# 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. Source: https://www.recurclub.com/lenders/federal-bank Last updated: 2026-09-29 ## Products and indicative terms Observed on live transactions. Not an offer or a quote. | Product | Ticket | Rate | Tenure | |---|---|---|---| | Secured Term Loan | ₹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. ## Eligibility ### Will not fund - Won't fund redevelopment projects, land purchase, or stalled projects in real estate - Won't fund Mining, Alcohol, Tobacco sectors - Rejected: loss-making entity with small scale of operations - Dropped as they cannot move ahead on existing security - Case logged Jan'25 and declined due to negative market feedback & PEP concern - Cannot pursue the case further as it does not fit their segment - Cannot pursue the case further as it is not suitable for their segment - Federal confirmed they are not a lender to Nabventures - Won't fund redevelopment projects, land purchase, or stalled projects in real estate (×1 · latest ) - Won't fund Mining, Alcohol, Tobacco sectors (×1 · latest ) ### Prefers - Internal initiative targeting IndusInd Bank customers prioritizes SMEs over startups - Aggressively deploying/growing in this segment - Looking for more secured deals - Wants to increase book in Rest of Maharashtra outside Mumbai - Takes comfort seeing large banks like ICICI and Kotak on the borrower's balance sheet - …more in playbook - Internal initiative targeting IndusInd Bank customers prioritizes SMEs over startups - Aggressively deploying/growing in this segment - Looking for more secured deals - Wants to increase book in Rest of Maharashtra outside Mumbai - Takes comfort seeing large banks like ICICI and Kotak on the borrower's balance sheet - Startup financing is a grey area; bank not very comfortable and extremely selective in this sector currently ### Screening gates and observed behaviour - Borrower: age ≥3y (bank guarantee, domestic factoring, dropline overdraft, export financing, import factoring, letter of credit, loan against property, loan against securities, machinery loan, overdraft / cash credit, purchase invoice discounting, sales invoice discounting, vehicle financing, vendor financing, working capital demand loan) · 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 · 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 ## Sanctioned terms (from 16 real sanction letters) ### Sanctioned amount: median ₹19.6 cr (₹1.5 cr–₹497 cr) · RENEWAL ×4 · ENHANCEMENT ×3 · NEW ×3 - median ₹19.6 cr (₹1.5 cr–₹497 cr) · RENEWAL ×4 · ENHANCEMENT ×3 · NEW ×3 ### Typical security: Current assets ×2, Current Assets (hypothecation) ×2, Hypothecated stock/inventory ×1, Land (Industrial) ×1, Export receivables / current assets ×1, Term loan financed assets ×1 - Current assets ×2, Current Assets (hypothecation) ×2, Hypothecated stock/inventory ×1, Land (Industrial) ×1, Export receivables / current assets ×1, Term loan financed assets ×1 ### Typical covenants: - Other standing covenants — 69% of letters (e.g. "AU Small Finance Bank Ltd requested to release assignment/lien on insurance policy (if any); CERSAI release and execution of release deed information also reque…") - Other standing covenants — 69% of letters (e.g. "AU Small Finance Bank Ltd requested to release assignment/lien on insurance policy (if any); CERSAI release and execution of release deed information also reque…") ### Term sheet by ticket size: (facilities, largest first) - (facilities, largest first) ## Common questions ### 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. --- Check which lenders fund a business like yours: https://www.recurclub.com/recur-market All lenders: https://www.recurclub.com/lenders 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.