Federal Bank Home Loan Interest Rates

Federal Bank Home Loan Interest Rates 2024

The Federal Bank offers Home loans to the customer base in India at competitive rates to cater to the housing requirements of the population. Federal Bank Home Loan Interest Rate are aware of the current ongoing REPO rate set by the Reserve Bank of India. The interest rate with the Federal Bank commences at 8.05% per annum.

Federal Bank Home Loan Highlight

The following table showcases the key highlights of the Federal Bank Home Loan Interest Rates:

Loan amount	Upto Rs 1500 Lakhs
Tenure	Upto 360 Months
Loan Available	To both salaried and self-employed Individuals
Financing	Upto 85% of the market value of the property
Processing Fee	0.5% of the loan amount

Federal Bank Home Interest Rates on Loan schemes

The Federal Bank offers a myriad of schemes to the customers, each catering to the varying needs of the customers in India. 

Federal Housing Loan 

The Federal Housing Loan scheme is designed to cater to the housing requirement of customers in the country. The bank offers attractive interest rates to borrowers concerning the current REPO Rate established by the Reserve Bank of India.

• The Bank provides funding of up to 85% of the project’s cost. 
• The maximum loan amount and tenure under the scheme is 1500 Lakhs and 360 months. 
• Availability of an Overdraft format facility 
• The bank does not levy any pre-payment charges on the home loan. 
• Established a smooth and quick loan disbursement process, as one is required to produce minimal documentation. 
• The bank charges a low processing fee. 

Loans for Purchasing Plot 

As the name suggest, this scheme provides financial aid to loan applicants to purchase plots.

One can avail of a loan of up to Rs 25 Lakhs for a maximum repayment tenure of 60 months. The bank has established a straightforward application process with minimal documentation to ensure easy disbursement of the loan amount. One can avail of a loan of up to 60% of the market value of the plot. However, it is to be noted that the borrower is required to facilitate subsequent house construction after the loan is materialised. 

House Warming Loan 

The Federal bank also offers housewarming loans to existing and new customers so that they can cater to the housewarming expenses without any financial hiccup. The bank offers a repayment tenure of up to 60 months. The bank provides quick disbursement of the amount, and one can avail of this loan scheme after they have concluded their home or flat construction.  

Federal Bank Home Interest for Salaried and Self-Employed

The Federal Bank charges the following interest rates from Salaried and self-employed individuals. It is to be noted that the interest rates are subject to change with the Repo rate set by the Reserve Bank of India.

REPO Rate (Present)

6.25% Per Annum

 

Home Loan (Salaried)	Interest Rate (Per Annum)
Upto Rs 30 Lakhs	9.90% (REPO Rate + 3.65%)
Rs 30 – Rs 75 Lakhs	9.95% (REPO Rate + 3.70%)
Above Rs 75 Lakhs	10% (REPO Rate + 3.75%)

 

Home Loan (Self-Employed)	Interest Rate (Per Annum)
Upto Rs 30 Lakhs	9.95% (REPO Rate + 3.70%)
Rs 30 – Rs 75 Lakhs	10% (REPO Rate + 3.75%)
Above Rs 75 Lakhs	10.05% (REPO Rate + 3.80%)

Federal Bank Home Loan Rate Trends

The Federal Bank Home Loan Interest Rates are subject to the current REPO Rates established by the Reserve Bank of India. Generally, the bank charges an additional interest rate from the ongoing REPO rate that ranges from 3.60% – 3.80% concerning the loan amount. 

Federal Bank Home Loan Interest Rate and Other Charges

The following table showcases the fees levied by the federal bank to process the loan and other charges.

REPO Rate	Upto 4% per annum
Loan AMOUNT	Based on Income
Processing Fee	0.5% of the Loan Amount
Penal Interest Rate	2% of the monthly overdue amount
Preypayment and Foreclosure Fee	Nil

How to Calculate Federal Bank Home Loan Interest?

An Individual can also calculate the value of the EMI amount on the Home loan by employing the following formulae.

EMI = [P x r x (1+r)^n]/[(1+r)^n-1]

Where,

• P is the Principal amount. 
• r is the rate of interest on the loan 
• n is the tenure of the repayment

One can also utilise a myriad of online home loan calculators that allow the user to compute the EMI on the home loan from the comfort of their home. These AI-powered tools enable the user to conveniently calculate the EMI amount on the home loan. The user must mention the values in the field, such as Loan amount, tenure and interest rates, to obtain the value EMI amount. An individual employing the calculator can also mention multiple values to derive the amount that complements their budgetary goals. 

Why are Federal Bank Home Loan Interest Rates the Best for Customers?

The Federal Bank is one of the most renowned financial institutions operating in India and offers a diverse range of financial and investment products. Federal Bank offers attractive interest rates on their home loan products to fulfil the housing requirement of the country.

Federal Bank Home Loan Interest Rates for Existing Customers

The Federal Bank Home Loan Interest Rates for existing customers commence from 8.05% per annum. It varies based on the applicant and loan amount. However, existing customers with the bank can avail of concessions in the interest rate. 

Factors Affecting Federal Bank Home Loan Interest Rate and EMI

The following factors impact the EMIs and Interest on the home loan with the Federal Bank:

• The bank offers interest rates based on the CIBIL score of the applicant. A satisfactory CIBIL score indicates credit worthiness of the applicant, and the bank offers lower interest rates for the same.
• A lengthy tenure will spread out the repayment amount and reduce the EMI amount significantly. However, it is to be noted that the borrower would be required to pay interest on the loan for a more extended period.
• The bank also factors the property-to-value ratio when providing interest rates on home loans. In case the borrower has made a down payment of a substantial portion, it offers concessions on the interest rate for the rest of the amount.