info@logintoloans.com +91 8885545255

Logintoloans Assistant

Enter Pincode

Personal Details

Features of Federal Bank Business Loans

  • Diverse Loan Products:
    Federal Insta Loans: Digital platform providing in-principle loan sanction in under 30 minutes for MSMEs, with loan amounts up to ₹2 crore.
    Quick Biz: Loans secured by liquid securities (gold, bank deposits, NSC/KVP, LIC policies) for amounts ranging from ₹5 lakh to ₹1 crore.
    Working Capital Loans: Short-term financing (up to 12 months) to cover day-to-day operational expenses.
    Term Loans: Long-term financing (up to 60 months) for mid/large corporates with turnover of ₹500 crore or minimum exposure of ₹25 crore.
    Project Finance: Loans for setting up new manufacturing facilities or acquiring fixed assets.
  • Competitive Interest Rates:
    Starting from 11.10% p.a. (subject to change based on applicant's financial profile).
    Some sources mention rates as low as 8.9% p.a. for loans up to ₹2 crore for specific schemes.
    Rates for Quick Biz or loans against liquid securities may be lower due to collateral.
  • Flexible Loan Amounts:
    Ranges from ₹25 lakh to ₹5 crore for general business loans.
    Federal Insta Loans offer up to ₹2 crore for MSMEs.
    Quick Biz provides ₹5 lakh to ₹1 crore.
    Project finance and term loans for large corporates can involve higher amounts.
Credit Card Promotion
    • Flexible Repayment Options: Up to 120 months (10 years) for term loans.
      Working capital loans typically have shorter tenures (e.g., 12 months).
      Multiple repayment modes: Equal Monthly Installments (EMIs), Graded EMIs, or Bullet Repayments.
      Convenient payment methods via Cheques, Standing Instructions (SI), NACH, FedNet Internet Banking, or Mobile Banking.
    • Minimal Documentation: Requires basic documents like identity/address proof, business registration certificates.
      For Federal Insta Loans: GSTIN with API access, ITRs for last 3 years, bank statements.
      Quick Biz requires fewer financial documents if liquid securities are provided.
    • Quick Approval and Disbursal: Federal Insta Loans provide in-principle sanction in under 30 minutes.
      Fast disbursal for secured loans like Quick Biz (1-3 days).
      Other loans typically processed within 7-15 days.
    • Specialized Schemes: Federal Goldsmiths Loan Scheme for jewelers.
      Loan against Rent Receivables for property owners.
      General Credit Card Scheme for small businesses.
      Working Capital Demand Loan (WCDL) for short-term needs.
    • Collateral Flexibility: Accepts diverse collateral: gold, bank deposits, NSC/KVP, LIC policies, government securities.
      Immovable properties for Loan against Property.
      Some schemes like Federal Insta Loans may offer unsecured options.
    • Digital Convenience: Apply through Federal Bank website, FedNet Internet Banking, or Mobile Banking.
      Federal Insta Loans offer completely digital processing.
      Track application status online.
    • Support for Diverse Business Types: Available for sole proprietorships, partnerships, LLPs, private/public limited companies.
      Self-employed professionals (doctors, lawyers, CAs) can apply.
      MSMEs engaged in manufacturing, trading, or services.
    • Loan Balance Transfer: Option to transfer existing high-cost loans to Federal Bank for better terms.
      Helps reduce interest burden and improve cash flow.
Who We Are

Benefits of Federal Bank Business Loans

  • Quick and Hassle-Free Access to Funds: Federal Insta Loans provide in-principle sanction in under 30 minutes through digital platform. Fast disbursal for secured loans like Quick Biz ensures liquidity for urgent needs.
  • Competitive Interest Rates: Rates start from 11.10% p.a. (some schemes as low as 8.9% p.a.). Loans against liquid securities often have lower rates due to reduced risk.
  • Flexible Loan Amounts: Loan amounts range from ₹25 lakh to ₹5 crore, catering to diverse needs. Federal Insta Loans offer up to ₹2 crore, while Quick Biz provides ₹5 lakh to ₹1 crore.
  • Versatile Usage: Funds can be used for working capital, expansion, asset acquisition, debt consolidation. Specialized schemes address niche requirements like gold business or rent receivables.
    • Flexible Repayment Options: Long tenures up to 120 months (10 years) for term loans. Multiple repayment modes: EMIs, Graded EMIs, or Bullet Repayments.
    • Minimal Documentation: Streamlined process requiring basic documents. Digital application for Federal Insta Loans reduces paperwork.
    • Customized Loan Products: Tailored solutions for various business types. Specialized schemes for SMEs, corporates, and professionals.
    • Collateral Flexibility: Accepts diverse collateral: gold, property, bank deposits, LIC policies. Some schemes offer unsecured options based on strong financials.
    • Support for Business Growth: Enables expansion, technology upgrades, ISO certifications. Project Finance supports large-scale ventures.
    • Digital and Corporate Banking Support: Access to FedNet Internet Banking and Mobile Banking. Additional facilities like Bank Guarantees and Letters of Credit.
    • Loan Balance Transfer: Option to transfer existing high-cost loans for better terms. Reduces interest burden and improves cash flow.
    • Transparent Process: Clear eligibility criteria and minimal hidden charges. Support through toll-free numbers (1800-425-1199, 1800-420-1199).
Check Best Gold Loan Offers

