Federal Bank Business Loan

Federal Bank provides SME Business Loans that cover various options, including business loans and term/demand loans for working capital or fixed asset acquisition. Federal Bank Business Loan also helps in covering funds for areas such as plantation, horticulture, land development, farm mechanization, rural godowns, animal husbandry, poultry, fishery, etc.

Hence, entrepreneurs and farmers alike can find the right financial support in the Federal Bank for seamless business expansion.

To know more about the Federal Bank Business loan interest rate and its SME schemes, read further.

Federal Bank Business Loan Fees & Charges

Loan type SME Business loan
Loan Amount Varies on the type of loan scheme chosen
Interest Rate 11.40% onwards
Tenure Varies on the type of loan scheme chosen
Note: Please be informed that the Federal Bank business loan interest rates are subject to change per the market.

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Types of Federal Bank Business Loans

Within the Corporate Finance section of Federal Bank Business Loans, it offers a variety of loans, primarily focusing on two key types,i.e., term loans and Working Capital loans.

Federal Bank Term Loans

Federal Bank extends term loans to Mid/Large corporates with a turnover exceeding Rs.500 Crores or projects valued at Rs.500 Crores or more, or a minimum exposure of Rs.25 Crores (Funded + Non-Funded). These term loans, provides repayment period of up to 60 months, cater to diverse business needs:

  • Expansion & Modernization: Facilitating the growth and modernization of existing facilities.
  • Debt Substitution: Replacing high-cost debts from other Banks/FIs with more favorable terms.
  • Technology Up-gradation: Supporting technological advancements and energy conservation schemes.
  • Productivity Enhancement: Federal Bank's term loans provide businesses to invest in strategic layout modifications, ensuring efficient processes and enhanced output.
  • Asset Acquisition: Federal Bank facilitates business growth by providing funds for the acquisition of crucial assets, including software, hardware, and tools.
  • Certification Acquisition: Federal Bank's term loans help organizations to invest in obtaining these certifications, enhancing their credibility and market standing.
  • TUFS Scheme Loans: Federal Bank extends its support to businesses taking part in the Technology Up-gradation Fund Scheme.
  • Receivables Securitisation: Federal Bank provides businesses with a financial tool to optimize cash flow. By converting receivables into liquid assets, companies can better manage working capital and navigate cash flow challenges effectively.

Federal Bank Working Capital Loans

Working capital loan is a type of short-term financing that businesses used to cover their day-to-day operational expenses. Likewise, Working Capital loan provided by Federal Bank helps businesses maintain smooth operations and respond to fluctuations in cash flow. And here are its other major features.

  • Fulfilling Working Capital Needs: The Working Capital Demand Loan (WCDL) from Federal Bank is tailored to address businesses' dynamic working capital requirements, ensuring a seamless operational cycle and sustained liquidity.
  • Assessed Working Capital Limits: WCDL is aligned with the assessed working capital limits, providing businesses the flexibility to draw funds according to their evaluated operational needs. It can also function as a sub-limit of the overall funded working capital limit.
  • Flexible Loan Period: With a loan tenure of up to 12 months, Federal Bank's WCDL offers a short-term financial solution, ideal for businesses seeking operational support during peak demand or specific business cycles.
  • Catering to Mid/Large Corporates: Specifically designed for Mid/Large corporates with a turnover exceeding Rs.500 Crores or a minimum exposure of Rs.25 Crores (Funded + Non-Funded).

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Other Loan Schemes Provided by Federal Bank

From the Federal Prathyusha Loan offering debt relief to distressed farmers to the Federal Agri Mobile Scheme, the Federal Bank also aims to facilitate the agricultural sector. The table addresses a few of their major agri schemes and their purposes.

Loan Name Purpose
Federal Prathyasha Loan Debt relief for distressed farmers with a fixed interest rate of 13.80 % p.a.
Federal Kisan Suvidha Investment credit for farm development(irrigation, land, etc.)
Federal Kisan Credit Card Short-term needs and working capital for farming
Federal Agri Mobile Scheme Purchase of new or used vehicles for agricultural use.
Federal Gold Loans Short-term needs - personal, business, or agricultural

Read More

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Curious to know more on the different types of business loan offered?
Check more on equipment purchase loan, medical equipment loan, construction equipment loan and commercial vehicle loans from the linked pages.

Federal Bank Business Loans Eligibility Criteria

The following business entities are eligible to apply for a Federal Bank Business loan:

  • Self-employed professionals
  • MSMEs
  • Private and Public Limited Companies
  • Sole Proprietorships
  • Partnership Firms

Note: For the latest up-to-do eligibility criteria list please visit the official website of Federal Bank.

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Documents Required for Federal Bank Business

The listicle provides the documents required to apply for a Federal Bank Business loan:

  • Proof of Identity: Passport, Voters ID, Driving License, PAN Card.
  • Address Proof: Ration Card, Tel/Electricity Bill, Lease Agreement, Passport, Trade License, Sales Tax Certificate.
  • Bank Account Statement: Latest 12 months statement.
  • Proof of Continuation: ITR, Trade License, Establishment Certificate, Sales Tax Certificate.
  • Tax Returns: Income Tax, GSTR, Sales Tax returns for proprietor/partners/firms/companies (where applicable).
  • Financial Statements: Audited/Unaudited financial statements for the past two years (for existing units).
  • Projected Financial Statements: Documentation of projected financials.
  • Business License/NOC: Copy of license/NOC from local body or competent authority for business operation.
  • Additional Documents: Any other documents as requested based on individual or product requirements.

