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  • Federal Bank Personal Loan Interest Rates is Rated as "Great!" by 9 Users

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    Federal Bank Personal Loan Interest Rates

    Federal Bank Personal Loan Interest Rates 2018
    Particulars Salaried
    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
    Lowest EMI NA
    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
    Foreclosure Charges NA

    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.

    Federal Bank Personal Loan Interest Rates

    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.

    Federal Bank MCLR interest rates for retail loans with effect from 16 June 2018

    Tenor MCLR rate
    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.

    How to Calculate Interest/EMI on my Federal Bank Personal Loan?

    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 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:

    • Deflation: If the rate of interest decreases by 1% to 3%, your EMI will reduce, in which case, you can opt for a shorter tenure.
    • Inflation: If the rate of interest increases by 1% to 3%, you will have to pay a higher EMI for the chosen loan tenure.

    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.)
    Year 1 72,186 71,343 4,27,814
    Year 2 83,997 59,531 3,43,817
    Year 3 97,741 45,787 2,46,077
    Year 4 1,13,734 29,795 1,32,343
    Year 5 1,32,343 11,185 0

    Factors affecting your Federal Bank Personal Loan interest rates

    There are various factors which affect interest rates offered on Federal bank personal loan as listed below.

    • Loan tenure: Interest rate offered by Federal bank depends upon the loan tenure chosen by customers. If the customer opts for a short loan tenure, the bank is most likely to charge a higher interest rate as compared to loans offered on longer tenures.
    • Relationship with Federal bank: If a customer has a good rapport with his or her bank, there is no trust deficit. Consequently, the bank will be in a position to reduce their interest rates offered to privileged customers. Also, a long-standing customer of a bank can negotiate a lower interest rate, provided he or she fulfils all the required eligibility criteria for availing of a personal loan.
    • Repayment capacity: The repayment capacity of a borrower is of seminal importance. Banks usually provide personal loans up to 10 times the monthly salary of a customer. Banks check the CIBIL score of an applicant to determine his repayment capacity. Federal bank will offer attractive interest rates to loan applicants with a regular income and a robust credit history,
    • Employment details: The employment history and profile of a customer plays a pivotal role in determining the interest rates offered by Federal bank. Salaried individuals working with high net worth companies may be offered lower interest rates as compared to those who are self-employed, who, typically, don’t have a steady income.

    Note: Federal bank can alter its Interest rates at its discretion.

    How CIBIL score affects Federal bank Personal Loan interest rate?

    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.

    Key things about Federal bank Personal Loan interest rates

    • It is always prudent to have a robust credit score to avail of the credit facility from any bank. A good credit score paves the way for a loan getting approved in that all banks including Federal bank review the credit history and repayment capacity of an individual before approving a loan.
    • When the RBI raises the repo rate, banks do not immediately raise their interest rates. In several cases, if a bank has had a lean growth rate, it will be reluctant to immediately pass on the increased rates to its customers. Banks analyze their liquidity and cost of funds before passing on the hike in repo rate to their customers by way of increased interest rates.
    • Floating interest rate changes as per the bank’s base lending rate.

    Federal Bank Personal Loan Interest Rates Reviews

    • Federal Bank Personal Loan
      0.5 5.0/5 "Blown Away!"
      It was a amazing service with the Federal Bank when i got the personal loan. The processing and the documentation was very simple and it was transparent. The customer service executive was friendly in approach. I got the loan amount of 50000 rupees and it got disbursed with in 10 mints of time and they have offered me 12% as the Rate of interest.
      Was this review helpful? 7
      , namakkal
      Reviewed on Aug 30, 2017
    • Federal Bank Personal Loan
      "Need to improve on customer service"
      0.5 2.0/5 "Expected more"
      I have closed the personal loan with the Federal bank and the interest rate was around 12% to 13%, also their services were not good. The response was also not really good, also there were no proper resolution used to provide by the Federal bank.
      Was this review helpful? 3
      , pune
      Reviewed on Jul 06, 2017
    • Federal Bank Personal Loan
      "Very Good"
      0.5 4.0/5 "Great!"
      I got the personal loan with the Federal bank and the rate of interest was around 13%. As I am an employer, I got the loan amount within fifteen days of time and the response is good one with them and they need to optimize the turn around time.
      Was this review helpful? 2
      , ahmednagar
      Reviewed on May 23, 2017
    • Federal Bank Personal Loan
      "Good Service"
      0.5 3.0/5 "Satisfactory"
      I had taken a personal loan from Federal bank, the interest rate was 13% which is higher than the other banks in the market. The processing fee was 1%. But the personal loan process went smooth and the documentation part was simple. Customer service is also quite good.
      Was this review helpful? 4
      , pune
      Reviewed on Apr 15, 2017
    • Federal Bank Personal Loan
      0.5 5.0/5 "Blown Away!"
      No problem as the Federal bank gave better response. I applied for home loan and I was out of station for few months so I canceled decision of loan. They gave instant calls and that shows their service. They told me that the rate would be 10% for the home loan.
      Was this review helpful? 1
      , chennai
      Reviewed on Dec 07, 2015
    • Federal Bank Personal Loan
      0.5 5.0/5 "Blown Away!"
      I had an experience for the personal loan with the federal bank of india.The rate of interest was 13.25% and am really happy with the rate of interest.The service is really good with them.Within two days of time that I got the loan with them.
      Was this review helpful? 5
      , ahmedabad
      Reviewed on Jun 27, 2015
    • Federal Bank Personal Loan
      0.5 2.0/5 "Expected more"
      Pre closure option is there with Federal bank and it is possible after one year. Overall, they took two weeks of time to process my personal loan. I paid Rs.4200 for EMI amount monthly in the date of 5th. I am not that much satisfied with Federal bank because the rate and charge is somewhat high.
      Was this review helpful? 7
      , kolhapur
      Reviewed on Nov 09, 2014
    • Federal Bank Personal Loan
      0.5 5.0/5 "Blown Away!"
      It was a amazing service with the Federal Bank when i got the personal loan. The processing and the documentation was very simple and it was transparent. The customer service executive was friendly in approach. I got the loan amount disbursed with in 12 days.
      Was this review helpful? 7
      , kochi
      Reviewed on Oct 04, 2014
    • Federal Bank Personal Loan
      "Marvelous experience"
      0.5 5.0/5 "Blown Away!"
      An year ago I have taken a personal loan from Federal bank of India. It was a loan against my fixed deposit and easy for me to avail the loan because my dad is an employee of the bank. I was really impressed that the loan got processed on the same day and I got the loan amount on the very next day. Best part is the rate of interest was 10.5% and nil processing fees.
      Was this review helpful? 4
      , chennai
      Reviewed on Jul 28, 2014
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