Federal Bank MSME Loan
About This Loan
Federal Bank offers MSME loans with quick processing and dedicated relationship managers, distinguished among mid-sized private banks for its digital-first approach and responsive customer service. Products include term loans for equipment and expansion, working capital lines of credit, and trade finance for import-export businesses. Known for strong presence in South India (particularly Kerala where the bank originated) and competitive rates for manufacturing MSMEs. Federal Bank's FedNxt digital platform enables online loan applications with real-time tracking, and relationship managers provide guidance from application through disbursement. CGTMSE cover is available for collateral-free lending up to 5 lakh rupees, and larger loans can be secured with appropriate collateral or financial guarantees.
Maximum Amount
₹25,00,000
Interest Rate
10.50% – 14% p.a.
Tenure
Up to 7 years
Collateral
CGTMSE cover available; collateral-free up to ₹5 lakh under MUDRA
Processing Fee
0.50% of loan amount
Eligibility
Registered MSME with Udyam Registration; viable business plan; satisfactory credit history.
Application Process
- 1Visit Federal Bank branch or apply online
- 2Discuss requirements with MSME relationship manager
- 3Submit application and supporting documents
- 4Processed within 14-21 working days
Documents Required
- Loan application form
- KYC documents
- Udyam Registration certificate
- Project Report / Business Plan
- Financial statements
- Bank statements (6-12 months)
Official Links
Related Government Schemes
Disclaimer
This information is sourced from publicly available bank and financial institution websites. EduMetrics is not a financial advisor or lending institution and does not guarantee the accuracy of interest rates, eligibility criteria, or loan terms. Please verify all details with the respective bank before applying.