Federal Bank has entered into an arrangement with Kotak Life Insurance to launch ‘Vidya Suraksha’, for providing insurance cover to the lives of students availing of educational loans. This product will give insurance protection to the extent of loan liability of a student in the unfortunate event of the death of the student. To add convenience to the students, the product is offered as a single premium policy wherein the premium will be funded by the bank. The insurance backing for the loans adds to the comfort level of both the borrower and the bank and make Vidya Loan a viable proposition. The bank is presently extending educational loans to all deserving students. It has recently introduced a special loan product called Fed Scholar for exceptionally meritorious students aspiring to facilitate them pursue higher education at reputed institutes like IIMs, ISBs and IITs with lower interest rate and other attractions.
