Federal Bank

Federal Bank Home Loan

Apply Federal Bank Home Loan @ 8.55%
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Interest Rate

8.55%-8.70%

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Processing fee

Upto 10000

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Loan Tenure upto

20 years

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LTV (Loan to value)

75% to 90% of property value

About Federal Bank Home Loan

If you are looking for a tranditional yet modern lending bank having experience as well as an edge for Internet and mobile banking, Fedral Bank stands ahead the competetion. Dating back to pre-Independence Era, Federal Bank was established in 1931, at Aluva, Kerala. 

Today the bank has pan India presence with branches in 25 States, Delhi NCR and 4 Union Territories. It is a major Indian commercial bank in the private sector which is also listed in BSE, NSE and London Stock Exchange.

The Federal Bank is one of the first banks to introduce online banking facilities in India and offers Internet and mobile banking for loans, cards, commercial and saving accounts, bill payment, fee collection, depository services, merchant banking, insurance, mutual fund and much more.

Federal Bank has currently more than 1,250 branches. Its original name was Travancore Federal Bank Ltd. To cater to a large segment of housing finance borrowers, Federal Bank offers an extensive Home Loan portfolio with many customised products for small, medium, and high net-worth customers.

Federal Bank Home Loan Interest Rates in Nov-19
 Interest rate 8.55% 
 Loan tenure up to 30 Years
 Loan turnaround period 8 - 15 days
 Loan to value (LTV) Get loan up to 85% of project cost
 Who can apply?

Self-employed professionals

Salaried individuals
NRIs
Indian residents
 Co-applicants Up to 4 applicants are allowed as co-applicants
 Lowest EMI 772 Per Lakh

Why choose Federal Bank Home Loan?

Federal Bank Home Loans are available to a diverse section of society that includes resident individuals, NRIs, and PIOs. Being a premier private bank, Federal Bank also facilitates Pradhan Mantri Awas Yojana(PMAY) for low income borrowers. PMAY is an ambitious Home Loan scheme formulated by the Central Government with the aim of providing affordable funding for housing to every Indian by the end of the year 2022.

Here's why you should choose Federal Bank as your Home Loan partner:

  • A diversified range Home Loans and mortgage loans, tailored according to your needs.

  • Competitive rate of interest. Federal bank offers customer-friendly interest rate calculation on daily reducing balances.

  • Low processing fees
  • Minimal paperwork
  • Income tax concessions

Features and Benefits of Federal Bank Home Loan

  • Federal Bank offers loans for individual houses, apartments,residential plots, and/or construction needs.
  • The loans are also available for repairs, renovations, improvement, and extension of existing homes. Setting out a unique example to meet every customer need, Federal Bank offers exclusive Home Loans for house warming ceremonies.
  • You can also transfer your existing Home Loan from other bank to Federal Bank.
  • With Federal Bank, you can expect attractive rate of interest on Home Loans.
  • Nominal processing fees.
  • Nopenalty for pre-payment and foreclosure.
  • You can apply for Home Loan amount up to 85% of the project cost.
  • Get loan amount of up to 15 Crores (depending on your eligibility).
  • They also provide PMAY support for low income group borrowers.
  • To ease the customer repayment experience, the Bank also offers long tenure Home Loans extending up to 30 years.
  • Federal Bank has some of the best Home Loan schemes for NRIs.
  • Income tax benefits are available on all Home Loan repayments.

Federal Bank Home Loan - Interest Rates

Here are the interest rate details for Federal Bank Home Loans:

Loan Product Effective Rate

 Housing Loan - Salaried Segment

8.60% - 9.10%

 Housing Loan - Non Salaried Segment

8.75% - 9.20%

 Home Extra Gain

10.10%

 Home Plus Beautification Loan

11.40%

 Home Plus Top-Up (Equity Scheme)

10.65%

 Home Invest

11.20% - 12.90%

 Property Power Loan (LAP)

11.90% - 15.15%

Federal Bank Home Loan - Processing Fees and Other Charges

Types of Charges Quantum of Charges

 Processing Fees

0.5% of the sanctioned amount with a minimum of 3,000 and maximum 7,500

 Prepayment/Foreclosure Charges

Individuals - NIL in case of floating rate loans.

