|Federal Bank Personal Loan Interest Rates 2019|
|Interest rate||11.49% to 14.49% p.a.|
|Loan Amount||Max loan up to Rs 10 lakh|
|Loan Tenure||Maximum tenure up to 48 months|
|Processing Fee||Minimum fee – 0.50% Rs.500|
|Age||Applicants must not be more than 55 years of age at the time of applying for the loan.|
|Prepayment Charges||Higher amount of 2% on the outstanding balance or the DP|
From renovating your home and buying appliances to funding college education and weddings, personal loans offered by Federal bank can help you fulfil any of your dreams. Customers can acquire a personal loan with the help of simple, minimal documentation in addition to a hassle-free process. Federal bank offers personal loans for a tenure of 48 months. Customers do not have to provide any guarantors to avail of personal loans offered by Federal bank. With over 1000 branches in the country, Federal bank ensures that customers get the desired products.
Interest rates offered by Federal bank will be based on the risk appetite of its customers. The interest rate for Fed Premia Personal Loan ranges from 11.49% to 14.49% p.a. The MCLR rates for Federal Bank personal loans are determined by taking the operating costs, negative carry on Cash Reserve Ratio (CRR), the marginal cost of funds of the bank, and the tenor premium into consideration. The final lending rates of the various loans and advances provided by the bank are fixed by adding the spread to the specific MCLR of a particular tenor. These MCLR-linked interest rates are applied for every loan that is approved, offered, or renewed on or post 1 April 2016. If there are borrowers whose personal loan accounts follow the base rate or BPLR system, then they can get in touch with the manager of their branch and request for their loan accounts to be modified as per the MCLR system.
|Overnight MCLR||8.75% p.a.|
|1-month MCLR||8.85% p.a.|
|3-month MCLR||9.0% p.a.|
|6-month MCLR||9.1% p.a.|
|1-year MCLR||9.2% p.a.|
EMI comprises the interest on loan in addition to the principal to be repaid. The sum of principal and interest is divided by the tenure of the loan. Top rate aggregator websites such as bankbazaar.com provide a personal loan EMI Calculator which helps customers calculate the exact EMI which needs to be paid. All a customer has to do is enter the details of loan amount, tenure, interest rate applicable and processing fee, if any and click ‘calculate’. The customer will then find all the required information such as amortization figures and loan repayment figures for a specific loan amount. An amortization table provide a breakdown of loan repayment. Floating Rate EMI calculation:
Borrowers should examine both possibilities of any increase or decrease in the rate of interest to calculate the exact EMI. Borrowers can then decide if they can afford to pay the EMI and choose their required loan tenure. Borrowers should, therefore, consider the following two options:
For instance, Rahul Bharani, a 35-year-old IT employee, takes a personal loan of Rs.5 lakh at an annual interest rate of 15.25% for 5 years. Rahul, therefore, has to pay an EMI of Rs. 11,961 in the first month after undertaking the loan. The amortization table is as follows:
|Year||Principal paid (Rs.)||Interest paid (Rs.)||Balance amount (Rs.)|
There are various factors which affect interest rates offered on Federal bank personal loan as listed below.
Note: Federal bank can alter its Interest rates at its discretion.
CIBIL score reveals an individual’s repayment capacity and credit history. A robust CIBIL score will boost the chances of a loan applicant to acquire a personal loan at competitive interest rates. If loan applicants have a low CIBIL score, they are unlikely to get their loan approved. If Federal bank decides to approve a loan request by an individual who has a low credit score, the interest rate charged on the loan may be higher compared to those who have a good credit score.
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