Federal Bank provides a specific loan that is aimed at providing financing for students interested in getting enrolled in courses that fall within the educational and training category. This loan features low interest rates and fast approval times.
This loan is provided exclusively to students for pursuing courses that are approved by the bank. The loan will cover the following expenses throughout the course –
In case funding is to be required for lodging purposes or other substantial grounds, the same can be also included, based on the discretion of the bank.
A specific loan meant for students, the eligibility criteria to be met in order for the institution to be able to sanction the loan include the following -
The financing modes allowed under this educational loan is a term loan.
Based on the credit-worthiness of the applicant, Federal Bank can provide loans up to a maximum of INR 20 lakhs (courses in India) and INR 25 lakhs (courses outside India).
Interest rates for this educational loan are to be linked with the base rate of the bank, and will range from Base Rate + 3.25% per annum to Base Rate + 4.90% per annum. The rates are as per November 2015.
Margin charged by Federal Bank on this loan as of November 2015 will be differential based on the security involved.
The standard list of required documents for applying for this loan are mentioned as follows –
This educational loan from Federal Bank is a secured loan and a really good financing option for students aiming to pursue any new course which would aid in employment.
The loan process involves minimal documentation and its repayment period can be a maximum of 60 months.
Through Federal Bank’s website the forms can be downloaded, filled and submitted along with relevant documents at a local branch. Additionally, one could call or mail Federal Bank requesting an executive assistance for application process.
One can also apply for Federal Bank Career Solutions through BankBazaar, wherein eligibility charts, EMI calculators and infographics can guide one through the application process.