How to Apply for Federal Bank Business Loans

  • 1. Online Application
    • Step 1: Visit the Official Website or Partner Platforms
      Go to www.federalbank.co.in and navigate to "Business Loans" section or use third-party platforms like Urban Money.
    • Step 2: Select Loan Product
      Choose appropriate loan (Federal Insta Loans, Quick Biz, or Term Loans) based on your needs.
    • Step 3: Fill Application Form
      Provide business details, loan amount, purpose, and contact information. For Federal Insta Loans, enable GSTIN API access and upload digital documents.
    • Step 4: Submit Documents
      Upload required documents (identity proof, address proof, business proof, financials).
    • Step 5: Get In-Principle Approval
      Federal Insta Loans provide sanction in under 30 minutes.
    • Step 6: Verification and Disbursal
      Bank verifies documents and disburses funds upon approval.
  • 2. Offline Application (Branch Visit)
    • Step 1: Locate a Branch
      Find nearest Federal Bank branch using branch locator on website.
    • Step 2: Meet Loan Officer
      Discuss business needs and choose appropriate loan product.
    • Step 3: Submit Application Form
      Fill out physical loan application form with business and loan details.
    • Step 4: Submit Documents
      Provide hard copies of required documents.
    • Step 5: Verification Process
      Bank assesses creditworthiness and verifies documents.
    • Step 6: Loan Approval and Disbursal
      Upon approval, sign agreement and receive funds.
  • 3. Request a Callback (Quick Biz Loans)
    • Visit Quick Biz section on website and enter contact details.
    • Bank representative will contact you to guide through application process.
  • 4. Contact Customer Care
    • Discuss loan requirements and get guidance on application process.

Eligibility Criteria for Federal Bank Business Loans

  • Eligible Entities:
    • Individuals, sole proprietorships, partnership firms, LLPs, private/public limited companies.
    • Self-employed professionals (doctors, lawyers, CAs, consultants).
    • MSMEs engaged in manufacturing, trading, or services.
    • Mid/large corporates (for Term Loans/Project Finance) with minimum turnover ₹500 crore or exposure ₹25 crore.
    • Startups with minimum 1 year of business vintage and valid business registration.
  • Business Activities:
    • Manufacturing, trading, or services sectors.
    • Must have valid license/NOC from local authorities.
    • Should not be involved in speculative or illegal activities.
  • Financial Requirements:
    • For MSMEs: ITRs for last 3 years, bank statements, GST returns.
    • For corporates: Minimum turnover ₹500 crore or exposure ₹25 crore.
    • Minimum annual turnover of ₹10 lakh for small business applicants (may vary by product).
  • Creditworthiness:
    • Good CIBIL score (typically 700 or above).
    • No history of significant defaults.
    • Healthy banking behavior and repayment history on existing loans (if any).
  • Collateral (Where Applicable):
    • Liquid securities (gold, bank deposits, LIC policies) for Quick Biz.
    • Immovable properties for Loan against Property.
    • Federal Insta Loans may offer unsecured options based on strong financials.
    • Personal guarantee may be required in some loan products.
  • Exclusions:
    • NBFCs, export credit businesses, chit funds, real estate companies.
    • Entities blacklisted by credit rating agencies or under legal proceedings.
  • Business Vintage:
    • Minimum 1–3 years of continuous business operations depending on loan product.
Check Best Gold Loan Offers

Documents Required for Federal Bank Business Loans

  • Basic Documents (All Applicants):
    - Identity Proof: Passport, Voter ID, Driving License, PAN Card.
    - Address Proof: Utility bills, ration card, lease agreement, passport, trade license.
    - Business Proof: License/NOC from local authorities.
    - Recent passport-size photographs.
    - PAN card of the business entity (if applicable).
  • Financial Documents:
    - Income Tax Returns (ITRs) for last 3 years.
    - Bank statements for last 6-12 months.
    - GST returns (for Federal Insta Loans).
    - Financial statements (balance sheet, profit & loss) for larger loans.
    - Audited financials (if turnover exceeds certain limits).
    - CA-certified net worth statement (in case of higher-value loans).
  • Loan-Specific Documents:
    - Federal Insta Loans: GSTIN with API access enabled.
    - Quick Biz: Proof of collateral (gold valuation, bank deposits, LIC policies).
    - Term Loans/Project Finance: Detailed Project Report, financial projections.
    - Loan against Property: Property documents, title deed, valuation report.
    - Working Capital Loans: Stock and debtors statement, latest sales/purchase register.
  • Additional Documents (If Applicable):
    - Personal Guarantees: Identity/address proof of guarantors.
    - Partnership/Company Documents: Partnership deed, board resolution.
    - Loan Balance Transfer: Existing loan account statements.

