Federal Bank Home Loan

Features & Benefits of Federal Bank Home Loan

These are the key features and benefits of Federal Bank home loan online application:

• Enjoy speedy loan approval
• Get a loan for up to 85% of the project cost in as little as 30 days 
• Repayment time is up to 30 years and can be done in simple EMIs
• The financing will be secured by a mortgage on the land and the house being purchased.
• Loan sums up to Rs. 1500 lakhs with a 15–20 percent loan margin
• As little paperwork as possible
• Both residents and non-residents can apply for a house loan, including salaried, self-employed, and businesspeople.
• A 0.5 percent processing fee is levied, with a minimum of Rs. 3000 and a maximum of Rs. 7500.
• The lowest EMI per lakh to be paid is Rs. 787.

Federal Bank Home Loan Overview

Federal Bank Limited is a large private sector Indian commercial bank with more than 1250 branches and 1800 ATMs/Recyclers distributed over India. The bank was one of the first banks in India to computerise all of its branches, making it a pioneer among conventional banks in India in terms of leveraging technology to leverage its operations.

Prospective house owners can now apply for Federal Bank home loan for up to Rs.15 crore at interest rates as low as 7.65% per annum. Read on to learn more about the Federal Bank home loan scheme.

Eligibility Criteria and Factors Affecting Federal Bank Home Loan Eligibility

The Federal Bank home loan eligibility criteria is as follows:

• The interest rate on a home loan is determined by the amount borrowed from Federal Bank. The interest rate will be reduced the larger the loan amount.
• The applicant's salary is one of the criteria that will influence the amount of interest that must be paid.
• The type of loan chosen will also be taken into account, as the rate of interest for special or popular loan product offers will fluctuate.
• If the applicant is already a customer, they will be offered the best home loan rates.

Federal Bank Home Loan Fees and charges

Federal Bank Home Loan Interest Rates

Factors affecting Federal Bank Home Loan interest rates

A lot of factors determine the interest rate on Federal Bank home loans. The following are the primary elements that Federal Bank considers when determining an applicant's interest rate on a home loan.

• CIBIL/Credit Score: Any bank loan is built on the three-digit CIBIL/Credit score. A good credit score can assist you in obtaining a low-interest Federal Bank home loan, but a low credit score might result in you paying a high interest rate or having your loan application denied.
• Loan Repayment Tenure: Because a house loan is a long-term investment, it's important to talk to the officials about the interest rate. The longer the payback period is, the higher the EMI and the lower the interest rate will be. Longer repayment terms result in cheaper EMIs and higher interest rates.
• Type of Interest Rate: For a home loan, there are three types of Federal Bank home loan interest rate: variable, fixed, and blended. A variable rate of interest swings in response to changes in the policy rate set by the Reserve Bank of India. Federal Bank provides you with cheap home loans with a flexible rate.
• Loan-to-Value Ratio: The proportion of the loan given on the property is referred to as the LTV ratio. The greater the percentage, the larger the loan that the bank is willing to provide the applicant. Bank home loan interest rates will be higher due to the added risk associated with lending. You may decrease the loan amount and receive the best home loan interest rate by making a large down payment.
• Location of the Property: A home in a prime location with all of the required amenities has a greater resale value than one on the outskirts of town. As a result, banks charge lower interest rates on loans for properties with higher resale value, while charging higher interest rates on loans for homes with lower resale value.

Documents Required for Federal Bank Home Loan

The documents required for Federal Bank home loan are:

KYC Documents

Income Documents – For Resident Salaried

Income Documents – For Resident Self Employed

Income Documents- For Non-Resident Salaried

Either option 1 or option 2 is required

Either option1 or option2 is required

How the EMI calculation works for Federal Bank Home Loan?

The repayment of a home loan will be in the form of Equated Monthly Instalments (EMIs), a portion of interest and principal amount payable on the loan. When you know you are eligible for a particular amount of loan from Federal Bank, you should then look to calculate the EMIs that you will have to pay. As the name so aptly suggests, a Home Loan Calculator (also called, Home Loan EMI Calculator) helps with the electronic computation of the Equated Monthly Instalments (EMI) that applies to your home loan from Federal Bank. 

How Federal Bank compares with other lenders?