Bangalore Sales Team

Know your Federal Home Loan

1) Pre EMI: Pre-EMI is the payment of interest applicable on the disbursed loan amount only.
This amount is paid in the period during which the house/ building is being constructed. It
ends once the construction is completed. Pre-EMI amount is lesser than full EMI amount
since only the interest portion is paid out and the principal loan amount remains intact. The
pre-EMI period is not part of the loan tenure. Pre EMI-Option is given to Under construction
Flat, Villa and House
2) Full EMI: Full EMI repayment of a home loan is the payment of principal as well as interest.
This payment begins once the construction of the house/ building is completed. We permit
commencement of full EMI payment while the loan amount is being disbursed in stages. If
you have opted for the pre-EMI payment option, EMI payment will commence once the pre-
EMI phase ends. By paying the full EMI, the interest is repaid, and the outstanding loan
amount will be reduced during the loan period.
3) Tax Benefits: Both Pre-EMI and full EMI repayment method for home loan enjoy the same
tax benefits. Tax deduction is not applicable during the under-construction phase. However,
once the borrower obtains the possession certificate, the amount paid as interest (in pre-
EMI or full EMI option) will be aggregated and is considered for tax deduction in 5 equal
instalments.
4) EMI Payment: First transaction after NACH authorization may take one-month time Hence
in case of any delay we request to kindly remit the First EMI directly to Home Loan/Auto
Loan account one day prior to EMI Date
5) As per extant rules EMI has to be remitted through NACH and hence we request to kindly
Register the NACH for your Home Loan/Auto Loan . No request for Auto recovery from
Federal Bank will be accepted

6) Repayment Holiday and Cushion Period

The Federal Bank Limited, Bangalore Sales Team , 1 st Floor, Halycon Complex St. Marks Road , Bangalore 560001
CIN: L65191KL1931PLC000368 Phone: 9886674357 Email: jagadishl@federalbank.co.in
 Purpose
Outright Purchase of ready built
house/ flat
Flat / Villa under construction (where
there is a construction agreement)
All other construction cases
purchase of land for subsequent
construction of house
Cushion Period
Up to 3 months from the date of first
disbursement.
Up to 36 months from the date of first
disbursement OR the completion date shown
in the construction agreement OR one month
after final disbursement, whichever is earlier.
Up to 18 months from the date of first
disbursement OR one month after final
disbursement, whichever is earlier.
cushion period up to 24 months to start
construction and another 12 months for
completion of construction

a) Interest Servicing Mandatory during cushion period: It is mandatory to service interest

during the cushion period in all Housing Loan schemes. In other words, Pre-EMI (PEMI)
is mandatory for all Housing Loan schemes with cushion period.
b) For Selected CAT A Approved Builder: Federal Bank will offer housing loans with
repayment holiday for both interest and principal amount up to 36 months or
Possession whichever is earlier as per below payment plan ,Interest accumulated during
under construction period will be amortized at the end of 36 months or possession
whichever earlier and EMI will be calculated for remaining tenure of the Loan. Further
Customer have an option to make the payments towards the Loan during Pre-
construction period any no. of times. Repayment Holiday (both No EMI & with Pre EMI)
will be permitted only till the date of completion of construction as per tripartite
agreement/builder payment schedule

7) Activating your Online Facility for your Home Loan Account

 Open www.fednetbank.com or install the fednet app
 select unlock user id button (below the login button)
 enter user id , mobile number and the captcha code( a number mentioned in red
color font - needs to be re entered in the corresponding field)
 enter the otp that is sent to your registered mobile number
 user id will be unlocked now
 Login with the user id and password provided in the welcome kit
 As per the prompt, change both the login and transaction passwords.
 After password change is done , login with the new password and the existing
user id
 system might once again prompt you to update the password- if so , update the
same once again

The Federal Bank Limited, Bangalore Home Loan team , 1 st Floor, Halycon Complex St. Marks Road , Bangalore 560001
CIN: L65191KL1931PLC000368 Phone: 9886674357 Email: jagadishl@federalbank.co.in
  Fednet will work only if email id has been registered in the account

