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Embarking on a journey to study abroad is a life-changing decision that promises world-class education and global career opportunities. However, the high costs of international education can seem daunting. A Federal Bank education loan to study abroad provides a reliable and flexible solution, helping you finance tuition, living expenses, and more with ease.
This blog delves into the Federal Bank education loan to study abroad, its features, eligibility, and benefits of Federal Bank’s education loan schemes, guiding you toward making informed financial decisions for your academic aspirations.
This Blog Includes:
- Why Choose a Federal Bank Education Loan to Study Abroad?
- Eligibility Criteria for Federal Bank Education Loan Abroad
- Required Documentation for Federal Bank Overseas Education Loan
- Types of Federal Bank Loan Schemes for Studying Abroad
- Interest Rates on Federal Bank Loans for Studying Abroad
- Benefits of Federal Bank Education Loan to Study Abroad
- How to Apply for a Federal Bank Education Loan to Study Abroad
- Key Considerations Before Applying Federal Bank Education Loan
- FAQs
Why Choose a Federal Bank Education Loan to Study Abroad?
Financing international education requires a loan that balances affordability with comprehensive coverage. Federal Bank education loan to study abroad schemes, including the Special Vidya Loan and Federal Career Solutions Loan, are designed to meet the unique needs of students pursuing higher studies abroad.
The Federal Bank education loan to study abroad provides robust financial support, ensuring you can focus on your studies without worrying about funding. Here is an overview of the education loans in India to study abroad:
- Comprehensive Coverage: The expenses covered in education loan include tuition fees, hostel charges, travel expenses, and other course-related costs.
- Flexible Loan Amounts: Up to INR 20 lakhs for studies abroad, with higher limits for select cases up to INR 1 crore.
- Competitive Interest Rates: Starting at 11.95% per annum, making repayment manageable.
- No Prepayment Penalties: Allows early repayment without additional charges, saving on interest costs.
- Tax Benefits: Interest paid on the loan is eligible for tax deductions under Section 80E of the Income Tax Act, 1961.
Also Read:
- PM Vidya Lakshmi Education Loan Yojana to Study Abroad
- ICICI Bank Personal Loan: Features, Eligibility, Rates & Process
Eligibility Criteria for Federal Bank Education Loan Abroad
Understanding the eligibility requirements is the first step to securing a Federal Bank education loan to study abroad. The bank ensures that meritorious students with strong academic backgrounds can access these loans, provided they meet specific criteria.
- Citizenship: Must be an Indian national.
- Age: Typically between 18 and 45 years.
- Admission: Secured admission to a recognized international institution through an entrance test or merit-based selection process.
- Course Type: Approved professional or technical courses at M.Phil, Master’s, or Ph.D. levels; vocational or skill development courses are not eligible.
- Institution Recognition: A relevant academic authority or government body must recognize the course and institution.
Required Documentation for Federal Bank Overseas Education Loan
To streamline the education loan process, Federal Bank requires specific documents to verify eligibility and financial details. Preparing these in advance ensures a smooth application experience. Here are some documents required for education loan:
| Document Type | Details |
| Identity Proof | Passport (mandatory for abroad studies), PAN Card, Aadhaar Card, or Voter ID |
| Address Proof | Electricity bill, telephone bill, ration card, or lease agreement |
| Academic Records | Mark sheets, certificates, and scorecards of tests like the GRE, TOEFL, or IELTS |
| Admission Proof | An admission letter from the university or college |
| Financial Documents | Last six months’ bank statements and income proof of the co-applicant |
| Collateral (if applicable) | Property documents or other securities for loans above INR 7.5 lakhs |
Types of Federal Bank Loan Schemes for Studying Abroad
Federal Bank offers two primary schemes for students aspiring to study abroad: the Special Vidya Loan and the Federal Career Solutions Loan. Each scheme of Federal Bank loans to study abroad is tailored to support different academic and career goals, ensuring flexibility and accessibility. Here are the schemes:
Special Vidya Loan
The Special Vidya Loan is Federal Bank’s flagship education loan scheme, designed to support meritorious students pursuing higher education abroad. It offers comprehensive financial coverage and flexible repayment options. Here is an overview of the Special Vidya loan to study abroad:
- Loan Amount: Up to INR 20 lakhs for abroad studies, with no upper limit for select cases.
- Security Requirements:
- Up to INR 4 lakhs: No collateral or third-party guarantee required.
- INR 4 lakhs to INR 7.5 lakhs: Third-party guarantee or collateral security.
- Above INR 7.5 lakhs: Tangible collateral with 10–50% margin.
- Repayment Period: Moratorium (course duration + 1 year) followed by up to 15 years.
- Covered Expenses: Tuition, hostel fees, travel, books, and equipment.
Federal Career Solutions Loan
This scheme caters to students pursuing specialized courses, such as aviation, hospitality, or executive development programs abroad, which may not fall under traditional academic streams. Here is an overview of the Federal Career Solutions loan to study abroad:
- Loan Amount: Up to INR 1 crore, depending on the course and institution.
- Security: Similar to the Special Vidya Loan, with collateral required for higher amounts.
- Repayment Flexibility: Extended repayment tenure of up to 15 years post-moratorium.
- Focus: Supports career-oriented courses with high employability potential.
Interest Rates on Federal Bank Loans for Studying Abroad
The cost of borrowing is a critical factor when choosing an education loan to study abroad. Federal Bank offers competitive education loan Interest rates and flexible repayment terms to ease the financial burden on students. Here is an overview of interest rates and repayment terms with Federal Bank loans to study abroad:
- Interest Rates: Starting from 11.95% per annum, linked to the External Benchmark Lending Rate (EBLR).
