Federal Bank Loan Against Property
Apply for Federal Bank Loan Against Property (LAP) starting at 11.15% - 14.80% for up to 10 years. You can avail hassle free mortgage loan for a range of business needs. Federal bank offers highly customised property loan as Term Loan, Working Capital/ Non-Funded Limits and Demand Loan. Both self-employed professionals as well as businesses can avail the benefit of the lowest Federal Bank LAP rate.
Apply for Federal Bank Loan Against Property @ 11.15% Interest Rates
Federal Bank Loan Against Property Details
Loan Against Property (LAP) can save you from the sudden panic caused by a financial crisis. It does not matter how rich someone is, as a financial crisis can hit anyone at any time. For most individuals, a property acts as a sense of security during times of financial issues, but most of the time, it does not add any significant value daily. So why not use this security during times of emergencies and efficiently address the financial problems?
Federal Bank has emerged as one of the favourite LAP providers in India due to the several benefits on offer. Getting a Loan Against Property is now easier with Federal Bank offering the loan with minimal documentation and quick processing. Loan Against Property is a multi-purpose loan that can be used for anything, be it the education of your child, wedding expenses, renovation of your house, repayment of a debt, or any other financial need of yours.
Federal Bank is a commercial bank with its head office in Kochi. With 8 million customers all over the country and 1.2 million NRI customers, Federal Bank claims to handle 15% of India's inward remittances. Federal Bank handles remittance arrangements with around 110 banks, offering significant ease of transferring money to and from India.
Federal Bank offers multiple financial products to its customers to enhance their user experience. One of the most popular credit products offered by the bank is the Loan Against Property. Whether you own a residential property or an industrial property, you can easily get a loan against it from Federal Bank at an attractive interest rate. Federal Bank allows you to use the borrowed money for business purposes as well. With the help of Federal Bank LAP, you can handle any type of financial requirement effectively.
Benefits of Federal Bank Loan Against Property
Here are some of the major reasons that make Federal Bank Loan Against Property an option worth considering:
- Quick loan processing and approval
- Residents, Non-residents, PIOs, everyone can apply for the loan
- Lower interest rates on loans against property and equated monthly instalments (EMIs)
- A loan can be availed for personal as well as business requirements
- A loan can be availed as a Term Loan as well as an Overdraft
- Minimal paperwork required
- No stipulation of financial parameters
- Flexible repayment options
Property Power can be availed against residential premises/ plot of land/ commercial properties, as per your convenience
Features & Benefits of Federal Bank Loan Against Property
The bank offers the following features and benefits on LAP:
- Longer repayment tenure of up to 10 years
- Loan amount f up to 5 Crores
- Affordable interest rates
- Low processing fee
- Surrogate Scheme available for self-employed applicants
- Balance Transfer Programs available with additional finance
- Equitable mortgage of immovable property will be required as security for SME Loan Against Property (with 25% margin).
Repayment can be done through Cheques, Standing instructions at your branch, Automated loan recovery, FedNet - Internet Banking, or Automated Payment through ECS.
Federal Bank Loan Against Property Interest Rates
Federal Bank offers a Loan Against Property or Property Power Loan (LAP) at affordable interest rates. The applicable rates vary from 11.15% - 14.80% currently. The rates may vary depending on the type of scheme chosen, the income of the borrower, the property's value, the loan amount, the credit score of the borrower, and other factors.
