Federal Bank Education Loan

Planning to study abroad? Federal Bank education loans offer up to ₹1 Crore to ambitious students at affordable interest rates starting from 11.95%. From flexible loan schemes and EMI calculation to documents, processing fees, insurance, and repayment policies, we guide you through everything you need. Discover the benefits of applying via WeMakeScholars and make your overseas education journey smooth and hassle-free.

Quality education is paramount; therefore, Federal Bank supports all students by providing them with student loans through the following education loan products of Federal Bank:

Federal Bank Education Loan Schemes for Abroad Studies

• Special Vidya Loan
• Federal Career Solution loan

The tables below outline the details of two education loan schemes offered by the Federal Bank for abroad studies: the Federal Career Solution Loan and the Special Vidya Loan. These loans are intended for students who wish to study abroad for higher education, and they entail rules and regulations concerning the loan limit, expenses that are covered, co-applicant criteria, interest rate, grace period, repayment period, and guidelines. 

Federal Career Solution loan

Students can apply to take loans for their higher education in any course abroad, except for vocational training and skill development.

Special Vidya Loan

The education loan processing fees for Federal Bank are around 1-2% of the sanctioned loan amount. However, for non-collateral loans up to Rs 20 lacs under the Fed Scholarship scheme, there is no processing fee.

WeMakeScholars, being a government-funded initiative, offers all its premium loan sanctioning services totally free of cost. Get in touch with us to start your education loan application process by requesting a callback or filling up a common application form.

The requirement of documents may differ for each scheme, but here we have provided a list of general documents required for the Federal Bank education loan:

Section 1: Application form 

Student loan application form (hardcopy) filled out on the WeMakeScholars website with 2 passport-size photographs

Section 2: Basic documents for Applicant (student) and co-applicant and/or Guarantor

• Identity proof – Passport of the applicant (if going abroad), PAN Card 
• 6 months' latest bank statement of personal and salary account of the applicant, showing salary crediting or if self-employed, 1 year's business transactions
• At least 2 proof of address – Electricity Bill/ Passport/ Ration card/ Bank account statement/ Voter ID Card/ Telephone Bill/ Aadhar card. 
• Personal asset and liability statement (approved by the bank professional)

All the documents should be self-attested.

Section 3: Applicant Academic Documents

• Certificates and study marksheets- 10th, 12th, Degree
• Proof of admission in the course (mentioning the total duration of the course)
• Scorecard of the entrance examination
• The fee structure given by the college or university’s side

Section 4: Co-applicant Income documents

• If Salaried
  • ID card of the company
  • Last 2 years from 16 
  • Last 3 months’ salary slip
  • ITR of last 2 yrs
• If Self-employed
  • Address proof of  business
  • Last 3 years' balance sheet
  • Profit & Loss account of last 3 years (only if self-employed)
  • ITR of last 3 yrs

Section 5: Other Documents

• A letter mentioning other expenses, apart from those covered in loan expenses, will be borne by the co-applicant as per the format provided by your financial officer at WeMakeScholars
• Notarised joint affidavit with the student and co-applicant in the bank’s standard form. Format to be provided by WeMakeScholars Financial Officer

Section 6: Additional docs (if applicable)

• All loan account statements of 1 year, if any pending loans.
• Certificate of gap if the student has had a failure or break in studies on Rs. 100 stamp paper. (Format to be provided by WeMakeScholars Financial Officer)
  Receipts of payments made previously, if any.

You can take a leap ahead of others by uploading your documents on the WeMakeScholars documents portal as per the documents checklist provided by your financial officer, request a callback or fill the common application form to get your specially customised documents checklist.

Federal Bank offers the facility to students to opt for education loan insurance by paying 1-2% of the loan amount as insurance premium. The education loan insurance safeguards the parents or co-applicants in case of any mishap with the applicant, resulting in their inability to pay. 

However, it is not a requirement to acquire education loan insurance. But if you want to keep your dependents safe while you are pursuing your higher education. Talk to your financial officer at WeMakeScholars to get more insights about your education loan insurance.

The loan margin percentage varies depending on the loan product; the loan margin percentages for education loans from Federal Bank are shown below:

Many times, students find it difficult to arrange funds for their loan margin. In that case, they should process their education loan with WeMakeScholars, as we can help them reduce their loan margin and make it affordable for them to process their education loan.

