Federal Bank Home Renovation Loan

Are you planning to renovate your home and give it a new look? Do you need funds to carry out the repairs, remodeling, or extension of your house? If yes, then you might be interested in Federal Bank Home Renovation Loan, a special loan scheme for existing and new home loan customers.

Federal Bank Home Renovation Loan is designed to help you finance your home improvement projects, such as painting, tiling, flooring, plumbing, electrical work, furniture, fixtures, and more. You can also use this loan to repay any debt incurred for home renovation or furnishing.

Federal Bank Home Renovation Loan – Highlights and How Does This Work

Following are some of the key highlights of Federal Bank Home Renovation Loan:

Federal Bank Home Renovation Loan Features & Benefits

The key features and benefits of Federal Bank Home Renovation Loan are as follows:

• Competitive interest rates, starting at 8.80% per annum (Repo Rate + 2.30%).
• The loan has minimal documentation and a speedy approval process.
• The loan has no pre-closure charges, which means you can repay the loan before the due date without any penalty.
• The loan has low processing fees of 0.50% of the loan amount, subject to a minimum of Rs. 3,000 and a maximum of Rs. 7,500.
• The loan has optional funding for life insurance, which can cover the risk of death or disability for the borrower.
• The loan has easy top-up facility, which allows you to borrow additional funds in the future, subject to your eligibility and creditworthiness.

Federal Bank Home Renovation Loan Interest Rates

The interest rates for Federal Bank Home Renovation Loan are linked to the Repo Rate, which is the rate at which the Reserve Bank of India lends money to commercial banks. The Repo Rate is currently 6.50% per annum (as of February 2024).

The interest rates for Federal Bank Home Renovation Loan are as follows:

*The interest rates are subject to change from time to time, as per the bank’s policy and market conditions.

Federal Bank Home Renovation Loan Eligibility Criteria

To be eligible for a Federal Bank Home Renovation Loan, you need to meet the following criteria:

• You should be an Indian citizen residing in India.
• You should be above 21 years of age and below 65 years of age at the time of loan maturity.
• You should have a regular source of income, either from salary, business, profession, or other sources.
• You should have a good credit history and repayment track record.
• You should have an existing home loan with Federal Bank or be applying for a new home loan along with the renovation loan.
• You should have a clear title and marketable value of the property for which the renovation is being done.

Federal Bank Home Renovation Loan Documents Required

The documents required for Federal Bank Home Renovation Loan are as follows:

For All Applicants

• Application form duly filled and signed.
• Identity Proof
• Address Proof
• Sale deed, title deed, khata, tax receipt, building plan, estimate of renovation.
• Sanction letter, repayment schedule, and loan account statement.
• Recent photographs of the applicant and co-applicant (if any).

For Self-Employed Individuals

• Proof of business existence & business profile.
• Last 12 months’ bank statements; IT returns for 2 years with Balance Sheet, P&L Account; Tax paid challans (where available).
• IT returns for the last 2 years with tax calculation sheet & Tax paid challans.

For Salaried Individuals

• Latest Salary Certificate / Salary Slip (last 3 months).
• Copies of IT returns (last 2 years) or Form No. 16 (last 2 years).
• Latest 6 months’ bank statement evidencing salary credits.

*Note: The bank may ask for additional documents, if required, depending on the case.

Federal Bank Home Renovation Loan Processing Fees and Other Charges

The processing fees and other charges for Federal Bank Home Renovation Loan are as follows:

• Processing fees: 0.50% of the loan amount, subject to a minimum of Rs. 3,000 and a maximum of Rs. 7,500.
• Valuation charges: As per actuals, depending on the location and size of the property.
• Legal charges: As per actuals, depending on the legal opinion and documentation required.
• Stamp duty and registration charges: As per the applicable laws of the state where the property is situated.
• Pre-closure charges: Nil if the loan is repaid from its own sources. Otherwise, 2% of the outstanding loan amount if the loan is closed within 12 months from the date of first disbursement. 1% of the outstanding loan amount if the loan is closed after 12 months from the date of first disbursement.

Federal Bank Home Renovation Loan – Terms and Conditions

The terms and conditions for the Federal Bank Home Renovation Loan include adherence to the bank’s credit policy and approval processes. The loan depends on the availability of funds and the market value of the property, as well as compliance with the bank’s norms, guidelines, and applicable laws. Execution of the loan agreement and other required documents is mandatory. Borrowers must pay processing fees and other applicable charges and maintain property security and insurance as required by the bank. Regular repayment of the loan amount and interest as per the repayment schedule is essential. The bank reserves the right to recall or modify loan terms at its discretion in case of default, breach, or changing circumstances.