Types of Loan Against Property Offered by Federal Bank
Federal Bank has the following variants of Loan Against Property on offer for its customers:
Property Power
| Purpose | This loan can be availed against the property for your personal, business, and family's financial needs. Take your business to new heights, consolidate debts, or fund education or marriage of your children, with Property Power. |
| Loan Amount | Up to 5 Crores |
| Repayment Tenure | Up to 10 years |
| Eligibility |
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| Other Key Features |
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SME Loan Against Property
| Purpose | This loan can be availed by entrepreneurs for their business needs and growth. |
| Loan Amount | No stipulation of financial parameters |
| Repayment Tenure |
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| Eligibility |
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| Other Key Features |
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Loan Against Rent Receivables
| Purpose | This loan can be availed against the future rentals of a commercial property today. |
| Loan Amount | Up to 20 Crores |
| Repayment Tenure | Up to 120 months |
| Eligibility |
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| Other Key Features |
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Federal Aashray Loan
| Purpose | The Federal Aashray Loan provides an additional income source for senior citizens of India, who own a self-acquired property in the country, for any personal use except speculative trading and/or business. |
| Loan Amount |
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| Repayment Tenure |
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| Eligibility |
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| Other Key Features |
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Property Power for NRIs
| Purpose | This loan can be availed against property for your personal, business, and family's financial needs. Take your business to new heights, consolidate debts, or fund education or marriage of your children, with Property Power. |
| Loan Amount |
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| Repayment Tenure | Up to 15 years |
| Eligibility |
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| Other Key Features |
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Documents Required for Federal Bank Loan Against Property
The following are the documents required to be submitted along with a duly filled and signed loan application form for the Federal Bank Loan Against Property:
KYC Documents
- 2 passport-size photos of the applicant and the co-obligant
- Identity proof: Passport/ Aadhaar Card/ Voter's ID/ Driving License/ PAN Card.
- Address proof: Passport/ Aadhaar Card/ Voter's ID/ Driving License
- Age proof: Passport/ Driving License/ Birth Certificate/ SSLC or AISSE Certificate.
- Additional documents for NRI applicants: Certified copy of Passport, Visa, Work Permit, and ID card.
Income Documents
- Salaried - Resident
- Latest Salary Slip/ Salary Certificate for 3 months
- Copies of ITR or Form 16 for 2 years
- Latest Bank Account Statement for 6 months showing the salary credits
- Salaried - Non-Resident (either of the following 2 options)
- Option 1
- NRE Account Statement of any bank for the last 1 year
- Salary Certificate/ last 3 months' Salary Slip/ latest Salary Certificate (Embassy/ CRO certified) along with 6 months' Salary Crediting Statement.
- Option 2
- NRE Account Statement for 2 years of the customer and/or Resident Accounts of parents/spouse (with Federal Bank or other bank) in which remittance is made.
- Self-employed - Resident
- Business Existence Proof and Business Profile
- Bank Account statements for the last 12 months
- ITR for 2 years along with Balance Sheet, P&L Account for the last 2 years.
- Tax Paid Challans (wherever available) or ITR for the last 2 years, supported by tax calculation sheet and Tax paid challans.
- Self-employed - Non-Resident (either of the following 2 options)
- Option 1
- Business Existence Proof and Business Profile
- Bank Account Statements for the last 12 months
- Balance Sheet and P&L Account for the last 2 years
- Tax Paid Challans (wherever available)
- Option 2
- NRE Account Statement for the last 2 years of the customer and/or resident accounts of parents/ spouse (with Federal Bank or other bank) in which remittance is made.
- Property Documents
- Title documents
- Encumbrance Certificate for 13 years
- Possession Certificate
- Location Sketch
- Building Tax receipt (if applicable)
- Receipt of Land Tax
- Approved Plan
SME Loan Against Property
- Identity proof: Passport/ Driving License/ Voter's ID / PAN Card
- Address proof: Ration Card/ Passport/ Telephone Bill/ Electricity Bill/ Lease Agreement/ Trade License/ Sales Tax Certificate.
- Last 6 months' Bank Statement
- Proof of continuation: ITR/ Establishment/Sales Tax Certificate/ Trade License
- ITR/Sales Tax Returns of proprietor/ firms/ partners/ companies (wherever applicable).
- Audited or unaudited financial statements (as applicable) for the last 2 years, for existing units.
- Projected financial statements
- Copy of NOC/ license from the local body or license by the competent authority for running the business.
- Other documents requested by the bank as per individual requirements
Loan Against Rent Receivables
- Identity proof: Passport/ Driving License/ Voter's ID/ PAN Card
- Address proof: Ration Card/ Passport/ Telephone Bill/ Electricity Bill/ Lease Agreement/ Trade License/ Sales Tax Certificate.
- Bank Statement for the last 6 months
- Last 2 years ITR with computation of income, Balance Sheet, and P&L account (audited).