For non-individuals, Overdraft A/c and Fixed Rate loans - 2% of the balance outstanding or drawing power whichever is higher.

 Conversion Charge

0.25% of the balance outstanding or drawing power whichever is higher

 Interest Reset Clause

Based on the linked Benchmark Rate

 CERSAI Charges

Loans Up to 5 Lakhs - 75

Loans above 5 Lakhs - 150

 Documentation Charges

Up to 2 Lakhs - NIL

Above 2 Lakhs and up to 10 Lakhs - 500

Above 10 Lakhs and up to 30 Lakhs - 1000

Above 30 Lakhs up to 50 Lakhs - 2,500

Above 50 Lakhs to 1 Crore - 5,000

Above 1 Crore - 10,000

 

There is a ceiling on the charges levied on the Housing Loans. The total of all charges including processing fees should not exceed 10,000.

Types of Home Loan Offered by Federal Bank

Federal Bank offers various kinds of Home Loans depending on the requirement of borrower, the purpose of loan, the location of the property, and so on.

Federal Bank Housing Loan

Federal Bank Housing Loan is available for purchase or construction of a land, new or second hand house, flat or flat under construction.You can use this product for carrying out repairs, renovations, improvements, and extensions to your home.Home Loan balance take-over facility is also available with the Federal Bank Home Loan.

Features of Federal Bank Housing Loan Facility:

  • Minimal paperwork
  • Speedy loan processing and approval
  • Loan available up to 85% of the project cost
  • You get the advantage of extended repayment period up to 30 years

  • Loan quantum available up to 15 Crores
  • >Residents and Non-residents are eligible for Home Loans
  • Salaried, self-employed, and business persons can apply for Home Loans from Federal Bank.

Federal Bank Loan for Purchase of House Plots

  • This loan product enables you to buy a residential plot of land for subsequent construction thereon.

  • The margin for plot loan is 40% of the cost of the property.

  • Minimal documentation.
  • The maximum loan amount in this product is 25 Lakhs.
  • You can include the stamp duty and registration charges in the cost of the project.

  • The maximum repayment period for the plot loan is 60 months.

  • This loan requires you to provide additional collateral to the extent of 100% of the loan amount.

Federal Bank House Warming Loan

  • This product is an innovative product as you might not find a housewarming loan anywhere else in the banking industry.

  • You are eligible for the housewarming loan after the completion of the construction or acquisition of the house/flat.

  • There is no lock-in period for this product.
  • The maximum repayment tenure is 60 months.
  • This loan is available at a little higher rate of interest as Federal bank charges interest @ Housing Loan rate plus 2%.

  • The maximum quantum of loan is 5% of the Home Loan amount subject to a ceiling of 2 Lakhs.

  • Loan repayment should not exceed the remaining period of the existing housing loan.

Federal Bank NRI Housing Loan

  • The product is similar to the Federal Bank Housing Loan scheme for resident individuals.

  • Non-resident Indians (NRIs) and persons of Indian origin (PIOs) can apply for housing loans under this scheme.

  • The PIO s are eligible only on satisfying the following conditions:

a) The PIO offers additional collateral in the form of immovable property in India in the name of the PIO.

b)The PIO should hold a valid PIO card accompanied by a valid foreign passport.

  • The PIO should arrange for a close relative residing in India to join as a co-applicant to the loan.

  • The borrower's age should be less than 55 years.

  • The monthly income of the applicant should not be less than 30,000.

  • NRIs can also apply for the loan for the purchase of plots and the housewarmingPersonal Loan.

Federal Bank PradhanMantriAwasYojana(PMAY)

The eligibility criteria for PMAY are the same for all banks and housing finance companies (HFCs) under this Central Government scheme.

  • It is a credit-linked subsidy scheme with the maximum subsidy being 2.67 Lakhs.