The application process to take an education loan from the Federal Bank is:

Step 1: Reach out to WeMakeScholars by requesting a callback or filling out a common application form

Step 2: Give all your education loan details to your assigned  financial officer over a call

Your financial officer will analyse your loan profile and suggest the best lenders to get your loan sanctioned.

Step 3: As per your eligibility and bank policies, choose your lender and tell your financial officer.

Step 4: Submit all your documents to the bank, or upload them on the WeMakeScholars documents portal according to the document checklist given by your financial officer.

Step 5: Sit back and relax, your financial officer will take care of everything else. If required, take follow-ups from them from time to time.

Step 6: Within 1 week, collect your loan sanction letter from private banks or NBFCs and within 15-20 days from the government bank.

The application process is not as simple as it looks if you go directly to the banks to get your education loan sanctioned. The following is the list of issues if you go directly to the banks:

• No clear idea about the eligibility for an education loan
• Lack of proper customer service
• No particular list of required documents
• Unavailability of correct information
• Issues in legal and valuation reports
• Lots and lots of documentation
• Multiple visits to the banks are delaying the process

To fast-track your education loan process, visit WeMakeScholars and apply online for an education loan. Here are the benefits of processing your education loan via WeMakeScholars:

• Minimal Processing time - Your education loan will be sanctioned within 15-20 days from a public bank and within 7 days from any public bank or NBFCs, after your documents are submitted.
• Digitised application process - Capitalising on the power of digitalisation, you can apply for your education loan from the best lender and even complete the entire process online.
• Expert guidance - With years of experience, we hold expertise in guiding students to get their education loan sanctioned, as we process 1000’s of loan files every day. 
• Negotiation support - Our financial officers, if required, will negotiate on your behalf with the lender's team in terms of interest rates and bank policies. 
• Consistent availability - Your financial officer will be available from 9 AM to 9 PM on all working days to help you out at every step of the process, till your loan is sanctioned, disbursed and repaid to the banks.
• Cashback offer - When processing an education loan with WeMakeScholars, you can get up to Rs 3,000 as a cashback at the time of your disbursement from us. 
• Tax benefits - We make sure you save your taxable income by informing you about the tax benefit schemes under Section 80E, Section 80C of the Income Tax Department.

We are the leading education loan processing partner and have helped thousands of students in getting their education loans sanctioned within their deadline. Request a callback, or fill out a common application form, which will connect you to 10+ public and private banks in India, so that you can compare and get the best education loan deal.

Students opt to transfer their education loan to federal bank due to the following reasons:

• Easy repayment policies
• Cheaper rate of interest
• Wider coverage of education loan scheme
• Good serviceability and customer service
• Great accessibility
• Student-friendly loan conditions
• Easy bank policies

But how to transfer an existing education loan to Federal bank?

To transfer your existing loan from another bank to Federal Bank, you need to follow the steps listed below in order; 

• Collect proof of the pending loan amount from your present lender. 
• Contact WeMakeScholars by asking for a callback, stating that you wish to transfer your loan.
• Submit your documents to the Federal Bank as instructed by your Financial Officer.

Once your loan transfer is approved, the Federal Bank will pay the outstanding balance of your loan to your previous lender. And the same amount will be sanctioned by the Federal Bank as your new education loan.

The education loan EMI amount in Federal Bank depends on the following factors:

• Rate of interest
• Type of interest rate, simple or compound
• Repayment duration
• Loan amount
• Moratorium period
• Loan Amount Paid off by Semester 

To get the exact calculation of your loan EMI amount, use the WeMakeScholars education loan EMI calculator, it is highly recommended because of:

• 100% accuracy - It has been specially designed, giving attention to details so that you always get highly accurate results.
• Strategic advantage - After getting the calculation results, you can decide upon your strategy to choose the other parameters of your education loan
• Detailed explanation - The results of the calculation are detailed and explain the entire flow of funds after each EMI installment.
• Free of cost - This education loan EMI calculator is free of cost for students, just like the other services offered by WeMakeScholars.

A Federal Bank education loan is an ideal solution for students aiming to study abroad, offering loans up to ₹1 Crore at affordable interest rates starting from 11.95%. With flexible schemes, easy EMI calculation, and clear repayment policies, along with guidance on eligibility, documents, and applying via WeMakeScholars, students can finance their higher education goals confidently. Take the first step today and secure your future with Federal Bank.