If you are planning to expand or upgrade your business, the first step that you should take is to ensure that the entire process does not impact the finances of your company. Federal Bank offers short-term loans to medium to large-size enterprises that might face the challenge of shortage of working capital at the time of a business expansion or operational upgrade. Whether it is to finance the purchase of vehicles, equipment, machinery, etc. for business purposes or to make advance or bonus payments to the employees of the company, entrepreneurs can avail this loan to take care of all their business credit requirements. This loan can also be used to meet the working capital requirements of a company when it is undergoing an upgrade or expansion, and to take care of any mismatch in the cash flow for a short span of time.
With competitive rates, a simple loan application process, and quick disbursal of loan amount, the Federal Short-Term Loans for Corporates is one of the best choices available for business owners in the market to help take care of their business financial needs. Under this scheme, a business with funded or non-funded exposure of at least Rs.25 crore can also secure a loan.
How Can Federal Short-Term Loans for Corporates Be Used?
The loan amount borrowed under this scheme can be used by medium and large corporates for the following purposes:
Features and Benefits of Federal Short-Term Loans for Corporates
Eligibility Criteria for Federal Short-Term Loans for Corporates
Before you choose to apply for this loan scheme, you should learn whether you are eligible for this scheme or not by checking out the list mentioned below:
Federal Short-Term Loans for Corporates Interest Rates
The rate of interest provided by Federal Bank to its short-term loan borrowers is usually based on several factors such as credit history, loan amount, repayment tenure, etc. While the interest rate offered by the bank varies from customer to customer, it is also necessarily based on the Marginal Cost of funds-based Lending Rate (MCLR).
Check out the ongoing MCLR offered by Federal Bank effective from 16 August 2018 mentioned in the table below:
|Marginal Cost of Funds-Based Lending Rate (MCLR) Tenure||Benchmark Rates (MCLR) (p.a.)|
Learn about the current rates of interest offered by Federal Bank as on August 2018 to various applicants mentioned in the table below:
|Type of Borrower||Range of Spread-Over MCLR|
|Loans to small and medium enterprise (SME) manufacturer, trader, contractor, or service provider||3.70% p.a. to 5.20% p.a.|
|Rent securitisation loans||3.10% p.a. to 4.60% p.a.|
|Loans available for residential and commercial real estate developers||3.85% p.a. to 5.35% p.a.|
|Micro business loans with aggregate credit limit up to Rs.25 lakh||3.00% p.a. to 6.15% p.a.|
|Small business loans with aggregate credit limit ranging between Rs.25 lakh and Rs.2 crore||3.10% p.a. to 6.15% p.a.|
Please note that the rates mentioned above are subject to change without any prior indication. Therefore, it is advisable to get in touch with the bank prior to applying for a loan in order to learn about the latest interest rates being offered. This will help eliminate any future surprises after the loan application has been processed.
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