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Eligibility Criteria for Personal Loans at Federal Bank

Federal Bank Personal Loan Eligibility

The personal loan of the Federal Bank is known as FedPremia - Personal Loans. Given below are the details related to the eligibility and various features related to the personal loans of the bank.

As mentioned above, FedPremia Personal Loan is a general-purpose loan of the bank. The bank has set easy eligibility criteria to ensure that majority of the applicants can get the benefit of the loan. This loan is primarily to meet the needs of salaried individuals. The eligibility criteria for this loan are set based on many factors like the age of the applicant, income of the applicant, work experience, etc.

These factors for the eligibility of the loan are discussed in depth hereunder.

Residential Status

The residential status of the applicant is the first consideration while reviewing the eligibility for a personal loan of the bank. Federal Bank provides personal loans under FedPremia Personal Loan Category only to resident individuals.

Eligible Applicants

FedPremia Personal Loans are available to meet the personal needs of persons who are in the employment of reputed organizations or Government entities.

Age of the Applicant

The age of the applicant is another important condition to be eligible for the loan. Federal Bank has set an age restriction for a person to be eligible for personal loans. As per the bank guidelines, the maximum age of an applicant to be eligible for the loan is 60 years at the end of the loan tenure.

The income of the Applicant

The income of the applicant is also considered while sanctioning the loan. This criterion ensures that the applicant has sufficient capacity to repay the loan taken. The minimum income required by an individual to be eligible for the loan is a net monthly income of Rs.25,000.

Work Experience

Another criterion of Federal Bank also requires the applicants to have minimum work experience to be eligible for the personal loans of the bank. The minimum work experience required by a person to be eligible is 3 years in the present employment.

What are the documents needed for FedPremia Personal Loans?

The documents required for FedPremia Personal Loans are twofold. The applicant needs to provide KYC documents as well as documents related to the income proof of the applicant. The details of the same are mentioned below.

Identity Proof

The following documents can be provided for identity proof of the applicant

Address Proof

The following documents can be provided for identity proof of the applicant

  • Passport
  • Aadhaar Card
  • Voter ID
  • Driving License
  • Latest Utility Bills
  • Rent Agreement/ Lease Agreement

Income Proof

The documents for income proof of the applicant are mentioned below,

  • Latest Salary Certificate
  • Last 3 months salary slip
  • Form 16
  • ITR for the past two years
  • Salary account statement for the past 6 months

Bank Statement

Bank statement for the past 6 months

Recent Passport Size Photographs

These documents mentioned above have to be submitted along with the duly filled and signed application form to complete the application process.

What are the highlights of FedPremia Personal Loans?

The personal loans of the bank are available at quite affordable interest rates for eligible applicants. These loans are available through quick processing and faster approval based on the documents submitted as per the guidelines stated above.

The various features of the personal loan of the bank are mentioned below.

Quantum of loan

The loan amount that can be sanctioned as personal loans depends on various factors like the credit score of the applicant, repayment capacity of the applicant, etc. The maximum amount of loan that can be sanctioned by the bank under its personal loan scheme is Rs. 25,00,000.

Rate of interest

The rate of interest for the personal loan of the bank varies based on many factors like the credit profile of the applicant, loan amount, tenure for the loan among others. The rate of interest for the personal loans of the bank ranges from 10.49% to 17.99% per annum.

Tenure

The tenure of the loan is the period within which the loan has to be repaid by the borrower.  Federal Bank requires the borrower to repay the loan taken in a maximum of 48 months or 4 years.

Processing Fees

The processing fees are part of every loan sanctioned. The processing fees are charged at the time of sanction of the loan. Federal Bank charges up to 3% of the loan amount.

What is a personal loan?

Personal loans are among the most common loans that can be availed by a person. These loans are considered quick loans and can be availed with minimum documentation and instant eligibility approval. Personal loans are also known as general purpose loans and can be availed for any purpose like meeting the personal expenses of the borrower. These personal expenses include expenses like wedding, travel, home renovation, education expenses of self or dependent family members etc.

What is a Personal Loan Eligibility Calculator?

The personal loan eligibility calculator is a tool available on the website of the bank. This tool enables the applicant to get an estimate of the loan amount. The inputs needed to get the estimate are,

  • Loan tenure
  • Rate of interest
  • Age of the applicant
  • Current monthly income of the applicant
  • Present liabilities (if any)

Overview of Loans from Federal Bank

Federal Bank is one of the oldest banks in our country has its presence even in the remotest parts of the country. The bank offers many banking solutions for its customers within the country as well as overseas. Federal Bank provides many types of loans at competitive rates along with flexible repayment options. These loan products include personal loans which can be availed by any person to meet their personal needs.

FAQs - Personal Loan Eligibility – Federal Bank

1. Who can apply for a Personal Loan from the Federal Bank?

A. Personal Loan of Federal Bank can be applied by salaried persons who are employed with reputed organizations whether in Government or Private Sector.

2. What is the maximum eligible amount of loan available as a personal loan of the Federal Bank?

A. The maximum amount of loan available as a personal loan of Federal Bank is Rs. 25,00,000.

3. What is the applicable rate of interest on the personal loans of the Federal Bank?

A. The applicable rate of interest on the personal loan of Federal Bank is starting from 10.49% up to a maximum of 17.99%.

4. Can a non-resident apply for the personal loans of the bank?

A. No. Personal loans of Federal Bank cannot be applied by a non-resident.

5. Can a self-employed person apply for a personal loan from Federal Bank?

A. No. self-employed persons or professionals cannot apply for the personal loan of the Federal Bank.

6. What is the minimum years of experience needed for a personal loan from the Federal Bank?

A. Federal Bank requires the applicant to have a minimum work experience of 3 years to be eligible for the loan.

7. What are the various options to repay the personal loan taken from the bank?

A. The personal loan taken of Federal Bank can be repaid in Equated Monthly Installments (EMIs) through any of the following modes.

  • Internet Banking (FedNet)
  • Mobile Banking (Fed Mobile)
  • Automated Payment through ECS
  • Standing Instructions with the home branch of the bank

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