Federal Bank student loans were launched to provide financial assistance to meritorious students with good academic records and who are willing to pursue their higher education. The bank offers two types of loans namely Federal Vidya Loan and Federal Special Vidya Loan.

Federal Bank Limited founded by Kulangara Paulo Hormis, started its operations with an authorized capital of Rs. 5000.

Student Loans – Eligibility

Candidates applying for Federal Bank student loan should be Indian nationals. Applicants will be considered eligible only if they get admission to different professional or technical courses through merit based selection process or entrance examination.

There are different undergraduate and postgraduate courses which are eligible for Federal Bank student loan. The courses should be provided by reputed institutions affiliated to recognised universities and government statutory bodies.

Federal Vidya Loan-The maximum education loan provided under this scheme is Rs.25 lakhs. Federal Special Vidya Loan-The maximum education loan offered is Rs.7.5 lakhs (Studies in India) and Rs.15 lakhs for studying abroad respectively.

Federal Vidya Loan-Eleven years is the maximum time period given for the repayment of loan. Federal Special Vidya Loan-Five to seven years of time is given to the candidates for paying back the loan.

Federal Bank charges different kinds of securities for issuing student loans. Federal Vidya Loan-Co-obligant or collateral security is mandatory for the bank to issue the education loan.