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Federal Home Loan Interest Rates 2020

Federal Bank Housing Loan Interest Rate

Last Updated 01st Sep 2020

Current Federal Bank Home loan interest rates for Sep 2020 starts at 8.35% p.a. for a maximum tenure of 30 years. Processing fee on its housing loans is Upto 0.50%, Minimum ₹ 3,000 and Maximum ₹ 7,500.

Loan AmountFederal Bank Repo Rate Home Loan RateHome Saver
Upto ₹ 30 Lakh8.35%8.80%
₹ 30 Lakh - ₹ 75 Lakh8.40%8.80%
₹ 75 Lakh - ₹ 5 Cr8.45%8.80%
Above ₹ 5 Cr8.45%8.80%

Federal Bank Home Loan Interest Rates

Federal Bank offers various products on home loan. Federal Bank home loan can be used for the purchase of a flat, home construction loan, extension or improvement loan.

Features

  • Federal Bank Home Loan Interest Rate starts from 8.35%.
  • Federal Bank charges a processing fees of Upto 0.50%, Minimum ₹ 3,000 and Maximum ₹ 7,500.
  • Loan Tenure of Home Loan ranges from 5 years to 30 years.
  • Lowest EMI per lakh on home Loan from Federal Bank is ₹ 758 per lakh offered at the lowest interest rate of 8.35% at the longest loan tenure of 30 years.
  • Federal Bank allows prepayment of home loans with Nil charges on floating rate loans.
  • Federal Bank has an average customer rating of 3.5/5.0 from customers who have taken a home loan from the bank.

Federal Bank Home Loan Rate

Current Federal Bank home loan interest rates are in the range of 8.35% to 8.45%, with special discounted rates for specific categories of borrowers such as women borrowers for whom the bank offers the lowest interest rate of 8.35%. The table below gives the interest rates on various housing finance schemes of Federal Bank.

Federal Bank Home Loan Scheme Interest Rates
Federal Bank Repo Rate Home Loan 8.35% - 8.45%

Federal Bank Bank Home Loan Charges

Federal Bank Home Loan Processing Fee

Federal Bank home loan processing charges are upto 0.50% of the loan amount from its home loan customers to cover its expenses of conducting credit appraisal and technical evaluation of property. The bank charges a minimum processing of ₹ 3,000 and has capped the maximum processing fees at ₹ 7,500. The processing fees is typically non-refundable and has to be paid at the time of loan application. In addition to Federal Bank housing loan processing fees, the bank also charges certain technical and legal charges which are explained to the customer during the loan process and are payable once the loan application proceeds further.

Federal Bank Home Loan Prepayment

Federal Bank charges Nil fees on prepayment of floating rate loans, as per RBI prepayment rules which prohibit banks from charging prepayment penalty on loans with floating rate of interest. Hence, it becomes extremely easy to balance transfer your loan from bank to another. If you decide to foreclose or transfer your housing loan to another bank, you need to apply for the same to Federal Bank for a foreclosure while processing your new home loan application with the new bank. However, if you have taken a fixed rate home loan from Federal Bank, you will need to pay a foreclosure fees to close your account or transferring it another bank as per your loan agreement with Federal Bank.

Federal Home Loan Documents

Documents for Salaried employees

  • Filled up loan application form
  • 2 Passport Size Photo
  • ITR of last 2 years
  • Identity Proof - Passport/ Driving Licence/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Income Documents – 6 months payslip, 2 years Form 16, 6 months bank statement showing salary credit and any EMI debit
  • Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

Documents for Self-Employed

  • Filled up loan application form
  • 2 Passport Size Photo
  • Identity Proof - Passport/ Driving License/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Business proof such as VAT/ service tax registration, incorporation details in case of companies, business address proof, profit and loss account and balance sheets certified by CA, copy of partnership deed and proof of business existence and business profile
  • Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

Federal Bank Pradhan Mantri Awas Yojana

The government of India has launched many affordable housing loan schemes to facilitate availing home loan at concessional rates to lower and middle-income groups. Some of the popular schemes are:

a) PMAY or Home Loan Subsidy Scheme: Launched in 2015 to provide houses to the homeless. You can apply for PMAY at Federal Bank if you fulfil the eligibility criteria. Know more about PMAY Scheme

b) Pradhan Mantri Gramin Awas Yojana:  It focuses on homeless families and offers pucca houses with basic amenities.

c) DDA Housing Scheme: It aims to provide houses to low, middle, and high-income groups.

d) Tamil Nadu Housing Board Scheme: It started in 1961 to provide houses to varied income groups.

e) Mhada Lottery Scheme: It's a lottery scheme launched every year for buyers of varied income groups.

f) Rajiv Awas Yojana: Launched in 2009 with the aim of bringing illegal construction under the formal system and encouraging slum-free India.

Each of these schemes has its conditions with respect to eligibility, the amount of loan that can be borrowed, and the rate of interest.

