Federal Bank Loan Against Property Details

Loan Against Property (LAP) can save you from the sudden panic caused by a financial crisis. It does not matter how rich someone is, as a financial crisis can hit anyone and at any time. For most individuals, a property act as a sense of security during times of financial issues but most of the time, it does not add any significant value on a daily basis. So why not use this security during the times of emergencies and address the financial problems in an efficient manner.

Federal Bank has emerged as one of the favourite LAP providers in India due to the several benefits on offer. Getting a Loan Against Property is now easier with Federal Bank offering the loan with minimal documentation and quick processing. Loan Against Property is a multi-purpose loan that can be used for anything be it the education of your child, wedding expenses, renovation of your house, repayment of a debt, or any other financial need of yours.

Federal Bank is a commercial bank with its head office in Kochi. With 8 million customers all over the country and 1.2 million NRI customers, Federal Bank claims to handle 15% of India's inward remittances. Federal Bank handles remittances arrangements with around 110 banks offering significant ease of transferring money to and from India.

Federal Bank offers multiple financial products to its customers to enhance their user experience. One of the most popular credit products offered by the bank is Loan Against Property. Whether you own a residential property or an industrial property, you can easily get a loan against it from Federal Bank at attractive interest rate. Federal Bank allows you to use the borrowed money for business purpose as well. With the help of Federal Bank LAP, you can handle any type of financial requirement in an effective manner.

Why Federal Bank Loan Against Property?

Here are some of the major reasons that make Federal Bank Loan Against Property an option worth considering:

  • Quick loan processing and approval
  • Residents, Non-residents, PIOs, everyone can apply for the loan
  • Lower interest rates on loan against property and equated monthly instalments (EMIs)
  • Loan can be availed for personal as well as business requirements
  • Loan can be availed as Term Loan as well as Overdraft
  • Minimal paperwork required
  • No stipulation of financial parameters
  • Flexible repayment options

Property Power can be availed against residential premises/ plot of land/ commercial properties, as per your convenience.

Federal Bank Loan Against Property - Features & Benefits

The bank offers the following features and benefits on LAP:

  • Longer repayment tenure of up to 20 years
  • Loan amount f up to  20 Crores
  • Affordable interest rates
  • Low processing fee
  • Surrogate Scheme available for self-employed applicants
  • Balance Transfer Programs available with additional finance
  • Equitable mortgage of immovable property will be required as security for SME Loan Against Property (with 25% margin).

Repayment can be done through Cheques, Standing instructions at your branch, Automated loan recovery, FedNet - Internet Banking, or Automated Payment through ECS.

Federal Bank Loan Against Property Interest Rates

Federal Bank offers Loan Against Property or Property Power Loan (LAP) at affordable interest rates. The applicable rates vary from 11.70% to 14.95% currently. The rates may vary depending on the type of scheme chosen, the income of the borrower, property's value, loan amount, credit score of the borrower, and other factors.

Types of Loan Against Property Offered by Federal Bank

Federal Bank has the following variants of Loan Against Property on offer for its customers:

Property Power

PurposeThis loan can be availed against the property for your personal, business, and family's financial needs. Take your business to new heights, consolidate debts, or fund education or marriage of your children, with Property Power.
Loan AmountUp to 5 Crores
Repayment TenureUp to 15 years
Eligibility
  • Residents, Non-resident, and PIO individuals can apply.
  • The loan can be availed against residential/ commercial properties or a plot of land.
  • Security
  • Immovable property's mortgage
  • Property in close relative?s name will also be accepted
  • For PIOs, the property should be in their own names
  • The applicant has to inform the bank whenever there is a change in address/ employment.
Other Key Features
  • Loan is available as Overdraft as well as Term Loan.
  • Surrogate Scheme available for self-employed
  • Balance Transfer facility available with additional finance.
  • Insurance options available at attractive premiums for Property Power Loan. The insurance amount can be included as a part of the bank?s loan component.

SME Loan Against Property

PurposeThis loan can be availed by entrepreneurs for their business needs and growth.
Loan AmountNo stipulation of financial parameters
Repayment Tenure
  • Up to 30 months for Running Overdraft/ Demand Loan.
  • Up to 120 months for Term Loan
  • Up to 30 Months for Non Funded Limits
Eligibility
  • Self-employed professionals, Firms, Companies, any other legal entity which is engaged in manufacturing/service/trading can apply (excluding NBFCs/ Real estate/ Chit Companies/ Export Credit).
  • The bank will require immovable property's equitable mortgage with 25% margin as security.
Other Key Features
  • Low processing fee of 0.50%
  • Term Loan, Working Capital/ Non-funded limits, and Demand Loan available

Loan Against Rent Receivables

PurposeThis loan can be availed against the future rentals of a commercial property today.
Loan AmountUp to 20 Crores
Repayment TenureUp to 120 months
Eligibility
  • Individuals/ Company/ Firm/ any legal entity with assured rental/ maintenance/ service income from reputed Companies/ PSUs/ Institutions/ Established Organisations can apply.
  • Lower margin is required at 10% on the discounted value of the net rent receivables.
Other Key Features
  • Competitive interest rate
  • Demand Loan, Term Loan, OD with diminishing Drawing Power (DP) available.

