Federal Bank

Federal Bank Personal Loan

Years

Apply Federal Bank Personal Loan

Federal Bank Personal Loan

Taking a Personal Loan is a scary thought for many of us. You could be worried about the interest rates, the repayment model, and other nuances that come with taking a loan. Hence it seems like an easier option to put your dreams on hold till you have sufficient funds which could take years. However, today taking a Personal Loan will release you from the financial burden and help you pursue your dreams.

Federal Bank is India's leading bank that lets you avail a Personal Loan to help you meet your financial needs. You can book your next holiday, plan your wedding or pursue a long-cherished goal with a Personal Loan from Federal Bank which is offered on zero security.

Federal Bank Personal Loan Interest Rate Aug 2019

Interest rate

11.5%

Loan tenure

5 Years

Loan turn around period

1-7 Days

Processing Charges

0.5 % of loan sanctioned + Taxes

Who can apply?

Self-employed professionals

Salaried individuals

Indian residents

Dishonour Charges

750 per instance

Lowest EMI

2,199 Per Lakh

About Federal Bank Personal Loan

Federal Bank is a major commercial bank which was incorporated in 1931 as Travancore Federal Bank Limited by the Varattisseril brothers in Kochi. It is still headquartered in Kochi and provides high-end banking solutions to their customers helping them turn their dreams into a reality. They ensure a high degree of customisation when it comes to Personal Loans at competitive interest rates. The bank offers a variety of unsecured as well as secured Personal Loan variants.

Why Federal Bank Personal Loan?

Using a Credit Card to pay for debt or to pay for a purchase on your wish list may not always be a feasible option. Sometimes you may even be in need of liquid cash to pay for an emergency. Federal Bank offers hassle-free Personal Loans to both salaried individuals and business owners. One of the best and common uses of taking a Personal Loan is to consolidate your debt. If you have multiple Credit Cards or even outstanding with varying interest rates, you can quickly end up being in financial trouble. This is where Federal Bank Personal Loan comes in. They offer a maximum loan of up to 25 Lakhs with repayment tenure of up to 48 months with good interest rates.

Features and Benefits of Federal Bank Personal Loan

Here is what makes Federal Bank Personal Loan different:

  • High Level of customization: Federal Bank offers Personal Loans to suit your needs. Whether you want to plan a holiday, clear a debt, buy a new phone, the bank offers a high degree of customisation according to your suitability.
  • Collateral-free: Federal Bank Personal Loans do not involve any security and mortgage commitments, thus helping you clear any debts you have peacefully.
  • Competitive Interest Rates: Low-interest rates varying from 11.49% to 14.49% p.a. for salaried people that ensure you emerge debt-free by the end of your loan repayment.
  • Loan amount: Get a loan of up to 25 Lakhs without any collateral, guarantor or security.
  • Low Processing Fees: Processing fee charges start at 0.5%
  • Flexible Repayment Tenures: You can repay your loan within the tenure of 6 to 48 months.
  • Flexible Repayment method: You can give standing instructions to your bank, pay through net banking, or through the Fed Mobile app.
  • No surcharge on pre-closure: If you want to close your loan prior to the loan term, no extra charge will be levied on the loan.

Federal Bank Personal Loan Interest Rates

The interest rates for Federal Bank Personal Loans differ as per the loan scheme. Here are the details. 

Loan Type Interest Rates

Fed Premia Personal Loan

11.49%  to   14.49%

Federal Easy Cash (OD against approved securities)

12.75%  to   13.00%

Aashray Loan/ Personal Loan for Senior Citizens

Interest Reset every five years


Fed Premia Personal Loans are offered at select locations - Bangalore, Chennai, New Delhi & NCR, Mumbai, Pune, Thiruvananthapuram & Kochi.

Types of Personal Loans Offered by Federal Bank?

Federal Bank offers the following three types of Personal Loan schemes depending on the type and need of the customer:

Fed Premia Personal Loan

These hassle-free Personal Loans are offered to the salaried individuals earning a minimum monthly salary of 25,000 to help them fund their instant needs. The maximum loan amount offered under this scheme is 25 Lakhs which can be repaid in the tenure of up to 48 months. The loan comes at an attractive interest rate, faster processing timeline, and minimal paperwork.

Federal Easy Cash (OD against approved securities

This loan is offered to individuals, trusts, firms, and companies in the case of an emergency to avail easy cash. This loan is sanctioned against bank deposits, NSC, KVP, LIC Insurance policy, IVP, Government and RBI Non-cumulative bonds, Government and RBI cumulative bonds, etc. The total loan amount that can be availed under this scheme is a maximum of 10 Lakhs. This is a great option to pick if you are faced with a medical or any other sudden emergency and are in need of cash.

