Federal Bank Limited is a major Indian commercial bank in the private sector, headquartered at Aluva, Kochi, Kerala. Federal bank is the fourth largest bank in India in terms of capital base. Federal Bank provide personal loans with Hassle free processing, Simple Documentation, Affordable interest rates and more. Loan will be sanctioned against bank deposits, LIC Insurance policy, NSC, KVP, IVP, Govt. & RBI Non-cumulative bonds, Govt. & RBI cumulative bonds etc. To know more, follow some simple steps given below to get attractive deals.
At least 21 years old
Less than 55 years old
Salaried / Self – Employed
with regular income
Earn more than the minimum
Salaried with Regular Income
Maximum allowed personal loan is Rs. 10 lakhs
EMIs of other loans lower
Pay off your credit card bills
Choose longer tenure loan up to 4 Years
|Processing Fees||0.50% of loan amount or min Rs.500|
|Pre Closure Charges||Nil|
|Loan Tenure||4 Years|
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 Federal Bank in 1947. 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.
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 Federal Bank Personal Loan are mentioned below.
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 is dependent on various factors like tenor premium, CRR, cost of funds, operating costs, etc. MCLR rates are subject to change after every review. All new borrowers will be sanctioned loans on the MCLR based interest rate which is subject to revision without prior notice. With effect from May 1, 2016, the MCLR rates applicable are as follows.
|Tenor||MCLR percentage per annum|
|1 month MCLR||9.41%|
|3 month MCLR||9.55%|
|6 month MCLR||9.54%|
|1 year MCLR||9.49%|
The final lending rate offered by the bank on personal loans will be arrived at by adding a certain percentage over the applicable MCLR rate. The MCLR linked interest rate applicable for personal loans is as follows.
|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:Note: The MCLR rates given above are effective as of May 1, 2016. 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 allows 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 Personal Loan offers personal loans only for salaried individuals earning more than the minimum stipulated amount per month depending on the city of their residence. The minimum monthly income required for Federal Bank Personal Loan is Rs. 50,000 per month. If you fall into this group, you can definitely apply for a Federal Bank personal loan.
You can repay the loan in Equated Monthly Installments (EMI's) using the ECS facility or through post-dated cheques.
Federal Bank offers personal loans as high as Rs. 10 Lakhs for successful applicants depending on their financial record and repayment history.
Federal Bank offers personal loan with a tenure period ranging upto 60 months making it suitable for all loan seekers.
All salaried and self-employed professionals are eligible to apply for a personal loan from Federal Bank. Residents as well as NRIs are also eligible to apply for a personal loan.
Personal loans issued by Federal Bank can be used for any personal needs, providing they are within legal boundaries.
Salaried as well as self-employed individuals can avail of Federal Bank personal loans at a maximum loan amount of 6 times their monthly income or 50% of annual income of the previous year.
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 within 5 working days
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
Yes. Federal Bank requires applicants to provide 100% collateral security when applying for a personal loan. In the case of residents, the spouse is required to join as a co-obligant while collateral security in the name of NRI borrowers is required to cover the loan amount
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
To calculate the amount of equated monthly installment you need to pay each month you can visit the official website of Federal Bank and use the EMI calculator. The EMI calculator calculates your monthly loan repayments based on the principal loan amount, the rate of interest and the duration of the loan.
The applicant should be a minimum of 21 years of age and less than 55 years of age in order to avail of a Federal Bank personal loan.
Federal Bank has launched the Fed Premia Scheme for salaried employees, which feature low interest rates as well as quick processing. As per the scheme, salaried individuals can obtain personal loans of up to Rs 10 lakhs, while repayments towards this loan can be done over a period of 48 months. This scheme is also open to customers who do not hold Federal Bank accounts. These individuals can apply for a personal loan under this scheme by submitting the required KYC and income documents to the bank.
*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.