Benefits of Federal Bank Business Loan

From offering SME schemes designed to support small and medium-sized enterprises across diverse sectors, Federal Bank also ensures to make your SME business loan journey seamless and highly rewarding. Here are the distinctive advantages of choosing a business loan with Federal Bank.

Quick Loan Aprroval

Federal Bank provides
you quick loan approval
and processing

Flexible repayment

Loan repayment option
extends upto 120 months

Attractive Interest

Avail business loan
with Federal Bank starting
at 11.40% p.a onwards.

Hassle balance transfer

Now transfer loan
based on repayment track

Low Margin

Federal Bank provides
low margin requirements
on security

Federal Bank Loan Repayment Options

Repaying for your business loan with Federal Bank comes with a host of benefits designed to make the process convenient for borrowers. Here are the various repayment options provided by the Bank to suit your financial preferences:

  1. Equal Monthly Instalments (EMI): This is the most common option, where you pay a fixed amount every month until the loan is paid off. The EMI amount is calculated based on the loan amount, interest rate, and tenure. This option provides predictability and stability in your monthly budget.
  2. Graded EMIs: In this option, the EMI amount starts smaller and accumulates over the loan tenure. This can be helpful if you have limited income initially, but expect it to increase. However, the total interest paid will be higher compared to fixed EMIs.
  3. Cheques: You can submit post-dated cheques for your EMI payments to the bank. Ensure the cheques are valid and have sufficient funds to avoid penalty charges. This method requires planning and coordination with your bank account statements.
  4. Standing Instructions at your Branch: Set up a standing instruction with your preferred branch to automatically debit your account for the EMI amount on the due date. However, requires visiting the branch and setting up the standing instructions initially.
  5. FedNet - Internet Banking: Utilize Federal Bank's online banking platform, FedNet, to schedule and make EMI payments easily. You can set up standing orders or online transfers to manage your loan account conveniently.
  6. NACH (National Automated Clearing House): This electronic clearing system allows you to authorize automatic deductions of your EMI amount from your bank account.Provides convenience and eliminates the need for manual payments or cheques. But linking your bank account with Federal Bank for NACH transactions is necessary.
  7. Mobile Banking: Utilize Federal Bank's mobile banking app to manage your loan account and make EMI payments on the go. You can schedule transfers, set up reminders, and track your payment history through the app.

How to Apply for a Federal Bank Business Loan

Ensure to follow the below-mentioned steps diligently to apply for a Federal Bank Business loan:

Step 1: Check Eligibility: Ensure you meet the eligibility criteria, including being an individual, self-employed professional, or part of eligible legal entities manufacturing, service, or trading.

Choose Application Mode: Select a convenient application method:

  • Option 1: Download and Submit
    Download the application form from the official Federal Bank website.
  • Option 2: Call Our Contact Centre

Step 2: Contact our customer service executives by phone, providing necessary details.

Step 3: Prepare Documents: Gather necessary documents, including proof of identity, address, bank statements, and relevant financial records.

Step 4: Submit Application: Submit your application form and documents for review.

Step 5: Federal Bank's team will review your application and documents.

Step 6: The loan amount will be disbursed based on the agreed terms and conditions.

Both online and offline more are available to apply for loans for federal banks. However, applying for a Federal Bank Business Loan online can be a simple and flexible process, allowing you to choose the method that suits you best.

Federal Bank Business Loan Customer Care Number

Whether you have questions about Federal Business loan eligibility, application assistance, or simply want to clarify loan terms, Federal Bank offers dedicated customer care resources to support your business loan journey. Here's a comprehensive guide to reaching the right help:

Direct Line:

1800-425-4455 (Toll-free): This dedicated number connects you directly with a Federal Bank Business Loan customer care representative 24/7.

Alternatively: Use +91-484-2630995 or +91-80-61991199 if calling from abroad

Steps to Apply for Business Loan on Buddy Loan

Applying for a business loan has never been more effortless!

Buddy Loan offers business loans with a starting interest rate as low as 11.99% per annum. Follow the simplified steps below to secure your loan now!

Step 1: Visit buddyloan.com or download the Buddy Loan App (Android or iOS).

Step 2: Proceed to the loan application Page and enter your mobile number and OTP to access the Business Loan Application Page.

Step 3: Specify Loan Amount and Email. Select the Business Loan option.

Step 4: Choose Business Proof (Yes/No)

  • If 'Yes' (Have a business proof), input both business and personal details.
  • If 'No' (No business proof), select your profession type and enter your personal details.

Step 5: Provide Income Details and Click 'Submit'

Apply for a business loan now!

Frequently Asked Questions

Federal Bank Business Loans offer flexible repayment modes, including Equal Monthly Instalments (EMI), Graded EMIs, cheques, and standing instructions at your branch.

Federal Bank provides business loan stating 11.40 p.a % onwards.

Typically, individuals, self-employed professionals, MSMEs, and various business entities are eligible. Detailed eligibility requirements can be obtained from the bank.

Federal Bank offers a diverse range of business loan products catering to different needs. However, for further details on the number of products and their features can be obtained directly from the bank or through their official website.

The funding amount for a Federal Bank business loan depends on the chosen scheme and loan type.

Businesses with bad credit may face challenges in securing a business loan from Federal Bank. However, eligibility criteria and credit assessment policies can vary.

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