Federal Bank Loan Against Property 2020
|Interest Rate||10.10% onwards|
|Loan-to-Value Ratio||Up to 75% of the fair market value of the property|
|Loan Tenure||Up to 10 years|
|Processing Fees||0.50% of the loan amount + GST|
Federal Bank offers Loan Against Property (LAP) for businesses at an attractive interest rate starting from 10.10% per annum. Availing a LAP from Federal Bank provides the flexibility to use the loan amount for various purposes such as the purchase of fixed assets, machinery/equipment and construction of office building/factory, go-down, furnishing, interior decoration, etc. Federal Bank LAP can also be used for procurement of stock, financing against receivables, meeting advertisement expenses, and for meeting general administrative expenses.
Features & Benefits of Federal Bank Loan Against Property
Mentioned below are some features and benefits of LAP that customers get to enjoy.
- Repayment tenure of up to 10 years
- High loan-to-value ratio on offer
- Affordable rate of interest
- Swift and hassle-free loan processing
- Simple documentation
- Flexible repayment options
- No stipulation of financial parameters
Federal Bank Loan Against Property Interest Rate
The interest rate offered by Federal Bank on a Loan Against Property starts from 10.10% per annum. It is linked with the RBI Repo Rate, which currently stands at 4.00% per annum. The actual interest rate applicable is the sum of Repo Rate and Spread (decided on the basis of the applicant’s risk rating).
Federal Bank Loan Against Property Processing Fees & Other Charges
|Processing Fee||0.50% of the loan amount|
|Valuation / Legal/ Stamp Duty/ CERSAI/ Memorandum registration charges||As per actuals|
* Applicable Goods and Services Tax (GST) will be levied in addition to the mentioned charges.
Note: Other applicable charges will be levied by the bank as and when required.
Federal Bank Loan Against Property EMI Calculator
Loan against property EMI calculator is a free and easy-to-use online tool to find an estimate of the monthly installments to be paid towards loan repayment. Customers can use Paisabazaar’s Loan Against Property EMI calculator any time, as it is available 24/7 on the Paisabazaar website.
Follow the below-mentioned steps to calculate EMI using Paisabazaar’s LAP EMI Calculator.
- Visit Paisabazaar’s Loan Against Property EMI Calculator page
- Enter the following details, manually or by using the movable slider available on the page:
- Loan Amount: This is the principal amount borrowed from the bank or NBFC by the customer. Higher the loan amount, higher the EMI
- Rate of Interest: This is the most critical factor that determines your ability and the ease to repay the loan. Different banks and housing finance institutions offer different interest rates which keep changing from time to time. Higher interest rate on your loan means a higher EMI amount to be paid
- Loan Tenure: This is the time within which the borrower needs to repay the loan amount fully. The loan tenure depends on the borrower’s current age and the retirement age. Longer the tenure, smaller the EMIs and vice versa
Upon filling all the relevant details, the monthly installment amount will show up instantly in the right panel.
Federal Bank Loan Against Property Eligibility Criteria
The minimum requirements that a customer must meet in order to avail a mortgage loan from Federal Bank are as follows:
|Eligible Profiles||● Individuals- Self-employed professionals|
● Any other legal entity engaged in manufacturing / Service/Trading, excluding NBFCs/Chit Companies/Real estate/Export Credit
|Margin||25% of the fair market value of the property mortgaged as per the latest valuation report|
Check Also: Loan Against Property Eligibility Calculator
Federal Bank Documents Required for Loan Against Property
The table below shows the list of documents required to apply for a Loan Against Property with Federal Bank.
- Proof of Identity (Passport / Voters ID card/ Driving License/PAN Card)
- Address Proof (Ration card Tel/ Electricity Bill/ Lease agreement/ Passport/Trade license /Sales Tax certificate)
- Bank Statement (latest 6 months bank)
- Proof of continuation (ITR/ Trade license /Establishment /Sales Tax certificate)
- Income Tax/Sales tax returns of proprietor/partners/firms/companies, wherever applicable.
- Audited/Unaudited financial statements as applicable for the past two years, in case of existing units.
- Projected financial statements
- Copy of license/NOC from local body or license from the competent authority for running the business
Note: Other documents may be requested as per individual requirements
Check Also: Loan Against Property Documents Required
Apply for Federal Bank LAP on Paisabazaar.com
Customers can apply online for LAP through Paisabazaar.com by simply following the below-mentioned steps.
- Visit Loan Against Property page
- Fill in the following information:
- desired loan amount
- employment type
- annual income
- contact details
After this, various LAP offers, which you are eligible for, will appear on your screen from multiple banks. Select Federal Bank from the list and click on the ‘Submit’ button. Soon, a representative from Paisabazaar will connect with you on the provided contact number to process your application.
Federal Bank LAP Customer Care Details
Customers can reach out to Federal Bank through the below-mentioned contact details to get their loan-related queries addressed.
- All-India Toll-Free number:1800 – 425 – 1199 or 1800 – 420 – 1199
- Dedicated number for NRI:080-61991199
- Email: firstname.lastname@example.org
Q1. How do I repay the loan?
The repayment of the loan has to be done in the form of EMIs through:
- Standing instructions at your branch
- FedNet – Internet Banking
- Mobile Banking
Q2. What is the security required to avail a LAP?
Equitable mortgage of immovable property with 25% margin will be required as security.
Q3. Is it mandatory to have property Insurance?
Yes. Property should be comprehensively insured for an amount not less than the value of the property, covering all risks with Bank clause.