Federal Housing Loan
Features
Your dream home is never far away! Get hassle free home loans from Federal Bank to turn your dream home into reality. We assist you to realize your dream home. Avail your Housing Loan from us at competitive interest rates. The loan scheme assists borrowers for construction of house, acquisition of land & construction of house, repairs / renovation / remodeling / extension of house, reimbursement of debt incurred for construction / purchase / furnishing / beautification / purchase of flat / villa / house plots / takeover of housing loans / supplementary housing loan to employees of well-run companies / purchase of house plot for subsequent construction of house etc.
Eligibility
For Residents:
For NRIs:
- NRI individuals including salaried people, self-employed and business persons are eligible for Housing Loan.
- Persons of Indian Origin (PIO) are also eligible for Housing Loan subject to following conditions:
- The loan is covered by primary / collateral security of immovable property in India in the name of PIO.
- The PIO should hold a valid PIO Card accompanied by a valid foreign passport.
- A close relative (as defined in Companies Act) residing in India should join as co-obligant to the loan.
- Age of the borrower should not exceed 55 years at the end of loan tenure.
- Monthly income should be not less than Rs. 50000/-.
- To avail the loan, you can apply online in simple steps. After submitting the application, bank will process your application and will be informing further details. You can track the progress of application too.
Repayment Options
Repayment of the loan is made as Equated Monthly Installments (EMI).
- Cheques
- Standing instructions at your branch
- FedNet - Internet Banking
- Automated Payment through ECS
- Mobile Banking
Interest Rates for Housing Loan
Housing loan interest rates will change subject to the changes made by Bank/RBI from time to time.
| Present Repo Rate | 6.50% (p.a) |
|
Loan scheme |
Interest Rate (%) * |
|
Home Loan |
8.80 (Repo Rate+ 2.30) Onwards |
*T&C Apply
Housing Loans
Build Your Dream Home
Features & Benefits
Federal Housing Loan Your dream home is never far away! Get hassle free home loans from Federal Bank to turn your dream home into reality. We assist you to realize your dream home. Avail your Housing Loan from us at competitive interest rates.
Loans for Purchasing Plots
Features & Benefits
Loan for Purchase of House Plots Are you having a residential plot of land in mind to buy? Realise your wishlist with our loan for purchasing house plots. With minimal documentation, you can get Loan amount
House Warming Loan
Features & Benefits
House Warming Loan Bought a house recently but need financing for house warming occasion? Federal Bank has yet another attractive loan scheme for you- House Warming Loan - a special personal loan scheme to our Home loan customers (both existing & new) Viz. ‘House Warming Loan' for meeting house warming and other related expenses.
Indicative list of documents required for Home Loan are given below
- Two passport size photos each of the applicant/ and the co obligant
- Identity Proof – Passport / Voters ID / Driving License/ PAN Card / Aadhaar Card
- Address Proof – Passport / Voters ID / Driving License / Aadhaar Card
- Age Proof – Passport / Birth Certificate / Driving License / SSLC or AISSE Certificate
- Certified copy of Passport, Visa, Work Permit, ID card (Applicable for NRI customers)
- Latest Salary Certificate / Salary Slip (3 months)
- Copies of IT returns (2 years) or Form No.16 (2 years)
- Latest 6 month's Bank Account statement evidencing the salary credits
- Proof of Business existence & Business Profile
- Last 12 months bank a/c statements
- IT returns for 2 years supported by Balance Sheet, P&L Account for the past two years. Where ever available, Tax paid challans may also be collected OR Last 2 years IT returns supported by Tax calculation sheet & Tax paid challans
- NRE account statement with any bank for last one year
- Embassy / CRO certified Salary Certificate/ latest 3 months salary Slip OR Latest Salary Certificate / Slip (3 months) supported by 6 months Salary Crediting Statement
- Two years NRE a/c statement of the customer and/or resident accounts of spouse/parents (with us/ other Bank) in which remittance is made.
- Proof of Business existence & Business Profile
- Last 12 months bank a/c statements
- Balance Sheet, P&L Account for the past two years. Where ever available, Tax paid challans may also be collected
For purchase of approved Flats under construction
- Agreement for Sale & construction
- Allotment letter / NOC from Builder to mortgage the flat
- Tripartite Agreement( to be obtained before disbursal of loan)
For purchase of unapproved Flats under construction
- Agreement for Sale and Construction
- Allotment letter / NOC from Builder to mortgage the flat *
- Title Deed *
- Prior Deed (in cases where the Title Deed does not contain recitals explaining derivation for past 30 Years) *
- EC for 13 years (minimum) *
- Possession certificate *
- Location Sketch *
- Land Tax receipt (latest) *
- Tripartite Agreement (to be obtained before disbursal of loan) *
- Approval or permission from civic authorities *
- Approved Plan and building permit
- NOC from Environmental Department
- NOC from pollution control board
- Fire and safety Clearance
- NOC from aviation department (if applicable)
- NOC From Navy - Army (if applicable)
- Certificate from Coastal Zone management Authority (if near seas, bays, estuaries, creeks, rivers, backwaters etc.)
