A Federal Bank home loan can be availed for a maximum tenure of 30 years. Borrowers looking for the best home loans can choose a tenure that suits their financial goals, ensuring manageable EMIs throughout the repayment period. To secure the lowest possible interest rates starting from 8.80% p.a to 10.30%p.a. applicants must meet the bank’s eligibility criteria and provide the required documentation. With the right profile and financial stability, Federal Bank offers competitive rates that help borrowers repay their loans without any hassle. Below is a graphical representation of the interest rate, tenure, and a sample loan amount for better understanding.

Federal Bank Home Loan Interest Rate January 2025

Features of Federal Bank Home Loan

Here are some of the features and benefits of a Federal bank home loan, read more to know about them -

• Up to 85% of the project cost as funding for your dream home
• Loan amount up to Rs.1,500 Lakhs
• Flexible repayment tenure of up to 360 months
• Repayment holiday for up to 36 months
• Loan available in overdraft format
• Minimal documentation required
• Quick loan approval process
• No pre-closure charges
• Low processing fees
• Optional life insurance funding
• Easy top-up loans in the future
• Repayment through Equated Monthly Installments (EMIs)

Factors Affecting Federal Bank Home Loan Interest Rate

These are some factors that might affect your Federal Bank home loan interest rates -

• Loan Amount: Higher loan amounts may attract slightly higher interest rates due to increased risk for the bank.

• Loan Tenure: Longer tenure loans might have higher interest rates compared to shorter tenures, as the risk of default increases over time.

• Applicant’s Credit Score: A high credit score (750 or above) can help secure lower interest rates, while a lower score may lead to higher rates or loan rejection.

• Type of Interest Rate: Federal Bank offers both fixed and floating interest rates. Fixed rates remain constant while floating rates vary based on market conditions and RBI policies.

• Income and Employment Stability: Applicants with stable income sources and employment in reputed organizations are likely to get lower interest rates.

How Can You Get the Lowest Federal Bank Home Loan Interest Rates?

In a home loan, the most important thing is to have proper documentation which often people miss and this becomes a drawback to get a lower rate. If you want to get the desired rate of interest on a home loan, you must make sure that you have all the property documents maintained. Alternatively, you must buy the property in an authorized location and have a good credit history based on which the Federal Bank will consider your application for a good rate.

To simplify your understanding here are some points - 

• Maintain a High Credit Score - Aim for a credit score of 750 or above to qualify for the best interest rates.
• Opt for a Shorter Loan Tenure - Choosing a shorter repayment tenure can help secure a lower interest rate, as the bank’s risk is reduced.
• Negotiate with the Bank - If you have a good relationship with the Federal Bank, negotiate for a lower interest rate based on your financial stability and existing accounts.
• Compare Different Interest Rate Types - Evaluate whether a floating interest rate or a fixed interest rate suits your financial situation.

Calculating EMIs on Federal Bank Home Loans at Different Interest Rates

To calculate EMIs on Federal Bank Home Loan at different interest rates, use the online Wishfin Federal Bank Home Loan EMI calculator to quickly and easily calculate your EMIs. 

You can simply put the following details - 

• Loan Amount

• Tenure

• Interest Rate

For Example:

The below table shows the equal monthly payments (EMIs) for a Rs.30,00,000 home loan with interest rates ranging from 8.80% up to 10.30% annually for terms up to 30 years. These figures and numbers are imaginary, you can use the calculator to calculate your actual figures and rates. 

Documents Required for Federal Bank Home Loan

Here's a modified version of the KYC and property document requirements:

KYC Documents:

1. Two recent passport-sized photographs of the applicant and co-obligate (each).
2. Acceptable identity proof documents:
   • Passport
   • Voter ID
   • Driving License
   • PAN Card
   • Aadhaar Card
3. Acceptable address proof documents:
   • Passport
   • Voter ID
   • Driving License
   • Aadhaar Card
4. Acceptable date of birth proof documents (for NRI customers):
   • Passport
   • Birth Certificate
   • Driving License
   • SSLC/AISSE Certificate
   • Certified copy of Passport, Visa, Work Permit, or ID card

Property Documents:

1. Sale and Construction Agreement
2. Allotment Letter from the builder
3. No Objection Certificate (NOC) from the builder to mortgage the property. 

Other Fees and Charges of Federal Home Loan

Federal Bank Home Loan Customer Care Number

Here are some of the federal bank home loan customer care numbers, that are 24x7 available toll-free and IVR. Read below to learn about them -

Toll-Free Number: 

• 1800 420 1199 (Phone Banking, 24 x 7)
• 1800 425 1199 (For Phone Banking)

All India Numbers:

• 98950 88888 (Send SMS to register for missed call balance enquiry)

Federal Bank Home Loan IVR Guide

Dial 1800 420 1199 and follow these steps:

1. Select your preferred language:
   • Press 1 for English, 2 for Hindi, 3 for Malayalam, 4 for Tamil, 5 for Kannada, 6 for Marathi, 7 for Telugu, 8 for Gujarati, and 9 for Bengali.
2. Your call will then be transferred to a phone banking officer for assistance with queries or complaints.

Summary!

Federal Bank home loan interest rates are influenced by various factors such as the applicant’s credit profile, loan tenure, property value, and prevailing market conditions. By maintaining a strong credit score, opting for a suitable loan tenure, and leveraging promotional offers, borrowers can secure competitive interest rates. 

Additionally, Federal Bank’s transparent home loan process and customer-centric approach make it a reliable choice for home financing. Prospective borrowers are encouraged to compare loan options and utilize available discounts to make informed financial decisions.

FREQUENTLY ASKED QUESTIONS

1. What is the current interest rate for Federal Bank home loans?

Federal Bank home loan interest rates range from 8.80% p.a up to 10.30%p.a. The rates are typically linked to the bank's external benchmark, such as the repo rate.

2. What factors influence my home loan interest rate with the Federal Bank?

Key factors affecting your interest rate include your credit score, income, employment stability, loan tenure, loan amount, and property value. A strong financial profile can help you secure lower rates.

3. How can I reduce my Federal Bank home loan interest rate?

To lower your interest rate, maintain a high credit score, choose a shorter loan tenure, make a higher down payment, and explore ongoing offers or special schemes from the bank.

4. How frequently does the Federal Bank revise its home loan interest rates?

Federal Bank revises its interest rates periodically based on changes in the repo rate, market conditions, and RBI guidelines. Floating rate borrowers may see periodic adjustments in their EMIs.

5. Can I switch from a fixed rate to a floating rate during my federal bank home loan tenure?

Yes, Federal Bank allows customers to switch from fixed to floating interest rates or vice versa, subject to applicable terms and conditions and nominal processing fees.