.:: Federal Bank ::.

Purpose

Higher studies in India & Abroad

Loan Amount

Rs 0.50 Lakhs to Rs 25 Lakhs

Eligibility

Students of Indian nationality who intend to join any approved Diploma / Degree / Post Graduate course in India / Abroad

Quantum of finance

Initial 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.

Period

Minimum 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)
Rates & Charges

Interest Rates

Interest rate for SB (Resident) / SB (NRE) / SB (ONR)	3.50%(Daily basis)
BASE RATE	8.50% (p.a) w.e.f 01.01.2011
BENCHMARK PRIME LENDING RATE (For loans existing as on 30.06.2010 till next renewal)	15.25% (p.a) w.e.f 15.12.2010

Repayment

Monthly / 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-obligant

Guardian

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).

Other conditions & documents required

Age 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.

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