Loan Details

Interest Rate

10.35% onwards

Processing Fee

Up to 1.00%



For OD/CC: 3% of the limit Sanctioned. For Demand and Term Loans: 3% of the Drawing Power (DP)


Up to 10 years

  • Eligibility Factors
  • Documents Required
  • Loan Verification Process
  • Rate of Interest
Federal Bank Business Loan

The following entities can apply for a business loan with Federal Bank:


  • Individuals who are self-employed
  • Sole Proprietorship, Partnership and Limited Liability Partnership Firms.
  • Private and Public Limited Companies
  • SMEs/MSMEs
  • Other Legal Entities that are engaged in Manufacturing, Trading, and
    Services Sectors. 


Applicants need to submit the following documents to Federal Bank -

  • Identity Proof
  • Address Proof
  • Bank Statement of the last 12 months
  • Financial Statements of the past two years
  • Projected Financial statements
  • Proof of Continuation
  • ITR/GSTR/Sales Tax Returns
  • Proof of Residency
  • NOC from the concerned local authorities.
  • Any other documents mentioned by the bank

Identity Proof

  • Driving License
  • Aadhar Card
  • Valid Passport
  • PAN Card
  • Voter ID

Proof of Residential Address

  • Electricity Bill
  • Lease Agreement
  • Passport
  • Ration Card
  • Sales Tax Certificate
  • Trade License

Proof of Continuation

  • Establishment Certificate
  • ITR
  • Sales Tax certificate
  • Trade license

The loan verification proceeds in the following stages:

1. Fill the Federal Bank business loan application form and upload it on the official website or wherever required. Submit copies of all the relevant documents required for application verification. It can be quickly done by signing up on

2. One of our customer care representatives will get back to you within 24 hours and schedule a visit for collecting document copies (in case you chose offline submission of documents).

3. The concerned officials at Federal Bank will verify the documents before approval.

4. Once your application for business loan is approved, the loan amount will be disbursed to your account. You will get a copy of the duly signed loan agreement with details of loan interest, tenure, loan amount, charges, and penalties.

There are two reference rate systems linked to Federal Bank business loans:

  • One Year MCLR
  • RBI Repo Rate

The final lending rates are decided by adding the spread to the MCLR tenure that corresponds to the residual period to the loan's next interest reset. MCLR applicability is a must for all loans disbursed/renewed/sanctioned on or after 1st April 2016.