- Continuation proof: ITR/ Trade License/ Sales Tax Certificate/ Establishment
- Copy of registered lease agreement/ service agreements/ maintenance, duly executed & acknowledged by lessor and lessee. Also, the original agreement should be obtained & verified.
- Copy of the tax paid to local bodies or Tax Assessment order (wherever applicable).
- Other documents requested by the bank as per individual requirements
Calculate Federal Bank Loan Against Property EMI
Loan Against Property is not simply just another form of credit offered by financial institutions. It involves a lot of planning and careful execution for you to achieve the desired goals. Before taking a high-value loan like a Loan Against Property, one must be ready with the plans for timely repayment. Thankfully, with the availability of an online EMI Calculator at MyMoneyMantra, the planning process for the repayments has become relatively easier.
The following are the steps that you need to follow:
- Click on the EMI Calculator that is mentioned under the Financial Tools tab
- Enter the following details:
- Amount of loan
- Rate of interest
- Loan repayment tenure
- After filling in these fields, click on the calculate button, and you will get your result
Processing Fees & Other Charges of Federal Bank Loan Against Property
The charges involved in obtaining a Federal Bank Loan Against property are as follows:
| Type of charges | Description |
|---|---|
| Processing fees/ Admin fees |
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| Prepayment/ Foreclosure charges | Property Power Loan
SME Loan Against Property
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| Penalty for delayed repayment | Property Power Loan: 2% p.m. of the overdue portion. Additional penal interest is applicable for SMA accounts. SME Loan Against Property
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| Charges for switching loan from fixed to floating rates and vice versa | Property Power Loan: 0.25% of the outstanding balance or DP, whichever is higher. |
| Charges for CIBIL report (for loans above 2.00L) | SME Loan Against Property: 1,200 |
| CIBIL Detect Charge | SME Loan Against Property: 15 |
| Commitment charges | SME Loan Against Property:
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Federal Bank Loan Against Property Customer Care Details
In case you have any complaint or query or need any kind of assistance, the Federal Bank is ready with its help 24x7.
Customers can simply call the toll-free numbers for any kind of assistance:
- 1800-425-1199
- 1800-420-1199
NRI customers can call the given numbers in case of any query:
- +91-484-2630994
- +91-484-2630995
The customers are advised to keep their documents handy before calling the customer care centre.
Other than these toll-free numbers, customers can mail their queries as well. They can mail their concerns to contact@federalbank.co.in or to support@federalbank.co.in.
NRIs can mail their concerns to nrisupport@federalbank.co.in.
FAQs
Simply log on to MyMoneyMantra, go to the loans tab and select Loan Against Property. Then fill in and submit all the required details. You will instantly get a call from our Mortgage Specialists to guide you further on the successful loan application.
Yes, NRIs as well as PIOs can also apply for the Federal Bank Loan Against Property.
The maximum amount of loan granted as a Loan Against Property by Federal Bank is 5 crores.
Given below are the facilities offered by the Federal Bank for its customers availing a Loan Against Property:
- Term Loan: To buy fixed assets, machinery, etc., or for the Construction of buildings, godown, furnishing, interior decoration, etc.
- Working Capital: For accretion of stock, financing against receivables, and fulfilling advertisement expenses
- Demand Loan: For meeting general administrative expenses
NRI customers can easily contact customer care in case of any query through multiple channels. They can call on the Federal Bank phone numbers +91-484-2630994 and +91-484-2630995.
Alternatively, NRI customers can mail their queries directly to the email ID- nrisupport@federalbank.co.in.
The processing fees levied by Federal Bank for its Loan Against Property starts from as low as 0.50% of the loan amount sanctioned.
The maximum repayment tenure available to customers availing Federal Bank Loan Against Property is:
- For overdraft/demand loan: 30 months
- For term loan: 120 months
- Non-funded limit: 30 months
Customers can offer residential, commercial, and industrial properties as collateral for the Federal Bank Loan Against Property. The property must be registered under the name of the applicant or co-applicant.
The current rate of interest for Federal Bank loan against property ranges from 11.15% - 14.80%, varying from one lender to another.
You can apply for a property loan at Federal Bank online or offline. If you meet the required eligibility criteria and provide all necessary documents, you will get a loan sanction post approval.