Federal Bank - Special Vidya Loan
This is the education loan supported by Federal Bank. They provide the loan for the needy according to the merit. They provide support for all the technical and no technical educations available. The Bank provides a moratorium period for which the student is exempted for not paying the due amount, this is the period of the course and 1 year after the course is completed or 6 months after a job is received(whichever is prior).
During this period the student is not exempted from the interest the interest will be calculated for that period as well, the student is to pay the interest once the moratorium period is over.
The bank provides a repayment period of up to 7 years (excluding the moratorium period) for the loan taken.
The Interest rate is Floating type interest and it comes to 10.85 % - 15.25%. A floating type interest rate is an Interest calculated based on the Yield curve of the bank, so the interest rate may get reduced or increased according to the yield curve of the Bank's.
There is 5% for amount above 4 lacs as processing charge for the loan from the bank's side.
The Security for the amount taken from the bank are as follows.
- No security is needed Up to Rs 4 Lakhs.
- Rs.4 Lakhs to Rs.7.50 Lakhs – Collateral security in the form of suitable Third Party Guarantee.
- Above Rs.7.50 Lakhs – collateral security with required margin is required Single premium insurance policy on the life of the student to be taken covering the loan amount and period.