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Home Loan

Federal Bank, initially it was known as Travancore Federal Bank, has it’s headquartered at Aluva in Kerala. This bank is giving its services before independence. It is a customer-centric bank and Federal offers very simple and innovative products as per the need of the customers. Federal bank works in every segment i.e. deposits, loan, cards, insurance and other banking services. It is the most trusted bank among the customer.


Own home is everybody’s dream. It is among one of the major milestones of life. Trouble-free Federal home loan procedures help you to make your dream come true. It offers loan for a new house, to purchase plots and house warming loans at very reasonable interest rates. They also have various pre-approved housing projects across the country. Pre-approved projects are one in which search report of the property is done in advance and once the bank is satisfied through search reports that title of the property is clear and is legal, bank approves the project. Approved projects by the bank are usually dispute free and construction of the apartment or house is as per the legal guidelines. Processing of Federal Limited home loan is faster in such projects.


Loans offered by Federal Bank are for the new construction of a house, to purchase a piece of land, to renovate your house, to redecorate your house, for interiors, for further construction of your house, to purchase flats or villas. They also take over the housing loans of other banks. Federal Bank Ltd. home Loan available at Federal Bank is also on reselling property. One of the additional feature offered by federal bank is that of moratorium which allows Federal Limited home loan borrower to pay EMIs after the completion of the projects this facility is very useful for those who are living in a rented house and paying rent every month for them paying EMI along with the rent becomes difficult for eliminating this problem bank allows borrower to pay only interest till the time possession of the property is given to the borrower once the borrower shifts in his own house the rent which one was paying is saved and then Federal Bank Home Loan EMI starts which considerably reduces the burden on the borrower to pay both rent as well as EMI. Generally, the moratorium period is of 3 months to a maximum of 36 months.

Federal Housing Loans

To construct a new house- One can avail home loan from Federal Limited for the construction of new house/flat/villa. You will get up to 85% loan of total project cost. Maximum loan up to Rs 1500 lakhs can be availed with a margin of 15% to 20%. Loan repayment period can be extended maximum up to 30 years. Mortgage of land and building can be kept as a security. Any self-employed, salaried or business owner who is a resident individual can apply for a Federal Home loan


To purchase plots- If you want to purchase a piece of land, then Federal bank loan for purchase a plot is a very wise choice. As this not only provide fastest loan approval but also save you from lots of paper work and documentation. You can avail home loan from Federal Bank at up to 60% of plot price. Maximum loan repayment period is up to 60 months. Maximum Federal home loan up to Rs 25 lakhs can be availed, with a margin of 40%. Repayment of loan can be done in equated monthly instalments. Plot to be purchased can be kept as the security for loan.


Any person either salaried, self-employed, business owner, or professional is eligible for a home loan with required annual income. You can download the application form from website and can submit to your nearest federal bank branch. You can also call at their service centres which are toll free or can also visit their branch directly to apply for a Federal Limited home loan.


Property power- Now you can also take a loan against your property. You can satisfy your need of money with your property power. If you need money for business expansion, your child education or marriage, to consolidate your debt, or any other such needs can be fulfilled with the help of Federal bank property power loan.


This loan is giving against your residential house property, land, or any commercial property. It depends upon your need and convenience. Loan Processing is very quick and prompt. Minimum amount of paper work is required. You can avail loan amount up to 5 crores with a lower rate of interest. Elongated repayment period of 15 years is provided and you can repay your loan in easy EMI. EMI can be directly deducted from your account if you opt for ECS facility. Else you can put the cheques in the drop box. You can also register for Standing Instruction with your branch. If you have Internet banking facility, then you can also make online payment by using your FedNet account.


You can avail loan up to 50 % value of the secured property. You can keep mortgage of immovable property as a security. Property can be in your name or property in the name of your close relatives can also be accepted as a security. In the case of the person of Indian origin (PIOs), property has to be in their own name.


