Federal Bank Personal Loan

Overview

Federal Bank offers you a personal loan to accomplish any of your requirements whether you are a Salaried-Employee, a Self-Employed Professional, or a Self-Employed Businessman. It lends a minimum of Rs 50,000 to up to a maximum of Rs 10 Lacs within 7 days of approval. The processing fees charged by the Federal bank are 0.50% of the loan amount or a minimum of Rs. 500.

Your monthly salary must be Rs. 50,000 or above to apply for a personal loan from a Federal bank. The Annual Interest charged by this bank varies from 11.49% to up to Rs. 14.49% per annum and the tenure to repay the loan is 12 months to up to 48 months and the Pre-Closure charges are 2% of the outstanding amount.

Federal Bank is a good fit for you if?

Salaried Employee Earning High Net Monthly Income

Availing Personal loan from Federal Bank can be a good choice for you if you are a salaried borrower who is earning a monthly income of Rs. 50,000 or above since the annual interest rate is quite low as compared to other banks and financial institutions.

Federal Bank Personal Loan at a glance

Annual Interest Rate11.49% – 14.49% per annum
Loan Term12 months – 48 months
Loan AmountRs. 50,000 – Rs. 10 Lacs
Time of FundingWithin 7 days
Pre-Closure Charges2% of the outstanding amount

Federal Bank Personal loans lend a minimum of Rs. 50,000 to up to a maximum of Rs. 10 Lacs within 7 days of approval with a tenure of 12 months to up to 48 months. The annual Interest rate charged by the Federal Bank ranges from 11.49% to up to 14.49% per annum and the Pre-Closure charges are 2% of the outstanding amount which are high as compared to other competing banks or financial institutions such as Canara bank where the Pre-closure charges are Nil.

Why Choose Federal Bank?

Low Processing Charges

The processing charges charged by Federal Bank for applying for a personal loan are equal to 0.50% of the loan amount or a minimum of Rs. 500 which is quite low as compared to other banks or financial institutions such as Canara bank which charges  zero to up to Rs 5000, zero to up to Rs 5000 in the case of Bandhan Bank while the processing fees charged by SBI charges 1% of the loan amount

Low Pre-Closure Charges

Federal Bank can be a good choice for applying for a personal loan as the pre-closure charges are equal to 2% of the outstanding amount, which is quite low as compared to other competing banks such as HDFC Bank, ICICI Bank, and Kotak Mahindra Bank.

Option to Switch to Floating Rate Loans

You can opt for Federal Bank personal loans as you are allowed to switch to floating rate loans as here, the fixed rate of interest is usually higher than the floating rate of interest as compared to other competing banks or financial institutions such as Axis Bank which does not allow you to switch to floating-rate loans.

Zero Documentation Charges for loan up to Rs. 2 Lacs

This is again a plus point of this bank that it does not charge any documentation fees on personal loans of up to Rs. 2 Lacs as compared to other banks or financial institutions which charge Rs. 500 fee for documentation for personal loan above Rs. 2 Lacs.

What to watch out for?

Incremental Penal Interest

The penal charges structure that the Federal Bank levies are different from what other banks follow. The penal charges in Federal Bank start from 2% of the overdue amount and go as high as 2% of the entire outstanding amount depending upon the actual payment date and the payment due date as compared to other competing banks charging 2% to 3% on the overdue amount only.

High Income Criteria

If you are going to apply for a personal loan from Federal Bank then you must know that the minimum monthly salary required to avail of this loan is Rs. 50,000 which is quite a high amount as compared to other competing banks such as ICICI which lends money to applicants having a salary of a minimum of Rs. 25,000 per month who are residing in Delhi, Mumbai, and Rs. 20,000 for applicants who are residing in Hyderabad, Chennai, Kolkata, Bangalore, and Pune.

Offered at Selected Locations

Federal Bank offers personal loans only to the resident of the selected cities such as Bangalore, Chennai, New Delhi & NCR, Mumbai, Pune, Thiruvananthapuram, and cochin as compared to other competing banks which does not offer personal loan to only selected cities.

Less Tenure on Personal Loan

The tenure to repay your loan amount is limited to 12 months to up to a maximum of 48 months as compared to other competing Banks such as SBI which offers a loan term of 12 months to up to a maximum of 60 months, Canara bank with a tenure 12 months to 72 months.

Compare Federal Bank Personal Loans to Other Banks

Bank NameFederal BankSBICanara Bank
APR11.49% – 14.49%9.60% – 13.85%10.90% – 13.90%
Loan Term12 Months – 48 Months12 Months – 60 Months12 Months – 72 Months
Maximum Lending AmountRs. 10 LacsRs. 20 LacsRs. 5 Lacs
Processing Fee0.50% of the loan amount.
Min Rs. 500
1% of the Loan AmountZero to up to Rs. 5,000
Time to FundingWithin 7 daysWithin 2 to 3 daysWithin 7 days
Pre-Closure Fee2% of the outstanding amountZero to Up to 3% of the Loan AmountNil

Coming to the comparison part, Federal Bank lends you a maximum of Rs. 10 Lacs within 7 days of approval while Canara bank offers a maximum of Rs. 3 Lacs and Rs. 5 Lacs in case of Pensioners within 7 days of approval, and SBI offers a maximum of Rs. 15 Lacs within 2 to 3 days of approval.

