Federal Bank Home Loan

About Federal Bank

IThe Federal Bank Limited is a major private sector commercial bank headquartered at Aluva, Kochi, Kerala. As on 31 March 2016, Federal Bank has 1252 branches and 1680 ATMs across the country. Its balance-sheet stood at Rs. 1.37 trillion as of end March 2016 and its Net Profit stood at Rs. 475 crores for the fiscal year.

What Is a Home Loan?

Home Loan is offered to individuals who wish to construct or buy a house. The property bought or about to be constructed is mortgaged as collateral until the repayment of the loan is completed with full interest. The repayment of the loan generally depends on the capacity of the borrower. Normally, the home loan tenure ranges between 5 to 30 years. The borrower can opt for either floating type of interest of fixed interest rate. Home loan provides tax benefits to the borrowers.

An Introduction to Federal Bank Home Loans

Being one of the largest bank in India, Federal Bank offers a wide range of services in the personal loan segment. It is one of the most preferred bank in India by all kinds of people for any financial service. Packed with exclusive benefits, Federal Bank Home Loans are tailor made catering to the needs of various customers.

Advantages of Federal Bank Home Loans

• Low interest rate
• No hidden costs and administrative charges
• Low processing fees
• No security needed
• Less paperwork
• No prepayment penalties

Features of Federal Bank Home Loans

Key Highlights

Objective

The loan scheme assists borrowers for construction of house, acquisition of land & construction of house, repairs / renovation / remodelling / extension of house, reimbursement of debt incurred for construction / purchase / furnishing / beautification / purchase of flat / villa / house plots / takeover of housing loans / supplementary housing loan to employees of well-run companies / purchase of house plot for subsequent construction of house etc.

Eligibility Criteria

To avail the personal loan from Federal Bank, you need to have the following eligibility criteria.

• You should be 21 years old or above
• Steady income
• Salary slip of last 3 months
• Proper Address Proof and Identity proof

Loan Amount

• Loan amount up to Rs. 1500 Lakhs with a margin of 15 – 20%
• Get loan up to 85% of project cost

Loan Tenure

Longer repayment period – up to 30 Years

Prepayment Charges: No prepayment charges

Processing Fees

0.50% of the Loan amount with a minimum of Rs. 3000 plus applicable tax, maximum of 7500 plus applicable tax

Interest Rates: 9% to 9.25%

Documents Required to Apply for Federal Bank Home Loans

Important documents to be submitted while applying for personal loans with Federal Bank

KYC documents

• Two passport size photos each of the applicant/ and the co obligant
• Identity Proof – Passport / Voters ID / Driving License/ PAN Card / Aadhaar Card
• Address Proof – Passport / Voters ID / Driving License / Aadhaar Card
• Age Proof – Passport / Birth Certificate / Driving License / SSLC or AISSE Certificate
• Certified copy of Passport, Visa, Work Permit, ID card (Applicable for NRI customers)

Income Documents - For Resident Salaried

• Latest Salary Certificate / Salary Slip (3 months)
• Copies of IT returns (2 years) or Form No.16 (2 years) 
• Latest 6 month's Bank Account statement evidencing the salary credits

Income Documents - For Resident Self Employed

• Proof of Business existence & Business Profile
• Last 12 months bank a/c statements
• IT returns for 2 years supported by Balance Sheet, P & L Account for the past two years. Where ever available, Tax paid challans may also be collected OR Last 2 years IT returns supported by Tax calculation sheet & Tax paid challans

Income Documents - For Non- Resident Salaried

Option 1

• NRE account statement with any bank for last one year
• Embassy / CRO certified Salary Certificate/ latest 3 months salary Slip OR Latest Salary Certificate / Slip (3 months) supported by 6 months Salary Crediting Statement 

Option 2

• Two years NRE a/c statement of the customer and/or resident accounts of spouse/parents (with us/ other Bank) in which remittance is made.

Income Documents - For Non- Resident Self Employed

Option 1

• Proof of Business existence & Business Profile
• Last 12 months bank a/c statements
• Balance Sheet, P&L Account for the past two years. Where ever available, Tax paid challans may also be collected

Option 2

Two years NRE a/c statement of the customer and/or resident accounts of spouse/parents (with us/ other Bank) in which remittance is made.

Property Documents

For purchase of approved Flats under construction

• Agreement for Sale & construction
• Allotment letter / NOC from Builder to mortgage the flat
• Tripartite Agreement (to be obtained before disbursal of loan)

For purchase of unapproved Flats under construction

• Agreement for Sale and Construction
• Allotment letter / NOC from Builder to mortgage the flat *
• Title Deed *
• Prior Deed (in cases where the Title Deed does not contain recitals explaining derivation for past 30 Years) *
• EC for 13 years (minimum) *
• Possession certificate *
• Location Sketch *
• Land Tax receipt (latest) *
• Tripartite Agreement (to be obtained before disbursal of loan) *
• Approval or permission from civic authorities *
• Approved Plan and building permit
• NOC from Environmental Department
• NOC from pollution control board
• Fire and safety Clearance
• NOC from aviation department (if applicable)
• NOC From Navy - Army (if applicable)
• Certificate from Coastal Zone Management Authority (if near seas, bays, estuaries, creeks, rivers, backwaters etc.)