Federal Aashray Loan

PurposeThe Federal Aashray Loan provides an additional income source for senior citizens of India, who own a self-acquired property in the country, for any personal use except speculative trading and/or business.
Loan Amount
  • Loan amount is decided according to the value of the security which is being provided.
  • Value of the property-to-be-mortgaged should be minimum 60% of qualifying loan amount.
  • Monthly payout from 2,000 to 25,000
Repayment Tenure
  • 10 to 15 years
  • The remaining life of the property should be minimum 20 years.
Eligibility
  • Applicant should be at least 60 years of age and their spouse should not be below 58 years of age when applying for the loan.
  • If spouses jointly own a property (with age restrictions mentioned above), they can be co-applicants.
  • Number of surviving spouses on the loan sanction date should not be more than one.
  • Borrower must have property in their own name.
Other Key Features
  • Bullet payment option available
  • Prepayment the loan is allowed by giving 6 month's notice.
  • Settlement by legal heirs option is also available.
  • Interest is reset every 5 years

Property Power for NRIs

PurposeThis loan can be availed against property for your personal, business, and family's financial needs. Take your business to new heights, consolidate debts, or fund education or marriage of your children, with Property Power.
Loan Amount
  • Up to 50% of the security's value
  • Maximum 5 Crores
Repayment TenureUp to 15 years
Eligibility
  • NRIs and PIOs can apply
  • The loan can be availed against residential/ commercial properties or a plot of land.
  • Security
  • Immovable property's mortgage
  • Property in close relative's name will also be accepted
  • For PIOs, the property should be in their own names
  • The applicant has to inform the bank whenever there is a change in address/ employment.
Other Key Features
  • Loan is available as Overdraft as well as Term Loan.
  • Surrogate Scheme available for self-employed
  • Balance Transfer facility available with additional finance.
  • Insurance options available at attractive premiums for Property Power Loan. Insurance amount can be included as a part of bank's loan component.

Documents Required for Federal Bank Loan Against Property

Following are the documents required to be submitted along with duly filled and signed loan application form for Federal Bank Loan Against Property:  

Property Power

KYC Documents

  • 2 passport size photos the applicant and the co-obligant
  • Identity proof: Passport/ Aadhaar Card/ Voter's ID/ Driving License/ PAN Card.
  • Address proof: Passport/ Aadhaar Card/ Voter's ID/ Driving License
  • Age proof: Passport/ Driving License/ Birth Certificate/ SSLC or AISSE Certificate.
  • Additional documents for NRI applicants: Certified copy of Passport, Visa, Work Permit, and ID card.

Income Documents

  • Salaried - Resident
  • Latest Salary Slip/ Salary Certificate for 3 months
  • Copies of ITR or Form 16 for 2 years
  • Latest Bank Account Statement for 6 months showing the salary credits
  • Salaried - Non-Resident (either of the following 2 options)

Option 1

  • NRE Account Statement of any bank for last 1 year
  • Salary Certificate/ last 3 months' Salary Slip/ latest Salary Certificate (Embassy/ CRO certified) along with 6 months' Salary Crediting Statement.

Option 2

  • NRE Account Statement for 2 years of the customer and/or Resident Accounts of parents/spouse (with Federal Bank or other bank) in which remittance is made.
  • Self-employed - Resident
  • Business Existence proof and Business Profile
  • Bank Account statements for last 12 months
  • ITR for 2 years along with Balance Sheet, P&L Account for the last 2 years.
  • Tax Paid Challans (wherever available) or ITR for last 2 years supported by tax calculation sheet and Tax paid challans.
  • Self-employed - Non-Resident (either of the following 2 options)

Option 1

  • Business Existence proof and Business Profile
  • Bank Account Statements for last 12 months
  • Balance Sheet and P&L Account for the last 2 years
  • Tax Paid Challans (wherever available)