- Moratorium Period: The moratorium period in education loans is the course duration plus one year, during which no EMIs are required.
- Repayment Tenure: Up to 15 years after the moratorium, allowing affordable monthly installments.
- Concessions: Interest subsidies are available for eligible students under schemes like Dr. Ambedkar Interest Subsidy for OBC/EBC students (for loans sanctioned before March 31, 2022).
- EMI Options: Pay via cheques, ECS, Federal Bank’s FedNet internet banking, or mobile banking.
Tip: Fly.finance provides an online education loan EMI Calculator to help you estimate monthly repayments. This tool allows you to input the loan amount, interest rate, and tenure to plan your finances effectively.
Benefits of Federal Bank Education Loan to Study Abroad
A Federal Bank education loan to study abroad offers several advantages that make it a preferred choice for financing international education. Here are some:
- Quick Approvals: Streamlined application process with online and offline options.
- No Processing Fees: For eligible students, this reduces the overall cost of borrowing.
- Comprehensive Coverage: Includes travel expenses, laptops, and study tours, ensuring all needs are met.
- Credit Building: Timely repayment helps establish a strong credit history, beneficial for future financial needs.
- Accessibility: With 1,282 branches, including 685 in semi-urban areas, Federal Bank ensures easy access for applicants.
How to Apply for a Federal Bank Education Loan to Study Abroad
Applying for a Federal Bank education loan to study abroad is straightforward, with multiple channels available to suit your convenience. Follow these steps to get started.
- Research and Compare: Evaluate loan schemes to choose the one that aligns with your needs.
- Check Eligibility: Ensure you meet the academic and financial criteria.
- Gather Documents: Collect all required documents, including academic records and proof of admission.
- Apply:
- Online: Visit the Federal Bank website or the Vidya Lakshmi Portal to submit your application.
- Offline: Visit a nearby Federal Bank branch with your documents.
- Contact Center: Call Federal Bank at 1800-425-1199 or 1800-420-1199 for assistance.
- Profile Verification: The bank will verify your documents and disburse the loan upon approval.
Tips for a Successful Federal Bank Education Loan Application
- Submit Complete Documents: Ensure all documents are self-attested and up-to-date.
- Choose a Recognized Institution: Loans are approved only for accredited universities.
- Plan Finances Early: Apply well in advance to avoid delays in fee payments.
- Consult a Financial Officer: Seek guidance from Federal Bank or trusted partners like WeMakeScholars for a hassle-free process.
Also Read
- NBFCs Giving Education Loan Without Collateral: A Comprehensive Guide
- Top Ways to Fix Common Education Loan Rejection Reasons
Key Considerations Before Applying Federal Bank Education Loan
Before committing to a Federal Bank education loan to study abroad, consider these factors to make an informed decision.
- Total Loan Cost: Factor in interest rates and repayment tenure to estimate the total repayment amount.
- Collateral Requirements: For loans above INR 7.5 lakhs, ensure you have suitable assets for security.
- Course Employability: Choose courses with strong job prospects to ensure repayment capacity.
- Scholarship Opportunities: Scholarships can reduce the loan amount, acting as a margin per RBI guidelines.
Federal Bank’s education loan to study abroad is a powerful tool to turn your international education dreams into reality. With flexible schemes like the Special Vidya Loan and Federal Career Solutions Loan, competitive interest rates, and comprehensive coverage, Federal Bank supports your academic journey without financial stress.
FAQs
The Federal Bank education loan abroad covers tuition fees, hostel charges, travel expenses, books, equipment, and other course-related costs like study tours and laptops, ensuring comprehensive financial support for your international education.
Federal Bank offers up to INR 20 lakhs under the Special Vidya Loan for studying abroad, with higher limits (up to INR 1 crore) available under the Federal Career Solutions Loan for select courses and institutions, subject to eligibility and collateral.
Interest rates for Federal Bank education loans to study abroad start at 11.95% per annum, linked to the External Benchmark Lending Rate (EBLR). Rates may vary based on loan amount, collateral, and scheme, with concessions for eligible categories.
Collateral is not required for Federal Bank education loan abroad up to INR 4 lakhs. For loans between INR 4 lakhs and INR 7.5 lakhs, a third-party guarantee or collateral is needed, while loans above INR 7.5 lakhs require tangible collateral with a 10–50% margin.
For a Federal Bank education loan to study abroad, you can apply online via the Bank’s website or the Vidya Lakshmi Portal, or offline at any of the Bank’s 1,282 branches. Submit documents like admission proof, academic records, and identity proof for quick processing.
The repayment period for Federal Bank education loan includes a moratorium (course duration plus one year) followed by up to 15 years for EMI payments, offering flexibility to manage repayments post-education.
Yes, interest paid on the Federal Bank education loan is eligible for tax deductions under Section 80E of the Income Tax Act, 1961, with no upper limit on the deduction amount for up to 8 years.
A co-applicant (parent, guardian, or spouse) is generally required for Federal Bank education loans above INR 4 lakhs to ensure repayment security, though exceptions may apply for smaller amounts based on the bank’s discretion.
Yes, eligible students from OBC/EBC categories can avail of interest subsidies under schemes like the Dr. Ambedkar Interest Subsidy Scheme, subject to conditions.
The Federal Bank overseas education loan supports recognized professional and technical courses at M.Phil, Master’s, or Ph.D. levels offered by accredited international institutions. Vocational or skill development courses are typically not eligible.
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