  • The scheme is in operation for the Economically Weaker Section (EWS) and Lower Income Group (LIG) up to 31.03.2022and the Middle Income Group (MIG-I and MIG-II) up to 31.03.2019.

  • The purpose of the loan is constructionor purchase of house or flat.

  • The maximum amount of loan is 4 times gross income with appropriate ceiling for each category.

  • Repayment can extend to 30 years, but interest subsidy is available for a maximum of 20 years.

Federal Bank Home Loan - Eligibility Criteria

  • Resident Indians, NRIs, and PIOs are eligible to apply for Federal Bank Home Loan.

  • Applicants can be salaried or non-salaried individuals having a regular source of income.

  • For NRIs, the maximum age is 55 years at the time of application of the loan.

  • Margin is in the range of 15% to 20% for the Home Loan.

Primarily following factors define your Home Loan eligibility:

  • Income and repaying capacity
  • Decent CIBIL score and credit history
  • Employment status
  • Age
  • Availability of eligible co-applicant

You can improve your loan eligibility:

  • By opting for a longer tenure as it reduces the equated monthly instalment (EMI). Low EMIs keep your debt to income ratio low.

  • The addition of an eligible co-applicant (preferably spouse or parents) having a steady source of income can increase your overall eligibility.

  • You can also close some of your existing loans whereby you reduce your Fixed Obligations to Income ratio (FOIR). You have more disposable income to spare for your Home Loan repayment.

Documents Required for Federal Bank Home Loan

Type of Documents Nature of Document List of Documents

 KYC Documents

Photograph

Two passport size photographs of applicant and co-applicant(s).

 Identity Proof

Any one of - Passport, Driving Licence, PAN Card, Aadhaar Card, and Voter's ID Card

 Address Proof

Any one of - Passport, Driving Licence, Aadhaar Card, and Voter's ID Card

 Age Proof

Any one of -Passport, Birth Certificate, Driving Licence, and SSLC certificate

 NRI Customers

NRIs and PIOs have to provide additional documents like certified copy of Passport, ID Card, and Work Permit.

Income Documents

Resident Salaried

Income proof documents -Salary Slips, copies of IT Returns, Form 16, and statement of bank account for the last 6 months where the salary is credited.

 Resident Self-Employed

Proof of existence of business and business profile.

Financial documents - P&L statements, Balance Sheet, IT returns, and the bank account statements for the last 12 months.

 Non-Resident Salaried

Either of the following two options

Option 1

Provide a copy of the salary certificate duly certified by the Embassy supported by 6 months bank statement evidencing credit of salary and statement of NRE account for the past one year.

Option 2

Statement of NRE account of the applicant or the resident account of spouse/parents for 2 years where the remittances are credited

 Non Resident Self-Employed

Either of the following two options

Option 1

Submit your business profile and proof of business along with financial statements like Balance Sheet, Profit & Loss statement, and statement of bank account for the last 12 months.

Option 2

Statement of NRE account of the applicant or the resident account of spouse/parents for 2 years evidencing credits of remittances

Property Documents (Depends on the purpose of the loan)

  • For purchase and construction of approved flats and houses:Agreement for sale and construction, allotment letter or the NOC from the builder along with the tripartite agreement.
  • For purchase and construction of unapproved flats or houses, you need to submit following documents in addition to the documents mentioned above: 
  1. Original title document. If the title deed does not contain the recitals for 30 years, you have to supplement the same with the Prior Deed.
  2. Encumbrance Certificate for 13 years.
  3. Other important documents:Possession certificate, sketch of the location, and the land tax receipts.
  4. Permission or the approval from the civic authorities for construction of the flat/house.
  5. NOC or clearance from various Governmental departments like the Pollution Control Board, Environmental Department, Fire and Safety Clearance, Aviation Department, the Army and Navy, and the Coastal Zone Management. You need not submit these clearances if you plan to construct your house on land already owned by you.
  6. In case of repairs and renovations to the house, you need to submit the approved plan and estimate for construction.