Option 2

  • NRE Account Statement for last 2 years of the customer and/or resident accounts of parents/ spouse (with Federal Bank or other bank) in which remittance is made.
  • Property Documents
  • Title documents
  • Encumbrance Certificate for 13 years
  • Possession Certificate
  • Location Sketch
  • Building Tax receipt (if applicable)
  • Receipt of Land Tax
  • Approved Plan
SME Loan Against Property
  • Identity proof: Passport/ Driving License/ Voter's ID / PAN Card
  • Address proof: Ration Card/ Passport/ Telephone Bill/ Electricity Bill/ Lease Agreement/ Trade License/ Sales Tax Certificate.
  • Last 6 months' Bank Statement
  • Proof of continuation: ITR/ Establishment/Sales Tax Certificate/ Trade License
  • ITR/Sales Tax Returns of proprietor/ firms/ partners/ companies (wherever applicable).
  • Audited or unaudited financial statements (as applicable) for the last 2 years, for existing units.
  • Projected financial statements
  • Copy of NOC/ license from local body or license by competent authority for running the business.
  • Other documents requested by the bank as per individual requirements

 

Loan Against Rent Receivables

  • Identity proof: Passport/ Driving License/ Voter's ID/ PAN Card
  • Address proof: Ration Card/ Passport/ Telephone Bill/ Electricity Bill/ Lease Agreement/ Trade License/ Sales Tax Certificate.
  • Bank Statement for last 6 months
  • Last 2 years ITR with computation of income, Balance Sheet and P&L account (audited).
  • Continuation proof: ITR/ Trade License/ Sales Tax Certificate/ Establishment
  • Copy of registered lease agreement/ service agreements/ maintenance, duly executed & acknowledged by lessor and lessee. Also, original agreement should be obtained & verified.
  • Copy of the tax paid to local bodies or Tax Assessment order (wherever applicable).
  • Other documents requested by the bank as per individual requirements

How to Apply for Federal Bank Loan Against Property

Simply log on to MyMoneyMantra, go to the loans tab and select Loan Against Property. Then fill in and submit all the required details. You will instantly get a call from our Mortgage Specialists to guide you further on the successful loan application.

Other Products Offered by Federal Bank

The bank offers the following products apart from Loan Against Property:

Personal Loans

Car Loans

 

Gold Loans

 

Housing Loans

 

Education and Career LoansFedPremia
Federal Easy CashLoan against Fixed DepositsLoan for Senior CitizensLoan against SharesRD Xtra Gain

NRI Gold Loan

 

NRI Car Loan

 

NRI Property LoanNRI Housing LoanSME Business Loans

Agri Loans

 

Agri Allied Loans
Instant Digital Loan

Term Loans

Bank

Working Capital Loans

Bill Discounting

 

Project Finance

 

Guarantee for Corporates

Letter of Credit

 

Packing Credit LimitEBRD

PCFC

 

LC Bill DiscountingBank Guarantee
Export Pre-Shipment CreditExport Post-Shipment CreditSavings AccountsNoor Personal AccountsSalary AccountsRFC Domestic Account
RFC AccountGBD Super S1Demat AccountsNRE Savings AccountsNRO Savings AccountsNRE Current Accounts
NRO Current AccountsNRI Priority BankingCurrent Accounts

EEFC Accounts

 

Gilt Accounts

 

Deposits

 

NRI Deposits

Fixed Deposits

 

Cash CertificatesRecurring Deposits

Debit Cards

 

Credit Cards

 

Gift Cards

 

Forex Card

Life Insurance

 

Health InsuranceGeneral InsuranceFed-e-Trade (Online Trading)
National Pension SystemIndian Gold CoinFed Oriental Pravasi InsurancePortfolio Investment SchemeWealth ManagementCash Management Services & Merchant Banking Services

How to Calculate Federal Bank Loan Against Property EMI?

Loan Against Property is not simply just another form of credit offered by financial institutions. It involves a lot of planning and careful execution for you to achieve the desired goals. Before taking a high-value loan like Loan Against Property, one must be ready with the plans for timely repayment. Thankfully, with the availability of online EMI Calculator at MyMoneyMantra, the planning process for the repayments has become relatively easier. The Federal Bank Loan Against Property EMI can be calculated using the MyMoneyMantra EMI Calculator.

Following are the steps that you need to follow:

  • Click on the EMI Calculator that is mentioned under Financial Tools tab
  • Enter the following details:
  • Amount of loan
  • Rate of interest
  • Loan repayment tenure
  • After filling these fields, click on the calculate button, and you will get your result

Federal Bank Loan Against Property - Processing Fees & Other Charges

The charges involved in obtaining Federal Bank Loan Against property are as follows:

Type of chargesDescription
Processing fees/ Admin fees
  • Property Power Loan: 1% of the sanctioned limit, minimum 3,000.
  • SME Loan Against Property: Up to 1% of the sanctioned limit.
  • Federal Aashray Loan: 0.50% of the sanctioned limit, minimum 1,000 and 5,000.
Prepayment/ Foreclosure charges

Property Power Loan

  • Floating interest rate loan to Individuals: Nil
  • Fixed interest, Overdraft, Non Individuals: 3% of the balance outstanding or DP, whichever is higher.
  • Hybrid loans:
  • Fixed rate period: 3% of the balance outstanding or DP, whichever is higher.
  • Floating rate period: Nil for Term Loan to Individuals and 3% of the balance outstanding or DP, whichever is higher, for Overdraft Loans to Non-individuals.