Aashray Loan

It is a Personal Loan scheme for senior citizens of India to provide them an additional source of income. The loan can be availed for any personal use other than any speculative trading or business. A monthly payout of 2,000 to 25,000 is extended to the customers for a period of 10-15 years. The loan is offered against an Equitable Mortgage of the house property, value of which should not be less than 60% of qualifying loan amount.

Federal Bank Personal Loan Eligibility

Federal Bank Personal Loan eligibility criteria must be met before loan application approvals and disbursals. The applicant must have a minimum CIBIL score of 700 before applying for the loan. The income, age, and employment history for a salaried person will also affect the loan sanction.

Here are the eligibility criteria for Federal Bank Personal Loans depending on the scheme:

Fed Premia Personal Loan Federal Easy Cash Ashray Loan

Maximum age at loan maturity: 60 years

Who can apply: Individuals, Firms, Trusts, Companies

Who can apply: Indian senior citizens who own a self-acquired property in India

Minimum monthly income: 25,000

  • The applicant must provide the equitable mortgage of the house property against which the loan is offered
  • Borrower must have property in their own name
  • The value of the property to be mortgaged should be minimum 60% of qualifying loan amount
  • The remaining life of the property to be mortgaged should be minimum 20 years

Who can apply: Salaried individuals

  • Minimum age of applicant: 60 years
  • Minimum age of the spouse of applicant: 58 years

Number of years in the current job: 3 years

Spouse can be co-applicant if they own a property jointly

Personal Loan Eligibility Factors

The MoneyMantra website has an EMI calculator that lets you understand your monthly instalments including principal and interest. Individuals can apply for Personal Loan from Federal Bank online or by visiting any of the select city offices.

A lot of banking institutions have strict eligibility criteria depending on the applicant's age, location, salary, company of employment, marital status, and credit score. It would be good to research on these topics in advance before applying for a Personal Loan. If you have a good credit score, you are more likely to get a Personal Loan provided all the other documents are in place. The ideal customer has a credit score of 700 and is deemed as a 'bankable' one.

Federal Bank generally considers applications with a minimum CIBIL score of 700 to qualify for applying for this loan. If you have a high CIBIL score you have a good chance of securing the low interest rate Personal Loan. CIBIL score provides information on your financial history, financial health, and your ability to pay back on time.

Time Taken to Process the Federal Bank Personal Loan Application

Federal Bank ensures that your Personal Loans are processed in an efficient and hassle-free manner. The interest rate on loan ranges between 11.49-14.49%. The Fed Premia Personal Loan is currently available only in select locations of Bangalore, New Delhi and NCR, Mumbai, Pune, Chennai, Kochi, and Thiruvananthapuram. The time taken to process the loan once the application is through can range between 3-5 working days.

Documents Required for Federal Bank Personal Loan

The following documents are required when a user applies for a Federal Bank Personal Loan online:

Documents Required for Fed Premia

Documents for KYC

  • Identity Proof: Passport/ Voter's ID/ Driving License/ PAN Card 
  • Residence Proof: Passport/ Electricity Bill/ Ration Card/ Telephone Bill/ Lease Agreement
  • PAN Card copy
  • Latest passport size photographs of the applicant (2 copies)

Income Documents

  • Last 3 months salary slips/ Latest salary certificate
  • Last 2 years' Form 16/ Income Tax Returns
  • Last 6 months' salary account bank statement
  • Duly signed loan application form

Documents Required for Federal Easy Cash

  • Identity Proof: Passport/ Voter's ID/ Driving License/ PAN Card 
  • Latest passport size photographs of the applicant
  • Residence Proof: Passport/ Electricity Bill/ Ration Card/ Telephone Bill/ Lease Agreement/ Trade License/ Sales Tax certificate)

Other Products by Federal Bank

Federal Bank also offers various other loans and financial products depending on your necessity. They have a wide range of customised products given below:

Property Loans

Housing Loans

Gold Loans

Car Loans

Education and Career Loans

Loan against Fixed Deposits

Loan against Shares

RD Xtra Gain

Credit Cards

Debit Cards

Gift Cards

Forex Cards

Saving Accounts

Salary Accounts

Nor Personal Accounts

GBD SUPER S1

Deposits

Demat Accounts

Life Insurance

Health Insurance

General Insurance

Fed-e-Trade (Online Trading)

Mutual Funds

National Pension Scheme

Indian Gold Coin

How to calculate Federal Bank Personal Loan EMI?

