Federal Bank business loans
Federal Bank is on Recur Club's lender panel, writing dropline overdraft, letter of credit, overdraft / cash credit and 4 other products. Observed tickets run ₹39 cr to ₹39 cr, priced between 10% and 11%. Median turnaround from application to disbursal is about 59 days.
- ✓Tickets from ₹39 Cr – ₹39 Cr across 7 products
- ✓Indicative pricing 10% – 11%, as quoted on live transactions
- ✓Around 59 days from application to disbursal when the file is clean
- ✓We check your fit against every lender on the panel, not just this one
The screen your file has to clear
What is checked before anything else, and applies to every product below.
- Borrowerage ≥3y (bank guaranteedomestic factoringdropline overdraftexport financingimport factoringletter of creditloan against propertyloan against securitiesmachinery loanoverdraft / cash creditpurchase invoice discountingsales invoice discounting
- age ≥2y (secured term loan)
- CIBIL ≥650
- avoid: Financial Services, Real Estate (non asset Light), Gambling and Betting, Lottery Business (varies by product)
- Delhi, Karnataka, Maharashtra (varies by product)
- Private Limited, Public, Sole proprietorship, Limited Liability Partner
18 more ▾ ▴
- sector-agnostic (50 sectors — full list in data JSON)
- Financials: TOL/adjusted tangible net worth ≤4
- debt/EBITDA ≤3
- debt/networth ≤3
- DSCR ≥1
- Deal: rate 8–16%
- ticket ₹5–200cr
- tenure 12–180mo (range across products — see matrix)
- Security (observed): 1st/pari-passu charge on current assets (100%)
- Personal Guarantee Of Promoters / Directors / Property Owner (57%)
- median ticket ₹13.5cr
- median rate 11%
- median turnaround 59d
- Security asked in : 1st/pari-passu charge on current assets (×3), FD margin 20–30% (×3), FD margin 30–40% (×3), FD margin 40–50% (×3)
- Security asked in : 1st/pari-passu charge on current assets (×14), Personal Guarantee Of Promoters/Directors (×9), FD margin 20–30% (×5), FD margin 15–20% (×4)
- Security asked in 2026: 1st/pari-passu charge on current assets (×7), Personal Guarantee Of Promoters / Directors / Property Owner (×4), FD margin 20–30% (×3), 1st charge on P&M (×2)
- share → in-principle approval (initial interest): ≈26d
- sanction → disburse (closing): ≈9d
What Federal Bank lends, and on what terms
What has actually been offered on live transactions, not brochure numbers. Treat them as the band you are likely to be quoted inside, not a promise. Open a row for that product's credit box.
| Product | Ticket | Pricing | Tenure |
|---|---|---|---|
Secured Term Loan▾Turnaround ~59d Rejects
Wins
9 more ▾ ▴
Behaviour & gates
4 more ▾ ▴
| ₹39 cr | 10–11% | 48–60 mo |
Also offered, with no terms observed yet: Dropline Overdraft, Letter Of Credit, Overdraft / Cash Credit, Purchase Invoice Discounting, Sales Invoice Discounting, Working Capital Demand Loan.
What a sanction from Federal Bank actually looks like
Reconstructed from real sanction letters. Small samples, so read them as observed rather than as a rule.
Specimen sanction
Representative of the median file. Your actual terms will move with rating, security cover and relationship.
How often each clause appears
Share of the 16 sanction letters carrying the clause.
What they will ask you to pledge
Counted across the sanction letters read. A combination is normal, and most files carry more than one.
- Current assets2 letters
- Current Assets (hypothecation)2 letters
- Hypothecated stock/inventory1 letters
- Land (Industrial)1 letters
- Export receivables / current assets1 letters
- Term loan financed assets1 letters
- Current assets ×2, Current Assets (hypothecation) ×2, Hypothecated stock/inventory ×1, Land (Industrial) ×1, Export receivables / current assets ×1, Term loan financed assets ×1
What borrowers ask about Federal Bank
- What does Federal Bank lend?
- Federal Bank writes dropline overdraft, letter of credit, overdraft / cash credit, purchase invoice discounting, sales invoice discounting, secured term loan and 1 further products. Across those, observed facilities run ₹39 cr to ₹39 cr.
- What ticket size does Federal Bank offer?
- Facilities observed on live transactions run from ₹39 cr to ₹39 cr. The band differs by product, so the figure that applies to you depends on which facility you are asking for.
- What rate does Federal Bank charge?
- Rates observed on live transactions fall between 10% and 11% a year. Tenures run 48 to 60 months. These are observed figures, not a quote, and the rate you are offered depends on your file.
- How long does Federal Bank take to disburse?
- About 59 days from application to disbursal at the median, where the file is complete. Missing financials, unresolved security or a pending no-objection from an existing lender are what usually stretch it.
- What are Federal Bank's eligibility criteria?
- The first screen is the bureau: a borrower CIBIL of at least 650. Revenue, leverage and debt-service thresholds apply on top and vary by product. The full credit box for each product is set out on this page.
Next steps after Federal Bank
Answer a short set of questions and see which lenders on the panel your file clears, on each one's own recorded criteria.
Search the panel by name, product or ticket size, and compare credit boxes side by side.
Registry identity, GST status, charges and ratings for any Indian company, including your own.
The underwriting platform these credit boxes come from. Built for lenders and credit teams.
Founder stories from the companies building in India, from the team behind Recur Club.
See whether Federal Bank is the right lender for you
A few questions. Recur Market scores you against Federal Bank and the rest of the panel, on each lender's own recorded criteria.
Check my matchLast updated
Lender intelligence dossier - screening gates, per-product terms and sanction observations, derived from lender policy documents and observed transactions. Figures are observed from a sample and are not an offer, a commitment, or a statement of Federal Bank's current policy. Terms are set by the lender at the time of sanction.