Consolidation Loans from Federal Bank
Different loan options for paying off debt
Federal Bank offers a range of financial products to different segments of its customer base right from housing loans to business loans to help its retail as well as corporate customers get the financial assistance they need.
Federal Bank Consolidation Loans
Federal Bank offers specially designed loan schemes to its customers for their varied needs in addition to standard loan options – home loans, education loans and business loans – such as consolidation loans.
A consolidation loan helps bank customers pay off all their debts and consolidate them all into one loan which they can repay by choosing terms as per their preference. There are quite a few loans such as personal loans, loans against property, loans against securities, loans against term deposits, gold loans, etc. that can be used to consolidate debt. Balance transfer or “takeover of loan” schemes also fall into this category if they are used to consolidate debt.
Please remember that Federal Bank does not brand a specific loan scheme as a consolidation loan. Here are some of the loan schemes offered by Federal Bank that you can avail as a consolidation loan:
- FedPremia (Personal Loan)
- Federal Gold Loan
- Federal Digi Gold Overdraft
- Loan Against Fixed Deposit
- Overdraft Against Recurring Deposit
- Loan Against Shares
We give you a brief introduction to each of these consolidation loans below. In addition, you have the option to click further and read in detail about each loan (the link takes you to another page on our website). This specific page has been specifically designed so that you can get all the information you need on that loan in an uncluttered and easy-to-read format.
Please note that in some cases information is less or simply not available. In such instances, we have not been able to create a page on that loan as yet, but we may do so in the future if information becomes available.
Federal Bank – FedPremia Personal Loan
This loan scheme helps salaried employees of reputed public and private organisations and self-employed professionals/non-professionals having a regular source of income to get funds to meet their personal needs. This loan can be availed to meet expenses such as those for a child’s wedding, domestic and foreign travel, medical emergency, debt consolidation, etc.
Features of FedPremia Personal Loan from Federal Bank
Why this Loan?
- The Federal Bank Personal Loan is designed to help salaried employees of public limited companies, private limited companies, Central and State Government undertakings, multinational corporations, reputed partnership firms with at least 3 years of continuous service get funds to meet their personal financial needs such as medical emergency, child’s wedding or education expenses, debt consolidation, etc.
- This is an unsecured loan, meaning you don’t have to offer any collateral to get the loan
Federal Bank Federal Gold Loan
This Federal Bank loan helps borrowers access needed funds by pledging their 22-carat gold ornaments. This loan can be used to meet any financial needs such as a wedding, overseas travel, higher education, etc. as well as to consolidate high-interest debts.
Features of Federal Gold Loan (Loan Against Gold Jewellery)
Why this Loan?
- The Federal Bank Gold Loan is meant for borrowers who want to get funds by pledging gold jewellery/ornaments or specially minted gold coins sold by banks to meet their financial needs
- This loan scheme can also be availed by borrowers as a consolidation loan to pay off their high-interest credit card debts and loans, thereby consolidating their debts
- Existing Federal Bank customers do not need to do more paperwork to avail this loan
Federal Bank Federal Digi Gold Overdraft
This overdraft helps borrowers access needed funds by pledging their 22-carat gold ornaments. This loan can be used to meet any financial needs such as a wedding, overseas travel, higher education, etc. as well as to consolidate high-interest debts. The interest is charged only on the amount utilised by the borrower.
Features of Federal Digi Gold Overdraft (Overdraft Against Gold Jewellery)
Why this Loan?
- The Federal Bank Digi Gold Overdraft is meant for borrowers who want to get funds by pledging gold jewellery/ornaments or specially minted gold coins sold by banks to meet their financial needs
- This overdraft can also be availed as a consolidation loan to pay off high-interest debts
- Existing Federal Bank customers do not need to do more paperwork to avail this loan
Federal Bank Loan Against Fixed Deposit
This loan helps borrowers to get funds to meet their urgent financial needs including wedding expenses, travel expenses, medical expenses, etc. against term deposits. This scheme can also be repurposed into a consolidation loan to pay off their high-interest credit card debts and loans, thereby consolidating their debts.
Features of Federal Bank Loan Against Fixed Deposit
Why this Loan?
- The Federal Bank Loan Against Fixed Deposit is designed to help Federal Bank customers avail a loan against a fixed deposit, cash certificate or recurring deposit to meet their urgent financial needs including child’s education expenses, wedding expenses, expenses for overseas or domestic travel as well as for consolidating debts
- The borrower can get up a loan up to 90% of the fixed deposit without liquidating it
Federal Bank Fed Rise (Overdraft Against Recurring Deposit)
This overdraft facility helps borrowers to get funds to meet their urgent financial needs including wedding expenses, travel expenses, medical expenses, etc. against recurring deposits. It can also be used as a consolidation scheme to pay off debts.
Features of Federal Bank Overdraft Against Recurring Deposit
Why this Loan?
- The Federal Bank Overdraft Against Recurring Deposit is designed to help Federal Bank customers avail a loan against a fixed deposit, cash certificate or recurring deposit to meet their urgent financial needs including child’s education expenses, wedding expenses, expenses for overseas or domestic travel as well as for consolidating debts
- The borrower can get up a loan up to 90% of the fixed deposit without liquidating it
Federal Bank Loan Against Shares
This scheme helps borrowers get access to funds by pledging their shares to the bank. While the main purpose of this loan is to help the borrower to meet any contingencies and personal needs such as a wedding, overseas travel and so on, it can also be used to consolidate the borrower’s debts thereby acting as a consolidation loan.
Features of Loan Against Shares
Why this Loan?
- The Federal Bank Loan Against Shares is meant for borrowers who want to avail financial assistance by pledging shares for financial exigencies
- Being a secured loan, borrowers can also avail this scheme as a consolidation loan and pay off their high-interest credit card debts and loans
Important Note: Federal Bank may offer more consolidation loan options that are not yet published on the website. If you prefer 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, strategic premium, etc. may be decided on a case-to-case basis.
Interest Rate for Federal Bank Consolidation Loans
- The interest rate applicable to this loan is defined as the sum of two factors: one-year Marginal Cost of Funds based Lending Rate (MCLR) and a Spread factor. As of October 2020, the one-year MCLR of Federal Bank is 8.00%. The Spread factor is decided by the bank based on different factors such as the type of loan, loan amount, credit score of the borrower, etc.
Documents Needed for Individuals (Salaried and Self-employed)
- 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 Issuing 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 for Salaried Professionals: Last 3 months’ salary slip, Form 16 or income tax returns
- Income/Banking Proof for Self-employed Professionals/Self-employed Non Professionals: Computation of income of last 2 years, Balance Sheet, Profit and Loss Account, Registration Certificate, GST Return, Income Tax Challan/ Form 26AS/TDS Certificate, IT Assessment, etc.
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
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 (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: Company’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References
Reference Facts:
- Federal Bank Website: www.federalbank.co.in
- Headquarters: Kochi, Kerala
- Call Centre Toll-Free Number: 1800 425 1199, 1800 420 1199