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Federal Personal Loan Interest Rate

Current Federal Bank Personal Loan Interest Rate

Last Updated 25th May 2021

Interest Rate 10.49% - 17.99%
Tenure Upto 48 months
Processing Fee 0.5%, Min Rs. 500
Loan Amount ₹ 50,000 to ₹ 10 Lakh
Minimum Income ₹ 50,000
Eligible Age 21 to 55 years
Part Prepayment Charges Allowed after paying 0 EMIs with charges ranging from, Nil prepayment charges of the outstanding loan amount.
Foreclosure Charges Allowed with charges ranging from, Nil prepayment charges of the outstanding loan amount.
  • Today’s Federal Bank personal loan interest rate starts at 10.49%.
  • Federal Bank offers the lowest personal loan rate of 10.49% to borrowers who are existing customers of the bank or are working with top corporations.
Apply for Personal Loan @ 10.25%* Get upto ₹ 1,000* Cashback

Federal Bank Personal Loan Rates and Charges

  • Federal Bank offers personal loans to salaried individuals at a minimum rate of 10.49%.
  • Apart from the interest rate, the bank also charges processing fees and penalty fees for pre-payment, foreclosure, and late payment as Federal Bank personal loan rates and charges. As listed below:
Federal Bank Personal Loan Rates and Charges
Interest Rate 10.49% to 17.99%
Part Prepayment Charges Allowed after paying 0 with charges ranging from, Nil prepayment charges of the outstanding loan amount.
Foreclosure Charges Allowed with charges ranging from, Nil prepayment charges of the outstanding loan amount.
Processing Fees 0.5%, Min Rs. 500

Interest rates on Federal Bank Personal Loans Schemes

As on today, Federal BankPersonal loan interest rates are in the range of 10.49% to 17.99%, with lowest rates offered to existing customers of the bank with a strong CIBIL Score and for those working with reputed corporate with a stable employment history. The lowest rate on Federal Bank personal loan remains unchanged at 10.49% as on 25 May, 2021. The last revision on Federal Bank Personal Loan was announced on 25 May, 2021 when the rate was 10.49%. Federal Bank also runs special schemes in which it offers lower rates for defense, armed forces and government employees.Personal loan interest rate for government employee and defense personnel is different from private salaried employees.

Federal Bank Personal Loan Rate Comparison with Other Banks

Here is a comparison of Federal Bank Personal Loan with top lenders based on interest rate, loan tenure, amount, processing fee, and other charges. It is always better to compare various personal loan lenders before proceeding with the personal loan process.

Particulars Federal Bank HDFC Bank SBI
Rate of Interest Starting from 10.49% Starting from 10.25% Starting from 9.60%
Loan Tenure 12 - 48 months 12 - 60 months 6 - 72 months
Minimum Age 21 years 21 years 21 years
Processing Fee 0.5%, Min Rs. 500 Upto 2.50% Min Rs. 999 1.00%
Maximum Loan Amount ₹ 10 Lakh ₹ 75 Lakh ₹ 15 Lakh
Prepayment charges Allowed after 0 EMI's, Nil prepayment charges Allowed after 12 EMI's, 2-4% Not allowed
Pre closure charges Allowed after 0 EMI's, Nil prepayment charges Allowed after 12 EMI's, 2 - 4% Allowed after 6 EMI's, 3%

Federal Bank Personal Loan Balance Transfer Interest Rates

Federal Bank personal loan balance transfer facility is ideal for existing personal loan customers, who are paying high interest to their existing lender. Through this facility, you can transfer your existing of personal loan with Federal Bank at a lower rate of interest, without closing the account. However, you do need to check the foreclosure charges that you have to pay to your existing lender. Currently Federal Bank offers the lowest personal loan balance transfer rate of Nil.

How to Get Low Interest Rates on Federal Bank Personal Loan?

You can get the lowest Federal Bank personal loan rate, by ensuring the below-mentioned things:

  • Ensure that you are aware of the Federal Bank personal loan eligibility and documentation requirements beforehand so that you do not end up paying a higher rate as compensation for lack of any document.
  • Ensure that you maintain a good credit score of 650. The higher the credit score, the higher is your chance of getting a low-interest rate.
  • Always check if you are eligible for a pre-approved offer from Federal Bank as that allows you to get instant loans at the best rates.
  • Compare lenders to get competitive interest rates. Further keep tracking the loan rates trends, Federal Bank may offer lower interest rates in the festive season.
  • If you are a high salary earning employee and work in a reputed firm, then leverage it. Federal Bank offers lower rates to employees working in top firms drawing high salaries.

