Federal Bank Personal Loan is nothing but a long-term personal loan made available by the Federal bank to its depositors. The banks offer this loan amount to their customers on the basis of their equity level and the credit ratings maintained by them in the market. Generally, banks grant loans to people whose deposits do not fall below certain limits or to people who are having a good credit history.

Features of Federal Bank Personal Loan

• The loan amount offered to the Federal Bank user is a maximum of Rs. 25 Lakhs depending on the type of personal loan you select.
• Flexible tenure offered by Federal Bank which is a maximum of 72 months, on the other hand, allows you to choose the desired time period as per your convenience.
• The user must get fast processing of personal loans that helps to get disbursed within a few days.
• The user may get minimal paperwork involved in the personal loan process saves a lot of time and allow the user of the loan application without any convenience.

Federal Bank Personal Loan Interest Rates

Types of Personal Loans	Interest rates (p.a.)
FedPremia	10.49% onwards
Fed-E-Credit
Shubh Yatra Loan
Bon Voyage Loan

 

Types of Federal Bank Personal Loan

• FedPremia Personal Loan

FedPremia personal loan is offered to the salaried individuals where the loan amount is up to Rs. 25 lakhs for the maximum repayment period of 48 months. The minimum monthly salary to apply for the loan is Rs. 25,000.

• Fed-E-Credit

Fed-E-Credit is a completely online personal loan that is offered to the flexible end-use. The maximum loan amount is offered under this scheme is Rs. 5 lakhs. However, the personal loan can be availed either as a term loan or an overdraft. The maximum repayment tenure for the loan is 30 months for the term loan and 72 months for an overdraft.   

• Federal Shubh Yatra Loan

Shubh Yatra Loan is a secured personal loan that can be availed to pay for various travel expenses such as accommodation, vehicle/tickets, shopping, and food. The loan amount can be sanctioned up to Rs. 3 lakhs and the repayment tenure varies from 12 months to 33 months.

• Federal Bon Voyage Loan

Federal Bon Voyage Loan is an ideal choice for the user working overseas that helps in meeting the initial expenditure for going abroad. The loan amount can be sanctioned as per the expenditure involved in going abroad and the maximum loan amount offered of Rs. 5 lakhs.

Steps to consider Federal Bank personal loan

If you want to avail of the loan amount, then you need to meet some conditions imposed by the bank. These conditions are designed to assess your requirements and eligibility for getting the loan amount. It is also followed by some additional steps that are designed to maintain or enhance the creditworthiness of the applicant.

• Fill out the online form asking for your details like monthly income, occupation type, required loan amount, mobile number, current city, and the company name by click on ‘Proceed’.
• As per the loan approval chance, you need to redirect the list of personal loan offers provided by various banks. Either you select one of those offers available, click on ‘apply’ on the official website of the bank.
• The personal loan application will be forwarded to the bank for further formalities. And meanwhile, contact the Federal Bank Personal Loan Customer Care Number for further details.

Factors affecting Federal Bank Personal Loan 

Generally, the Federal Bank Loan Status allows a customer to borrow up to a maximum of up to Rs. 25 lakhs in the personal loan EMI category. The interest rate offered is usually subsidized and is done on the basis of your deposit balance in the bank. The minimum requirement is ten percent along with the regular interest rates. The loan amount offered is subject to the following factors:

• The first factor considered while offering Federal Bank Loan Status is your creditworthiness. Your creditworthiness is defined as how much money you can easily pay as the interest rate. This value is determined by your payment history in the bank and is updated regularly. The creditworthiness of a customer depends upon his banking history, employment history, income sources, savings, credit history, etc. The loan interest rates offered for the personal loan EMI category are normally low as compared to the other bank’s loan interest rates.
• The second factor considered in assessing the creditworthiness of an applicant is the current net worth. This is the difference between the current asset value and current liabilities. This is one of the most important factors that affect the interest rate that is offered for the personal loan EMI category. The higher the value of assets the higher will be the loan interest rates.
• The third factor that affects the loan interest rate is the total amount availed by the customer so far. There are three types of the loan availed by bank customers:
• Long term
• Short term
• Payback duration.

Long-term loans are meant to be paid over a period of five to eight years and payback during this Debt term. Payback duration is the time duration over which the customer expects to receive the full amount. It could be 72 months for the loan repayment process. The shorter the payback term the better it is for the bank as the customer has a bigger chance to pay back the amount.

• The fourth most important factor that affects the Federal Bank Personal Loan Is the Payment Account. If you plan to take a Federal loan and you have a low payment capacity then the Federal Banks processing fee will be high. To avoid such a situation always check out the entire charges of the bank. If you search for various loan quotes you will come to know that the processing fee, loan amount, APR, and other fees vary from bank to bank.
• There are many factors that influence loan tenure. The two most important are the credit score and loan amount. The smaller the credit score the higher is the loan amount. Similarly, the larger the loan amount the higher will be the monthly payment amount. The calculation of loan tenure and credit score allows the bank to decide the loan amount and the monthly payment amount.

Conclusion:

Many banks in India consider the total outstanding loan as well as the total repayable not only as a factor for determining the interest rate but also as a factor for deciding the loan interest rate and other fees and charges. The total repayment capacity of the customer is the maximum that can be borrowed at any point in time. The calculation of repayment capacity enables the bank to plan the fees and other charges properly in consideration of the total repayment capacity. For more details, you can log in to the official website of Federal Bank.