Factors Affecting Federal Bank Business Loans

  • Creditworthiness and Credit Score:
    - High CIBIL score (700+) increases approval chances and secures lower rates.
    - Poor credit history may lead to rejection or higher rates.
  • Business Financial Health:
    - Higher turnover and consistent profits support larger loan amounts.
    - Strong cash flow demonstrates repayment capacity.
  • Business Vintage and Stability:
    - Businesses operational for 2-3 years are preferred.
    - Startups may qualify with strong financials or collateral.
  • Collateral and Security:
    - High-value collateral results in better terms and faster approval.
    - Unsecured loans require stronger financials.
  • Loan Purpose and Usage:
    - Clearly defined, productive purposes increase approval chances.
    - Vague purposes may lead to rejection.
  • Business Type and Industry:
    - Stable, high-growth industries receive better terms.
    - Risky sectors face stricter scrutiny.
  • Repayment Capacity:
    - Higher income and lower debt obligations support larger loans.
    - Bank analyzes Debt Service Coverage Ratio (DSCR).
  • Documentation Quality:
    - Complete and accurate documents speed up processing.
    - Missing documents cause delays or rejection.

Frequently Asked Questions (FAQs)

What types of business loans does Federal Bank offer?
Federal Bank offers:
• Federal Insta Loans (up to ₹2 crore for MSMEs).
• Quick Biz (₹5 lakh to ₹1 crore against liquid securities).
• Working Capital Loans (short-term financing).
• Term Loans (long-term financing up to 120 months).
• Project Finance (for large corporates).
• Specialized schemes like Loan against Property, Federal Goldsmiths Loan Scheme.
Who is eligible for Federal Bank business loans?
Eligible entities include:
• Individuals, sole proprietorships, partnerships, LLPs, private/public limited companies.
• Self-employed professionals (doctors, lawyers, CAs).
• MSMEs in manufacturing, trading, or services.
• Mid/large corporates (for Term Loans/Project Finance).
Exclusions: NBFCs, export credit businesses, chit funds, real estate companies.
What is the interest rate for Federal Bank business loans?
• Starting from 11.10% p.a. for most loans.
• Some schemes may offer rates as low as 8.9% p.a.
• Loans against liquid securities may have lower rates.
• Rates vary based on credit profile and collateral.
What is the maximum loan amount and tenure?
• Loan Amount: ₹25 lakh to ₹5 crore (up to ₹2 crore for Federal Insta Loans).
• Tenure:
• Up to 120 months for Term Loans.
• Up to 12 months for Working Capital Loans.
• Flexible options for Quick Biz.
What documents are required?
Common documents include:
• Identity/address proof.
• Business proof (license/NOC).
• Financial documents (ITRs, bank statements, GST returns).
• Collateral documents for secured loans.
• Additional documents may be required based on loan type.
How can I apply for a Federal Bank business loan?
• Online: Via Federal Bank website or third-party platforms.
• Offline: Visit any Federal Bank branch.
• Callback: Request callback for Quick Biz loans.
• Customer Care: Call 8885545255.
How long does processing take?
• Federal Insta Loans: In-principle sanction in 30 minutes.
• Quick Biz: 1-3 days.
• Other Loans: 7-15 days.
• Large loans may take longer due to due diligence.
Can I get a loan without collateral?
• Yes, Federal Insta Loans may offer unsecured options for MSMEs with strong financials.
• Most loans require collateral like gold, property, or liquid securities.
What can I use the loan for?
Funds can be used for:
• Working capital (inventory, payroll).
• Expansion or modernization.
• Asset acquisition (machinery, property).
• Debt consolidation.
• Project setup.
Are there prepayment charges?
• Typically 1-2% of outstanding amount may be charged.
• Charges may be lower or waived for floating-rate loans.
• Check loan agreement for exact details.
Can I transfer existing loans to Federal Bank?
• Yes, loan balance transfer facility is available.
• Helps reduce interest burden with better terms.
• Requires loan statements from previous lender.

List of Federal Bank Business Loans

  • Federal Insta Loans
  • Quick Biz
  • Loan against Property
  • Term Loans
  • Project Finance
  • Loan against Rent Receivables
  • Federal Goldsmiths Loan Scheme
  • Working Capital Loans
  • General Credit Card Scheme