Federal Bank Loan Against Property

• Residents, Non-resident, and PIO individuals can apply.
• The loan can be availed against residential/ commercial properties or a plot of land.
• Security
• Immovable property’s mortgage
• Property in close relative?s name will also be accepted
• For PIOs, the property should be in their own names
• The applicant has to inform the bank whenever there is a change in address/ employment.

• Loan is available as Overdraft as well as Term Loan.
• Surrogate Scheme available for self-employed
• Balance Transfer facility available with additional finance.
• Insurance options available at attractive premiums for Property Power Loan. The insurance amount can be included as a part of the bank?s loan component.

• Up to 30 months for Running Overdraft/ Demand Loan.
• Up to 120 months for Term Loan
• Up to 30 Months for Non Funded Limits

• Self-employed professionals, Firms, Companies, any other legal entity which is engaged in manufacturing/service/trading can apply (excluding NBFCs/ Real estate/ Chit Companies/ Export Credit).
• The bank will require immovable property’s equitable mortgage with 25% margin as security.

• Low processing fee of 0.50%
• Term Loan, Working Capital/ Non-funded limits, and Demand Loan available

• Individuals/ Company/ Firm/ any legal entity with assured rental/ maintenance/ service income from reputed Companies/ PSUs/ Institutions/ Established Organisations can apply.
• Lower margin is required at 10% on the discounted value of the net rent receivables.

• Competitive interest rate
• Demand Loan, Term Loan, OD with diminishing Drawing Power (DP) available.

• Loan amount is decided according to the value of the security which is being provided.
• Value of the property-to-be-mortgaged should be minimum 60% of qualifying loan amount.
• Monthly payout from 2,000 to 25,000

• 10 to 15 years
• The remaining life of the property should be minimum 20 years.

• Applicant should be at least 60 years of age and their spouse should not be below 58 years of age when applying for the loan.
• If spouses jointly own a property (with age restrictions mentioned above), they can be co-applicants.
• Number of surviving spouses on the loan sanction date should not be more than one.
• Borrower must have property in their own name.

• Bullet payment option available
• Prepayment the loan is allowed by giving 6 month’s notice.
• Settlement by legal heirs option is also available.
• Interest is reset every 5 years

• Up to 50% of the security’s value
• Maximum 5 Crores

• NRIs and PIOs can apply
• The loan can be availed against residential/ commercial properties or a plot of land.
• Security
• Immovable property’s mortgage
• Property in close relative’s name will also be accepted
• For PIOs, the property should be in their own names
• The applicant has to inform the bank whenever there is a change in address/ employment.

• Loan is available as Overdraft as well as Term Loan.
• Surrogate Scheme available for self-employed
• Balance Transfer facility available with additional finance.
• Insurance options available at attractive premiums for Property Power Loan. Insurance amount can be included as a part of bank’s loan component.

• 2 passport size photos the applicant and the co-obligant
• Identity proof: Passport/ Aadhaar Card/ Voter’s ID/ Driving License/ PAN Card.
• Address proof: Passport/ Aadhaar Card/ Voter’s ID/ Driving License
• Age proof: Passport/ Driving License/ Birth Certificate/ SSLC or AISSE Certificate.
• Additional documents for NRI applicants: Certified copy of Passport, Visa, Work Permit, and ID card.

• Salaried – Resident
• Latest Salary Slip/ Salary Certificate for 3 months
• Copies of ITR or Form 16 for 2 years
• Latest Bank Account Statement for 6 months showing the salary credits
• Salaried – Non-Resident (either of the following 2 options)

Option 1

• NRE Account Statement of any bank for last 1 year
• Salary Certificate/ last 3 months’ Salary Slip/ latest Salary Certificate (Embassy/ CRO certified) along with 6 months’ Salary Crediting Statement.