8) Fed Book Selfie - FedBook Selfie is a convenient and secure mobile app, which displays your
Account passbook on your smartphone. Unlike any other banking application, you need not
fill in any application form. Just download Fed Book Selfie app and start using it. More
Details on Fedbook is available at https://www.federalbank.co.in/fedbook
9) Mobile Banking - Fed Mobile : Fed Mobile App is the mobile banking App offered by
Federal Bank. FedMobile offers over 100+ banking features and services to take care of your
banking requirements. From paying utility bills, school fee, mobile/DTH recharges to
investment in mutual Funds/ Insurance and a lot more can be done conveniently from
anywhere, anytime from your smartphone. More Detail available at
https://www.federalbank.co.in/fed-mobile-mobile-banking

10) Interest Rate : RBI vide its notification dated 04th September 2019 made it
mandatory for Banks to offer Retail Loans as floating loans pegged to a chosen
External Benchmark (EBM). This requirement was mandatory from 01 October 2019.
Federal Bank links Home Loan Rate to Repo Rate will get reset as and when the Repo
Rate gets revised/reviewed by RBI on a T+1 basis. Accordingly, rate of interest
contracted for a loan linked to Repo will change effective from the next day of
revision of Repo Rate by RBI

11) In Federal Bank Interest Calculation is done on daily diminishing balance

12) What all Documents to be submitted by me after the Loan is sanctioned and disbursed

a) Original Sale Deed Copy along with all Mother Deed of the property. In case of the
Flats/Villa , Customer have to Submit the Sale & Construction agreement , Sale Deed
and NOC from Builder if applicable
b) Flat/Villa/House Latest Khatha in Borrowers Name - Submit Original Individual
Flat/House A Khatha within 3 Months Loan disbursement. Kindly follow up with your
Builder / Seller for Khatha Transfer in case of delay for 3 months and Above. In case of
Further delay please inform the Branch official for further time .

c) Property Tax Receipts – Ensure the property Tax is transferred in the individual Name
once the Sale deed is completed from Seller/Builder. Every year Payment of Property
Tax is mandatory, Post payment it needs to be submitted to Branch every year till the
tenure of Loan.

The Federal Bank Limited, Bangalore Home Loan team , 1 st Floor, Halycon Complex St. Marks Road , Bangalore 560001
CIN: L65191KL1931PLC000368 Phone: 9886674357 Email: jagadishl@federalbank.co.in
 d) Property Insurance - In Federal Bank Property Insurance is Mandatory as per our policy.
For Under construction Flat /Villa Insurance to be done once the possession of the
Property is given to the Customer. Customer has to insure the Flat with Bank clause .

Insuring your Loan

Insurance is not a compulsion but the necessity. One of the key reason for low penetration is
the lack of knowledge about the importance of Insurance. A good financial planning fails if the
person is not insured. Therefore, experts recommend that Insurance should be an integral part
of Financial Planning.

Let us share an example of Person A died in an accident. He planned well for kids education,
marriage, retirement, etc. Unfortunately, he opted for few traditional policies i.e. endowment
plan and money back policy. His wife is a housewife. Now the entire financial planning goes for
a toss as his wife had to dip into goal based investments like education, marriage, etc. to
manage household expenses & clear loans. Why experts suggest insurance equivalent to 10
times annual salary & to cover liabilities so that in a case of an unfortunate event, the family
can handle household expenses. In this case, the goal based investments/financial planning
remains intact.

Why Home loan insurance?

Home loan insurance is a plan that covers a borrower's outstanding loan liability to hedge the
risk of loss in case he/she dies during the loan re-payment term. These policies offer a cover
two Options

1) Level Death Benefit Cover- Under this option, the death sum assured and hence the
death benefit remains constant throughout the cover term.
2) Reducing Death Benefit Under this option, the death benefit for the member decreases
as per the benefit schedule. A benefit schedule (i.e. the table reflecting the death
benefit during each cover month of the cover term) is generated at the outset and
provided in the certificate of insurance. Benefit schedule can be generated for interest
rates ranging from 1% to 20% per annum.
3) The insurance premium broadly depends on four conditions:
 Age: The older you are, the higher the premium.
 Amount: The larger the loan amount, the higher the premium.
 Tenure: The longer the repayment period, the higher the premium.
 Medical record: The better the health, the lower the premium
4) The applicant can either pay the premium himself or get it funded by the Bank .

