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Federal Bank Personal Loan Interest Rate 2022

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Description

Federal Bank, one of India's largest private sector banks, provides the FedPremia personal loan to salaried individuals earning Rs.25,000 or more per month. You can borrow up to Rs.25 lakhs for a term of four years at interest rates as low as 10.49% per annum. The processing fee is 3% of the total loan amount, plus any applicable taxes.

Federal Bank Personal Loan Interest Rate

Types of Personal Loans

Interest Rates (p.a.)

FedPremia


 

10.49% to 17.99%

Fed-E-Credit

Shubh Yatra Loan

Bon Voyage Loan

 

Federal Bank Personal Loan Schemes

FedPremia Personal Loan 

Only salaried individuals are eligible for a FedPremia personal loan. The following are some of the highlights:

  • The loan amount is up to Rs. 25 lakhs.
  • The maximum repayment duration that can be used is 48 months.
  • A monthly salary of Rs. 25,000 is necessary to apply for this loan.

Fed-E-Credit is the second choice

Fed-E-Credit is an entirely online personal loan with a range of end-use options. The following are some of the advantages of this digital loan:

  • This scheme's maximum loan amount is Rs. 5 lakhs.
  • This personal loan may be taken out as a term loan or a line of credit.
  • The maximum repayment period for a term loan is 30 months, and the maximum repayment period for a personal loan is 72 months (for overdraft).

Shubh Yatra Loan from the Federal Government (For Travelling)

Shubh Yatra Loan is a secured personal loan that can be used to cover a range of travel expenses such as housing, transportation/tickets, shopping, and food. The following are notable scheme characteristics:

  • A loan of up to Rs. 3 lakhs have been authorized.
  • The loan's maturity period ranges from 12 to 33 months.
  • Property (land/building), gold ornaments, NSC/KVP (Kisan Vikas Patra), LIC (Life Insurance Corporation of India) policy, bonds, and bank fixed deposits are among the collateral approved by Federal Bank for this personal loan.

 Bon Voyage Loan from the Federal Government (For Relocating to Abroad for Work)

If you are preparing to go abroad for work, the Federal Bon Voyage Loan is an excellent alternative because it is a custom-made loan that assists in covering the initial costs of traveling abroad. The loan will be accepted based on the costs of traveling abroad, with a maximum loan amount of Rs. 5 lakhs. The following costs are covered by this loan:

  • Airfare for a one-way trip abroad (if it is to be met by the borrower)
  • Fees for obtaining a passport and the expense of travel in India
  • Approval of a Visa
  • Basic travel quota is allowable
  • Expenses for obtaining a medical health certificate, as well as other associated costs
  • Amount attributable to the sponsoring company
  • Dressing costs and other miscellaneous local expenses

Factors Influencing Federal Bank Personal Loan Interest rates

As mentioned below, a variety of factors influence the interest rates offered on Federal bank personal loans.

  • Loan tenure: The interest rate paid by the Federal bank is calculated by the loan period selected by customers. When a customer chooses a short loan term, the bank is more likely to charge a higher interest rate than when the customer chooses a longer loan term.
  • Relationship with Federal bank: There is no confidence deficit if a customer has a successful relationship with his or her bank. As a result, the bank will be able to lower the interest rates it gives affluent customers. In addition, a bank's long-term borrower can request a lower interest rate if he or she satisfies all of the conditions for receiving a personal loan.
  • Borrower repayment ability: A borrower's repayment capacity is important. Banks usually offer personal loans up to ten times a customer's monthly income. An applicant's CIBIL score is used by banks to assess his repayment potential. Will a federal bank deliver enticing interest rates? to loan applicants who have a stable source of income and a strong credit background.
  • Jobs information: A customer's employment background and profile are essential factors in deciding the interest rates provided by the Federal bank. Salaried individuals working for high-net-worth firms can be given lower interest rates than self-employed individuals who, by definition, do not have a steady income.

Other Charges on Federal Bank Personal Loan

Schedule of charges

Fees

Documentation charges

Nil to Rs.10,000 (on the basis of the loan amount)

Prepayment charges

Nil or 3% (on the basis of the scheme)

Late payment penalty

2% per month on the amount which is overdue

Charges for switching schemes of the loan

0.25% of the outstanding loan balance

Cersai registration and modification charges

Nil

CIBIL report charges

Nil

Common list of Documents required for Federal Bank Personal Loan

Documents proving your identity:

  • Proof of address, such as a rental agreement, recent utility bills, or a passport, is required.
  • Identification papers such as a voter's ID card, a PAN card, a visa, a driver's license, and so on.
  • 2 copies of the applicant's most recent passport-sized photograph

Income-related records include:

  • Salary slips for the previous three months or the most recent salary certificate Income Tax Returns for the previous two years or Form 16 Salary Account Statement for the previous six months
  • Application for a loan that has been fully filled out and signed.

 

Federal Bank Generic Eligibility Criteria

FedPremia Personal Loan

  • You must be a salaried employee.
  • Your monthly salary should be at least Rs. 25,000.
  • At the end of the loan term, you may not be older than 60 years old.
  • You should have been at your current job for at least three years.

Fed-E-Credit Personal Loan 

  • Individuals – locals, non-residents, and PIOs – are the only ones that can use it (persons of Indian origin)

Shubh Yatra Personal Loan (For Travelling)

  • You should be a nearby resident.
  • To be considered, you must be a salaried employee with minimum basic pay of Rs. 2000.
  • Provide sufficient protection that meets Federal Bank's requirements.

Bon Voyage Loan from the Federal Bank (For Relocating to Abroad for Work)

  • Any Indian with a letter of appointment or a letter from a reputable overseas organization or recruitment agency claiming that a firm offer of employment abroad has been secured
  • The loan is not open to foreign nationals (people of Indian descent or those with foreign passports).

➤ FAQs

Ques. What are my options for repaying my Federal Bank Personal Loan?

The following are some options for repaying your Federal Bank personal loan: 1. At your branch, you can register for standing instructions. 2. FedNet Internet Banking is a service offered by FedNet. 3. ECS (Electronic Clearing House) Automatic Payment (Electronic Clearing Service)

Ques. How much can I borrow from Federal Bank in terms of a loan?

A maximum loan amount of Rs. 25 lakhs are available from Federal Bank.

Ques. Does Federal Bank charge a processing fee for personal loans?

Yes, Federal Bank charges a processing fee of up to 3% of the sanctioned loan volume. Specific personal loan variants may be liable for lower processing fees.

Ques. Are there any penalties associated with paying off a Federal Bank personal loan early?

Yes, that is right. Prepayment penalties of up to 3% of the principal amount prepaid may apply to Federal Bank's term personal loans. On the other hand, personal loans with overdrafts, are not subject to such penalties.

Ques. How long does it take Federal Bank to disburse personal loans?

The bank normally responds to personal loan applications within two days of receiving them, and disbursement will take up to five working days after that. However, depending on factors such as loan amount and borrower profile, a longer or shorter period may apply to personal loan disbursement.

Ques. May I get a Federal Bank top-up loan?

Customers who already have a personal loan with Federal Bank can apply for a top-up loan. The maximum number, interest rate, and term of these top-up loans, would differ from one borrower to the next.

Ques. Is it possible to get a personal loan from Federal Bank if you are self-employed?

Federal Bank's unsecured personal loans are only open to salaried individuals. Self-employed citizens can choose between secured personal loans and business loans, depending on their needs and eligibility