Are you on the lookout for a lender that can give you a good deal on a home loan? Do you crave reliable home loan service? If so, then you can trust Federal Bank home loan schemes at an affordable interest rate starting from 8.80% p.a. The home loan has some special purposes that include -

• Construction of a home
• Purchase of land to construct a house
• Repair, remodel, renovate, or extend a flat or home

Federal Bank Home Loan Interest Rate Details 2025

The table below shows you some of the home loan highlights and Federal Bank Home Loan Interest Rates, depending on the applicant’s profile. 

Types of Federal Bank Home Loans

Federal Bank Housing Loan

For home construction, land purchase & construction, home renovation, alterations, repairs, and extensions. Also available for refinancing existing housing debt, furnishing, plot purchase, home loan balance transfer, and supplementary housing loans for employees of reputed companies.

• Loan Amount: Up to ₹15 crore
• LTV Ratio: Up to 85% of the project cost
• Tenure: Up to 30 years (Up to 20 years for NRIs)

Federal Bank Plot Purchase Loan

For purchasing plots to build residential properties.

• Loan Amount: Up to ₹25 lakh
• LTV Ratio: Up to 60% of the land cost
• Tenure: Up to 5 years

Federal Bank House Warming Loan

A top-up loan for existing and new Federal Bank home loan borrowers to cover housewarming expenses.

• Loan Amount: Up to 5% of the existing housing loan limit (Maximum: ₹2 lakh)
• Tenure: Up to 5 years
• Interest Rate: Existing Housing Loan Rate + 2%

Federal Bank Home Loan Eligibility Criteria

Here are the eligibility criteria for the applicants wanting to avail of the Federal Bank Home Loan - 

For Residents

Resident Salaried Individuals

• Retirement Age: As per employer norms or 60 years, whichever is earlier.

Resident Self-Employed Individuals

• Maximum Age:
  • Up to 65 years
  • OR Up to 80 years, provided:
    • At least one co-obligant (successor to the business) joins the loan.
    • The co-obligant’s age should not exceed:
      • 65 years (for self-employed)
      • 60 years or retirement age (for salaried individuals), whichever is earlier.
    • At least 50% of the loan repayment should come from the co-obligant’s income.

For NRIs

• Eligible Applicants:
  • NRI salaried individuals, self-employed professionals, and businesspersons.
  • Persons of Indian Origin (PIOs), subject to:
    • The loan is being secured by primary/collateral security of immovable property in India in the PIO's name.
       
    • Holding a valid PIO Card with a foreign passport.
    • A close relative (as per the Companies Act) residing in India must join as a co-obligant.
• Other Conditions:
  • The borrower's age must not exceed 55 years at the end of the loan tenure.
• Minimum monthly income required: ₹50,000.

List of Documents Required For Federal Bank Home Loan Application

KYC Documents Required

• Photographs – Two recent passport-sized photos of both the applicant and co-obligant.
• Identity Proof – Any one of the following: Passport, Voter ID, Driving License, PAN Card, or Aadhaar Card.
• Address Proof – Any one of these documents: Passport, Voter ID, Driving License, or Aadhaar Card.
• Age Proof – Acceptable documents include a Passport, a Birth Certificate, a Driving License, an SSLC, or an AISSE Certificate.
• For NRI Applicants – A certified copy of the Passport, Visa, Work Permit, or ID Card is required.

Income Documents – For Resident Salaried Individuals

• Salary Proof – Latest salary certificate or salary slips for the past three months.
• Income Tax Documents – Copies of IT returns or Form 16 for the last two years.
• Bank Statement – Bank account statement for the last six months reflecting salary credits.

Income Documents – For Resident Self-Employed Individuals

• Business Proof – Documents verifying business existence, along with a business profile.
• Bank Statements – Account statements for the last 12 months.
• Income Tax Documents – IT returns for the past two years, supported by a balance sheet and profit & loss account. Where applicable, tax payment challans should also be provided. Alternatively, IT returns for the last two years, along with a tax calculation sheet and tax payment challans, may be submitted.

Income Documents – For Non-Resident Salaried Individuals

Applicants must provide documents under either Option 1 or Option 2:

Option 1:

• A statement of an NRE account from any bank covering the past year.
• Salary verification through either of the following:
  • Salary certificate attested by the Embassy/CRO or last three months' salary slips.
  • The latest three months' salary slips are supported by a six-month salary crediting bank statement.

Option 2:

• NRE account statement for the past two years.
• Alternatively, statements of resident bank accounts held by the applicant’s spouse or parents (with the same or another bank), where remittances are made.

Income Documents – For Non-Resident Self-Employed Individuals

Applicants must provide documents under either of the following options:

Option 1:

• Proof of business establishment and business profile.
• Bank account statements for the last 12 months.
• Audited Balance Sheet and Profit & Loss Account for the last two years. If available, tax payment receipts should also be submitted.