SME Loan Against Property

  • OD/CC: 3% of the limit sanctioned (includes adhoc limit, if sanctioned).
  • Demand/ Term Loan/ OD with diminishing DP: 3% of the outstanding balance or DP, whichever is higher.
  • BG/LC: Nil
Penalty for delayed repayment

Property Power Loan: 2% p.m. of the overdue portion. Additional penal interest is applicable for SMA accounts.

SME Loan Against Property

  • OD/CC: 2% of the overdue portion. Additional penal interest is applicable for SMA accounts.
  • BG/LC: Maximum lending rate as applicable on non-priority loans from time to time.
  • Term Loan/ OD/ Demand with diminishing DP: 2% of the overdue portion. Additional penal interest is applicable for SMA accounts.
Charges for switching loan from fixed to floating rates and vice versaProperty Power Loan: 0.25% of the outstanding balance or DP, whichever is higher.
Charges for CIBIL report (for loans above 2.00L)SME Loan Against Property: 1,200
CIBIL Detect ChargeSME Loan Against Property: 15
Commitment charges

SME Loan Against Property:

  • OD/CC: 0.15% per quarter of unutilised portion, 50% of processing fee (for un availed loans).
  • Demand/ Term Loan/ OD with diminishing DP: 50% of processing fee (for un availed loans).
  • BG/LC: NA

Federal Bank Loan Against Property - Customer Care

In case you have any complaint or query or need any kind of assistance, the Federal Bank is ready with its help 24x7.

Customers can simply call on the given toll-free numbers for any kind of assistance:

1800-425-1199

         OR

1800-420-1199

NRI customers can call on the given numbers in case of any query:

+91-484-2630994

+91-484-2630995

The customers are advised to keep their documents handy before calling the customer care centre.

Other than these toll-free numbers, customers can mail their query as well. They can mail their concerns at contact@federalbank.co.in or at support@federalbank.co.in.

NRIs can mail their concerns at nrisupport@federalbank.co.in.

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Preapproved ICICI loan against property @8.35% p.a 

ICICI bank loan against property up to 5 crore can be availed of online as well as offline by salaried and self-employed applicants. The LAP can be for applied for business expansion, long term working capital, debt consolidation, equipment purchase, medical exigency, education/ marriage of children, holiday and much more. Higher loan amounts are available for select customers. 

Federal Bank Loan Against Property FAQs

Can NRIs apply for the Federal Bank Loan Against Property?

Yes, NRIs as well as PIOs can also apply for the Federal Bank Loan Against Property.

What is the maximum amount of loan available under Federal Bank Loan Against Property?

The maximum amount of loan granted as a Loan Against Property by Federal Bank is 5 crores.

What are the different types of facilities offered by the Federal bank to its business customers opting for a Loan Against Property?

Given below are the facilities offered by the Federal Bank for its customers availing a Loan Against Property:

  • Term Loan

To buy fixed assets, machinery, etc. or for Construction of buildings, godown, furnishing, interior decoration, etc.

  • Working Capital

For accretion of stock, financing against receivables, fulfilling advertisement expenses

  • Demand Loan

For meeting general administrative expenses

How can NRI customers contact the Federal Bank in case of any query?

NRI customers can easily contact customer care in case of any query through multiple channels. They can call on the Federal Bank phone number- +91-484-2630994 and +91-484-2630995.

Alternatively, NRI customers can mail their queries directly on the email id- nrisupport@federalbank.co.in.

How much processing fees does Federal Bank charges?

The processing fees levied by Federal Bank for its Loan Against Property starts from as low as 0.50% of the loan amount sanctioned.

What is the maximum repayment period available under Federal Bank Loan Against Property?

The maximum repayment tenure available to customers availing Federal Bank Loan Against Property is:  

  • For overdraft/demand loan: 30 months
  • For term loan: 120 months
  • Non-funded limit: 30 months

What kind of properties can be offered as collateral for Federal Bank Loan Against Property?

Customers can offer residential, commercial, and industrial properties as collateral for Federal Bank Loan Against Property. The property must be registered under the name of the applicant or co-applicant.