Federal Bank Home Loan Interest Rates
Federal Bank home loan interest rates in 2025 start from around 8.30% to 8.75% per annum, making them competitive options for homebuyers. The actual rate offered depends on factors like the applicant's credit score, loan amount, tenure, and employment status. Federal Bank provides flexible loan tenures up to 30 years and funds up to 85% of the property value. Both floating and fixed-rate plans are available, catering to diverse borrower needs. With streamlined online application processes and attractive rates, Federal Bank is a popular choice for affordable and convenient home financing in India
Federal Bank Home Loan Interest Rates & Key Facts
- Starting Home Loan Interest Rate: 8.30%–8.80% p.a. (floater/fixed)
- Typical Rate Range (2025): 8.30% – 10.00% p.a., depending on applicant profile and scheme
- Loan Tenure: Up to 30 years (360 months)
- Maximum Funding: Up to 85% of the property’s cost (project cost)
- Loan Amount: Up to ₹15 crore (₹1500Lakhs)
- Eligible Borrowers: Indian Residents, NRIs, PIOs; salaried, self-employed, business owners
Federal Bank Home Loan Schemes & Interest Rates
Federal Bank offers several home loan schemes tailored to suit the needs of salaried professionals, self-employed individuals, and NRIs. The actual rate you get depends on your profile, property type, credit score, and scheme selection.
| Scheme Details | Minimum Interest Rate | Borrower Type | Funding Limit | Tenure |
|---|---|---|---|---|
| Standard Home Loan (Floater) | 8.30% p.a. | Salaried / Self-employed | Up to 85% | Up to 30 yrs |
| Fixed Rate Plan | 8.30%–8.40% p.a. | Salaried / Self-employed | Up to 85% | Up to 30 yrs |
| Property Power Loan (Mortgage) | 9.50% p.a. onwards | Residents/NRIs/PIOs | - | Up to 15 yrs |
| Home Loan Balance Transfer | Linked to standard | Transfer from other lenders | Up to 85% | Up to 30 yrs |
| House Plot Purchase Loan | Usually above 10% p.a. | For plot buyers | Up to 60% | Up to 5 yrs |
Interest Rate by Applicant Profile (2025):
| Credit Score | Interest Rate | Funding (%) |
|---|---|---|
| ≥ 800 | 8.30–8.80% p.a. | Up to 90% |
| 750–799 | 8.80–9.15% p.a. | Up to 90% |
| 700–749 | 9.15–10.00% p.a. | 80–90% |
| 650–699 | 10.00–11.00% p.a. | 75–90% |
| <650 | 11.00–12.50%+ p.a. | 75–90% |
Rates last updated: May–August 2025. Your final approved rate depends on CIBIL/credit score, loan amount, repayment capacity, income stability, and property type
Features & Benefits of Federal Bank Home Loan
Federal Bank home loans combine value-for-money pricing with several other customer-friendly features:
- Flexible loan tenure: You can choose a tenure from 5–30 years based on your age and repayment capacity
- Large loan quantum: Funding for amounts up to ₹15 crore (for high-value properties)
- High LTV ratio: Get up to 85% of the property value as the loan amount
- Low processing fee: Generally around 0.50% of the loan amount (₹10,000–₹45,000)
- Floating & fixed rates: Choose what's right for your budget
- Prepayment charges: Nil for floating-rate home loans
- EMI option: Repay conveniently through auto-debit, standing instructions, or post-dated cheques
- Minimal documentation: Fast and streamlined approval process
- Property insurance benefit: Some schemes include insurance coverage for your home
- Balance transfer: Move your high-interest home loan from another bank for possible savings
- Top-up loan: Ready access to additional funds for renovations, extensions, etc.
Federal Bank Home Loan Eligibility Criteria
You may qualify for a Federal Bank home loan if you meet the following general criteria:
- Age: 21–60 years (at loan application); Max age at loan maturity: 65 years
- Income: Salaried – Minimum ₹25,000/month preferred; Self-employed—no strict minimum, but steady income is required
- Credit Score: Typically 700+ for best rates; loans may be available with scores down to 650, but rates increase
- Employment: Minimum 2 years in current job (salaried); Minimum 3 years business track record (self-employed)
- Residency: Indians, NRIs, and Persons of Indian Origin (PIOs) are eligible
- Other Requirements: Clean credit record, valid property documents, no major outstanding debts
- For NRIs/PIOs: Valid passport, PIO card, and a co-applicant resident in India are often required
Tip: Meeting all eligibility parameters not only improves your chances of approval but also helps secure the lowest possible rate.
Federal Bank Home Loan EMI Calculation
Calculating your EMI (Equated Monthly Installment) is a crucial part of planning your finances. Federal Bank offers online EMI calculators where you enter your loan amount, interest rate, and tenure.
Sample EMI Calculation:
- Loan Amount: ₹50 lakh
- Interest Rate: 8.80% p.a.
- Tenure: 20 years (240 months)
Formula:
EMI=P×R×(1+R)N(1+R)N−1EMI=(1+R)N−1P×R×(1+R)N
Where:
- P = principal (loan amount)
- R = monthly interest rate (annual rate/12)
- N = number of monthly installments
For a ₹50 lakh loan at 8.80% over 20 years, your EMI will be approximately ₹44,419 per month.
Use the Federal Bank EMI calculator on their website or discuss exact numbers with your loan advisor—rates and EMIs will be customized to your application.
Application Process — How to Apply Online
Federal Bank makes the home loan process seamless and digital:
- Visit the Federal Bank Home Loans portal
- Check your eligibility: Use the site's eligibility calculator; ensure income and credit score requirements are met
- Fill out the application form: Provide KYC documents, income details, and property documents
- Select loan scheme: Choose from floating, fixed, top-up, and balance transfer options
- Go through quick approval: Bank performs digital evaluation and documentation verification
- Get a sanction letter: Details the loan amount, rate, EMI, tenure, and conditions
- Disbursement: After property verification and registration, funds are credited to the seller’s account
- Start your EMIs: Set up auto-pay or standing instructions for timely repayments
Tip: Federal Bank’s online application can cut paperwork and expedite approval for eligible customers.
FAQs
Rates start from 8.30% p.a. for top credit profiles, going up to 10.00% or more for moderate to low scores.
Yes. Floating rates change based on market benchmarks (like repo rate), fixed rates remain the same through your loan tenure. Both are offered by Federal Bank.
Tenure is up to 30 years. Younger borrowers can opt for longer tenures; older applicants are restricted by the maximum age at loan maturity (usually 65 years)
Absolutely, Federal Bank offers home loans to NRIs/PIOs with some additional documentation and co-obligant requirements.
Up to 85% of property value for ready properties; up to 60% for plots.
Yes. Home loan borrowers may claim tax deductions on interest paid (sec 24b) and principal repayment (sec 80C) under the Income Tax Act—consult a tax expert for details.
Yes, generally 0.50% of the sanctioned loan amount.
No prepayment charges for floating rate loans; check with the bank for fixed-rate loan terms.
Reshma Rawat is a passionate writer, with a decade of experience in writing for a variety of domains (finance, technology, lifestyle, e-commerce, real estate, etc.). Currently, she is working as Assistant Manager - Content @MyMoneyMantra, and writes blogs & webpages on financial products (loans, credit cards, insurance, financial policies by government, mutual funds, etc.
Abhijeet Singh has comprehensive experience in business writing, content management, SEO, social media and user analytics. Key areas of expertise include stock markets and personal finance.