Option 2:

• Bank statements of the applicant’s NRE account for the last two years.
• Alternatively, bank statements of resident accounts held by the applicant’s spouse or parents (with the same or another bank), where remittances have been made.

Property Documents Required for Home Loan

For the Purchase of Approved Flats Under Construction

• Agreement for Sale & Construction
• Allotment letter / NOC from the builder for mortgage
• Tripartite Agreement (to be obtained before loan disbursement)

For the Purchase of Unapproved Flats Under Construction

• Agreement for Sale & Construction
• Allotment letter / NOC from the builder for mortgage
• Title Deed & Prior Deed (if Title Deed lacks past 30 years’ records)
• Encumbrance Certificate (EC) for at least 13 years
• Possession Certificate & Location Sketch
• Latest Land Tax Receipt
• Tripartite Agreement (before loan disbursement)
• Approvals from civic authorities, environmental department, pollution control board, fire & safety, aviation (if applicable), Navy-Army (if applicable), and Coastal Zone Management Authority (if applicable)
• Approved Building Plan & Permit

For Land Purchase & Subsequent House Construction

• Agreement for Sale of Land
• Title Deed & Prior Deed (if needed)
• EC for at least 13 years
• Possession Certificate & Location Sketch
• Latest Land Tax Receipt
• Tentative construction plan & estimate

For the Purchase of Approved Ready-Built Flats

• Agreement for Sale & Construction
• Allotment letter / NOC from the builder for mortgage

For the Purchase of Unapproved Ready-Built Flats

• Agreement for Sale & Construction
• Allotment letter / NOC from the builder for mortgage
• Title Deed & Prior Deed (if needed)
• EC for at least 13 years
• Possession Certificate & Location Sketch
• Latest Land Tax Receipt
• Tripartite Agreement (before loan disbursement)
• Approvals from relevant authorities, similar to unapproved flats under construction

For the Purchase of a Ready-Built House

• Agreement for Sale
• Approved Building Plan
• Title Deed & Prior Deed (if needed)
• EC for at least 13 years
• Possession Certificate & Location Sketch
• Latest Land & Building Tax Receipt

For House Construction on Owned Land

• Approved Building Plan & Construction Estimate
• Building Permit / NOC for construction (if applicable)
• Title Deed & Prior Deed (if needed)
• EC for at least 13 years
• Possession Certificate & Location Sketch
• Latest Land Tax Receipt

For Repair, Renovation, Remodeling, or Extension

• Approved Plan & Cost Estimate
• NOC for extension (if applicable)
• Title Deed & Prior Deed (if needed)
• EC for at least 13 years
• Possession Certificate & Location Sketch
• Latest Land & Building Tax Receipt

How can you calculate EMI for Federal Bank home loan?

The repayment of a home loan will be in the form of Equated Monthly Installments (EMIs), a portion of interest and principal amount payable on the loan. When you know you are eligible for a particular amount of loan from the Federal Bank, you should then look to calculate the EMIs that you will have to pay from your pocket. Wishfin Federal Bank Home Loan EMI Calculator is the best tool for calculating your correct EMIs. You just need to feed three basic components into the calculator:

• Loan Amount
• Interest Rate
• Tenure

For example: You want to avail a loan for Rs. 10,00,000 from ICICI Bank for the tenure of 25 years. The interest rate of a home loan starts from 8.80% p.a., and it may go up to 10.05% p.a. Then your EMIs will be as follows -

Fees & Charges on Federal Bank Home Loan

FREQUENTLY ASKED QUESTIONS

1. What is the interest rate for Federal Bank Home Loans?

Interest rates vary based on the loan amount, applicant profile, and loan tenure. The latest interest rate for Federal Bank Home loan starts from 8.80% p.a. And goes up to 10.05%p.a.

2. Who is eligible for a Federal Bank Home Loan?

Federal Bank Home Loans are available to:

• Salaried individuals
• Self-employed professionals and business persons
• Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs)

3. What is the maximum loan amount I can avail from the Federal Bank Home Loan?

You can avail of a home loan of up to Rs 15 crore, depending on your income, repayment capacity, and property value.

4. What are the processing charges for a Federal Bank Home Loan?

Processing fees are 0.50% of the loan amount (minimum Rs 10,000, maximum Rs 2 lakh) for Federal Bank Home Loan.

5. What is the maximum tenure for Federal Bank Home Loans?

• For resident borrowers: Up to 30 years
• For NRI borrowers: Up to 20 years

6. What are the foreclosure charges on a Federal Bank Home loan?

There are NIL foreclosure charges you have to pay while availing the Federal Bank Home Loan.