|
0
|
10L
|
20L
|
30L
|
40L
%
|
5
|
7.5
|
10
|
12.5
|
15
|
17.5
|
20
|
0
|
1
|
2
|
3
|
4
|
5

Total EMI

49,919

Total Interest

69,80,559

Total Payments

1,19,80,559

Break-up of Loan Amount
Created with Highcharts 4.2.2 50,00,000 69,80,559 Total Interest Principal Loan Amount
Apply Online

About Federal Bank

Federal Bank is a leading commercial bank in India's private sector with its headquarters in Kerala. Since the bank was established, it has expanded into thousands of branches across India for operational purposes. Federal Bank is one of India's first commercial bank and is actually a pioneer institution as far as digital banking technology is concerned. It was the first bank in the country to digitize all branches and today, the technological trend still continues. Currently, Federal Bank offers both private and corporate customers varieties of financial services and products which include Internet and Mobile banking, online payments, fee collection online, Cash management system, insurance, depository services, mutual funds investment and merchant banking services to mention a few. The bank is also an active retail banker grating soft and secured loans of all kinds to individuals and businesses.

Personal Loan by Federal Bank

Personal loans can be very beneficial for individuals who wish to avail urgent finds for any kind of purpose. Personal loans provide the individuals with the amount they require along with the option of paying it back in monthly instalments. This ensures that the customer isn't burdened by the loan. Federal bank specialises in providing hassle-free loan services for aspirants. Federal Bank offers Personal loan products like FedPremia, Fed Easy Cash, Loan against securities etc. Federal bank offers quick application, documentation and disbursal at competitive Interest rates, high tenures and unsecured Personal loans.

What is EMI?

EMI(Equated Monthly Instalment) is the name given to the amount of money paid to the bank every month as repayment for the personal loan availed. The EMI amount is calculated using your loan amount, rate of interest and tenure. Your EMI amount can determine your eligibility as the amount needs to fall well within your disposable income. Moreover, the EMI also has to be comfortable enough so that you can pay the loan amount long term. Failure to provide the EMI amount can also invite penalties or late charges, sometimes even legal action. For this reason, it is imperative that the EMI amount you choose is most ideal as per your finances.

Features of Federal Bank Personal Loan

The first step of any personal loan application process is checking out the eligibility and features of the bank's personal loan and making sure that they are as per your wishes and eligibility. Below are some features of Federal Bank Personal loan. 

Purpose

Personal loans can be used for a variety of purposes. It can be for education expenses, marriage expenses, debt consolidation, medical expenses, expenses related to housing or any other personal finding requirement of the applicant

Maximum amount

The maximum amount of loan that can be availed is INR 25,00,000./. The amount depends, however, on your requirement, income and other eligibility.

Processing fees

The processing fee starts from 0.50% of the loan amount.

Age criteria

The minimum age criteria for the Personal loan is 21 years. The age should not exceed 60 years at the end of the loan tenure.

Interest rate

The rate of interest depends on the eligibility, income, application type etc. The rate of Interest starts from 11.49%.

Loan tenure (Max)

The max tenure offered for Personal loan is 48 months.

Lowest EMI

Lowest EMI that can be availed is INR 2,608 per Lakh

Who can apply

Salaried professionals employed in either private sector or public sector jobs, Self-employed professionals or businessmen are eligible for the Personal loan. Personal loan can also be availed by NRI's.

Security

No collateral required for FedPremia. For loan against securities and deposits, the mentioned security will have to be provided. In certain cases, a guarantor might be required.

Minimum Income required

The applicant should have a minimum gross income of INR 25,000. The applicant should also have a minimum work experience of 3 years in the current job. 

Federal Bank Personal Loan EMI

The total loan amount is divided by the tenure in months to give the EMI amount. Naturally, the EMI amount increases with an increase in loan amount and decreases with an increase in tenure. However, the rate of Interest can also increase when you increase the tenure. Below is a table showing how exactly your EMI amount changes as per the change in loan amount and tenure. The rate of Interest is kept constant here. 

  Tenure

Loan amount

12 months

24 months

36 months

48 months

1,00,000

8,861

4,684

3,297

2,608

5,00,000

44,305

23,418

16,486

13,042

10,00,000

88,610

46,836

32,971

26,084

25,00,000

2,21,526

1,17,089

82,428

65,210

As you can see, the EMI amount will change drastically as per the loan amount and tenure. You can use this as a guide to figure out the amount ideal for you.

What is EMI Calculator?

