Loan Against Property

Features and Benefits of Property Loan

Know what differences a loan against property can make when you avail it from Federal Bank.

1. Quick Loan Processing: With minimal paperwork and hassle-free processing, your property loan is approved without delays.
2. Wide Eligibility: Whether you are a Resident Indian, Non-Resident Indian, or a Person of Indian Origin (PIO), you are eligible to apply for a property loan with ease.
3. Flexible Tenure: Enjoy longer repayment flexibility with loan tenure options of up to 15 years, designed to suit your financial comfort.
4. Choice of Facility: Choose between an overdraft or a term loan facility, depending on what best fits your financial needs.
5. Tailored for Self-Employed: Special alternate schemes are available for self-employed individuals, making property loan approval easier.
6. Balance Transfer Benefits: Transfer your existing loan to us and enjoy better terms along with the option of additional financing.
7. Multiple Property Options: Get a loan against your residential property or even commercial property, as per your convenience.

How to Apply for Property Loan?

Step-by-step process to apply for a loan against property at Federal Bank:

• Click the ‘Get a Call Back’
• Fill in the details: Name, account no, mobile number, email, state, district, and preferred branch, and select ‘Property Loan’ in product
• Hit the ‘submit’ button

Once done, our representative will guide you on further steps. Alternately you may please visit your Federal Bank branch to apply for a loan against property offline.

Property Loan Eligibility

The loan against property eligibility criteria includes the following requirements:

• Should be a resident, non-resident, or a Person of Indian Origin (PIO)
• Must be a salaried individual, self-employed (Professional or Non-Professional)
• Have 720 or above Credit Score for better approval chances
• Show a proof of stable and verifiable income source
• Have residential or commercial property with clear title and marketable condition

Documents required for Loan Against Property

To apply for a loan against property at Federal Bank, here’s a list of documents you must have:

• Completed loan application form
• Valid identity proof (Aadhaar, PAN, Passport, etc.)
• Address proof
• Latest salary slips, Income Tax Returns (ITRs), or business financial statements
• Bank account statements for the last 12 months
• Security-related documents (title deed, tax receipts, approved building plan, etc.)

Additional documents may be required depending on the applicant’s profile.

👉 For a complete checklist, please visit our guide on Property Loan Documents Required.

Property Loan EMI Calculator

At Federal Bank, we have a property loan EMI calculator that enables customers to make smarter financial decisions. By using it, you can determine the total repayment amount charged on your property loan, including the principal and the interest.

Interest Rates and Charges for Property Loan

Here’s a comprehensive structure of mortgage loan interest rates:

Floating Rates Loans (Interest Rates on Retail portfolio linked to RBI Repo Rate)

Fixed Interest Rates

For any query or detailed information on the loan against property interest rates, visit our page - Property Loan Interest Rates.

Frequently Asked Questions- Property Power (Loan Against Property)

What is the Eligibility Criteria for a Property Power?

Loans against property are granted to:

• Individuals (Residents, Non-residents, PIOs)
• Sole-proprietorships, family partnerships, professionals and salaried where end use is personal or business and where the collateral is in the name of individuals.

Know about Property Loan Eligibility in Detail.
 

What is the tenure of a property power loan?

Maximum period of property power loan is 120 months.

What is the minimum age limit for availing loan against property?

Minimum age is 24 Years

Can I avail loan against property as overdraft?

Yes, you can avail the loan as overdraft facility.

What are the documents required for availing loan against property?

Please click here to know more about documents required for Resident Salaried, Resident Self employed, Non-Resident Salaried and Non-Resident Self employed borrowers.

What is the interest rate for property power loan?

Rate of Interest will change subject to the changes made by Bank/RBI from time to time. Please click here to know latest interest rates on 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 property power loan?

Immediate family members such as your parents, spouse and children can be joint borrowers.

How can I make repayment of property power loan?

Repayment of loan is 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 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 mortgage 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 property loan EMI?

You can calculate EMI of your loan against property using our Property Loan 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.

What are the service charges for property power loan?

Please click here to know more service charges.

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.

Request a Call Back