The option of insurance is also available for property power loan. Insurance is offered at attractive premium rate. The amount of premium will be clubbed with your loan amount depend upon your repayment capacity, so no need to pay any further amount. Processing or administrative fees of 1% of sanction amount will be charged. Any other charges incurred by bank over and above this limit will be borne by the customer. In case of an early closure of the loan, 2 % of outstanding balance or DP (whichever is higher) will be charged as a penalty.


In case of change of address or employment customer has to inform the branch on immediate basis so as to avoid further complications.


Any individual- salaried, business owner, self-employed whether resident, Non resident or person of Indian origin is eligible to avail property power loan. You can directly apply online to avail this loan.


House Warming Loan- This is Federal banks special personal loan schemes for their home loan customers, whether new or existing. You can avail this loan to meet your house warming expenses, or any other related expenses like renovation, interior, etc.


This loan can be availed without any security deposit. Any new or existing home loan customers are eligible for this loan who has acquired their house/flat/villas or the construction has been completed.  Customer needs to visit the nearest Federal bank branch to apply for Federal Bank Home loans.


There is no lock-in period in this scheme and repayment period of up to 5 years will be provided. But it should not exceed the remaining period of existing housing loan term. Repayment can be made through EMI.


5% of existing Home loan limit can be taken as house warming loan. Maximum up to 2 lac loan can be availed under this scheme.  For resident customers no security is required. In case of non-resident customers some additional fees should be charged on their existing home loan security. Co- obligants should be same as that of existing home loan. If the borrower get marry after availing the home loan their spouse can also be the part of this loan and could be the co-obligants.


Home loan schemes are available at the attractive Federal Limited home loan interest rates of home – housing loan interest + 2%

Federal Limited Home Loan Eligibility

You need to be 18 years or more to get the Federal home loans sanctioned. Maximum age limit is 65 years. Any person either salaried, self-employed, business owner, or professional is eligible for Federal Limited home loan with required annual income.

Rate of Interest

The MCLR w.e.f 01st August 2016 is 9.52%. The following are the rates of different types of home loans:
 

Description of loan scheme/ product

Range of Spread over MCLR (% p.a.)*

Housing Loan

0.05%  to   0.30%

Property Power Loan (LAP)

2.70%  to   5.95%

Home Invest

2.00%  to   3.70%

Car Loan

0.23%

Educational Loan

1.20%  to   5.80%

Personal Loan

3.92%  to   5.72%


Rate of interest is generally based on the risk profile of the applicant and facility offered to him. You have to contact your nearest branch for more precise rate of interest being offered to you.


Final rate of interest proposed to customer is vary from customer to customer depends upon type of scheme related charges like overhead cost related to loan, credit risk premium, tenor premium etc. All the rates including base rates and final rates will be reviewed and revised by the bank on quarterly basis.

Documents Required:

Following documents for home loans are required for applying for Federal Housing Loan-


Know your customer (KYC) formalities:
 

  • Identity Proof. One can give their PAN card, Driving License, passports or Voter Id card as a proof of their identity.
  • Address Proof. Electricity bill not older than last 3 months, Ration card, Rent agreement, Lease agreement, passport, Trade licence, Sales tax certificate.
  • Copy of your PAN card.
  • Two copies of applicant / and co – obligate.

Income Proof:
 

  • For salaried applicant-
  • Latest salary certificate of the applicant or last three months salary slips.
  • Income Tax returns of last two years.
  • Form 16
  • Bank account statements of last 6 months
  • Cheque for processing fees
  • Federal Bank Home Loan application form duly signed and filled by applicant.

 

  • For Self-employed Professionals-
  • Proof of existence of business.
  • Certificates of Educational qualifications
  • Income Tax returns of last two years along with audited balance sheet and profit & loss account statement.
  • Income Tax returns of last two years along with tax paid challan.
  • Bank account statements of self as well as of business for last one year.
  • Cheque for processing fees
  • Loan application form duly signed and filled by applicant.

