Urban Money

Federal Bank Home Loan

Federal Bank
4.5

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.

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Urban Money

Home Loan Banks

Interest Rate

Processing Fee

Loan Amount/Tenure

Federal Bank Home Loan Interest Rate

9.05%

Up to 0.5%

₹10L - ₹1.5Cr

Tenure(1 - 30 Years)

Details

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

Types of charges Quantum of charges
Processing Fees/ Admin Fee 0.5% of sanctioned limit (Minimum: Rs 10,000, Maximum: Rs 45,000)
Prepayment/ Foreclosure Charges Individuals - NIL in case of floating rate loans. For non-individuals, Overdraft A/c and Fixed Rate loans - 3% of the balance outstanding or drawing power whichever is higher.
Penal Charges for delay in payment 2% per month of the overdue amount
Conversion Charge (switching from fixed to floating home loan or vice versa) 0.25% of the balance outstanding or drawing power whichever is higher
Interest Reset Clause Based on the linked Benchmark Rate
CERSAI Charges NIL
Documentation Charges
  • Up to 2 Lakh – NIL
  • Above 2 Lakh and up to 10 Lakh - 500
  • Above 10 Lakh and up to 30 Lakh - 1000
  • Above 30 Lakh up to 50 Lakh - 2,500
  • Above 50 Lakh to 1 Crore - 5,000
  • Above 1 Crore - 10,000

Federal Bank Home Loan Interest Rates

Loan Detail Interest rate (spread + EBR)
Home loan-salaried
Up to 30 lakh 6.90% (Repo Rate + 3.65)
Above 30 Lakh and up to 75 Lakhs 7.70% (Repo Rate+ 3.70)
Above 75 Lakh 7.75% (Repo Rate+ 3.75)
Home Loan – Self employed
Up to 30 Lakhs 7.75% (Repo Rate+ 3.75)
Above 30 Lakhs and up to 75 Lakhs 7.75% (Repo Rate + 3.75)
Above 75Lakhs 7.80% (Repo Rate + 3.80)

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

2 passport size photos each of the applicant and the co-applicant Age proof of any of the following:
Identity proof and address proof of any of the following: Passport
Passport Birth certificate
Voters ID Driving License
Driving License SSLC or AISSE Certificate
PAN Card Certified copy of Passport, Visa, Work Permit, ID Card (Applicable for NRI customers)
Aadhaar Card

Income Documents – For Resident Salaried

Latest salary certificate or salary slip for the latest 3 months Latest 6 month’s bank account statements that can be taken as evidence for the salary credits.
Copies of IT returns or Form No.16 of 2 years

Income Documents – For Resident Self Employed

Proof of business existence and business profile IT returns for 2 years
Last 12 months bank account statements

Income Documents- For Non-Resident Salaried

Either option 1 or option 2 is required

Option 1 NRE account statement with any bank for last one year.
Salary certificate
Option 2 2 years NRE account statement of customer
Income Documents- For Non-Resident Self Employed

Either option1 or option2 is required

Option 1 Proof of business existence and business profile
Last 12-month bank account statements
Balance sheet
Option 2 2 years NRE account statement of customer

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?

Lender Maximum loan amount Interest rate Processing fee
Federal bank Up to 85% of the property 6.90% - 7.80% 0.50% of loan amount (Min. Rs. 10000)
ICICI Up to 90% of property 6.75% - 7.55% 0.50% - 2% or Rs. 1,500 (Rs. 2,000 for Mumbai, Delhi & Bangalore), whichever is higher + GST
SBI Up to 90% of property cost 6.75% - 8.05% Up to 0.50% + applicable GST
Axis  Rs. 5 Crores 6.90% - 8.40% Up to 1%, minimum Rs.10,000
HDFC Up to 90% of property cost 6.75% -7.65% Up to 1.50% or Rs. 4,500 (whichever is higher) + applicable taxes

FAQs

From refinancing to reducing your interest, we have the answers right here.

Can I Take Two Home Loans at A Time?

Yes, you can have two home loans at a time, as there is no such law which barriers to servicing one loan at a time.

When Does the Loan Repayment Period Start?

Loan repayment period starts from the very next month when your loan amount gets disbursed in your loan account.

Does Federal Bank Provide Home Loan at the best rate?

Yes, Federal bank is known to provide attractive interest rates depending on the loan amount.

What is the interest rate of Home Loan in Federal Bank?

Prospective house owners can now apply for Federal Bank housing loans for up to Rs.15 crore at interest rates as low as 7.65% per annum

Does Federal Bank Checks for CIBIL Score for Home Loan?

Yes, Federal Bank takes CIBIL score into consideration to determine the best possible rate of interest for the loan applicant.

What are the KYC documents I will have to submit to apply for a home loan from Federal Bank?

Following are the Federal Bank home loan requirements:

  • Passport size photographs of the applicant and co-applicant
  • ID Proof/Address Proof: PAN, Aadhaar, Driving License, Passport, Voter ID
  • Proof of Age: Birth Certificate, Passport, Driving License, SSLC/AISSE Certificate
  • Passport copy, VISA, ID Card, Work Permit (for NRI applicants)

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