Fed Scholars

About Fed Scholars Education Loan

Fed Scholars is a specialised education loan designed for Indian students who have secured admission in recognised professional or technical courses. It supports both domestic and overseas studies by covering tuition, hostel fees, exam charges, learning materials, and travel. Admission must be secured through a merit-based or entrance exam process.

This scheme aligns with long-term financial goals and aids parents in creating a structured child investment plan. Additionally, borrowers benefit from child education allowance options, offering a strategic edge for smart financial planning.

Fed Scholars Interest Rates

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

• Floating Rate: Starts from 11.75% onwards

• Fixed Rate: Starts from 15.00%

Note: The rates are updated as per Federal Bank’s latest terms as of 16 June 2025. These may change based on RBI Repo Rate movements or updates to the bank’s lending policies.

Features of the Fed Scholars Loan 

Here are the standout features of the Fed Scholars that make it an ideal option for students or parents planning for child education:

• Flexible Repayment: No repayment during the moratorium period (course duration +1 year). The total repayment period extends up to 15 years.

• No Processing Fee: You pay zero fees while applying, making it more affordable and accessible for families.

• Subsidy Benefits: Interest subsidy schemes are available for eligible students under government initiatives.

• Child Education Allowance: Complements other educational benefits and supports structured child investment strategies.

• Reimbursement Facility: Expenses already incurred during the current academic year can be reimbursed, provided valid documentary evidence is submitted.

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 Fed Scholars 

To apply under the Fed Scholars scheme, students must meet these criteria:

• Citizenship Requirement: Indian Citizenship is mandatory.

• Admission Criteria: Course Admission must be merit-based or through entrance tests.

• Recognised Institutions: Courses should be from approved or recognised institutions.

• Certified Courses: Degree/diploma must be issued by a recognised statutory body or university.

Documents Required for Fed Scholars

Applicants must submit the following essential documents to apply for the Fed Scholars education loan:

• Proof of Identity: Passport, Voter ID card, Driving License, or PAN Card.

• Address Proof: Ration card, telephone or electricity bill, lease/rent agreement, passport, trade license, or sales tax registration certificate.

• Admission Letter: Offer letter or confirmation of admission from the college or university.

• Academic Records: Basic qualification certificates and mark sheets of previous education.

• Fee Structure: Proof of tuition fees and other charges as issued by the educational institution.

Most Important Terms and Conditions

Before applying, it's essential to understand the core guidelines that govern the Fed Scholars Loan. Here's a breakdown of the most essential terms you should know:

• Eligible Courses & Institutions: A loan is available for deserving students pursuing regular courses at approved institutions like AIIMS, IITs, IIMs, NLUs, and reputed engineering or business schools in India.

• Margin Requirement: The margin requirement is nil for loans up to ₹10 lakhs, and 5% applies only to loan amounts exceeding ₹10 lakhs.

• Co-Obligants Requirement: A spouse, parent, parent-in-law, guardian, or close relative must co-sign the loan documents as a joint borrower or guarantor. This ensures shared repayment responsibility and increases the chances of loan approval.

• Security Requirement: No collateral or third-party guarantee is required; the loan is offered without any security. This makes it easier for students from all financial backgrounds to access higher education funding.