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Eligo
Private Sector BankTerm Loan (Capex / Expansion)Small Enterprise (Investment ≤ ₹10 Cr)🛡️CGTMSE CoveredVerified: 2026-09-29

Federal Bank Fed Business Loan

Primary Lending Institution:Federal Bank

₹5 Lakh to ₹2.5 Crore MSME credit at 8.95% – 11.50% with Up to 7 years tenure.

Interest Rate8.95% – 11.50%Linked to EBLR / MCLR / Risk
Loan Amount Quantum₹5 Lakh to ₹2.5 CroreBased on turnover & project cost
Repayment TenureUp to 7 yearsWith moratorium where applicable
Collateral SecurityRequires collateral security or CGTMSE guarantee coverage.
What's Missing: Crucial Fine-Print & Exclusion Gaps

Requires collateral security or CGTMSE guarantee coverage.

Note: Eligo publishes these regulatory and commercial exclusions directly from bank product guidelines and CGTMSE rules to protect MSME applicants from unexpected fee debits or loan rejection surprises.

What is Federal Bank Fed Business Loan?

Competitive SME credit facility with strong branch network across South India and major commercial centres.

Key Benefits & Features

Transparent pricing linked to repo rate; customized term loan and cash credit; quick processing.

Government Subsidy & Credit Guarantee Coverage

CGTMSE / Bank Guarantee / Normal Security

Enterprise Eligibility Criteria

MSMEs with commercial existence of at least 2 years.

Business Vintage2+ Years in Operation
Min. Annual Turnover₹25.0 Lakh
Processing Fee0.50% to 1.00% + GST
Prepayment TermsZero prepayment penalty on floating rate loans as per regulatory norms

How to Apply (3 Verified Paths)

💼Path 1: Current Account Portal

Apply online via business net banking or approach loan account manager.

🌐Path 2: Official FinTech / Govt Portal

Apply online at https://www.federalbank.co.in/fed-business-loan with digital KYC and financial statements.

🏢Path 3: SME Banking Center Walk-In

Visit nearest MSME branch of the institution with business registration and bank statements.

Eligo does not collect business loan applications or financial data. Apply directly on the verified official domain:
Visit Official Portal↗

Documents Required Checklist

Udyam Registration Certificate, PAN, Aadhaar, Last 2 years ITR and financial statements, 12 months GST returns, 6 months bank statement.

Frequently Asked Questions

What is the maximum loan tenure and amount for Federal Bank Fed Business Loan?

Borrowers can avail ₹5 Lakh to ₹2.5 Crore with a repayment tenure of Up to 7 years.

What are the processing charges and collateral terms for Federal Bank Fed Business Loan?

The processing fee is 0.50% to 1.00% + GST. Collateral terms: Requires collateral security or CGTMSE guarantee coverage.

What are the eligibility criteria for Federal Bank Fed Business Loan?

MSMEs with commercial existence of at least 2 years. Minimum business vintage required is 2 year(s).

How can an applicant apply for Federal Bank Fed Business Loan?

Apply online at https://www.federalbank.co.in/fed-business-loan or visit nearest branch with KYC, Udyam registration, and bank statements.