Federal Bank is one of the largest private sector banks in the country, with its headquarters in Aluva, Kerala. Established in the pre-independence era as the Travancore Federal Bank, it has evolved over time to offer products and services suited to this period. The personal loan offered by Federal Bank is easy to avail, with the bank requiring minimum documentation. In addition to the ease of getting a personal loan, the bank also has attractive interest rates for the same. To know more, follow some simple steps given below to get attractive deals.
|Interest Rate||11.49% to 14.49%|
|Processing Fees||0.50% of loan amount or min Rs.500|
|Pre Closure Charges||Nil|
|Loan Tenure||4 Years (maximum)|
Federal Bank is a key banking institution in South India, dating back to the pre-independence era. The bank was founded by Mr. K.P Hormis and was initially known as the Travancore Federal Bank, changing its name to The Federal Bank Limited in 1949. The bank is headquartered in Aluva, Kerala and has over a thousand branches across India. Federal Bank believes in following a customer centric approach and prides itself on being the trusted banking partner to millions in India.
Federal bank offers personal loans to meet any requirement of the customer, offering specialised services to them.
Federal bank offers personal loans for multiple needs, ensuring that a customer can go through life without having to worry about monetary issues. The need for a personal loan can arise at any moment, and lack of money could hamper life. Federal bank personal loans allow people to live life to the fullest, without worrying about external factors. Loans can be availed for any personal reason, from travel to weddings to home needs.
The customer centric approach followed by Federal bank places the customer first, and the bank tries its best to ensure that no customer leaves unsatisfied. A simple loan process and low interest rates ensure that a personal loan does not become taxing on consumers. A blend of traditional values and modernity make Federal Bank personal loans an extremely viable option.
This is a personal loan designed for salaried individuals who earn a minimum of Rs.50,000 per month. This loan product is offered in cities like Bangalore, New Delhi, Chennai, Pune, Kochi, Mumbai, and Thiruvananthapuram.
The maximum loan amount offered under this loan is Rs.10 lakh, with the maximum loan tenure being 4 years.
The customer first policy adopted by Federal Bank ensures that customers get a slew of exciting features to choose from. Some of the key features of FedPremia are:
Have you been planning your career extensively? In case you have financial troubles, you need not give up on your aspirations. As a student, you may not have any income to meet the various expenses related to your higher education. You can approach Federal Bank that offers an exclusive loan for educational and training purposes. With the help of this loan, one can get funds for course fees, tuition fees, caution deposit, laboratory fees, library fees, examination fees, etc. One can also utilise this loan for buying books, instruments, and equipment. There is no minimum age limit to apply for this loan.
Are you a senior citizen and have you been looking for a personal loan? Why don’t you check out the exclusive Federal Bank Loan for Senior Citizens? This loan is given for the specific purpose of giving an extra income to senior citizens. This loan can be taken only by senior citizens who own a particular residential or commercial space in their legal name. This space will be used as a security that will have a residual life of at least 20 years. The margin on security for this loan will range from 10% to 25%.
Following the introduction of MCLR, interest rates applicable on new personal loans will be determined on the basis of MCLR and a few other factors. Existing borrowers can continue to pay interest on the basis of the Base Rate.
MCLR or Marginal Cost of Funds based Lending Rate is dependent on various factors like tenor premium, CRR, cost of funds, operating costs, etc. MCLR is subject to change periodically. All new borrowers will be sanctioned loans on the MCLR based interest rate which is subject to revision without prior notice. The MCLR for retail loans as of 16/9/2018 is highlighted below.
|Tenor||MCLR percentage per annum|
|1 month MCLR||8.85|
|3 month MCLR||9.0|
|6 month MCLR||9.1|
|1 year MCLR||9.2|
The final lending rate charged by the bank on personal loans will be computed by adding a certain percentage over the applicable MCLR. The current interest on FedPremia personal loan ranges between 11.49% p.a. and 14.49% p.a.
|Loan||Range of Spread Over MCLR %|
|Personal Loan||3.92% to 5.72%|
|Fed Premia Personal Loan||11.75% to 14.65%|
|Base Rate||Prime Lending Rate|
|9.63% per annum (w.e.f Dec 1, 2015)||17.75% per annum (w.e.f Nov 7, 2011)|
Federal Bank Personal Loan Interest Rate (Base Rate)
All existing loan borrowers can either switch to the MCLR based interest rate system or continue paying interest as per the Base Rate linked interest rate system.
Note: The MCLR rates given above are effective as of 16 September 2018. Interest rates for personal loans are subject to change with change in MCLR / Base Rate. To know the currently applicable interest rates for personal loans, please contact the bank at the time of applying for the same.
Individuals who wish to apply for a personal loan from Federal Bank need to meet the following eligibility criteria.
An applicant is also required to furnish the following documents to obtain a personal loan.
Calculating the EMI on personal loans is no longer a complicated task, as BankBazaar.com lets individuals figure out their EMIs without hassle. A simple Personal Loan EMI calculator tool on the website provides people the opportunity to know their EMI amount by just filling in the loan amount, tenure and interest rate. The tool calculates the EMI and represents it in a simple and easy to understand format.
Federal Bank offers personal loans only to salaried individuals earning more than the minimum stipulated amount per month. The minimum monthly income required for Federal Bank Personal Loan is Rs.50,000. Additionally, you should also be under the age of 55 years to apply for a loan. This loan is currently provided only to residents of certain cities and you should check the availability of the same in your city
You can repay the loan in Equated Monthly Installments (EMI's) using the ECS facility. Alternately you can also provide standing instructions to the bank to deduct the EMI or complete the payment using FedNet or FedMobile.
The maximum loan amount one can avail is Rs.10 lakh.
The maximum loan tenure is 4 years.
Individuals who meet the eligibility criteria for the loan can apply for the same. The applicant should be a resident of the city where the loan is offered, should earn a minimum of Rs.50,000 per month and should be less than 55 years old.
Personal loans issued by Federal Bank can be used for any personal needs, providing they are within legal boundaries.
Federal Bank offers the loan at attractive interest rates ranging between 11.49% p.a. and 14.49% p.a.
Federal Bank offers Personal loans with tenures of a minimum of 12 months and a maximum of 60 months
Federal Bank offers its customers interest rates ranging from a minimum of 17.55% to a maximum of 20.05% on its personal loans.
After submission of all required and relevant documents, the bank will approve the loan application in a few days (subject to verification of the documents).
Salaried as well as self-employed individuals will incur a processing fee of 1% of the total loan amount at the disbursal of the loan
No, being a personal loan you don’t have to provide collateral for the same
Applicants are required to provide the following documents in order to avail of a personal loan from Federal Bank:
Repayments can be made towards the loan in EMIs via the ECS facility or via post-dated cheques
You can use the EMI Calculator option provided by Federal Bank to compute your EMI. The EMI calculator computes your monthly loan repayments based on the principal loan amount, the rate of interest, and the duration of the loan.
An applicant should be less than 55 years old to apply for a personal loan.
Federal Bank, under FedPremia offers personal loans to salaried individuals. The maximum loan amount under this scheme is Rs.10 lakh . This loan can be availed by individuals in select cities.
FedPremia is offered only in select Indian cities. These include Bangalore, New Delhi, Chennai, Pune, Mumbai, Pune, Kochi, and Thiruvananthapuram.
*This article is provided only for consumer information on an as is where is basis and BankBazaar does not claim or represent to be connected with Federal Bank. For further information about any of the products mentioned above please contact Federal Bank.
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