You can calculate your equated monthly instalment (EMI) for Federal Bank Personal Loan using the MyMoneyMantra EMI Calculator. EMI is calculated on the basis of the loan amount, the duration of repayment or loan tenure, and the interest rate charged on the amount borrowed.  EMI can start for as low as 2,608 on a borrowed amount of 1 Lakh at 11.49 interest rate for repayment tenure of 48 months.

There are many factors that influence your EMI and they are:

Interest Rate: If your loan amount is large then your interest rate will be low. For the Federal Bank, the interest rate starts at as low as 11.49% and the lowest EMI will be 2608 for the longest tenure of 48 months. If you have a good credit score and provided the right documentation, then your loan interest rate will vary.

Loan Tenure: The amount of time required by you to repay the loan amount along with interest is known as loan tenure. If you have taken 48 months' tenure for loan repayment, then your EMI will be low. The loan amount approved will be dependent on your age. If you are a young applicant for a Personal Loan, say 21 years old, then you have the luxury of availing a longer tenure for your loan repayment.

Loan Amount: Federal Bank Personal Loan's EMIs are low for lower amounts. For example, if you borrow 1 Lakh at a fixed interest rate of 11.49%, your EMI for 48 months will be 2,608. However, if you borrow 10 Lakhs at the same interest rate, your EMI for the same tenure would be 26,084 per month.

The borrower can make EMI payments in four ways:

  • By giving standing instructions to the bank branch
  • Through Federal Bank's internet banking solution - FedNet
  • Automated Payment through ECS (Electronic Clearing Service)
  • Fed Mobile - Federal Bank's Mobile Banking App

In the case of an ECS, the borrower has to give their bank standing instruction to allow Federal Bank to auto-debit the EMI amount every month.

Federal Bank Personal Loan Processing Fees and Other Charges

Federal Bank Aashray Loan comes with a processing fee of 0.50% (minimum of 1,000 and maximum of 5,000). Other charges (if applicable) are specified to the applicant at the time of loan application.

Federal Bank Personal Loan Customer Care

You can contact Federal Bank Customer Care at the following Toll-Free numbers where executives will be available 24*7 to help you.

1800 - 425 - 1199 

Or 

1800 - 420 - 1199 

For general queries, you can write to:

contact@federalbank.co.in

Federal Bank also offers an IVR (Interactive Voice Response) and Telebanking is provided at the Contact Center. A customer needs to register through IVR for availing Telebanking facility. The customer will be provided with a four-digit TPIN (Telebanking Personal Identification Number - similar to the PIN used in ATMs). This facility can be availed from any landline/mobile connection. The Contact Center Executives will help the customers in registering TPIN.

For any queries related to FedNet Internet Banking, you can contact the bank via email to: fednetinfo@federalbank.co.in

Federal Bank Personal Loan Latest News

Federal Bank offers a special loan scheme for Kerala Flood victims

In light of the recent floods in Kerala, Federal Bank has announced a hassle-free top-up loan of 10 Lakhs for customers of the Bank of Kerala to help them repair their houses and rebuild a life in the areas of Kerala. Existing Housing Loan customers who have been repaying their loan for at least a year can apply for the loan. It is offered at a concessional rate of interest of 8%. The borrowers of the loan are not required to submit any fresh documents in support of their income. The applications for loans under this category are processed by the bank on a fast track basis.

Federal Bank to launch a 500-seater capacity facility in Vizag

India's leading commercial bank, Federal Bank in partnership with Fintech Valley Vizag, an initiative to promote investments in financial technology in Visakhapatnam is all set to set up a 500-seater back-end facility in the city.

Federal Bank marks MOU with Infopark Kakkanad

Federal Bank is in the process of forming a wholly owned subsidiary company with Infopark Kakkanad. It has executed MOU leasing space on their campus. The bank has already got in principle approval of the RBI for the creation of the subsidiary company. The proposed company will handle and integrate back-end operations of the bank.

Federal Bank Ltd spurts 1.7% up for a third straight session

Federal Bank Ltd rose for a third straight session with the stock quoting at 77.55, up 1.7% on the 14th day of September 2018. The benchmark NIFTY is up around 0.82% on the day, quoting at 11463.

Google partners with Federal Bank to provide instant loans

The technology giant Google has partnered with Federal Bank to provide instant, pre-approved loans to customers through the Google Pay app, the rebranded version of Google Tez. The Google Tez app has 22 million active users and has made 750 million transactions is what Google has claimed. The company has claimed that the annual run-rate of the transaction value of the digital payments service is 2 Lakh Crore.

Frequently Asked Questions

What is a Personal Loan?

A Personal Loan is an unsecured loan that is usually provided by banking or non-banking financial companies to customers who can provide a few details such as the continued state of employment, salary, credit score and employment history. Usually, these loans do not require collateral such as property, gold, and so on.