For acquisition of land and subsequent construction of a house in that land
- Agreement for Sale of Land
- Title deed *
- Prior Deed (in cases where the Title Deed does not contain recitals explaining derivation for past 30 Years) *
- EC for 13 years (minimum) *
- Possession Certificate
- Location sketch *
- Latest land tax receipt
- Tentative plan and estimate for construction
For acquisition of approved Ready Built Flats
- Agreement for Sale & construction
- Allotment letter / NOC from Builder to mortgage the flat
For acquisition of unapproved Ready Built Flats
- Agreement for Sale and Construction
- Allotment letter / NOC from Builder to mortgage the flat *
- Title Deed *
- Prior Deed (in cases where the Title Deed does not contain recitals explaining derivation for past 30 Years) *
- EC for 13 years (minimum) *
- Possession certificate *
- Location Sketch *
- Land Tax receipt (latest) *
- Tripartite Agreement (to be obtained before disbursal of loan) *
- Approval or permission from civic authorities *
- Approved Plan and building permit
- NOC from Environmental Department
- NOC from pollution control board
- Fire and safety Clearance
- NOC from aviation department (if applicable)
- NOC From Navy - Army (if applicable)
- Certificate from Coastal Zone management Authority (if near seas, bays, estuaries, creeks, rivers, backwaters etc.)
For acquisition of Ready built House
- Agreement for Sale
- Approved plan
- Title Deed
- Prior Deed (in cases where the Title Deed does not contain recitals explaining derivation for past 30 Years)
- EC for 13 years (minimum)
- Possession certificate
- Location Sketch
- Land & Building Tax receipt (latest)
For construction of house in the already owned land
- Approved plan and Estimate for construction
- Building Permit / NOC for construction *
- Title Deed *
- Prior Deed (in cases where the Title Deed does not contain recitals explaining derivation for past 30 Years) *
- EC for 13 years (minimum) *
- Possession certificate
- Location Sketch *
- Land Tax receipt (latest)
For repair, renovation, remodeling, extension of existing house, flat, villa
- Approved plan and Estimate
- NOC for construction in the case of extension
- Title Deed
- Prior Deed (in cases where the Title Deed does not contain recitals explaining derivation for past 30 Years)
- EC for 13 years (minimum)
- Possession certificate
- Location Sketch
- Land & Building Tax receipt (latest)
Frequently Asked Questions- Home Loans
What is the Eligibility Criteria for a Home Loan?
Housing loans are granted to:
Individuals and Persons of Indian Origin (PIO) provided that the loan covered by primary / collateral security of immovable property in India in the name of PIO. The PIO should hold a valid PIO Card accompanied by a valid foreign passport. A close relative (as defined in Companies Act) residing in India should join as co-obligant to the loan.
What is the tenure of a home loan?
Maximum period of home loan for Resident customers is 30 years and for NRI customers is 20 years. Period of loan depends upon age of the Borrower also.
What are the documents required for availing housing loan?
Please refer documents required for Resident Salaried, Resident Self employed, Non-Resident Salaried and Non-Resident Self employed borrowers.
What is the interest rate for home loan?
Rate of Interest will change subject to the changes made by Bank/RBI from time to time. Please refer latest interest rates on housing loans. Whenever interest rates are changed, new rates and corresponding EMI shall be communicated to the borrower.
Who can be joint borrowers in case of a home loan?
Immediate family members such as your parents, spouse and children can be joint borrowers in case of a home loan.
How can I make repayment of housing loan?
Repayment of housing loans are to be made in Equated Monthly Installments (EMI).
What is EMI?
EMI stands for Equated Monthly Installment. It includes repayment of the principal amount and payment of the interest on the outstanding amount of your home loan. Your housing loan EMIs are fixed at the time of availing the loan. EMI's are used to pay both interest and principal amount of a loan in a way that over a specific number of years, the loan amount is repaid to the bank along with interest.
What are the factors affecting housing loan EMI?
- Principal - The principal is the loan amount that you avail from Bank. Lower principal will lower your EMI and vice versa.
- Rate of Interest - The rate of interest is the rate at which Bank offers you the loan. It is also directly proportional to your loan EMI.
- Tenure - The tenure or the period is the time within which you repay your loan. It is inversely proportional to EMI. It means longer tenure makes EMIs cheaper and vice versa.
What is Fixed rate of interest?
Fixed rate of interest means interest rate remains constant during the entire tenure of the loan.
What is Floating rate of interest?
Floating rate of interest means interest rate fluctuates based on the changes in RBI’s Repo Rate.
What is Repo Rate?
Repo rate is the rate at which Reserve Bank of India lends money to commercial banks in the event of any shortfall of funds. Repo rate is used by monetary authorities to control inflation.
What is Pre-EMI?
Under the Pre-EMI option, the borrower is required to pay only the interest on the loan amount that will be disbursed as per the progress on the construction of the project. The actual EMI payment starts after the possession of the house / flat.
How can I calculate home loan EMI?
You can calculate home loan EMI using our EMI calculator by entering principle amount, tenure, rate of interest etc.
What is an amortization schedule?
Amortization is a tabular schedule with details of interest payment and periodic principal of a loan along with the amount outstanding after each payment and the decrease of loan balance till zero.
Will I get income tax benefit on my Federal Housing Loan?
Yes, if you are a resident Indian, you are eligible for income tax benefits on both the principal and the interest of a Home Loan under the Income Tax Act.
Can I prepay my housing loan?
Yes, you can make your prepayment in either part or full.
What are the service charges for Housing loan?
Please refer service charges for Housing loan.
How can I get my foreclosure certificate from bank?
Please place the request for foreclosure certificate at your loan origination branch to know the principal amount outstanding for closure of loan and applicable charges.
When will I get the foreclosure certificate upon requesting for the same?
The Foreclosure Statement will be processed within 14 working days from the date of request. Federal Bank does not take any responsibility, and will also not be liable, for your claims if the details provided by you are incorrect /incomplete.