Illustration on Federal Bank Home Loan Interest Rate
Maximum Annual Percentage Rate (APR)8.35% to 8.45%
Representative example of the total cost of the loan, including all applicable fees
Here is an illustration of the total cost of the loan:
  • Total amount borrowed: ₹ 1 Lakh
  • Time period: 5 years to 30 years
  • Federal Bank Home Loan Interest Rate: 8.35% to 8.45%
  • Processing Fee payable to Federal Bank: Upto ₹ 10,000. Current offer for processing fee is Upto 0.50%
  • Fee payable to MyLoanCare: NIL
  • Total Monthly Cost – From ₹ 758 for a 30 years ₹ 1 Lakh loan at 8.35% (lowest rate, longest time period) to ₹ 2,049 for a 5 years ₹ 1 Lakh loan at 8.45% (highest rate, shortest time period). This is inclusive of principal repayment.
  • Total cost payable over loan tenure: ₹ 32,954 for 5 years loan to ₹ 1.83 Lakh for 30 years loan

Federal Bank’s terms and conditions as per loan agreement applicable. Short term loans/ pay day loans not available; minimum loan tenure: 5 years. Rate of interest depends upon income, job stability, loan amount, CIBIL score, credit profile, existing obligations, verification and other factors. Credit at sole discretion of Federal Bank.

FAQs

What is Federal Home Loan interest rate?

Federal Home Loan interest rate ranges between 8.35% to 8.45%.

Why should I opt for balance transfer to Federal Bank?

Federal Bank offers competitive Home Loan rates with the best EMI of ₹ 758 per lakh availed at a low-interest rate of 8.35% for a maximum tenure of 30 years. If you are paying an EMI more than ₹ 758 per lakh, you should consider the option for a loan transfer to Federal Bank from your existing bank. EMIs can be calculated through Federal Bank Home Loan EMI calculators.

Do I get tax benefits on a Home Loan from Federal Bank?

As per the Indian Income Tax Act of 1961, residents of India are eligible for tax benefits on the principal amount and interest components of a house finance under section 24 and section 80C of Income Tax Act.

What is the effect of part prepayments on Federal Bank housing finance EMI ?

Part prepayments help you in reducing the outstanding amount of loan, which in turn will reduce the interest amount due. After making part payments, paying the same Home Loan EMI will increase your involvement towards the principal amount, which will help you in repaying the loan faster.

How to increase my eligibility on Federal Bank housing loan?

If your spouse or family member is earning well, you can make your spouse or family member the co-applicant for your loan. The combination of both of your income will help you in increasing your eligibility to get a loan.

How will Federal Bank housing loan rate of interest change in the future?

  • Federal Bank offers RBI Repo Rate linked Home Loan which starts at 8.35%. Current Repo Rate of RBI is 4.00%. Bank adds a mark up on RBI’s repo rate which is called Federal Bank Repo Rate Linked Lending Rate (RLLR). RLLR can change with change in Repo Rate. An additional spread is applied on RLLR which remains the same throughout the tenure. Bank applies a premium of 4.35% to the Repo Rate to arrive at this rate.
  • When RBI increases rates, the bank may increase its Repo Rate linked Home Loan rates by the same basis points for all existing and new Home Loans. When RBI cuts interest rates, the Federal Home Loan interest rates will reduce the interest rates by the same basis points, which will be effective from 1st day of the following month.
  • For instance, if RBI slashes Repo Rate by 0.15%, then Federal Bank Repo Rate linked Home Loan rate will cut from 8.35% to 8.2%.

What is the current Federal Bank Home Loan rate?

The current Federal Home Loan rate starts from 8.35% with a processing fee of Upto 0.50%, Minimum ₹ 3,000 and Maximum ₹ 7,500

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Federal Bank Home Loan News - Sep 2020
  • 2020-07-16 : Federal Bank Q1 net profit up 4.3%
    Federal Bank net profit backed by retail loans like home, personal, gold, car and two-wheeler along with business and mudra loans rose by 4.3% to Rs 400.77 crore in Q1 June 2020 over Q1 June 2019. Further, The Bank total deposits which include fixed and recurring deposits reached Rs 1,54,937.74 crore in Q1 June 2020, registering a 16.9% growth from Q1 June 2019.
  • 2020-05-29 : Federal Bank reported a Q4 net profit of Rs. 301.23 crores
    Federal Bank reported a 21.04% fall in its profits to Rs. 301.23 crores in the fourth quarter of 2019-20 with a sharp rise in provisions. Its net profit was ₹381.51 crores in the same period a year ago. Further, For the quarter ended March 31, 2020, the bank reported a 19.27% increase in total income to ₹4,107.95 crores from ₹3,444.04 crores a year ago backed by retail loans like home and personal loans along with business, car and mudra loans.
  • 2019-07-17 : Federal Bank net profit rises by 46% to Rs. 384 crores during FY19-20
    Private sector lender, Federal Bank’s net profit has witnessed a 46% growth to Rs. 384 crores in the first quarter of FY 19-20. Previous year the profit stood at Rs. 262 crores. The growth is driven by stable asset quality and robust non-core income. Also, the lender has plans to achieve significant growth across its retail loan segment, including home loans and mortgage loans this year.
  • 2019-06-27 : Federal Bank plans to double its business to Rs. 5 lakh crore in the next 4 years
    Federal Bank is planning to double its business growth to Rs. 5 lakh crore in the next four years by focusing on lending to micro, small and medium enterprises, home loans and mortgage loans, and agriculture sectors. Also, it has plans to focus on maintaining high governance and financial performance during this fiscal to achieve growth.
  • 2019-05-21 : Federal Bank revises MCLR rates across loan tenure
    Federal Bank has revised its Marginal Cost of Funds Based Lending Rate (MCLR) across all tenure for the month of May. The move is supposed to make retail loans like housing loans and mortgage loans cheaper. Now for overnight and one month, the rate stands at 8.70% and 8.80% respectively. For 3 months, the rate has been revised to 8.95%. While for 1 year the rate now stands at 9.15%. The revised rates are effective from May 16, 2019.
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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