 

  • For Self-employed non-Professionals/ Business.
  • Proof of existence of business & profile of your business.
  • Income Tax returns of last two years along with audited balance sheet and profit & loss account statement.
  • Income Tax returns of last two years along with tax paid challan.
  • Bank account statements of self as well as of business for last one year.
  • Cheque for processing fees
  • Loan application form duly signed and filled by applicant.

Other Required Documents

  • Title deeds & Prior deeds
  • Encumbrance Certificates of 13 yrs from sub- Registrar office
  • Latest Land Tax Receipt
  • Certificate of Possession
  • Approved Building plan
  • Sketch of the property

 

  • Other Documents:-

For purchase of already built house or flats

For construction of house/ Extension of house/
renovation or repair of house

  • Sales Agreement
  • Estimate Report (It has to be from the civil engineer or the architect).
  • Latest receipt of Building Tax
  • Construction permission from local authorities.

In case of villas/flats:

 

  • Original Sales & Construction Agreement

 

  • Allotment letter from the builder

 

If the flat is under construction & no immediate possession:

 

  • Tripartite Agreement

 

Federal NRI Home Loan

NRIs are also given financial assistance for fulfilling their housing requirements in the form of a Federal Bank Housing Loan scheme. The features of the Federal Bank home loan scheme include:
 

  • Federal Home Loans under this scheme can be availed to finance 85% of the housing project cost
  • The paperwork involved is minimal in nature and the loan approval process is quick
  • The loan can be utilized for constructing a house, purchasing a plot and construction thereon, repairs or renovations carried out on an existing house, etc.
  • The maximum amount of loan one can avail is up to Rs.1500 lakhs and the bank retains a margin of 15% to 20% of the total project cost
  • The loan can be repaid within a maximum tenure of 20 years through EMIs
  • This is a secured loan and the security required by the bank to offer the loan is the mortgage of the land or building purchased with the loan

Documents required
 

  • Passport copy as ID proof
  • A valid VISA copy to prove continued employment
  • Address proof
  • 2 photographs
  • Income proof like NRE account statement held with any bank of the last 2 years, Embassy attested Salary Certificate or Salary Slip for salaried applicants, Balance Sheet and Profit & Loss Account of the last 2 years for self-employed individuals
  • Title Deed and Prior Deed
  • Encumbrance Certificate from Sub. Registrar Office
  • Latest land tax receipts
  • Possession Certificate
  • Property sketch
  • Sale agreement, Building Tax receipt and other documents for buying a ready flat or house
  • Sale & Construction Agreement, letter of allotment from builder, tripartite agreement for house and villas
  • Estimation report from Civil Engineer or architect and permission of construction from local authorities in case of construction or extension and renovation of a house

Pre-Approved Housing Projects:
 

Federal bank has various pre-approved Housing projects across the country. Customer can save their precious time and hard earned money if they opt to purchase pre-approved housing projects by Federal bank. Loan Processing fees spend on approval process will be saved. Which in turns make the house loan more affordable and pocket-friendly for the customer. You can get information about various pre-approved projects on the website of Federal bank. There you can get all the required information like, Builders name, project name, location of project, estimate date of completion, type, area in sq feet, Nodal branch etc on their website. You can also make the enquiry and contact the builders directly through their websites.


Few of the Pre Approved Proposals of Federal Bank Are-
 

  • Andhra Pradesh-
  1. Janapriya SyndicatePvt Ltd. (Builder), Himayat Nagar- Hyedrabad
  2. Lodha Healthy Construction and developers pvt ltd., Balangar Mangal., RR District, Telangana

 

  • Gujarat
  1. Ridhi Realtors., Ahmedabad
  2. Murlidhar Corporation., Ahmedabad
  3. Soham Developers, Ahmedabad
  4. Tithi Developrs, Ahmedabad
  5. Organiser Pvt Ltd, Ahmedabad
  6. Sairang Estates Pvt Ltd., Vadodara
  7. J. P Iscon Limited, Vadodara
  8. M/s Swastik Developers., Sanand

