Federal Bank Education Loan Details
Rules and Regulations
PurposeHigher studies in India & Abroad
Loan AmountRs 0.50 Lakhs to Rs 25 Lakhs
EligibilityStudents of Indian nationality who intend to join any approved Diploma / Degree / Post Graduate course in India / Abroad
Quantum of financeInitial expenses like admission fee, entrance fee caution deposit, security deposit etc recurring expenses like tuition fee, exam fee, special fee, hostel fee, cost of books, uniform, etc
Margin For Courses in India no margin is required and for foreign studies 10 % margin is applicable.
PeriodMinimum loan period - 3 years (course time + repayment period)
Maximum loan period - 11 years (course time maximum of 6 years + repayment period maximum of 5 years)
Maximum loan period - 11 years (course time maximum of 6 years + repayment period maximum of 5 years)
Rates & Charges
| BENCHMARK PRIME LENDING RATE | 14.25% (p.a) |
| Maximum Spread | 3.00% |
| Interest applicable for loans upto Rs.2 Lakh (maximum) | 14.25% (p.a) (BPLR) |
| Interest applicable for loans above Rs.2 Lakh (maximum) | 17.25% (p.a) * |
RepaymentMonthly / periodical interest during the holiday period to be serviced and Balance at the end of the course to be repaid in equal monthly installments. And repayment should begin when the student secures employment or within 12 months after the completion of the course, whichever is earlier.
Co-obligantGuardian
Security
Up to Rs1 Lakh - Personal guarantee of two persons with Basic Pay Rs 5000/- or annual declared income Rs 1.25 Lakh
Above Rs 1 Lakh - Collateral security is needed (if immovable property 200% of the limit is required).
Up to Rs1 Lakh - Personal guarantee of two persons with Basic Pay Rs 5000/- or annual declared income Rs 1.25 Lakh
Above Rs 1 Lakh - Collateral security is needed (if immovable property 200% of the limit is required).
Other conditions & documents requiredAge 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.
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.
Federal Bank Contact Details:-
Contact Number : 44 28512561, 28594640, 28549280, 28419496, 28214221
WebLink : www.federalbank.co.in