Is there a minimum amount that needs to be borrowed for a Personal Loan?

A Personal Loan completely depends on the individual's needs. For example, a purchase, planning a wedding may need a little more than a person who wants to buy a new phone.  It also varies from bank to bank. The Federal Bank does not have a lower limit or a minimum amount for Personal Loans.

Is there a maximum amount that can be borrowed under a Personal Loan?

The maximum amount that can be borrowed by an individual depends on the individual's needs. It also depends on the person's repayment capacity and income. Federal Bank provides a Personal Loan of up to 25 Lakhs for a salaried or non-salaried individual.

What is the time given for repayment of the loan or what is the tenure of the loan?

A Personal Loan from Federal Bank can generally have a repayment period of 12-48 months depending on the bank's policy. In the case of Federal Bank, you can even repay the loan before the tenure ends without any penalty for pre-closure of the loan. 

What age do I have to be to avail a Personal Loan?

Anyone who is a minimum age of 21 years and a maximum of 60 years can avail a Personal Loan from the Federal Bank. The biggest criterion, however, is a person has to have an income whether salaried or own.

What are the documents required for a Personal Loan?

To avail, a Personal Loan one must provide the following documents.

  • PAN Card
  • Proof of Residence (Aadhaar/Driving License/Voter ID/Passport)
  • Latest salary certificate/Last 3 months salary slips
  • Income Tax Returns (2 years)
  • Last 6 months salary account statement
  • Proof of Identity (Passport / Voters ID card/ Driving License/PAN Card)

What are the charges on a Personal Loan?

There are a few basic charges which are levied on a Personal Loan apart from the interest rate. For the Federal Bank, the interest rate is one of the lowest in the country, starting at 11.49% p.a. At the time of application of loan, there is also a one-time processing fee of 0.50% of the sanctioned loan amount.

Is it possible to prepay a loan?

Most banks provide an option to close your loan before the tenure ends if you have got the money to pay it off. In the case of Federal Bank, you do not have to pay any pre-closure fee or surcharge while closing your loan account.

How much time does it take for the loan to get approved and disbursed?

Typically, it does not take very long for a Personal Loan to get approved through MyMoneyMantra as the team of experts will guide you with the documents required. Most banks typically take between 3-4 days for the document to be approved and disbursed to an individual.

What happens when I default on a Personal Loan payment?

If you have availed a Personal Loan, it is ideal to never default on your monthly payments which are systematic and disciplined. It is generally not advisable to not pay your loan as it will have a damaging impact on your Credit or CIBIL score. When your CIBIL score goes low, the chances of you availing a loan in the future may become difficult. Sometimes banks event blacklist customers who have defaulted on their loan payments.

Why Apply for Federal Bank Personal Loan on MyMoneyMantra?

A turn of events in life may lead to financial discomfort sometimes. Or on other occasions you may be putting off purchasing a phone, planning a wedding, or home renovation due to the vast expenditure you may incur.

Getting a Federal Bank Personal Loan through MyMoneyMantra will provide you with the financial freedom you need to make the quick, timely decision for your life and future. You do not have to dip into your savings or emergency fund if you avail a loan on MyMoneyMantra. Every loan is tailored keeping in mind individual needs. Federal Bank also has 24/7 customer care and state of the art banking facilities making it a competitive choice for your personal finance needs.

At MyMoneyMantra, we put customers at the centre of our business and ensure that you can avail a Personal Loan from the Federal Bank in a seamless manner. Financial advisors are available to help you prepare and submit your documentation, guide on the scheme available and be with you every step of the way. Our team helps complete your documentation, collects your kit from your home and deposits it to the bank. We also ensure to provide end to end service for all your loan needs right from approval to the disbursement process.

How to Apply for Federal Bank Personal Loan on MyMoneyMantra?

Personal Loans by Federal Bank are a great option if you are considering home renovation, purchasing consumer goods or planning a wedding.

At MyMoneyMantra we will help you assess your profile, determine your eligibility and repayment capacity without any confusion. All information will be provided by industry level experts who have spent decades assessing the products and solutions to provide the best offers for you.

The process of applying for a Personal Loan through MyMoneyMantra can be taken care completely only by providing the following details:

  • Indicate whether you are a salaried person or self-employed
  • Name and email address
  • The residential city needs to be picked from options given
  • Details of current employer
  • Loan amount requirement
  • A contact number so that MyMoneyMantra can contact and advise you on how to proceed.

OTP is sent to your mobile number

Enter OTP

Resend OTP

×

Get Personal Loan up to 40 Lakh Chat
& get instant approval