Federal bank digital personal loan (Fed-e-credit) – All Details

Federal bank’s digital personal loan (Fed-e-credit): Personal loans have become the most sought after by salaried employees to meet un-anticipated financial needs. No requirement for collateral and flexibility of usage has drawn the attention of many customers to the same. However, the paper work is viewed as a cumbersome step while availing the personal loan. Federal bank, a well-known private sector bank is offering a digital loan by avoiding the hassles of paper work.

What is digital personal loan?

A digital personal loan carries all the characteristic features of a regular personal loan with only exception being no involvement of any paper work from the application to closure of the loan. Under its initiative called Be Your Own Master (BYOM), federal bank is providing a digital personal loan that allows a customer to get personal loans without any paper work. The customer does not have to put his signature on any paper. However this loan is provided against fixed deposit naming it as Fed- E – Credit.

Loan amount:

One can borrow up to 90% of his fixed deposit value subject to maximum of Rs 5 lakhs. However, deposits in joint names/minor names/FCNR deposits/deposits in the name of third parties and Companies are not eligible to apply for the loan under this scheme.

Repayment terms:

Loan can be repaid over the remaining period of the underlying fixed deposit subject to a maximum of 30 months in case of demand loan and 72 months in case of overdraft. And the repayment can be made by any of the following ways:

  • Cheque
  • Internet banking
  • Standing instructions to your banker
  • Online closure if the funds can be paid out of savings bank account

How to apply?

  • Since this is a paperless loan, one does not need to fill any application
  • You can apply for the fed-e-credit against your fixed deposit by logging into the banks internet banking portal https://www.fednetbank.com/
  • Click on accounts menu then select services submenu
  • Then choose the option “loan against deposits”
  • Then follow the steps as required by the web portal
  • Once the loan is approved, amount will be credited to your account. Approval process takes generally one hour. In case you have applied online after the closure of banking hours, your application will be attended on the next working day.

Merits of this scheme:

  • No hassle of paperwork. Completely automated processing
  • No need to visit the bank
  • Loan can be closed online if the funds are available
  • Loan can be availed as overdraft as well as Term Loan


  • One must have a fixed deposit in his own name
  • No scope to negotiate the terms and rate of interest

Bottom line:

Having your fixed deposit locked in the bank, if you are hit by an unanticipated financial emergency this is loan is the best option to go for. The paperless procedure would very quickly as early as within one hour disburse the loan amount.

Related Articles

Join the Discussion