I/We understand that

• The online loan facility is available to only individuals having deposits in the sole name but not available against the deposits in joint names/ minor names including minors who are eligible to use this Facility/FCNR deposits/deposits in the name of third parties and Companies.
• The monthly/quarterly/half yearly interest payable, if any, will be automatically diverted to the new loan account. In case the interest payout is mandated for any existing loan account, the OD facility would not be available unless this is changed by the Home Branch.
• Withdrawal/transfer of fund from OD accounts (Federal Easy Cash & Fed Rise) can be made using FedNet and FedMobile facility. However, in case of AAD (Term Loan facility), loan proceeds will be disbursed to operative/savings accounts.
• Credit / deposit in the loan account can be done by cash deposit form any branch or transfer from any deposit branch or transfer through Fed Net.
• The Bank shall re-fix the overdraft limit/DP suitably as per the norms of Federal Easy Cash / Fed Rise Schemes at its own discretion as per the norms applicable from time to time.
• The Bank shall debit periodical interest and processing fee and other charges to the Overdraft facility or any other account in my / our name/s.
• Closure of loan account at maturity of the deposit or end of the loan tenure closure of account will be done by adjusting the maturity proceeds of the deposits without further notice.  Excess amount if any after closing the loan account will be credited to the operative account.
• Closure of loan account before maturity will be done on Customer’s request through Fed Net/FedMobile with an option of transferring the funds from the operative account. However, option of closing the loan by set off against depositis not available through FedNet. Set off against deposit can be exercised at the branches only.
• Loan proceeds will be utilized for personal purposes or for carrying on business activities except for the purpose of relending or carrying on agricultural/plantation activities or for investment in real estate business if the loans are availed against NRE/NRO deposits.
• The facility of premature withdrawal of NRE/FCNR deposits shall not be available where loans against such deposits are to be availed of.
• Loan proceeds shall be credited to NRO account only if the loans are availed against NRE/NRO deposits.  Withdrawal of funds through cash/transfer to NRE account will not be permitted.
• Repayment shall be made either by adjustment of the deposit or by fresh inward remittances from outside India through normal banking channels if the loan is availed against NRE/NRO deposits.
• The loan is also subject to other terms and conditions as may be prescribed by the bank from time to time.

I /We agree that the bank shall have a general lien on the security mentioned above for the present borrowing as well as for any other existing or future liability against me/us.

Regarding disposal of principal/interest/benefit of the above deposit/account, I/We authorize you to

• Credit all the interest/benefit due to the customer on the above deposit/FSF account to the loan account.
• If the loan account is not closed on the due date, the bank shall have the right to close the deposit, even prematurely with applicable terms &
  conditions and settle the loan dues. Balance if any, after settling the loan may be credited to the customer’s operative account. On bank settling the
  dues by closing the deposit as discussed herein, the related deposit receipt will no longer be valid, and it will be returned to the bank by the customer.
• Adjust balance amount, if any, due to the customer towards any other liability/dues the
  customer owes to the Bank.
• Close/surrender the deposit account without reference to the customer and set off the proceeds towards all exiting/future liability of the customer to the Bank.
• The bank has got the full power and authority to set off the schedule mentioned deposit(s) with interest accrued there on for the repayment of the outstanding balance, including interest/charge etc. against any of the liability, of the customer existing and/or future whether as borrower or co- obligant or guarantor.
• This cancels all or any previous instructions the customer has given with regard to disposal of principal/interest/benefits in the above accounts.
• The Bank may at its discretion, enhance the rate of interest herein mentioned and the customer will be bound to pay the same.

I/we further declare and agree that the bank has got the full power and authority to set off the schedule mentioned deposit(s) with interest accrued there on for the repayment of the outstanding balance, including interest/charge etc. against any of my/our liability, existing and/or future whether as borrower or co-obligant or guarantor.

This cancels all or any previous instructions I/We have given with regard to disposal of principal/interest/benefits in the above accounts.

I/We agree that the Bank may at its discretion, enhance the rate of interest herein mentioned and I/We will be bound to pay the same.

I/We declare that we have read and understood all the terms and conditions above.

 Loan Requests 

Request through FedMobile would not by itself ensure sanctioning of the loan and the same would be subject to fulfilment of various other terms and conditions also. 

Closure of Loans 

The facility of loan closure is only available for loans which are availed against deposits, through FedMobile. For all other types of loans, the loan account closure will have to be done by visiting the bank branch.