The Federal Bank Limited, Bangalore Home Loan team , 1 st Floor, Halycon Complex St. Marks Road , Bangalore 560001
CIN: L65191KL1931PLC000368 Phone: 9886674357 Email: jagadishl@federalbank.co.in
 5) Typically, home loan insurance policies have a single premium option, instead of regular
annual payments.

Federal Bank is tied up with IDBI Federal Life Insurance, TATA AIG, MAX BUPA and HDFC
ERGO of Loan & Property Insurance . You can choose any one channel Partner for securing
you loan.

Note : Premium can funded by Bank and which can be repaid in Instalment along with your
Loan EMIs

All About Property Insurance

A Home is believed to be one single biggest asset for any middle-class family during a lifetime.
The emotional value and memories attached to it are ‘Priceless’. In layman terms, home
insurance hedges the risk of any loss or damage to the structure of your home because of
natural calamity, fire, etc. You may also opt to insure the valuables like jewellery, appliances,
and other contents with this plan.

1. The Property is mortgaged:

The average home loan tenure in India is around 8 years. Assuming Mr X earn Rs 1 Lac per
month and my home loan EMI is 50k per month. As a borrower, Mr X is just meeting his ends or
managing household expenses. If god forbids and in the case of natural calamity, it will be a
triple whammy for him as a borrower.

In such a scenario, he need to shell out minimum Rs 2,000 per square (sqft) feet in the metro
city towards the cost of construction. On top of it, the loss of contents, etc. will cost another 10
Lac minimum. Therefore, for a 90 Lac flat measuring 1750 sqft, he need to shell out approx half
the amount i.e. 45 Lac towards restoration. Please remember, besides this expense he must
continue paying Home Loan EMI of 50k per month.

Whether a bank will give him a concession on home loan repayment? The answer is NO. At
most, He will get EMI holiday of 3 months but what next. he will not be able to avail another
loan as the property is already mortgaged. Will he be able to arrange 45 Lac at such a short
notice? The answer for a middle-class family is no. Lastly, he might need to shell out rent during
the construction period.

The situation will be alarming, isn’t it? I.e. he will bear the cost towards restoration, pay home
loan EMI, and rent. Therefore, it is financially wise decision to opt for home insurance especially
if the probability of a natural calamity is high. Besides probability, there is always a hidden risk.
For example, no one ever anticipated floods in Chennai. Fires Incidents are common due to

The Federal Bank Limited, Bangalore Home Loan team , 1 st Floor, Halycon Complex St. Marks Road , Bangalore 560001
CIN: L65191KL1931PLC000368 Phone: 9886674357 Email: jagadishl@federalbank.co.in
short circuit and one such incident Is posted below , https://www.deccanherald.com/city/life-
in-bengaluru/realtor-s-bungalow-gutted-in-fire-725181.html

Lastly, under the home loan agreement, it is mandatory to avail home insurance cover.

2. Financial Planning

In a normal scenario, the real estate constitutes more that 50% of the financial portfolio. It’s a
different matter that people don’t consider it in their calculation because then other
investments look petty in comparison :). As it is a huge investment, therefore, it forms an
integral part of financial planning. Different people having different reasons for real estate
investment. Some of the common examples are

(a) Retirement Planning: To generate regular rental income

(b) Financial Goals: One of my friends has 3 properties and each of them is linked to one
financial goal. For example, Property A for children’s higher education, Property B for Marriage
etc.

(c) Inheritance: Some people would like to leave an asset behind for their legal heirs. Besides
Gold, property is one of the popular choices.

In the case of any calamity, this financial planning may go haywire. Therefore, home insurance
indirectly helps to hedge risk against your financial goals/financial planning.

3. The cost of Home Insurance Cover:

Similar to a term insurance cover, home insurance is one of the cheapest must have covers. You
may opt in or opt out of various add-ons depending on the probability of the event and your
requirement. For example, if you stay in an independent house then you should definitely
insure home contents, jewellery, appliances etc.

