The history of Federal Bank dates back to the pre-independence era. Though initially it was known as the Travancore Federal Bank, it gradually transformed into a full-fledged bank under the able leadership of its Founder, Mr. K P Hormis. The name Federal Bank Limited was officially announced in the year 1947 with its headquarters nestled on the banks of the river Periyar. Since then there has been no looking back and the bank has become one of the strongest and most stable banks in the country.

Key features

  • Speedy loan approval
  • Loan can be availed for higher studies in India & Abroad excluding vocational training & skill development study courses.
  • Loan amount up to Rs.10 Lakhs for studies in India and Rs.20 Lakhs abroad
  • No security is needed Up to Rs 4 Lakhs.
  • Minimal paperwork
  • No repayment during Moratorium period
  • Repayment can be made in easy EMIs

With Special Vidya Loan, Meritorious students are provided with an opportunity to pursue education with the financial support from the bank.

Documents Recuired:

  • Proof of Identity (Passport / Voters ID card/ Driving License/PAN Card)
  • Address Proof (Ration card Tel/ Electricity Bill/ Lease agreement/ Passport/Trade license /Sales Tax certificate)
  • Offer letter / Admission letter
  • Basic Qualification & mark-list
  • Proof of Fees structure

Terms & Conditions

Quantum of Finance:

Quantum of finance is subject to repaying capacity of the parents / students.

Satisfactory performance of the student necessary for continued disbursal.

 Items covered under loan:

  • Fee payable to College / School, Hostel, Tuition, Examination, Library, Lab
  • Cost of books, equipments, instruments, Uniform, Travel expenses, Computer (if essential for the course)
  • Expenses for study tours / project work / thesis etc
  • Caution deposit, Amount payable towards building fund, refundable deposit etc supported by bills / receipts but cannot exceed 10% of the tuition fee.


  • Up to Rs 4.00 L No Margin is applicable.
  • For studies in India above Rs 4 Lakhs – 5%
  • For Studies Abroad above Rs 4 Lakhs – 15%

Loan Period:

Moratorium period + 5 to 7 years.

(Moratorium period  will be period of the course + one year / 6 months after getting job, whichever is earlier)

Co-obligants: Documents should be executed by the student and parent / guardian as joint borrowers


  • No security is needed Up to Rs 4 Lakhs.
  • Third party guarantee acceptable to bank / collateral security for loans up to 7.50 Lakhs.
  • Above Rs 7.50 Lakhs, collateral security with stipulated margin is required- Single premium insurance policy on the life of the student to be taken covering the loan amount and period.

Repayment options

Repayment of the loan is made as Equated Monthly Installments (EMI).

You can use any one of the ways to repay the loan:

  • Cheques
  • Standing instructions at your branch
  • FedNet – Internet Banking
  • Automated Payment through ECS
  • Mobile Banking

Interest Rates & Charges

Please visit the Interest Rates page for details.

During moratorium period only simple interest will be charged.

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