 For acquisition of land and subsequent construction of a house in that land

• Agreement for Sale of Land
• Title deed *
• Prior Deed (in cases where the Title Deed does not contain recitals explaining derivation for past 30 Years) *
• EC for 13 years (minimum) *
• Possession Certificate
• Location sketch *
• Latest land tax receipt
• Tentative plan and estimate for construction  

For acquisition of approved Ready Built Flats

• Agreement for Sale & construction
• Allotment letter / NOC from Builder to mortgage the flat

For acquisition of unapproved Ready Built Flats

• Agreement for Sale and Construction
• Allotment letter / NOC from Builder to mortgage the flat *
• Title Deed *
• Prior Deed (in cases where the Title Deed does not contain recitals explaining derivation for past 30 Years) *
• EC for 13 years (minimum) *
• Possession certificate *
• Location Sketch *
• Land Tax receipt (latest) *
• Tripartite Agreement (to be obtained before disbursal of loan) *
• Approval or permission from civic authorities *
• Approved Plan and building permit
• NOC from Environmental Department
• NOC from pollution control board
• Fire and safety Clearance
• NOC from aviation department (if applicable)
• NOC From Navy - Army (if applicable)
• Certificate from Coastal Zone Management Authority (if near seas, bays, estuaries, creeks, rivers, backwaters etc.)

For acquisition of Ready built House

• Agreement for Sale
• Approved plan
• Title Deed
• Prior Deed (in cases where the Title Deed does not contain recitals explaining derivation for past 30 Years)
• EC for 13 years (minimum)
• Possession certificate
• Location Sketch
• Land & Building Tax receipt (latest) 

For construction of house in the already owned land

• Approved plan and Estimate for construction
• Building Permit / NOC for construction *
• Title Deed *
• Prior Deed (in cases where the Title Deed does not contain recitals explaining derivation for past 30 Years) *
• EC for 13 years (minimum) *
• Possession certificate
• Location Sketch *
• Land Tax receipt (latest)

For repair, renovation, remodeling, extension of existing house, flat, villa

• Approved plan and Estimate
• NOC for construction in the case of extension
• Title Deed
• Prior Deed (in cases where the Title Deed does not contain recitals explaining derivation for past 30 Years)
• EC for 13 years (minimum)
• Possession certificate
• Location Sketch
• Land & Building Tax receipt (latest)

EMI Payment Methods

Your Federal Bank personal loan can be repaid in following three ways.

Standing Instruction (SI):

If you are an existing account holder with Federal Bank, Standing Instruction is the best mode of repayment. Your EMI amount will be debited automatically at the end of the monthly cycle from the Federal Bank account you specify.

lectronic Clearing Service (ECS):

This mode can be used if you have a non-Federal Bank account and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.

Post-Dated Cheques (PDCs):

You can submit post-dated EMI cheques from a non-Federal Bank account at your nearest Federal Bank Loan Centre. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Cheques will be collected non-ECS locations only.It is recommended that you opt for either the SI or ECS mode of payment for faster and less prone to error than the use of PDCs.

How to Apply for Federal Bank Home Loan?

You can either apply online or visit a nearby Federal Bank branch for the application. You can also download the home loan application form from the Federal Bank official website, complete the form and submit it the bank representative.

Alternatively you can also check your eligibility for a home loan through CreditMantri and apply for it.

Summary of Federal Bank Home Loans

This is probably the only bank that provides several home loan products in India. With attractive interest rates, the bank caters to the needs of various sections of people. You can also pre-close the home loan with the prepayment for which no penalty is levied. Overall, the bank offers the best deal on home loans.

Federal Bank Home Loan FAQs

1. What are processing fees on Federal Bank Home Loans?

0.50 % of the amount sanctioned with minimum of Rs.1000 and Maximum of Rs.20000

2. Is there penalty for prepaying the Federal Bank Home Loan?

No penalty is levied for prepaying the Federal Bank Home Loan?

3. Can I get Federal Bank Home Loan without a Guarantor?

Guarantor is required in some cases

4. What is the maximum loan repayment period for Federal Bank home loans?

The maximum repayment period is 30 years

5. How Can I apply for an Federal Bank home loan?

You can either apply online or visit a nearest Federal Bank branch and take the help of the bank’s representative.