Option 2

• NRE Account Statement for 2 years of the customer and/or Resident Accounts of parents/spouse (with Federal Bank or other bank) in which remittance is made.
• Self-employed – Resident
• Business Existence proof and Business Profile
• Bank Account statements for last 12 months
• ITR for 2 years along with Balance Sheet, P&L Account for the last 2 years.
• Tax Paid Challans (wherever available) or ITR for last 2 years supported by tax calculation sheet and Tax paid challans.
• Self-employed – Non-Resident (either of the following 2 options)

Option 1

• Business Existence proof and Business Profile
• Bank Account Statements for last 12 months
• Balance Sheet and P&L Account for the last 2 years
• Tax Paid Challans (wherever available)

Option 2

• NRE Account Statement for last 2 years of the customer and/or resident accounts of parents/ spouse (with Federal Bank or other bank) in which remittance is made.

• Property Documents
• Title documents
• Encumbrance Certificate for 13 years
• Possession Certificate
• Location Sketch
• Building Tax receipt (if applicable)
• Receipt of Land Tax
• Approved Plan

• Identity proof: Passport/ Driving License/ Voter’s ID / PAN Card
• Address proof: Ration Card/ Passport/ Telephone Bill/ Electricity Bill/ Lease Agreement/ Trade License/ Sales Tax Certificate.
• Last 6 months’ Bank Statement
• Proof of continuation: ITR/ Establishment/Sales Tax Certificate/ Trade License
• ITR/Sales Tax Returns of proprietor/ firms/ partners/ companies (wherever applicable).
• Audited or unaudited financial statements (as applicable) for the last 2 years, for existing units.
• Projected financial statements
• Copy of NOC/ license from local body or license by competent authority for running the business.
• Other documents requested by the bank as per individual requirements

Loan Against Rent Receivables

• Identity proof: Passport/ Driving License/ Voter’s ID/ PAN Card
• Address proof: Ration Card/ Passport/ Telephone Bill/ Electricity Bill/ Lease Agreement/ Trade License/ Sales Tax Certificate.
• Bank Statement for last 6 months
• Last 2 years ITR with computation of income, Balance Sheet and P&L account (audited).
• Continuation proof: ITR/ Trade License/ Sales Tax Certificate/ Establishment
• Copy of registered lease agreement/ service agreements/ maintenance, duly executed & acknowledged by lessor and lessee. Also, original agreement should be obtained & verified.
• Copy of the tax paid to local bodies or Tax Assessment order (wherever applicable).
• Other documents requested by the bank as per individual requirements

Bank

• Property Power Loan: 1% of the sanctioned limit, minimum 3,000.
• SME Loan Against Property: Up to 1% of the sanctioned limit.
• Federal Aashray Loan: 0.50% of the sanctioned limit, minimum 1,000 and 5,000.

• Floating interest rate loan to Individuals: Nil
• Fixed interest, Overdraft, Non Individuals: 3% of the balance outstanding or DP, whichever is higher.
• Hybrid loans:
• Fixed rate period: 3% of the balance outstanding or DP, whichever is higher.
• Floating rate period: Nil for Term Loan to Individuals and 3% of the balance outstanding or DP, whichever is higher, for Overdraft Loans to Non-individuals.

SME Loan Against Property

• OD/CC: 3% of the limit sanctioned (includes adhoc limit, if sanctioned).
• Demand/ Term Loan/ OD with diminishing DP: 3% of the outstanding balance or DP, whichever is higher.
• BG/LC: Nil

SME Loan Against Property

• OD/CC: 2% of the overdue portion. Additional penal interest is applicable for SMA accounts.
• BG/LC: Maximum lending rate as applicable on non-priority loans from time to time.
• Term Loan/ OD/ Demand with diminishing DP: 2% of the overdue portion. Additional penal interest is applicable for SMA accounts.

• OD/CC: 0.15% per quarter of unutilised portion, 50% of processing fee (for un availed loans).
• Demand/ Term Loan/ OD with diminishing DP: 50% of processing fee (for un availed loans).
• BG/LC: NA