Federal Loan Against Property Eligibility

Last Updated 17th Apr 2018

Federal Bank Loan Against Property Calculator India Apr 2018

Eligibility Criteria Salaried Self Employed
Age of Eligible Borrower 21 - 60 years 25 - 65 years
Maximum Loan Tenure 10 years 10 years
Loan as percent of Property Value Upto 50% Upto 50%
Eligible property Self occupied/ rented/ vacant Residential Property, Commercial Property Self occupied/ rented/ vacant Residential Property, Commercial Property
Loan Against Property Eligibility Calculator
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Federal Bank loan against property eligibility based on age
  • Age: Federal Bank considers your age as one of the important parameters to calculate your eligibility of a mortgage loan. To be eligible for availing a loan from Federal Bank, one has to be of atleast 21 years of age. The maximum age for loan from Federal can be 60 years for salaried and 65 years for self employed. Federal Bank eligibility calculator takes age as an input to calculate your maximum loan tenure, loan EMI and hence, your loan amount eligibility. The maximum tenure of loan that you may be eligible based on your current age will be as follows:
Your current age Max tenure for salaried Max tenure for self employed
25 Years 10 Years 10 Years
30 Years 10 Years 10 Years
40 Years 10 Years 10 Years
50 Years 10 Years 10 Years
60 Years - 5 Years

Federal Bank Mortgage loan eligibility based on income

  • Net Income: The amount of loan you can avail is a function of your net income. Federal Bank typically applies a multiplier of up to 60 times on monthly net income of the borrower to calculate the mortgage loan eligibility. For e.g. if your net monthly income is Rs. 70,000 and you take a mortgage loan of Rs. 50 lakh at 11.60% interest rate offered by bank, the maximum loan amount that you will be eligible for (assuming you have no other EMI’s to pay) would be as follows:
    Age Net Monthly Income (Rs.)
    50,000 75,000 100,000
    25 years 23.02 Lakh 34.53 Lakh 46.04 Lakh
    30 years 23.02 Lakh 34.53 Lakh 46.04 Lakh
    35 years 23.02 Lakh 34.53 Lakh 46.04 Lakh
    40 years 23.02 Lakh 34.53 Lakh 46.04 Lakh
    50 years 23.02 Lakh 34.53 Lakh 46.04 Lakh

    You may consider repaying any loans with short tenure and high EMI in order to increase your Federal Bank loan against property eligibility.

  • Nature of Employment: Federal Bank will check whether you are salaried or self employed. It also looks at your years of experience to check for job and income stability. Federal Bank requires minimum income history and job stability of more than 0 years for salaried individuals and of 0 years for self employed individuals.

Federal Bank Loan against property eligibility based on value of property

  • Value of property: Federal Bank does not finance the entire property value. The maximum Loan Against Property Eligibility would depend upon the value of the property. Suppose you intend to take a loan on a property worth Rs. 20 lakh. The amount of loan you will be eligible for will vary with the nature of property. A residential property worth Rs. 20 lakh will fetch the highest loan amount of Rs. 10 Lakh.
    Property Type LTV Property Value Maximum Loan Amount
    Commercial Property 50% Rs. 20 Lakh Rs. 10 Lakh
    Residential Property 50% Rs. 20 Lakh Rs. 10 Lakh
  • Co-applicant: In order to enhance the eligibility of a loan with Federal Bank, one can apply with a co-applicant such as a spouse or parents. This increases the total eligible income for availing a property loan and enhance the amount of eligible loans. As mentioned earlier, every bank has its own set of eligibility criteria. In case of NBFCs, customers can expect higher eligibility
  • Property documents: Your property’s legal documents should be satisfactory and be cleared by the legal team of Federal Bank

Federal Bank property loan eligibility based on CIBIL score

CIBIL Score: The credit history of an individual plays an important role in deciding the amount of the loan. Credit history is basically the credit report of an individual based on credit information recorded by CIBIL for all your past and current loan transactions. Based on your credit score, a bank or any other financial institution decides whether an individual is eligible for a loan or not. Regular payment on secured loans can also increase your CIBIL score. Federal Bank requires a minimum credit score of Federal Bank credit score to be eligible for a property loan.

There are few factors which affect your credit score and in turn impact your chances of getting of loan from Federal Bank.

Late payments – If have delayed in repaying your existing or past loans, it negatively affects your CIBIL score and reduces your chances of getting a loan from Federal Bank.

High number of unsecured loans – Always keep a balance between secured and unsecured loans. Unsecured loans are riskier and more number of unsecured loans can adversely affect your credit score.

Usage of credit limit – Credit card bills and use of credit limit shows your credit behaviour. Frequent usage or withdrawals of large amounts up to the credit card limit reflects a potential financial stress, indiscipline on your part and may adversely impact your credit score.

Multiple loan applications – If you apply for loan in multiple banks at one time, it can affect your score negatively and reduce your CIBIL score. In case of application rejection from Federal Bank, improve your credit worthiness to get a good score before putting in an application in another bank.

Federal Bank Mortgage loan eligibility based on FOIR

Federal Bank calculates FOIR (Fixed Obligation to Income Ratio) to estimate the amount of loan against property you can avail. Federal Bank will calculate the percentage of fixed obligations (Rent and EMIs) to your net monthly income. Your fixed obligations to monthly income ratio should not be more than 65% to get a mortgage loan from Federal Bank. Always calculate your eligibility with Federal Bank mortgage loan calculator to estimate your eligible loan amount before applying for a loan to reduce the chances of getting your loan application rejected.

Frequently Asked Questions

What factors determine the eligibility criteria of property loan from Federal ?

The factors that determine the eligibility criteria of Federal Bank property loan are:-

  • Age of the applicant
  • Monthly income
  • Existing liabilities
  • CIBIL Score
  • Value of the property to be mortgaged
What should be the minimum net monthly income of the customer to get Federal Bank mortgage loan?

The minimum income for salaried employee to get loan against property should be Rs. 0 per month.

What is the minimum and maximum age required for Federal Bank loan against property?

The minimum age of the applicant should be 21 years and maximum should be 60 years for loan against property from Federal.

What is the tenure of Federal property loan?

Federal Bank offers property loan for a tenure upto 10 years. However, longer the loan tenure, higher will be the eligibility.

How much mortgage loan can be availed by the applicant?

An applicant can avail mortgage loan from Federal Bank up to 50% of the market value of the property.

Compare Property Loan Eligibility of All Banks

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