The EMI amount is very important for your application. Since, the EMI depends on the loan amount and tenure, finalizing your EMI means finalizing your loan amount and tenure combination for the application. For this reason, it is very important to calculate your EMI amount before you apply for the personal loan. It gives confidence in your application and also helps the bank to verify that you can pay the EMI conveniently.

The EMI is calculated as per the formula given below:

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

Here,

EMI  = Equated Monthly Instalment

P = Principal amount (the amount you apply for a loan)

R = Rate of Interest 

N = Loan Repayment Tenure ( in months)

From the formula, it is clear that calculating the EMI is no easy feat. also, it's likely that on the first calculation, you don't get the EMI amount you were expecting and you have to change the tenure and calculate the EMI again. Doing so much calculations can be tedious and time-consuming.

For this reason, EMI calculators we're devised. An EMI calculator is a tool that has been pre-programmed with the EMI calculation formula. The tool is designed to accept the loan amount, rate of Interest and tenure as input and then give out the EMI amount, total Interest to be repaid and the total amount to be repaid as the output. You can use the calculator as many times as you want till you find the ideal EMI for your Personal loan application.

How to use MyMoneyMantra EMI Calculator?

Most banks and financial institutions provide the EMI calculator these days. MyMoneyMantra is a third party vendor that offers professional guidance for financial products.  MyMoneyMantra also offers support for the for Personal loan aspirants and guides them through every step of the application. As part of this goal, MyMoneyMantra provides support for the EMI calculation. MyMoneyMantra provides an easy to use EMI calculator to help you calculate the ideal amount of EMI for your long term financial benefits. The MyMoneyMantra EMI calculator can be used by anyone who wishes to determine how much the EMI will be for their desired loan amount, rate of interest and tenure.

You can use the MyMoneyMantra EMI calculator by following the below steps:

  • Visit the MyMoneyMantra website and find the EMI calculator option under the menu bar or search for the EMI calculator in the search bar. Alternatively, you can search for the MyMoneyMantra EMI calculator directly through your search engine.
  • Once the EMI calculator opens up, you will find 3 input boxes asking for your loan amount, rate of interest and tenure. Fill up those details and click on the calculate button.
  • Once you hit calculate, the tool will display the EMI amount, the total interest to be paid and the total amount to be repaid in a matter of a few seconds.
  • If you find that the EMI amount is not suitable for you, you can simply change the loan lint and tenure in the inputs and calculate it again until you find the EMI ideal for you.

Benefits of using an EMI Calculator before taking a Personal Loan

As mentioned above, it is very important to calculate the EMI amount before you take a Personal loan. As calculating the EMI manually can be impractical, EMI calculators can be used for calculating the EMI. EMI calculators have given a lot of benefits to the Personal loan applicant. Below are benefits of the EMI calculator.

  • Speeds things up: As evident from the calculation above, calculating the EMI can be a time-consuming process. The EMI calculator, however, is designed to give you the results in a few seconds. This reduces the time taken to calculate the EMI and also helps reduce the overall turnaround time for the application.
  • Simple usage The EMI calculator has been designed to be simple to use. This makes it very convenient for anyone across the country to be able to use it with no issues. All you need to do is to enter the specified values in the input box and click on calculate. The calculator does the rest for you.
  • Free of cost: The EMI calculator offered by MyMoneyMantra is absolutely free for usage by anyone across the country. All you need to access the calculator is a device and an active Internet connection.
  • Improve eligibility: Calculating the EMI beforehand ensures that you only choose the EMI amount that is well within your disposable and won't hamper your financial security. Also, once you finalize your EMI, you finalize your loan amount and tenure as well. This provides the bank with a trust factor in your eligibility as well when they try to calculate the EMI eligibility themselves.

Factors that can impact your Personal Loan EMI amount?

Although your EMI amount depends directly only on your loan amount, tenure and rate of interest, there are other factors that can affect the rate of Interest of your personal loan, thus, indirectly affecting the EMI amount.

