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Federal Bank Car Loan Interest Rates

Updated on :  

08 min read.

Federal Bank car loans bring relief to those who are planning to buy a four-wheeler passenger vehicle, i.e. car. What do you need to keep in mind? The interest rate varies based on whether you are purchasing a brand new car or a used one.

In this article, we will look at all aspects of the Federal Bank car loan.

Types of car loan schemes of Federal Bank

Personal Car Loan SchemeGet financing of up to 100% of ex-showroom price. The repayment tenure can be up to 84 months. The loan scheme covers both new and used cars.
Car Loan for NRI CustomersNRIs can get financing of up to 100% of the car’s ex-showroom price. The repayment tenure can go up to 84 months. NRIs can avail of financing for new and used cars at competitive interest rates.

Interest rates of Federal Bank car loans

Type Interest Rate (% p.a.)
New 8.50 (Repo Rate + 4.50)
Used 13.80 (Repo Rate + 9.80)

Features and benefits of Federal Bank car loans

  • Quick processing of loan applications.
  • No-income document scheme.
  • Up to 100% financing on ex-showroom prices.
  • Free personal accident insurance of up to Rs.10 lakh for individuals.
  • Attractive interest rates on car loans.
  • Repayment tenure of up to 84 months on car loans.
  • Several discounts and offers on car loans are announced from time to time.

Eligibility for Federal Bank car loans

  • Types of Applicants:
    • Resident Individuals
    • Non-Resident Individuals (NRIs)
    • Corporates
  • Income Requirements:
    • Take-home salary after deducting all EMI commitments, including the prospective car loan EMI must be a minimum of Rs.20,000.
    • For rural and semi-urban locations, the minimum take-home salary criteria can be lenient.
    • Spouse’s income can be considered to meet the criteria.
    • Agricultural and rental income can be clubbed with regular income where the minimum monthly income stands at Rs.40,000.

Documents required for Federal Bank car loans

KYC Documents RequiredTwo passport size photos each of the applicant and the co-applicant
Identity Proof – Passport/Voter ID/Driving License/PAN Card/Aadhaar Card
Address Proof – Passport/Voter ID/Driving License/Aadhaar Card
Age Proof – Passport/Birth Certificate/Driving License/SSLC or AISSE Certificate
Additional documents for Non-Resident Customers – Certified copy of Passport, Visa, Work Permit, and ID card
Salaried Resident ApplicantsLast three months’ salary slip
Copies of last two years’ IT returns or Form 16 
Last six months’ bank account statement evidencing the salary credits
Resident Self Employed ApplicantsProof of business existence and business profile
Last 12 months’ bank account statements
Last two years’ IT returns supported by the balance sheet and P&L account
Tax paid challans
Last two years’ IT returns supported by tax calculation sheet and tax paid challans
Non-Resident Salaried ApplicantsOption 1:
NRE account statement with any bank for the past year
Embassy/CRO certified last three months’ salary slip OR 
Last three months’ salary slip supported by the last six months’ salary crediting statement

OR

Option 2:
Last two years’ NRE a/c statement of the customer and/or resident accounts of spouse/parents in which remittance is made
Non-Resident Self Employed ApplicantsOption 1:
Proof of business existence and business profile
Last 12 months’ bank account statements
Balance sheet, P&L account for the past two years; tax paid challans if applicable

OR

Option 2:
Last two years’ NRE account statement of the customer and/or resident account of spouse/parents in which remittance is made
Other DocumentsInvoice
Latest land tax receipt or own house proof (latest land/building tax receipt, electricity bill, water bill, etc.) 
Sale letter and valuation letter from authorised used car dealer/dealer in case of used car

In case of loans over Rs.25 lakh:
Documents of title
EC for 13 years
Possession certificate
Location sketch
Land tax receipt
Building tax receipt

How to calculate EMI on Federal Bank car loans

Our car loan calculator can help you figure out the monthly instalments you must pay for a specific loan amount to finance your dream car.

Frequently Asked Questions

How long does it take for the bank to release my loan amount?

The bank will release the loan amount within one month from the date of the car purchase.

Can I pay a lump sum and close the car loan well before the tenure?

Yes. You can pay a lump sum at any time and close the loan account before the loan tenure expires. No pre-closure charges are levied in this case.

What repayment options are available?

The only repayment option the bank provides is the equated monthly instalments (EMI). This remains the same for new and used cars as well as resident and NRI applicants.

Does the repayment tenure remain the same for all applicants?

The repayment tenure varies based on the type of applicant:

  • Salaried applicants and new cars – 84 months
  • Other applicants and new cars – 60 months
  • Used cars – 60 months
Are there any other conditions applicable to get a car loan?

Yes. There are a few more conditions applicable to get a car loan:

  • The age of the car should not be more than three years in the case of used cars.
  • Depreciation is calculated using the Straight Line Method, i.e. 15% for the first year and 10% for the second year.
  • Part of a year will be considered as one year.
  • In the case of used cars, the bank shall only provide financing up to 75% of the car’s depreciated/market/purchase value.

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