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.
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.
Compare Loan Against Property Interest Rates for Top Banks
| Name of the Lender | Interest Rate (% p.a.) |
|---|---|
| HDFC Bank | 9.50% – 11.00% |
| State Bank of India | 10.10% – 11.65% |
| IDFC First Bank | 9.00% – 20.00% |
| Federal Bank | 11.15% – 14.80% |
| Home First | 12.80% – 18.50% |
| Kotak Mahindra Bank | 9.50% – 10.50% |
| PNB Housing Finance | 9.24% – 12.45% |
| Bank of Baroda | 10.85% – 16.50% |
| L&T Housing Finance | 9.60% |
| LIC Housing Finance | 9.70% – 11.55% |
| Godrej Housing Finance | 9.75% onwards |
| ICICI Bank | 10.85% – 12.50% |
| Tata Capital | 10.10% |
| Bajaj Housing Finance | 9% – 14% |
| Axis Bank | 10.50% – 10.95% |
Processing Fees & Other Charges of Federal Bank Loan Against Property
| Type of charges | Description |
|---|---|
| Processing fees/ Admin fees |
|
| Prepayment/ Foreclosure charges | Property Power Loan
SME Loan Against Property
|
| 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
|
| 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:
|
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.
Eligibility Criteria for Federal Bank Loan Against Property
- Status – Salaried/employed, or Self-employed/entrepreneur
- Age – Should be between 20 years to 60 years for salaried individuals and 25 years to 65 years for self-employed individuals.
- Monthly income – Needs to be at a minimum of Rs. 25,000.
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
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