About Federal Bank lending
Federal Bank, headquartered in Aluva, has one of the widest branch networks in Kerala outside the public sector banks and prices home loans close to the market leaders. Its gold loan product is a strong competitor to the non-bank gold loan companies on rate.
For personal loans the bank is priced mid-market. If your employer has a salary tie-up with the bank, ask specifically for the corporate rate — it is often one to two percentage points below the published card rate.
Federal Bank indicative rates
Ranges compiled 28 October 2026. Rates depend on your credit score, income and the loan-to-value ratio — always confirm with the bank before deciding.
| Product | Indicative rate | Typical tenure |
|---|---|---|
| Home loan | 8.55% – 10.05% | Up to 30 years |
| Gold loan | 9.50% – 12.50% | Up to 12 months |
| Personal loan | 11.25% – 16.50% | Up to 5 years |
| Car loan | 9.40% – 11.60% | Up to 7 years |
How to use this calculator
- Enter the amount you plan to borrow from Federal Bank.
- Set the rate the bank has quoted you, and the tenure in months.
- Compare the total interest with a second lender's offer — that number, not the EMI, is what a lower rate really buys you.
How the EMI is worked out
EMI = [P × r × (1 + r)n] ÷ [(1 + r)n − 1], where P is the principal, r the monthly rate (annual ÷ 12 ÷ 100) and n the tenure in months. Every bank in India uses this reducing-balance method.
What an extra ₹2,000 a month would do
Same loan, same rate, one extra payment every month. This is the cheapest way to cut the total cost of any loan.
| Scenario | Monthly payment | Loan closes in | Total interest |
|---|
Floating-rate home loans to individuals carry no prepayment penalty in India. Personal and car loans often charge 2–5% of the outstanding amount — check before you prepay.
Year-wise amortisation schedule
How the loan actually unwinds: the interest share falls every year while the principal share rises.
Show the year-by-year break-up
| Year | Principal paid | Interest paid | Balance left |
|---|
Frequently asked questions
Does Federal Bank offer repo-linked home loans?
Yes. Its retail home loans are benchmarked to the repo rate, so the rate resets when the policy rate changes.
How does its gold loan compare with an NBFC?
The bank rate is typically three to eight percentage points lower. The NBFC wins on speed and on branches that stay open later.
Is there a prepayment charge on home loans?
Not on floating-rate home loans to individuals. Other products may carry a charge — confirm in the sanction letter.
Can NRIs take a home loan from Federal Bank?
Yes, with documentation covering overseas income and residency status. Rates are usually slightly above the resident product.