The processing fees in the case of Federal Bank is 0.50% of the loan amount and a minimum of Rs. 500, while Canara Bank charges Zero to up to Rs. 5,000 and in the case of SBI, the processing charges are 1% of the loan amount. The tenure of a loan in Federal Bank is 12 months to up to 48 months, 12 months to 72 months in the case of Canara Bank, and 12 months to up to 60 months in the case of SBI. The Pre-closure charges in Federal Bank are 2% of the outstanding amount, No pre-closure fees are charged in the case of Canara Bank, and in the case of SBI, the Pre-closure charges are Zero to up to 3% of the prepaid amount.

Federal Bank Personal Loan Eligibility Criteria

Minimum Age21 Years
Maximum Age 55 Years
Minimum Experience3 Years
Minimum SalaryRs. 50,000
  • The age of the Salaried applicant should not be less than 21 years at the time of loan application.
  • The age of the Salaried applicant should not be more than 55 years at the time of loan maturity.
  • Salaried applicant must have 3 years work experience with the current employer
  • The monthly salary must be Rs 50,000 per month or above.

Federal Bank Personal Loans Schemes

FedPremia (Personal Loan for Salaried)

Federal Bank offers personal loans for salaried individuals who are earning a monthly salary of Rs. 5000. It provides loans to the resident of the selected following cities as Bangalore, Chennai, New Delhi & NCR, Mumbai, Pune, Thiruvananthapuram, and Cochin. It avails funds from Rs. 50,000 to as high as up to Rs. 10 Lacs with a tenure ranging from 12 months to up to 48 months. The Prepayment can be done through standing instructions and ECS with an interest rate ranging from 11.49% to up to 14.49% per annum.

Documents

  • Latest salary certificate or Last 3 months salary slips
  • Form 16 or last 2 years ITR
  • Last 6 months salary account statement
  • Loan application along with 2 Passport size photographs

Federal Bank Personal Loan Interest Rates

Personal LoanApplicable Interest Rate
FedPremia (Personal Loan for Salaried)11.49% – 14.49% per annum

The applicable interest rate on Personal loans charged by Federal Bank ranges from 11.49% to up to 14.49% per annum as compared to other competing banks and Financial institutions such as Bandhan Bank which charges interest rates ranging from 14% to up to 18.75% per annum, Canara Bank charges 10.90% to up to 3.90% per annum while 11.90% to up to maximum of 14.49% per annum.

Federal Bank Personal Loans Fees & Charges

Type of ChargesApplicable Charge
Processing Charges0.50% of the loan amount
Min Rs. 500
Prepayment Charges2% of the outstanding amount
Part-paymentNil
Penal InterestIf payment is due for upto 30 days from the actual payment due date:
2% of the overdue amount

If payment is due for more than 30 days to upto 60 days from the actual payment due date:
2% of the overdue amount + 0.50% for the remaining portion of the loan

If payment is due for more than 60 days from the actual payment due date:
2% of the overdue amount + 1% for the remaining portion of the loan

If payment is due for more than 90 days from the actual payment due date:
2% on the entire balance outstanding
Switch to Floating Rate or Vice Versa0.25% of the balance outstanding
Documentation ChargesNil for loan of upto Rs. 2 Lacs

Rs. 500 for loan above Rs. 2 Lacs to upto Rs. 10 Lacs
NOC Issuance Charges0.05% of the loan or minimum Rs.500

The processing Charges for a personal loan in the case of Federal Bank is 0.50% of the loan amount and a minimum of Rs. 500 and the pre-closure charges are 2% of the outstanding amount. The Penal charges are based on the different categories such as if payment is due for up to 30 days from the actual payment due date then 2% of the overdue amount is charged, while if the payment is due for more than 30 days to up to 60 days from the actual payment due date then 2% of the overdue amount is charged plus 0.50% for the remaining portion of the loan.

If the payment is due for more than 60 months from the actual payment due date then 2% of the overdue amount is charged plus 1% for the remaining portion of the loan. If the payment is due for more than 90 days from the actual payment due then the amount charged by the Federal Bank is 2% on the entire balance outstanding. It charges 0.25% of the balance outstanding for switching to floating rate or vice versa and the documentation charges are Nil for loans up to Rs 2 Lacs and Rs. 500 for loan above Rs. 2 Lacs to up to Rs. 10 Lacs. The NOC Issuance charges are 0.05% of the loan or a minimum of Rs. 500.

After I Applied?

Check Loan Status

  • Dial 1800-425-1199 / 1800-420-1199
  • Press 1 for English, Press 2 for regional language, or Press 3 for Hindi
  • Press 9 to speak to their customer care executive

FAQs

How do I make a repayment of my FedPremia Personal Loan?

You can make the repayment for your loan through any of the following payment options provided by Federal Bank –

  • Standing instruction registration at your branch
  • FedNet – Internet Banking solution
  • Automated Payment through ECS (Electronic Clearing Service)
  • Fed Mobile – Mobile Banking App

How do I connect with FedPremia Customer Care?

You can contact customer care at their toll-free number 1800-425-1199 or 1800-420-1199.

What is the MCLR rate in Federal bank?

It’s 9.20% for One Year Period.

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