Federal Career Solutions Loan

About the Federal Career Solutions Loan

The Federal Career Solutions Loan is designed to help you pursue specialised programmes such as pilot training, hospitality, travel management, and executive development. Whether enrolling in a diploma or degree course in India or abroad, this education loan supports a wide range of career-focused studies. It covers essential academic expenses, offering financial assistance tailored to your chosen field.

Federal Career Solutions Loan Rate of Interest

The interest rate for the Federal Career Solutions Loan depends on whether you choose a floating or fixed option. 

• Floating Interest Rate: 11.75% onwards

• Fixed Interest Rate: 15.00%

Note: The rates are updated as per Federal Bank’s latest terms as of 17 June 2025. These may change based on RBI Repo Rate movements or updates to the bank’s lending policies.

Features of the Federal Career Solutions Loan Scheme

Below are the main features of the Federal Career Solutions Loan Scheme, outlining important details and benefits related to the loan:

• Tax Benefits: Interest paid on the loan qualifies for tax deductions under Section 80E.

• Flexible Repayment: You can repay the loan in easy EMIs through cheques, standing instructions, internet banking, ECS, or mobile banking.

• Child Education Plan Support: The loan scheme will assist in the child education plan to ease your child's education costs.

• Quick Processing: The loan application is processed quickly with minimal paperwork required. You can apply for the loan through any one of the following methods:

  • Phone Application: Call the Federal Bank contact centre executives.

  • Branch Visit: Visit the nearest Federal Bank branch.

  • Online Application: Apply through the PM-Vidyalakshmi Portal and contact the branch using your Application ID.

Investment

Secure

Secure your child’s future with or without you

Start Investing

₹10,000/Month

& Get

₹1 Crore^*

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*Standard T & C Apply

Eligibility for the Federal Career Solutions Loan

The following criteria must be met to apply for the Federal Career Solutions Loan:

• Citizenship: Applicant must be an Indian citizen.

• Admission Proof: Valid proof of admission to the course or programme is required.

• Age Limit: Applicant’s age should be between 18 and 45 years.

• Net Worth Requirement: Combined net worth (including co-obligants) must be at least twice the loan amount.

• Guardian’s Age Limit: The Guardian must be below 60 years old during the loan term; if above, an eligible guarantor is required.

Documents Required for the Federal Career Solutions Loan

Here are the documents needed to apply for the loan:

• Identity Proof: Passport, Voter ID, PAN Card, or Driving Licence

• Address Proof: Ration Card, Utility Bill, Lease Agreement, Passport, Trade Licence, or Sales Tax Certificate

• Photographs: Recent passport-sized photos of the applicant and the guardian

• Education Records: Marksheet of the qualifying examination

• Income Proof: Financial documents of the guardian

• Course Expenses: Detailed breakdown of admissible course-related costs

• Admission Proof: Evidence of confirmed admission to the selected course

Most Important Terms and Conditions

Here are the key terms and conditions of the Federal Career Solutions Loan:

• Interest Payment: Interest must be paid during the study period and the moratorium.

• Quantum of Finance: The loan covers up to 75% of the total estimated cost of the course.

• Repayment Tenure: The loan balance is repaid in EMIs over a maximum of 10 years.

• Child Investment Support: The loan aligns with structured child education and child investment plans.

• Discontinuation Clause: The loan must be repaid if the course is discontinued.

• Course Incompletion: Repayment is required even if the course is not completed.

• Security: Acceptable securities include gold, LIC policies, NSC, or property with required margins.

• Tax Estimation: Use an income tax calculator to assess potential tax savings on interest paid.