal Bank’s education loan schemes gives you a solid overview of what they offer. But here’s the thing—it’s just as crucial to compare different banks to get the best deal possible. That can quickly get overwhelming. Most students don’t have the time or resources to research the entire market thoroughly.

This is where FundRight (by GradRight) steps in. FundRight lets you skip the stress and find the right loan in one place. By connecting you with offers from over 15 trusted banks and NBFCs, FundRight makes sure you don’t miss a better deal elsewhere.

Here’s how it works in just five simple steps:

1. Register on FundRight to get started.
2. Unlock 15 loan offers from multiple lenders instantly.
3. Upload your documents securely.
4. Work with a Financial Advisor to customize the perfect loan offer for your needs.
5. Get your loan disbursed without hassle, in as little as 10 days.

With perks like no paperwork, app-based service, and options for no-cosigner loans, you can breathe easier knowing you’ve got the best fit for your needs.

Now, let’s look at the eligibility criteria for each loan type to ensure you meet the requirements.

Also Read: How to Get an Education Loan without Parental Support?

Eligibility Criteria for various Fed Loans

Here’s an overview of the eligibility requirements for the primary Federal Bank education loan schemes:

Special Vidya Loan

• Applicants must be Indian citizens.
• Admission to a recognized professional or technical course is required. 
• The course and institution must be approved by a recognized government or educational body.
• No collateral is required for loans up to ₹4 lakh. For higher loan amounts, either collateral or a third-party guarantee may be necessary.
• Vocational or short-term courses generally do not qualify under this loan scheme​.

Fed Scholars Loan

• Similar to the Special Vidya Loan, the applicant must be an Indian citizen. 
• The candidate must have secured admission to recognized premier institutions. Admission through management quota is typically not covered under this loan.
• Up to ₹20 lakh can be borrowed without collateral.
• Eligible students may also benefit from subsidies and interest concessions.

Career Solutions Loan

• Designed for Indian citizens between 18 and 45 years old. 
• Proof of admission to the chosen course or program is required.
• The applicant’s (or co-applicants) net worth should generally be at least double the loan amount. 
• For applicants with guardians or co-signers above 60 years old, an additional guarantor may be required.
• Collateral terms are flexible but often required depending on the applicant’s profile and loan amount.

Once you’ve confirmed eligibility, the next step is to calculate your monthly payments.

Federal Bank education loan EMI calculator

The Federal Bank education loan EMI calculator is a practical tool that helps you understand and plan your monthly EMI commitments for your education loan. 

Here’s how it works:

The calculator provides a full view of what your financial commitment will look like each month. This breakdown helps you evaluate if the loan fits within your financial plans, which is especially valuable if you have other ongoing financial commitments or are planning for potential career changes after graduation.

The EMI calculator gives you two key insights:

• An amortization breakdown tells you how each EMI payment is split between paying down the principal and covering interest.

• The total repayment amount is the total cost of the loan over the entire tenure, showing clearly how interest adds up over time.

For a detailed walkthrough, visit Federal Bank’s official website or consult with a representative at your nearest branch.

How to apply for a Federal Bank education loan? 

To apply for a Federal Bank education loan, follow these steps:

• Apply either online through the Federal Bank website, the Vidya Lakshmi Portal, or by visiting a local branch.
• Gather all required documents like ID proof, Aadhaar card, PAN, etc. 
• If your loan amount is above certain limits, you must have ready collateral documentation or a co-applicant’s financial proof, too.
• For online applications, use the Federal Bank EMI Calculator to plan your repayments.
• The bank will review your application, and if approved, the loan funds will be sent directly to the institution as required​.

In the next section, we’ve listed all the necessary documentation for a smooth review process.

Also Read: How Can Indian Student Get A U.S. Education Loan?

Documents required for Federal Bank education loan

Here’s a simplified list of the documents you’ll need for a Federal Bank education loan:

• Proof of identity such as passport, voter ID, driver’s license, or PAN card
• Proof of address like a recent utility bill, lease agreement, or bank statement
• Academic records with self-attested copies of previous mark sheets and certificates
• Admission letter 
• Course fee details, including the official breakdown of tuition and other expenses
• Financial proof for co-applicants, such as income proof, recent ITR, and bank statements
• Collateral documents, if applicable
• Passport-sized photographs

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