 

  • Haryana
  1. RPS Infrastructures, Sec 88 Faridabad
  2. Raheja Developers., Sec 78, Gurgaon
  3. Raheja Developers., Sec 92 & Sec 95, Gurgaon
  4. Raheja Developers Ltd, Village Shikhopur, Sector 78, Gurgaon 

 

  • New Delhi
  1. BCC infrastructure pvt ltd., Indraprastha yojna, Gazhiabad

 

  • Karnataka
  1. M/s Puravankara projects ltd., KR puram, hobli, Bangalore
  2. M/s Provident Housing Ltd., Hesarghatta hobli Bangalore
  3. M/s Arattukulam Developers., Begur Hobli banglore
  4. M/s Adithi Builders & Developers, KR puram Hobli, Bangalore
  5. Valmark Homes, Begur Hobli, Bangalore

 

  • Kerala
  1. M/s Sevana Projects & Properties Pvt Ltd., Pattambi
  2. Travancore builders, Ayyapankavu
  3. Classic Villas and apartments, Kangarapady
  4. RDS projects, Elamakkara
  5. Zenith Builders, Kariyad, Aluva
  6. Asten Realtors, Thengode, kakkanad
  7. Skyline Builders, Elamakkara
  8. Abad Builders, Thoppumpady
  9. NATE, Thodupuza
  10. Asset Homes, Kottayam / Kanjikkuzhy
  11. Skyline Builders, Kottayam / Kanjikkuzhy
  12. Vaidya Homes, Kollam

 

  • Maharashtra
  1. M/s S.A Magdum (promoters & builders),Kolhapur
  2. Dayanad Gurav and associates, Gadhinglaj
  3. Shedji Builders, Miraj
  4. MPS Developers, Miraj
  5. Kharde Patil, Kothrud
  6. Mohan Group, Ambernath- Mumbai
  7. Maruti Enclave, Phursungi
  8. Sankalp & sigma1, Kothrud

 

  • Tamil Nadu
  1. Purvankara Projects Ltd, singanallur, Coimbatore
  2. Marutham Group, MettupalyamRoad, Coimbatore
  3. Cotton City Developers pvt ltd, Vilankurichi, Coimbatore
  4. Shriram properties (CBE) Pvt Ltd, Saravanmpatti, Coimbatore
  5. RR Construction, Vadavalli, Coimbatore

 

  • Uttar Pradesh
  1. Stellar Constellation Projects pvt ltd, Sector 1 Greater Noida
  2. Gardenia India Ltd, Sector 75, Noida
  1. M/s Futec shelters Pvt Ltd, Sector 75, Noida

EMI Calculator

PaisaBazaar offers EMI calculator for the convenience of its applicant. The EMI calculator is a simple and handy tool that makes the financial planning of the applicant really easy. One may know how much saddle the upcoming loan EMI is going to put on their monthly budget.


Any Interested applicant may login to www.paisabazaar.com. The applicant may select the EMI calculator and fill up the requisite details accordingly. Post-filling up the details such as Loan Amount, Rate of Interest and Tenure, the results would be prompt and the applicant may know the forthcoming EMI amount in case he/she applies for the personal Loan.

Applying for a Home Loan

The bank offers Home Loan application through the Paisabazar.com website. Any customer wanting to avail of any of the Home Loans offered by Federal Bank can visit the mentioned website, fill up the required details and apply for the loan.

Federal Bank Home Loan
(4/5 ) 1 Review
Home LoanHome Loan
4/5

Good

Good I have taken a home loan from Federal Bank and the interest rate is 8.85% per annum. The bank does not even levy any additional charges, apart from processing fees. I am happy that I could avail a home loan at 8.85% interest rate. Also the services of the bank are very good. This was my first experience with Federal Bank am I am very happy with their whole process.

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Posted on: Jan 16 , 2017