Federal Bank FED Scholars Education Loan

Federal Bank FED Scholar Education Loan

This Federal Bank study loan helps students finance their education and realise their dreams of pursuing higher education at a prestigious institute in the country. The bank offers collateral-free loans of up to Rs. 20 lakh under this loan scheme.

Features of Federal Bank FED Scholar Education Loan

Why this Loan?

  • The loan is designed to help students who have secured admission into a higher education course in a Premier Institute in India through Entrance Test or Merit-based Selection Process
  • This loan is disbursed as a series of payments over the required number of years and not as a lump sum
  • The Federal Bank FED Scholar Education Loan can be taken for all expenses directly related to the course including for fees, purchase of books, laptops, hostel fees, lab fees, examination fees, etc.

Loan Amount

  • The bank offers unsecured loan of up to Rs. 20 lakh


  • The interest rate for this loan starts from 8.10%. The effective rate of interest on this education loan from Federal Bank has not been mentioned on the bank’s website. Please get in touch with the bank for details
  • The moratorium period for this loan scheme is course period plus 12 months after the completion of the course


  • The loan amount for each year is repayable in equated monthly instalments up to a period of 15 years after the end of the moratorium period
  • The interest accrued during the loan moratorium period is added to the principal to calculate EMIs for repayment

Security Needed

  • This is an unsecured loan. Parent, Guardian, Spouse or Parent-in-law must be co-obligators


  • The applicant must be a resident Indian national (Indian citizens who have stayed in the country for over 180 days in the last financial year)
  • The student must have secured admission in a higher studies programme at a premier educational institute in India
  • Students who have secured admission in Management Quota are not eligible

Eligible Courses

  • Premier institutes that offer management, medicine, engineering, science and technology courses. These include courses from institutes such as AIIMS, AFMC, IIMs, ISBs, IITs, IISc, XLRIs, etc.
  • Federal Bank lists 50 institutes for which students can take this loan

Margin Money (Borrower Contribution to the Total Cost)

  • Loans up to Rs. 10 lakh: The borrower does not have to offer any margin money to get the loan
  • Loans above Rs. 10 lakh: The borrower must offer 5% of the loan amount as margin money to get the loan

Note: Margin money refers to the amount the borrower contributes to the overall amount required. Suppose a course costs Rs. 40 lakh in which case the borrower has to provide a margin of Rs. 2 lakh (5% of Rs. 40 lakh) while Federal Bank offers the rest.

Processing and Other Charges

  • The bank does not charge processing fee for this loan

Uses of the Loan

  • Admission acceptance fee, tuition fees, exam fees, library fees, laboratory fees
  • Hostel or mess charges and living expenses
  • Cost of books and of equipment such as desktop or laptop, uniforms, etc.
  • Caution deposit or any other refundable deposit
  • Insurance premium
  • Other expenses such as expense for student exchange programme, project work, thesis, etc.

Other Features to Know

  • The bank may ask for the student’s progress report to be submitted with the bank at regular intervals since the satisfactory performance of the student is necessary for continued disbursal of the education loan
  • The loan is disbursed directly to the school, book seller or publisher, computer seller, and so on and not to the applicant(s)

Documents Needed

  • Application Form duly filled and signed by applicant and/or guarantor along with details of applicant and/or guarantor and family
  • Two Passport Size Photographs of student, applicant and/or guarantor
  • Photocopy of PAN Card of the student that needs to be submitted at the time of application or during the course period
  • Personal Identification Proofs (Any One): Electoral I-Card, Passport, Driving License, PAN Card or Aadhaar Card
  • Residential Address Proof (Any One): Electricity Bill, Landline Telephone Bill, Electoral or Voter ID Card or Passport
  • Admission Letter, Course Details and Prospectus as proof of admission
  • Fee Details with Demand of Fee by the Institution
  • All Proofs of Past Academic Record including Mark Sheets and Certificates
  • For the co-borrower, documents as age, ID, signature, address, employment/business/income proofs are required

Reference Facts

  • Federal Bank Website: www.federalbank.co.in
  • Headquarters: Kochi, Kerala
  • Call Centre Toll-Free Number: 1860 267 6161