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Federal Bank

Often, we are in need of some urgent infusion of cash to help us tide over a financial crisis. What are your options? A personal loan is quick, relatively easy and does not require any collateral. You can use the loan amount for any purpose, so long as it is legal. Interest rates for personal loans in India are relatively high as compared to other retail loans because lenders do not hold any customer asset in a personal loan. In case of default, they do not have any security which they can dispose off to recover their dues. In order to safeguard their money they tend to charge high interest rates.

You could use the loan amount for any personal expense - an expensive vacation, improving your business cash flow, consolidating your card debt, a child’s wedding, buying an expensive gadget, medical treatment, or sudden loss of income.

The interest rate on a personal loan could range from 11% to as high as 32% per annum or more. It is determined by a variety of factors, like your credit history including your repayment track record, your credit score, your net annual income, debt-to-income ratio, employment stability etc.

Some features and benefits of Federal Bank personal loans:

  • Flexible end use of loan amount
  • Tenures up to 48 months
  • No collateral required
  • Loan payable in easy installments
  • Federal Bank loan payment options include payment by ECS, Standing Instruction and Federal Bank mobile and net payment services
  • Easy and simple documentation
  • Eligibility: For salaried individuals with a minimum monthly salary of Rs. 50,000, employed for at least 3 years.Maximum age 55 years.
  • Offered only at select locations - Bangalore, Chennai, New Delhi & NCR, Mumbai, Pune, Thiruvanathapuram & Kochi
  • Loan amount up to Rs. 10 lakhs

Federal Bank Personal Loan Interest Rate 2018: 11.75-14.75% p.a. upward (subject to periodic review)

Personal Loan Interest Rates in Federal Bank and other fees and charges are subject to periodic reviews and can differ for each customer. Federal Bank Personal Loan Interest can be calculated based on current MCLR amongst other factors. The final interest rate will be based on your income, loan amount, loan tenure, and the bank’s internal policies and the applicable rates at the specific time among other factors. For the most up to date information on the Federal Bank Personal Loan Rate of Interest and other allied fees and charges, it is advisable to contact the bank directly.

How to calculate Interest/EMI on Federal Bank Personal Loan

When you take a loan, you need to repay it in the form of EMIs. An Equated Monthly Instalment (or EMI) is the amount that you need to pay every month to pay off your personal loan in full. It is a fixed amount that is paid on a fixed date every month. Each EMI consists of payment towards the principal and interest component.

It is simple to calculate your personal loan EMI payments by using the online Personal Loan EMI Calculator on the bank’s website. The calculator can help you calculate the exact EMI outflow every month as well as the interest amount you pay. Using the calculator is free, easy and simple, and you can find out your EMI in a matter of minutes to help you with your monthly personal budgeting.

How CIBIL™ score affects Federal Bank Personal Loan Interest Rates

Many individuals think of their credit score only when it is time to apply for a loan. It is important to remain constantly updated on your credit health because you credit score is a crucial factor in getting approval for a personal loan. Be aware of your credit score before you plan to apply for a personal loan, or any line of credit, for that matter. You can obtain your credit score by requesting a copy of your credit report from one of the credit bureaus in India. It is generally desirable to have a credit score of at least 750 when applying for a personal loan.

If you have bad credit, it is difficult to secure a personal loan with a low interest rate. If your loan application is approved despite having a poor credit score, you might be charged a high interest rate and other unfavorable terms on your loan.

Federal Bank Personal Loan Status

Once the bank receives a completed application form with the required documentation, your eligibility for a personal loan is determined. If you qualify, you will get an approval for a specific loan amount based on your requirement and repayment capability. You can contact the customer care department for help with tracking your loan application.

Federal Bank Personal Loan FAQs

What are the minimum and maximum loan amounts?

The final loan amount is at the sole discretion of the Bank but is subject to a maximum of Rs 10 lakhs. The loan amount is influenced by different parameters like your income, credit history, repayment patterns and capacity, among various other factors. You can contact the bank directly for details on minimum and maximum amount applicable to you.

What are the tenures available?

You can choose a loan tenure of up to a maximum of 5 years.You can choose a loan tenure of up to a maximum of 4 years.

I need a personal loan as soon as possible. How much time will it take for my loan to get approved?

It can generally take 7 to 10 working days from the submission of the application for the loan to be approved, subject to all the documents being in order. However, if you are an existing customer, it may take less time for the loan to be processed.

What is personal loan EMI?

Personal Loan EMI or the Equated Monthly Instalment is the fixed amount that you need to pay on the same date every month for the entire loan tenure, towards servicing your personal loan.

Is there a processing fee or documentation charges?

You may be charged a processing fee which is 0.51% of the total loan amount, subject to a maximum of Rs 510.

Is there a prepayment charge?

It is best to check directly with Federal Bank for specific prepayment and foreclosure charges applicable – you will need to check this at the time of applying for the loan.

How to apply for a Federal Bank Personal Loan

There are several ways of applying for a Federal Bank Personal Loan.

-You can go in person to your nearest branch with the required documentation

-You can contact the customer care department of the bank

Need help with advice on eligibility and on which loan offer suits you the best?

If you want to apply for a personal loan with the lowest interest rates as applicable to your unique credit profile, CreditMantri can guide you through the entire application process and match you with the loan offer best suited to your credit needs.

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