FAQs

What is Federal Bank personal Loan interest rate?

Today, the lowest interest rate on Federal Bank Personal Loan is 10.49%. Borrowers with high income and CIBIL score are eligible for the lowest interest rate.

How can I reduce my interest in Federal Bank personal loan?

You can reduce the interest to be paid on Federal Bank personal loan by any of the below-mentioned ways:

  • By maintaining a good CIBIL score
  • By showing all proofs of income
  • By maintaining a good debt to credit ratio
  • By applying at peak time when Federal Bank provides discounted personal loan offers

Is Federal Bank personal a floating rate loan or fixed-rate loan?

Federal Bankis offered at both fixed and floating rate. In the case of the fixed rate, the interest remains the same whereas in the case of the floating rate the personal loan rates keep varying according to the market.

Did Federal Bank personal loan rate drop in 2021?

Presently, Federal Bank offers personal loans at an interest rate starting at 10.49%. There has been no change in personal loan rates of Federal Bank for a long time and continue to stand at 10.49%.

How do I check my eligibility to get a personal loan at a low rate from Federal Bank?

The lowest rate on Federal Bank is mostly offered to individuals with high CIBIL and high income. You can check the eligibility for the personal loan at Federal Bank official website. Apart from that you can also use MyLoanCare Personal Loan Eligibility Calculator.

What is the lowest personal loan rate in Federal Bank?

The lowest personal rate offered by Federal Bank on a personal loan is 10.49%.

What is the interest rate charged by Federal Bank on personal loan?

Personal loan interest rates in Federal Bank are 10.49% to 17.99%. Federal Bank personal loan interest rate for salary account holders are comparatively lower than that for other customers.

Can I ask for a reduction in the Federal Bank personal loan interest rate?

You can ask for a reduction in your Federal Bank personal loan interest rate. However, it depends upon the policy of the bank, whether it allows negotiation or not. Good credit score, high income, and existing relationship with the bank are some of the points which can contribute to the talks going your way.

Is there any need for security or collateral while availing Personal loan from Federal Bank?

No, there is no need for any collateral or security while availing a personal loan from Federal Bank. Federal Bank personal loan is an unsecured loan; thus, it does not require pledging of any asset as security to avail the loan.

How can I close my Personal Loan from Federal Bank early?

If you want to prepay your entire personal loan from Federal Bank, then you can do so by making a lump sum payment. However, you should also inquire about the prepayment and foreclosure charges based on the Federal Bank personal loan scheme availed by you, before making any decision.

How does Federal Bank calculate the interest on a personal loan?

The interest for Federal Bank personal loan is calculated based on the following methods:

  • Flat rate method:   Under this method, Federal Bank personal loan rate is estimated on the original loan amount throughout the original loan tenure. Thereby, the principal amount for calculation remains the same. This method is also called the fixed method of Federal Bank personal loan interest calculation.
  • Reducing rate method:  As per the Federal Bank personal loan reducing balance method the interest rate is calculated on the outstanding loan amount. Therefore, the principal component that is paid during the monthly EMI is not chargeable for interest calculation. In this case, the outstanding balance and the interest reduces with time, and the interest is charged only on the remaining principal amount.

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Federal Personal Loan News - Jun 2021
  • 2021-01-06 : Federal Bank’s gross advances rise 6% YoY in Q3
    Federal Bank reported a 12% increase in total deposits which includes fixed and recurring deposits for the third quarter of the fiscal. Further the bank reported an increase of 6% rise in gross advances which includes home, personal, gold, car, two-wheeler and education loans along with business and mudra loans. CASA ratio stood at 34.48% at the end of December 31, 2020, from 33.38% as on September 30, 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.
  • 2019-05-24 : Federal Bank launches BYOM service to assist personal loan customers
    Federal Bank has recently launched a new service, ‘Be Your Own Master’ (BYOM) which aims to help its current personal loan customers. Using this service, customers can avail a pre-approved personal loan in a single-click based on their eligibility.
  • 2017-03-03 : Federal Bank adds new features to its mobile banking application
    Kerala based Federal Bank has upgraded its mobile banking application with new features. Customers can now open term deposits, recurring deposits and tax saving deposits via mobile baking application. The update also includes the facility such as hotel and bus booking and digital payments for various utilities including insurance, mutual funds, donations etc. The updated features can be used by both resident and NRI customers of the bank.
*Terms and conditions apply. Credit at sole discretion of lender, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
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