Please find some common factors mentioned below:

  • Rate of Interest: Your rate of Interest is a major factor in calculating your EMI amount. The rate of Interest tends to increase with an increase in tenure. Also, there are a lot of factors that can impact the rate of Interest applicable for your application. This can be the loan amount, tenure, income eligibility, credit score etc. All these factors can also impact your EMI amount.
  • Income: Your income is a major eligibility factor in your personal loan application and can impact the rate of interest for your application. Lenders prefer individuals with higher income criteria. A higher-income can a lower rate of Interest and higher approval chances for your Personal loan application. A higher rate of Interest can mean a lower EMI.
  • Purpose of the loan: The purpose of your Personal loan can heavily impact the rate of Interest applicable on your Personal loan. Different purposes have different rate of Interest. For example, Personal loan for housing expenses, medical emergencies and education might have a lower rate of Interest than Personal loan for business purposes or marriage expenses. This will naturally impact your EMI amount.
  • Loan amount: Your loan amount is the biggest factor for your EMI and personal loan approval. The rate of Interest and tenure can also be figured out through the amount of loan that you wish to apply for. It is important to ensure that you are only going for the loan amount that you require in order to keep the EMI low.

Tips to decide the right amount of Personal loan EMI

The EMI amount is very important for you to decide the most comfortable loan amount and tenure that you will need to ensure a comfortable financial future. It naturally takes quite a bit of time and research to figure out the most appropriate Personal loan package for your needs. Below are some tips that you can follow to decide the right amount of EMI.

Plan your long term finances:

If possible, go for a professional financial assessment. That will help you to determine your current financial standing and strength. It will also give you an idea of your liabilities and dependents and give you a fair idea of the income that you are left with.

Leave a little room for emergencies:

It is natural that you may incur unexpected expenses at any time in the future. For this reason, it's important to leave a little room for such expenses when you decide on a disposable income amount. This will ensure that you are prepared for any surprises in your future and so that your financial health and EMI payments both are not affected.

Finalize a loan amount:

Your loan amount can be the biggest factor in determining your EMI amount. The Interest is also calculated as per the loan amount. The total amount is then divided by the tenure for the EMI. So, finalizing the loan amount you require is most important. Later on, it just becomes a matter of modifying the tenure to get the ideal EMI.

Consider the possibility of an EMI change:

This is applicable especially in case you have applied for a floating rate Personal loan. In this case, there are chances that the EMI might increase in the future.

Change in EMI with change in Prepayment

Pre-payment means paying off an amount larger than the EMI amount before the end of tenure of the loan. In case of pre-payment, it means paying off the entire amount at one go, while part prepayment means that only a part of the loan is paid. In case of part repayment, the remaining amount changes and hence, the EMI will be recalculated as per your say. You can choose to keep the tenure the same or decrease it as per your requirement of EMI. In case of a complete repayment, the loan itself is foreclosed and hence, you won't have to pay any EMI.

FAQs

Can I apply for a Personal loan if I have existing unpaid loans?

In case of existing loan, the bank might increase the eligibility criteria or the rate of Interest before they approve your loan. You will have to provide the bank with ample trust that you will be able to pay off multiple EMI's from your income. Consider paying off your existing loan if you can to improve your eligibility. Alternatively, you can consider increasing the tenure of your existing loan so as to lower the EMI. This will increase your chances of approval.

How much credit score do I need to be eligible for the Personal loan?

Federal Bank asks for a credit score of 750 or more to be eligible for a Personal loan. A credit score is very important for your Personal loan application and the score has to be provided to the bank. In case you have a lower credit score, you can opt to apply with a co-applicant who has a better credit score.

Why do I need to use the EMI calculator before applying for the Personal loan?

The EMI amount is important for both the applicant as well as the lender. The applicant needs to be able to pay the EMI conveniently on a long term without impacting their liabilities and other expenses. Also, the bank will only approve the loan if they find that you are able to prove that your income can cover the EMI. Also, finalizing an EMI amount means finalizing the loan amount and tenure, and having more confidence in it.

How can I make sure that my EMI is suitable for me?

To make sure that you choose the most ideal EMI, you need to ensure that the EMI amount is something that you can pay every month. This amount will have to fit within your income after satisfying all your eligibilities and dependent obligations.

Do I have to provide any security for Federal Bank Personal loan?

Federal bank Personal loans are generally unsecured loans. However, in certain cases, the bank may ask for a guarantor to co-sign for the loan. A guarantor can be an immediate family member such as spouse, parents or siblings. A third party guarantor may also be eligible in certain cases.

What happens in case I miss a Personal loan EMI?

In case you miss a Personal loan EMI, the bank will levy a missed payment charge on your Personal loan. A missed payment will reflect badly on your credit score and will hamper your future chances of Personal loan approval. In certain cases, the bank might also decide to take legal action in case of a missed EMI.

Can I take a Personal loan for the renovation of my house?

Yes, the best advantage of a Personal loan is that you can avail it for any personal usage. That is why, it is possible to apply for a Personal loan for the renovation, repairing or construction of a house.