Federal Bank Overdraft Loan

If you could access additional cash from your personal loan account anytime you needed it, it would be like possessing a financial spellbook. The Federal Bank Overdraft Facility takes care of that for you. It’s similar to having a financial lifeguard to protect you from unforeseen costs that could bankrupt you. It’s also similar to owning an adaptable tool that works in every circumstance.

This feature is not just a way to borrow money; it’s a way to improve your financial skills. You can pay back the extra amount you use whenever you want and save on interest and fees. You can also use this feature to seize opportunities and grow your finances, instead of just surviving. The Federal Bank Overdraft Facility makes your financial life easier and more enjoyable, by giving you the freedom to manage your money with confidence.

Features Of Personal Loan Overdraft Facility

The Personal Loan Overdraft Facility is designed with flexibility and efficiency in mind, offering a suite of features tailored for your convenience:

• You can tailor your payments to fit your financial flow by choosing to pay either just the interest or part of the principal each month.
• Enjoy a lower interest rate, as you’re charged only on the utilised amount, not the entire approved limit—making it more economical than traditional personal loans.
• You have instant access to your funds anytime, anywhere. Whether through the FedMobile app, internet banking, or ATMs, your money is just a tap away.
• Zero prepayment penalties while repaying the borrowed amount early without worrying about extra charges or penalties.

Federal Bank Fees & Charges Overdraft Loan

The fees and charges for an overdraft loan are:

• Processing fee: 0.50% of the loan amount, subject to a minimum of Rs. 500 and a maximum of Rs. 10,000.
• Annual renewal fee: 0.25% of the limit, subject to a minimum of Rs. 250 and a maximum of Rs. 5,000.
• Penal interest: 2% per month on the overdue amount.
• Cheque bounce charges: Rs. 500 per cheque.
• Swap charges: Rs. 500 per swap.

Who Is Eligible for an Overdraft at the Federal Bank?

To be eligible for an overdraft at the Federal Bank, you must:

• Be an existing customer of Federal Bank with a satisfactory repayment track record of at least 12 months.
• Have a minimum monthly income of Rs. 25,000 for salaried individuals and Rs. 40,000 for self-employed individuals.
• Have a minimum CIBIL score of 700.
• Have a valid KYC and income proof.

Federal Bank Documents Required For Loan Application

The documents required for a loan application are:

• Application form with photograph
• Identity proof (PAN card, Aadhaar card, passport, etc.)
• Address proof (electricity bill, telephone bill, rent agreement, etc.)
• Income proof (salary slip, bank statement, IT returns, etc.)
• Loan account statement (if any)

Process To Avail Federal Bank Overdraft Loan

The process to avail of a Federal Bank Overdraft Loan is:

• Visit the nearest Federal Bank branch or apply online through the website or FedMobile app.
• Fill out the application form and submit the required documents.
• The bank will verify your eligibility and creditworthiness and sanction the loan amount and limit.
• The loan amount will be disbursed to your current account, and you can start using the overdraft facility.