Federal Bank Home Loan Interest Rates

At Federal Bank, we offer attractive Home Loan interest rates that are tailored to your needs. Whether you’re purchasing a new home, constructing your dream house, or transferring your existing loan from another bank, our competitive interest rates ensure affordability and long-term savings.

Tenure: Up to 30 years
Loan Amount: Based on property value and income eligibility
Processing Fee: Nominal, with periodic offers and waivers

Special Home Loan Rates

Federal Bank offers Special Home Loan Interest Rates for specific customer segments with exclusive benefits:

• For Women Borrowers: Concession on interest rates for Mahilamitra Plus savings accountholders.
• Salaried Class Offers: Higher eligibility, fast-track approvals
• NRIs: Specially designed NRI Home Loans with seamless documentation

These offers may vary from time to time, based on internal campaigns and RBI guidelines.

Home Loan Balance Transfer

You can transfer your existing home loan from another bank to Federal Bank and enjoy lower EMIs

Top-Up Home Loans

We also offer additional funding over your existing home loan at attractive rates

Quick Sanction: Fast processing and digital documentation

Benefits of Home Loan Interest Rate

✅ Affordable Ownership: Competitive interest rates reduce your overall borrowing cost

✅ Tax Benefits: Under Sec 80C (principal) and Sec 24(b) (interest) of Income Tax Act

✅ Improved Eligibility: Better credit profile can get you even lower rates

✅ Long Repayment Periods: Spread your repayment over up to 30 years

✅ Flexible EMI Options: Step-up and step-down EMI plans available

Types of Home Loan Interest Rates

There are mainly two types of home loan interest rates:

1. Floating Interest Rate:

• Varies with changes in the bank’s repo-linked lending rate 
• May reduce or increase during the tenure
• Suitable for long-term borrowers expecting advantages due to rate cuts

2. Fixed Interest Rate:

• Constant for a fixed period (or entire tenure, if opted)
• Offers stability in EMIs
• Ideal for those who prefer predictable payments

Which Type of Home Loan Interest Rate Should You Choose?

Here’s a quick guide:

Factors That Affect Home Loan Interest

Several factors influence the home loan interest rate you are offered:

• Credit Score (CIBIL): Higher score → Lower interest
• Income and Employment: Stable, high income → Better rates
• Loan Amount and Tenure: Higher amounts/longer tenure may increase rate
• Type of Property: Approved projects may get concessions
• Borrower Profile: Women borrowers or salaried professionals may get special rates
• External Benchmarks: RBI repo rate, market trends, and bank's cost of funds

How to Reduce Home Loan Interest Rate?

Looking to bring down your home loan burden? Here's how:

1. Maintain a High Credit Score: Aim for 750+
2. Choose a Shorter Tenure: Less interest accumulation
3. Make Prepayments: Reduce principal faster
4. Opt for Balance Transfer: Shift to a lower-rate lender like Federal Bank
5. Track Repo Rate Trends: Switch between fixed and floating if needed

FAQs on Home Loan Interest Rate

Q1. What is the current interest rate for home loans at Federal Bank ?
A: Please refer Federal Bank Home Loan Interest Rates 

Q2. Is fixed or floating interest rate better?
A: Floating rates are better when market rates are expected to fall; fixed rates are ideal for stable EMIs.

Q3. How often can floating interest rates change?
A: They are typically revised with changes in the repo rate or bank’s RLLR, usually every quarter.

Q4. Can I switch from floating to fixed rate later?
A: Yes, Federal Bank allows switching, subject to terms and applicable charges.

Q5. Are there any tax benefits on home loan interest?
A: Yes, up to ₹2 lakh under Section 24(b) for interest and ₹1.5 lakh under Section 80C for principal repayment.

Q6. Can NRIs apply for home loans at Federal Bank?
A: Absolutely. We offer tailored home loan solutions for Non-Resident Indians (NRIs).