Federal Bank Home Loan

Federal Bank
4.5

Federal Bank Home Loan for an amount between Rs 10 lacs to Rs 75 lacs is available for both self-employed and salaried individuals. Federal Bank has flexible eligibility criteria to make it more accessible for applicants. Moreover, the bank requires minimal documentation like proof of identification, such as a driver’s license or PAN card. You can attain up to 85% of the project value as home loan financing to make your dream home a reality.

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Federal Bank

Federal Bank Home Loan

  • Interest Rate

    8.8% - 10.25%

  • Loan Amount

    ₹15L

  • EMI Per Lakh

    ₹2,066 - ₹2,137

  • Processing Fees

    Up to 3% of loan amount
  • Pre-Payment Charges

    • Floating Rate Scheme- NIL
    • Fixed Rate Scheme (including Byom Loans)- 3%

Features & Benefits of Federal Bank Home Loan

Federal Bank's Home Loan offers several features and benefits; do keep in mind that specific details may change over time. Here are some potential features and benefits of Federal Bank Home Loans:

Features of Federal Bank Home Loan

  • Interest Rates: Federal Bank generally offers competitive interest rates with home loans, which makes them more affordable for borrowers.
  • Repayment Flexibility: Borrowers may find the flexibility to choose between fixed and floating interest rate options. They can also choose from different loan tenures, whatever suits their financial needs.
  • Quick Approval: Federal Bank always considers providing a quick and hassle-free loan approval process to borrowers so that they can achieve their dream home goal sooner.
  • Balance Transfer: You can transfer your existing home loan to Federal Bank for potentially lower interest rates and better terms. These new terms and interest rates can turn out to be beneficial for you in the long run.
  • Online Access: Federal Bank provides access to online banking services for the convenience of customers in their loan account management, including EMI payments and loan statement generation.
  • Loan Amount: Depending on the eligibility, an individual can borrow a satisfactory amount to purchase a property, which can benefit future investments.

Benefits of Federal Bank Home Loan

  • Home Ownership: Federal Bank Home Loan helps you realise your dream of owning a home by providing the necessary financial support in the form of a home loan.
  • Tax Benefits: You may be eligible for tax benefits of the Income Tax Act for the interest and principal repayment of your home loan.
  • Property Insurance: Some home loan packages may include property insurance coverage, offering protection for your investment.
  • Balance Transfer Savings: If you're transferring your existing home loan to Federal Bank, you may save money through reduced interest rates and better terms.
  • Competitive Terms: Federal Bank strives to offer competitive terms and conditions to make the home loan process more attractive for borrowers.

Federal Bank Home Loan Overview

In the present unique property market, the mission for the ideal home is a thrilling excursion, however, one that frequently requires a strong financial arrangement. Enter Federal Bank, a believed name in the domain of banking and money, offering a scope of fitted answers to assist you with transforming your homeownership dreams into the real world. We are providing the fundamental information about  Federal Bank Home Loans so you can understand the complexities and benefits that allow you to make a top decision for imminent purchase. Federal Bank grasps the significance of the feeling of homeownership. With a tradition of greatness going back quite a few years, Federal Bank has reliably developed to take care of the different financial necessities of its clients. Their Home Loan contributions mirror this obligation to greatness, consolidating serious financing costs, adaptable repayment choices, and a consistent application process.

We will investigate the different aspects of Federal Bank Home Loans, including their eligibility criteria, the variety of loan items accessible, and the simplicity of applying for one. Whether you're a first-time homebuyer or hoping to put resources into extra property, Federal Bank's Home Loans offer the financial help and direction you want.

Federal Bank Home Loan Fees and charges

Fees and Charges Amount
Processing fees 0.50% of the limit sanctioned with a min of Rs.10000/- and a maximum of Rs.45000/-
Charges for late payment of EMI 2% per month of the overdue portion. Additional penal interest applicable for SMA accounts
Charges for CIBIL report NIL
Charges for changing from fixed to floating interest rates 0.25% of the balance outstanding / Drawing power, whichever is higher
Charges for changing from floating to fixed interest rates 0.25% of the balance outstanding / Drawing power, whichever is higher
Pre-payment Charges No prepayment charge up to 15% of principal outstanding in one financial year. 
Modification Charges  NIL

Documents Required for Federal Bank Home Loan

Individuals are required to submit some documents to get a home loan from the Federal Bank. These documents are necessary for the background verification of the applicant.

Application Form: A duly filled and signed home loan application form provided by the bank is a necessary document.

Photographs: Passport-sized photographs of the applicant are required for the application process.

Identity Proof: Any one of the following documents for identity verification is required:

  • Aadhar Card
  • Passport
  • Voter ID card
  • Driving License
  • PAN Card

Address Proof: Any one of the following documents for address verification is required:

  • Aadhar Card
  • Passport
  • Voter ID
  • Utility bills in the name of the applicant
  • Bank account statement
  • Rent agreement

Income Proof: To make sure your ability to repay the loan, you need to provide income-related documents, which may include:

  • Salary slips for the last 3-6 months
  • Income tax returns for the last 2-3 years
  • Bank statements for the last 6-12 months
  • Business or professional income documents
  • Form 16

Property Documents: Documents related to the property you intend to purchase, these documents include:

  • Sale agreement
  • Sale dd
  • NOC (No Objection Certificate) from relevant authorities
  • Property tax receipts
  • Approved building plan

Employment/Business Proof: If you are self-employed, you need to provide additional documents, such as business registration certificates, balance sheets, and profit and loss statements.

Guarantor Documents: If a guarantor is involved, their identity and address proof, as well as income documents, may be required.

Any Other Specific Documents: The bank may request additional documents based on your individual circumstances or the specific loan product you are applying for.

 

How the EMI calculation works for Federal Bank Home Loan?

As an EMI is an Equated Monthly Instalment, it involves precise inclusion of all the necessary charges and money numbers to calculate the accurate EMIs. The EMI calculation for the Federal Bank home loan works with a formula that has been in use to calculate EMIs for ages now. The EMI calculation formula is:

P x R x (1+R)^N / [(1+R)^N-1]

Here,

  • P is the  Principal Loan Amount
  • N is the loan tenure in months
  • R is the Monthly Interest Rate

A digital EMI calculator runs on the algorithm that uses this formula to calculate the EMIs of Federal Bank home loans.

Balance Transfer Federal Bank Home Loan 

The Federal Bank housing loan balance transfer is a beneficial alternative that is provided to home loan borrowers. Balance transfer is a feature where a borrower can transfer the home loan to a new lender. In any case, where the borrower finds a more attractive interest rate or other benefits on the home loan, a balance transfer to a new lender is possible.

Borrowers can opt for a Federal Bank home loan, where they can find impressive interest rates and can choose to transfer the home loan to a Federal Bank home loan. Now, transferring your home loan to a new lender is a quite simple process. Below are the instructions for the balance transfer process:

  • Submit an application to your current lender regarding the balance transfer request.
  • Collect the No Objection Certificate (NOC) from the current lender to proceed further.
  • Hand over the required documents to your current lender.
  • Get the confirmation letter from the old lender to start the transfer process.
  • Pay all the fees and charges associated with the old lender and start fresh with a Federal Bank home loan.

Don't Miss to Check: Home Loan Balance Transfer Calculator

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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