Lastly, you can save on premium cost by opting for the long tenure of up to 20 years else you
may end up paying the higher insurance premium. Another misconception is that if I have
rented my property then I should not buy the home insurance cover and save the premium.
Please note that in such cases, you may opt for only building/structure cover. You can exclude
content, jewellery or household articles etc.

Home Insurance for under construction property : Please note that till you receive possession
of the property, the 100% risk is builders only. In most of the cases, builders buy insurance
cover to hedge risk. Therefore, it is not advisable to buy home insurance cover for an under-

The Federal Bank Limited, Bangalore Home Loan team , 1 st Floor, Halycon Complex St. Marks Road , Bangalore 560001
CIN: L65191KL1931PLC000368 Phone: 9886674357 Email: jagadishl@federalbank.co.in
construction property. In Federal Bank for Under construction Builders Flat/Villa Property
Insurance is to be taken once the possession of the Flat/Villa is given to the customer

Read and understood

1) Applicant …………………………….

2) Co Obligant /Co Applicant ………………………….....

AMPSB/ Relationship officer signature ………………………………

The Federal Bank Limited, Bangalore Home Loan team , 1 st Floor, Halycon Complex St. Marks Road , Bangalore 560001
CIN: L65191KL1931PLC000368 Phone: 9886674357 Email: jagadishl@federalbank.co.in
 Contact Details of Federal Bank Loan Team

Employee
Sl.No Relationship Manager Location Mobile Email ID
ID
1 Gopichandra - Team Leader FB14757 8050590795 kusuma@federalbank.co.in
2 Aditya Karthik FB16625 9035553251 adityakarthikc@federalbank.co.in
3 Ravi Singh fb17859 8722886034 ravi.s@federalbank.co.in
4 Ayush Amresh FB19696 9597370802 ayusha@federalbank.co.in
5 Sarang  Vilasrao Khorgade FB19763 8793722215 sarang@federalbank.co.in
6 Priyanka Sonal - TM FB16603 9930931315 priyankasonal1@federalbank.co.in
7 Srikant Gautam - Team Leader fb14800 8095040888 srikantgc@federalbank.co.in
8 Sankalp Panday Bangalore FB17866 9742398007 sankalpp@federalbank.co.in
9 Goutham L fb18763 9080216650 goutham@federalbank.co.in
10 George Thomas fb18715 7994344499 georget@federalbank.co.in
11 Nishesh Rohatgi FB19757 8618674794 nishesh@federalbank.co.in
12 Nagendra- Team Leader FB16662 8867486360 nagendra.pg@federalbank.co.in
13 Shreyas S fb18792 9035127126 shreyass@federalbank.co.in
14 Deepu D S fb18764 8547497806 deepu@federalbank.co.in
15 Harish S fb18820 9597444779 harish.s@federalbank.co.in
16 Muralikrishna -Team Leader FB14739 9676378713 muralikrishna@federalbank.co.in
17 Yamijala Santosh Bhargav Hyderabad fb18723 9971126136 yamijala@federalbank.co.in
18 Prasanth Kumar Chappa fb18742 7095273735 prasanth.kc@federalbank.co.in
19 Renjith Jose - TM Blore fb15284 9846102220 renjithj@federalbank.co.in
20 Arindam Sharma Roy Bangalore FB19206 9748613628 arindam@federalbank.co.in
21 Sanath Kumar Bangalore FB18277 7411607123 sanath@federalbank.co.in
22 Venkatesh B G Mangalore fb18797 9789081603 venkateshbg@federalbank.co.in
23 Keshapur Yashasvi Chandra Hyderabad FB16259 7204919262 keshapur@federalbank.co.in

Regards
Jagadish L
AVP & Head Zonal Sales- Retail Bangalore Zone
The Federal Bank Limited | Rajaji Nagar Branch | Raj Chambers | 60/60 Dr. Rajkumar
Road | 2nd Block | Rajaji Nagar I Bangalore 560010 | Mob: +91 9886674357 |
JagadishL@federalbank.co.in |www.federalbank.co.in

The Federal Bank Limited, Bangalore Home Loan team , 1 st Floor, Halycon Complex St. Marks Road , Bangalore 560001
CIN: L65191KL1931PLC000368 Phone: 9886674357 Email: jagadishl@federalbank.co.in