Looking for a Business Loan from the Federal Bank?

Look no further. We bring you all the information you need to make a sensible and sound decision.

Corporate Business Loans from Federal Bank

Federal Bank is a popular private sector bank India amongst the resident Indian and NRI customers. It offers a range of finance products to different segments of its customer base to meet their specific needs. The bank offers various business loans to its corporate customers.

Some business loans from Federal Bank are:

  1. Business Loans for Professionals
  2. Commercial Vehicle Finance
  3. Loan to Mobile/DTH/Other Electronic Recharge Vendors
  4. Loan Against Property
  5. Loan Against Rent Receivables

We give you a brief intro to these business loans below.

Federal Bank Business Loans for Professionals

The Federal Bank Business Loan for Professionals, also known as the Asset Power Scheme, helps Doctors, Architects, Chartered Accountants, etc. to purchase office, equipment, construct office, undertake the expansion of unit, etc. Professionals with a minimum of 4 years of experience in the field are eligible for this loan.

Features of Business Loans for Professionals

Why this Loan?

  • This business loan is meant for CA, Doctors, Architects, etc. for purchase or construction of offices, purchase or upgrade of equipment, expansion of units, etc.
  • Beneficiaries can avail loans up to Rs. 2 crore under the Federal Bank Business Loan for Professionals

Federal Bank Commercial Vehicle Finance

This loan helps Small Road Transport Operators buy commercial vehicles or hire vehicles on lease. The interest rate, repayment period, etc. are decided by the bank on a case-to-case basis.


Features of Federal Bank Commercial Vehicle Loan Scheme

Why this Loan?

  • The Federal Bank Commercial Vehicle Finance is meant for Transport Operators to help them acquire funds for purchasing new commercial vehicles for their business
  • The bank also extends this loan for hiring vehicles on lease

Federal Bank Loan to Mobile/DTH/Other Electronic Recharge Vendors

Federal Bank offers working capital loans to recharge vendors to help them meet their short-term needs for projects. It is the perfect loan scheme for electronic recharge vendors to boost their business.

Features of Federal Bank Loan to Mobile, DTH or Other Electronic Recharge Vendors

Why this Loan?


Federal Bank Loan Against Property

This loan helps businesses meet their needs by availing a loan against property. The immovable property must be located in metro, urban or semi-urban centres and property located in rural centre if it can be mortgaged for purposes other than agricultural use.

Federal Bank Loan Against Property

Why this Loan?

  • The loan is meant for business owners who want to avail a loan against immovable property for meeting business or personal needs
  • The bank asks for the equitable mortgage of property with 25% margin as security for the Federal Bank Loan Against Property

Federal Bank Loan Against Rent Receivables

This loan is designed to help property owners who have leased out their properties in any prominent locality enjoy the benefit of future rentals. The maximum loan amount is Rs. 20 crore.

Features of Federal Bank Loan Against Rent Receivables

Why this Loan?

  • The Federal Bank Loan Against Rent Receivables is the perfect corporate business loan to help landlords meet the expenses of alteration, addition or renovation to the premises but not for speculative purposes
  • The loan is extended in the form of a demand loan, term loan or Overdraft (OD)

Important Note: Even though the bank’s website has information available for a few business loan schemes at this time, there is a possibility that the bank may offer more corporate loan options that are not yet published on the website. We suggest that you get in touch with the nearest branch to check the loan schemes they offer. This will also help you get a custom quote since many loan schemes are need-based and certain charges such as application charges, service charges, etc. may be decided on a case-to-case basis.

Interest Rate for Federal Bank Business Loans

  • The interest rate for the Federal Bank business loans depends on various factors such as quantum of loan, type of business, risk rating, nature of project, repayment period, structure of debt, etc. Please check the Federal Bank website to check the latest interest rate

Eligibility for Federal Bank Business Loans

  • Individuals, Proprietors, Partnership Firms, Private Limited and Public Limited Companies can apply for these loans

Documents Needed for Individuals

  • Loan Application Form duly filled and signed by the applicant and co-applicant, if any
  • Two Passport Size Photographs of applicant and co-applicant
  • Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card/ PAN Card Issue Letter is must
  • Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
  • Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Income/Banking Proof: Last 6 months Bank Account Statement of applicant and co-applicant, Loan Statement of Running Loans, Latest Closed Loan NOC, Net Worth of the applicant and co-applicant
  • Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
  • For term loans: Project report with details on product choice, market survey, projection of production and sales, infrastructural needs, etc.; projected cash and fund flow statement for the repayment period; and copies of all licenses and permits wherever applicable

Documents Needed for Proprietorship and Partnership Firms

  • Loan Application Form duly filled and signed
  • Partnership Deed and Partnership Registration Certificate
  • ID Proof of the Firm: Firm PAN Card or PAN Issuing Letter
  • Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Income Proof: CMA Data and Project Report, Debtors and Creditors Certificate, GST Return, Last 3 years ITR of applicant and co-applicant, Audited or CA Certified Computation of Income/Trading Account/Profit and Loss Account/Balance Sheet, Annual Audit Report and Tax Audit Report if audited, Form 16A if applicable, Net Worth of applicants, co-applicants and guarantors
  • Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
  • Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
  • Other Relevant Documents: Partnership’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References
  • For Term Loans Only: Project report with details on product choice, market survey, projection of production and sales, infrastructural needs, etc.; projected cash and fund flow statement for the repayment period; and copies of all licenses and permits wherever applicable

Documents Needed for Private Limited and Public Limited Companies

  • Application Form duly filled and signed
  • Company ID Proof: Company’s PAN Card
  • Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Business Proof: AOA and MOA, Company Incorporation Certificate, Business Commencement Certificate, Board Resolution, CA/CS verified Share Holding Pattern, ROC Annual Return, DIN Certificate, List of Directors on Company Letter Head, GST Number, Form 32 in case of Director Change
  • Income Proof: CMA Data and Project Report, Last 3 Years ITR Acknowledgement copy of Company and all Directors, Last 3 Years Annual Credit Report or Tax Audit Report with Article 3CB, Article 2D, Article 3CD, TDS Certificate/Form 16A, Net Worth Certificate
  • Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
  • Security: Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
  • Other Relevant Documents: Company’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References
  • For term loans only: Project report with details on product choice, market survey, projection of production and sales, infrastructural needs, etc.; projected cash and fund flow statement for the repayment period; and copies of all licenses and permits wherever applicable

Reference Facts:

  • Federal Bank Website: www.federalbank.co.in
  • Headquarters: Kochi, Kerala
  • Call Centre Toll-Free Number: 1860 267 6161