Federal Bank Home Loan - Customer Care

  • For any Home Loan related query, you can contact Federal Bank Customer Care 24X7 at their following Toll-Free numbers:

1800-420-1199 and 1800-425-1199

NRI customers can call at +91-484-2630995and +91-484-2630994

  • You can also get in touch with them through email at:

contact@federalbank.co.in

  • You can also contact the head office of Federal Bank at Aluva:

Registered Office

Federal Bank

Aluva, 2018

Other Products by Federal Bank

Federal Bank offers the following loan products in addition to the ones described above:

  1. Federal Bank Loan Against Property
  • Loan Against Property(LAP) is a secured Personal Loan where you take a loan against collateral for meeting your business and personal expenses such as medical costs, children's education, marriage expenses, and so on.
  • You get the advantage of quick loan processing at Federal Bank.
  • Resident individuals and NRIs/PIOs are eligible for loans under this product.
  • You have extended repayment tenure up to 15 years.
  • The maximum eligible amount in this product is 5 Crores.
  • You can avail LAP as an overdraft facility or as a term loan.
  • Minimal paperwork is the characteristic of this loan.
  • Balance Transfer facility is available with the possibility of a top-up.
  • You have a unique surrogate scheme for the self-employed category.
  • The collateral for this product can be residential premises, the plot of land, or even commercial property.

How to Calculate Federal Bank Home Loan EMI?

MyMoneyMantra's online EMI Calculatorcan help you determine EMI for the prospective Federal Bank Home Loan. Entering the following information will help you get the amortisation schedule:

  • Loan Amount
  • Rate of Interest
  • Loan Tenure (in months or years)

Why Apply for Federal Bank Home Loan on MyMoneyMantra?

MyMoneyMantra is a one stop marketplace to search for the best Home Loan available in the market.We assess your profile and help you in choosing the appropriate product depending on your eligibility.

You can apply for a Federal Bank Home Loan online or visit any branch of Federal Bank and apply in person. However, when you apply through MyMoneyMantra you can quash all your worries regarding submission of loan documents and determining your eligibility and EMI for the prospective Home Loan.MyMoneyMantra offers customised loan advice free of cost.

We enable you to compare various Home Loans of different banks on a single web screen. You can use our EMI Calculator to determine your future EMI. We help you access your CIBIL Score without any charges.

How to Apply for Federal Bank Home Loan on MyMoneyMantra?

Applying for Federal Bank Home Loan on MyMoneyMantra is easy. All you need to do is visit the official website of MyMoneyMantra and click on the Home Loans Option. Follow the instructions that flash on the screen. We will send you an OTP to verify your request. Enter the OTP at the appropriate place to get access to the Home Loan products page. Choose Federal Bank as your Home Loan provider.

Our Role

We help you with the compilation and submission of the necessary documents and filling up of the application form. Keep your documents ready for verification by Federal Bank officials.

Federal Bank's Role

The bank officials will contact you after receiving the documents. The verification process involves three stages:

  • Inspection: Federal bank officials would inspect your residence as well as the property you wish to purchase.

  • Genuineness of Title Deeds and Valuation: The bank has advocates and engineers on its panel to verify the title of the property and carry out the valuation.

  • Appraisal: Federal Bank calls for your CIBIL report to ascertain your credit rating. They follow the bank's credit policies while appraising your proposal. On approval, the bank proceeds to deliver the sanction letter along with the terms and conditions of the sanction.

Your Role

Go through the terms and conditions and accept the same. Proceed with the execution of documents and seek the disbursal. After the disbursal of the loan, you have to create the equitable mortgage and register it with the Sub-Registrar's Office (if applicable).

How Much Home Loan Can I Get for Purchase of Property (Loan-to-Value) from Federal Bank?

Usually, Federal Bank approves Home Loans up to 85% of the project cost. However, the margin depends on the loan amount. It also depends on the purpose of the loan. The margin can go up to 20%.

Federal Bank Home Loan Latest News

Federal Bank Has Increased its Home Loan Interest Rates

With the rise in the repo and the reverse repo rates by the Reserve Bank of India in its recent bi-monthly review, Federal Bank has raised its MCLR with effect from 16.08.2018. Hence, the Home Loan rates as well as all other rates connected to the MCLR have increase dmarginally.

