Federal Bank Loan Against Property

Detailed data for this section is currently being updated. Please check official sources for the latest information.

A ₹50 lakh Loan Against Property at 12 for 15 years results in an EMI of ₹4,872 per lakh, or ₹2,43,600 monthly. Prepayment is allowed without charges on floating rate loans, per RBI guidelines. The following table breaks down EMIs for different loan amounts and tenures at the minimum applicable rate:

Loan Amount	Interest Rate (p.a.)	Loan Tenure	EMI per ₹1 Lakh	Monthly EMI
₹25 lakh	12	10 years	₹1,294	₹32,350
₹25 lakh	12	15 years	₹1,156	₹28,900
₹25 lakh	12	20 years	₹1,085	₹27,125
₹50 lakh	12	10 years	₹1,294	₹64,700
₹50 lakh	12	15 years	₹972	₹48,600
₹50 lakh	12	20 years	₹908	₹45,400
₹75 lakh	12	15 years	₹972	₹72,900
₹1 crore	12	20 years	₹908	₹90,800

- Aadhaar card, PAN card, passport, or voter ID are accepted as proof of identity and residence for Federal Bank Loan Against Property applicants in 2026. - Salaried applicants must submit Form 16, latest income tax returns, and 6 months of bank statements to verify income eligibility.

• Proof of identity: Aadhaar card, PAN card, passport, or voter ID (any one original with self-attested copy)
• Proof of residence: Aadhaar card, utility bill not older than 3 months, or passport (original + self-attested copy)
• Proof of income for salaried applicants: Latest Form 16, salary slips for the last 3 months, and bank statements for the past 6 months
• Proof of income for self-employed applicants: ITR for the last 2 years, business bank statements for 12 months, and business registration documents
• Property papers: Title deed, encumbrance Certificate (not older than 30 days), property tax receipts, and approved building plan
• Photographs: Two recent passport-sized photographs of the applicant and co-applicant (if any)
• KYC documents: Copy of Aadhaar and PAN card mandatory; additional documents required if applying as a business entity

All documents must be submitted in original for verification, along with self-attested photocopies. Digital submission via FedMobile is supported for existing customers.

Charge Type	Fee / Charge (Federal Bank LAP)	Additional Details
Processing Fee	0.50% of the loan amount sanctioned	Minimum ₹10,000; maximum ₹25,000 (as per 2026 internal policy)
Prepayment Charges	Nil (floating-rate loans)	No charges for partial prepayment on floating-rate LAPs for individual borrowers
Foreclosure Charges	Nil (floating-rate loans)	Full waiver for floating-rate loans; applicable only to fixed-rate loans at 12 of outstanding amount
Documentation Charges	No separate fee levied	All charges included in processing fee; no hidden costs
Legal & Technical Inspection Fee	₹5,000 (one-time)	Covers property valuation and legal verification; may vary by location
Penalty for EMI Default	2% of overdue EMI amount	Charged monthly until payment; reported to CIBIL after 90 days
Part-Payment Processing	No fee	Allowed after 6 months; minimum ₹1 lakh per transaction
Foreclosure Certificate Issuance	₹1,500	Processing time: within 14 working days of request
Loan Disbursement Fee	Nil	No additional charge post-approval for fund transfer
Stamp Duty & Registration	As per state government norms	Not charged by bank; borrower responsibility (approx. 5–12 of property value)
Property Insurance	Mandatory annual premium	Approx. 0.15% of property value; required for loan sanction
Rate of Interest (MCLR-linked)	12 – 12	MCLR + 2.70% to 5.95%; resets annually

Federal Bank waives prepayment and foreclosure fees on floating-rate LAPs, offering cost savings over long tenures. The application process for Federal Bank's Loan Against Property (LAP) typically takes 7–15 working days if documents are in order. Digital verification and online submission via platforms like Paisabazaar have reduced processing time significantly.

1. Submit application online via Federal Bank's website or partner platforms like Paisabazaar; offline applications accepted at branches.
2. Provide proof of identity and residence: Aadhaar card, PAN card, passport, or voter ID.
3. Submit proof of income: latest 6 months' bank statements, Form 16, or income tax returns (ITR).
4. Self-employed applicants must submit business proof: GST returns, balance sheet, or profit & loss statement.
5. Submit property papers: title deed, encumbrance Certificate, property valuation report, and approved plan.
6. Undergo property valuation by a bank-approved surveyor; turnaround time is 2–3 working days.
7. Wait for credit assessment: CIBIL score of 750+ improves approval chances; income-to-EMI ratio must be ≤50%.
8. Receive sanction letter with loan amount, tenure, and interest rate 12–12.
9. Sign and return loan agreement; processing fee of up to 3% of loan amount plus GST applies.
10. Complete legal verification of property documents by bank's legal team.
11. Attend disbursement formalities: one-time documentation and final verification call.
12. Receive disbursal in 1–2 working days after final approval; funds credited to linked account.

Post-disbursal, borrowers can manage the loan via FedMobile app, including tracking outstanding amount and making part payments. Federal Bank offers a dedicated Part Payment Facility for retail term loans, allowing borrowers to reduce their principal early. Payments exceeding a specified threshold require bank approval to ensure proper documentation and processing. This structured approach helps borrowers manage their debt efficiently while maintaining compliance. The bank has also streamlined its foreclosure process for mortgage retail loans, making IT more efficient and transparent. Individual borrowers with floating-rate loans are not charged foreclosure fees, in line with RBI guidelines. This benefits those looking to close their Loan Against Property without incurring additional costs. Federal Bank provides free access to Equifax Credit Reports through its digital platforms, enabling borrowers to monitor their credit health at no cost. This service supports informed financial decisions and helps maintain a strong CIBIL score, which is for loan approval and better interest rates. , the bank's Active Loan feature on the FedMobile app allows borrowers to view all active loans, check outstanding amounts, and make part-payments directly. The app also supports new loan requests, convenience and control over financial obligations. Scheduled maintenance for Fed-e-Remit services will occur on June 6, 2026, from 2:00 PM to 8:00 PM due to planned system upgrades. Borrowers are advised to plan remittance transactions accordingly to avoid disruptions. Effective January 1, 2026, FedMobile and FedCorp platforms support only specified operating systems to security, as per RBI regulatory directives. This ensures safer digital banking experiences for all users.

Service/Benefit	Key Feature	Effective Date / Condition
Part Payment Facility	New process introduced for better management of retail term loans	Payments above threshold require bank approval
Foreclosure Process	Streamlined for efficiency and transparency	Applicable for mortgage retail loans
Foreclosure Charges (Floating Rate)	No charges for individual borrowers	In line with RBI guidelines
Equifax Credit Report Access	Available at no cost to customers	Anytime via Federal Bank digital platforms
Active Loan Management	View loan status, outstanding amount, make part-payments	Available via FedMobile app
New Loan Requests	Can be initiated directly from the FedMobile app	Under 'My Loans' section
Fed-e-Remit Services	Temporary unavailability due to system upgrades	June 6, 2026 | 2:00 PM – 8:00 PM
FedMobile & FedCorp OS Support	d security via restricted OS compatibility	Effective January 1, 2026
Domain Security Upgrade	Transitioned to secure ".bank.in" domain	RBI regulatory directive
Multiple NAVs Framework	Implementation for improved valuation accuracy	April 1, 2026
Digital Onboarding Partnership	End-to-end digital onboarding for personal loans	Through Paisabazaar platform
Safe Deposit Locker Service	Available at branch locations	Subject to availability and fees