Federal Bank Home Loan
Federal Bank offers home loans up to Rs. 15 crore with interest rates starting from 8.75% per annum. Borrowers can enjoy flexible repayment options with tenures of up to 30 years, making EMIs more manageable. The processing fee ranges from Rs. 3,000 to Rs. 7,500 plus taxes, depending on the applicant’s employment type.
Federal Bank Housing Loan Options
Federal Bank, earlier known as Travancore Federal Bank, is one of India’s most trusted and stable banks. Its Federal Housing Loans are flexible and designed to meet the needs of homebuyers, making it easier to buy, build, or renovate a home.
Federal Bank home loans can help you:
- Buy a new house, flat, or apartment.
- Purchase land to build a house later.
- Get a loan on your existing property for personal financial needs.
- Avail a House Warming Loan to cover expenses related to moving into your new home.
These options make it simple for borrowers to get the funds they need and fulfill their dream of owning a home.
Federal Bank Home Loan Interest Rates
Federal Bank offers affordable interest rates on its home loan schemes for both salaried and self-employed individuals. Here’s a quick overview:
| Home Loan Scheme | Interest Rate (p.a.) | Details |
|---|---|---|
| Housing Loan Scheme | Starts from 8.75% | Ideal for purchasing or constructing a home |
| Property Power Loan | Starts from 9.50% | Suitable for availing funds against property |
These flexible and competitive rates make it easier for customers to manage repayments while fulfilling their dream of owning a home.
Compare Home Loan Interest Rates Across Different Banks
| SBI Home Loan | 7.25% p.a. to 10.50% p.a. |
| HDFC Home Loan | 7.75% p.a. onwards |
| PNB Housing Finance | 7.70% p.a. to 11.45% p.a. |
| Axis Home Loan | 8.35% p.a. to 9.35% p.a. |
| Union Bank of India Home Loan | 8.60% p.a. onwards |
| Bank of Baroda Home Loan | Floating rate: 7.45% to 9.20% per year, Fixed rate: 9.15% to 10.20% per year. |
| LIC Home Loan | 7.50% p.a. onwards |
| Kotak Mahindra Bank Home Loan | 7.99% p.a. onwards |
| Central Bank of India Home Loan | 7.35% p.a. onwards |
| Aditya Birla Housing Finance | Salaried: 8.80%–14.00% p.a. & Self-employed: 9.10%–14.75% p.a. |
| HSBC Home Loan | 7.70% p.a. onwards |
| Standard Chartered Bank Home Loan | Starting from 8.95% p.a. |
| TATA Capital Home Loan | 7.75% p.a. onwards |
| YES Bank Home Loan | 9.00% - 11.50% p.a. |
| IDBI Home Loan | 7.65% p.a. onwards |
| Bandhan Bank Home Loan | 8.14% p.a. onwards |
| Federal Bank Home Loan | 8.75% p.a. onwards |
| South Indian Bank Home Loan | 8.30% p.a. onwards |
Federal Bank Home Loans: Features, Interest Rates & Loan Types
1. Federal Housing Loan
Federal Bank Housing Loan is perfect for buying a new home, constructing a house, or renovating an existing property. The loan process is fast, transparent, and requires minimal documentation. You can borrow up to 85% of the project cost, with a maximum limit of Rs. 15 crore, and enjoy repayment tenures of up to 30 years. The loan is secured against the property, with competitive interest rates starting from 8.75% per annum.
2. Loan for House Plots
This loan is designed for purchasing land where you plan to build your home later. The application process is quick and hassle-free. Borrowers can get up to 60% of the land value, with a maximum of Rs. 25 lakh, and repay over a period of up to 60 months. The purchased land serves as collateral for the loan.
3. Loan Against Existing Property
Federal Bank offers loans against residential, commercial properties, or plots of land. With minimal documentation and fast processing, borrowers can access up to Rs. 5 crore with repayment tenures of up to 15 years. The loan is available as an overdraft or term loan with affordable interest rates. Special schemes for self-employed borrowers and balance transfer options make it even more flexible.
4. House Warming Loan
The House Warming Loan is an unsecured personal loan to cover expenses for moving into your new home. No collateral or lock-in period is required. Eligibility is based on the purchase or completion of your home, flat, or apartment. The interest rate is home loan rate + 2%, with repayment tenure up to 60 months, making it a convenient option for new homeowners.
Federal Bank Home Loan Eligibility
To apply for a Federal Bank Home Loan, borrowers must meet the following criteria:
- Applicants should be of eligible age as per the bank’s norms.
- Must have a stable source of income, either as a salaried employee, self-employed professional, or business owner.
- Should meet the bank’s credit and financial evaluation standards.
- Co-applicants can be included to enhance loan eligibility and increase the borrowing limit.
Meeting these eligibility requirements ensures a smoother and faster loan approval process.
Federal Bank Home Loan Required Documents
Applicants need to submit verified documents to process a Federal Bank Home Loan efficiently. These include:
Identity and Address Proof
- Completed application form with recent passport-sized photographs (2 copies each for applicant and co-applicants).
- Valid identity proof: Passport, Voter ID, Driving License, or PAN Card.
- Address proof: Ration Card, Electricity Bill, Telephone Bill, Passport, Trade License, or Sales Tax Certificate.
- PAN Card copy.
Income Proof
- For Salaried Individuals: Salary certificate or last 3 months’ salary slips, income tax returns (ITR) for the last 2 years or Form 16, and bank statements for the past 6 months.
- For Self-Employed Professionals and Business Owners: Proof of business existence, educational qualification certificates, business profile, audited balance sheet and profit & loss statements, ITRs for the last 2 years, and bank statements from the last 12 months (both personal and business)
Note: Additional documents may be requested by the bank if required for verification.
Explore Financial Calculators
What interest rate does Federal Bank charge for home loans?
The home loan interest rate starts from 8.75% per year. The House Warming Loan is charged at your existing home loan rate plus 2%.
Who can be a co-borrower on a home loan?
Immediate family members such as your spouse, children, or parents can be joint borrowers to increase eligibility.
Do I need a good credit score?
Yes, a credit score of 750 or higher is recommended to qualify for a home loan.
What documents or security are needed?
- For the House Warming Loan, Indian citizens don’t need collateral. NRIs may have to pay extra charges.
- Standard home loans require the property as security.
Can I get a foreclosure certificate?
Yes, request a foreclosure certificate at your branch to know the outstanding loan balance and any charges for closing the loan.
Are home loans eligible for tax benefits?
Yes, Indian residents can claim tax deductions on both principal and interest paid under the Income Tax Act.
How much loan can I get?
You can borrow up to 85% of the property cost, with a maximum of Rs. 15 crore, depending on income and eligibility.
Can I transfer my existing home loan to Federal Bank?
Yes, balance transfer options are available, including additional finance to lower EMIs or get better interest rates.