Federal Bank Has Reported a Net Profit for the First Quarter of FY19

Federal Bank has reported highest quarterly operating profit of 603 Crores for Q1FY19 and Net Profit of 263 Crores. It is in spite of the Bank absorbing provisioning of 54 Crores on account of unamortized gratuity expenditure.

Federal Bank Has Donated 4 Crores for the Kerala Floods

Federal Bank has contributed a sum of 4 Crores to the Chief Minister's Distress Relief Fund. Also, they have waived various banking service charges for their customers in Kerala.

Federal Bank Expects its NPA to Go Up by 20% to 30%

The CEO and MD of Federal Bank, Shyam Srinivasan has said that the floods in Kerala have taken a heavy toll on property and life in the state and the bank expects bad loans from Kerala to go up 20-30%in the two quarters. He further added, the agricultural loans have got a moratorium of one year and the threat of default is also present.

Federal Bank Expects Remittances to Increase Manifold

Federal Bank has about 47% of its branches in Kerala. The floods have devastated the state to a great degree. However, Kerala has a high proportion of NRIs. They are pitching in with huge contributions from abroad. Hence, Federal bank expects remittances to increase manifold in the coming two quarters.

Frequently Asked Questions

Do you get moratorium on Home Loans at Federal Bank?

Yes, Federal Bank gives you a moratorium on the repayment of loans taken for constructing houses or purchasing houses under construction. Usually, the moratorium is for 18 to 30 months depending on the stages of construction.

Do I have to pay any interest during the moratorium period?

Yes, you have to pay the interest amount during the moratorium period. It is known as the pre EMI interest. You start paying the regular EMI at the end of the moratorium period.

Is there any requirement to provide collateral for my Home Loan?

No, the house you purchase or construct with the Home Loan is the prime security for the loan.

What are the modes of repayment?

The repayment of the Home Loan is done through EMIs. You can use any one of the following ways to repay the loan.

  1. Cheques
  2. Standing Instruction at your branch
  3. FedNet - Internet Banking
  4. Electronic Clearing Service
  5. Mobile Banking

Should I insure my house when I take a Home Loan?

Yes. It helps you insure your house and protect it from disasters like floods, earthquakes, tsunamis, fire, and so on.

Should I provide additional collateral for my Home Loan with Federal Bank?

The prime security for the Home Loan is the property you acquire with the help of bank finance. With Federal Bank Home Loan, you do not have to provide any collateral as the bank prescribes a healthy LTV (Loan-to-Value) ratio based on your repayment capacity.

Has Federal Bank approved any real estate projects?

Yes, Federal Bank has approved housing projects in Andhra Pradesh, Gujarat, Haryana, New Delhi, Karnataka, Kerala, Maharashtra, Tamil Nadu, and Uttar Pradesh.

Do I get income tax benefits if I take loans from Federal Bank? What is the tax rebate available on a Home Loan?

Yes, you get income tax concessions under Sec 24 and Sec 80C of the Income Tax Act, 1961 for your Home Loan interest and principal repayments respectively. Section 24 and Section 80C allows you a separate deduction on repayment of interest and principal amounts respectively subject to a ceiling of 2 Lakhs and 1.50 Lakhs respectively. You can also claim tax deductions on payment of stamp duty and registration even if you have not availed any Home Loan. First-time home buyers get additional rebates in income tax.

Does a change in the RBI repo rate affect the EMI?

Yes, any change in the RBI repo rate affects the bank's MCLR. Whenever the MCLR changes, you observe a difference in the interest rates on Home Loans and other loans because all the interest rates depend on the MCLR.

From where can I avail Federal Bank Home Loan?

Federal Bank has a pan India presence and particularly has an extensive network of branches in the states of Tamil Nadu and Kerala. You can also apply for your Federal Bank Home Loan through MyMoneyMantra. It provides you with an opportunity to compare different products on a single screen. You can locate the best deals on Home Loanusing the free loan assistance service from MyMoneyMantra.

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