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Federal Bank Car Loan
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Federal Bank Car Loans
On discovering that many people are interested in buying a car for either comfort, safety or any other reason will not be able to buy their dream car on their own. They should either go for a car that they don’t want because it is cheaper or wait and save to buy the car which will take time and the car model might change. In such circumstances, a car loan could be the right option for anyone seeking to buy a car.
Federal Bank provides funding for the purchase of all kinds of cars. The borrower can pay back Federal Bank through equated monthly instalments or EMI(s). Federal bank personal car loans are offered at better interest rate and you can choose a flexible tenure. The best part is you can get up to 100% of financing on ex-showroom price.
Federal Bank believes in providing car loans to the right applicants and thereby helping them purchase a car which is also cost-effective.
Features of Federal Bank Car Loan
Objective: To get funding for the purchase of cars of the borrower’s choice at competitive interest rates.
Loan Amount: 100% of funding on road price of the vehicle
Tenure: The repayment period is up to 84 months for new cars and 60 months for used cars.
Free Insurance Coverage: Personal accidental cover up to INR 10 lakhs
Quick Processing: The borrower does not have to submit the income documents and the loan is processed quickly.
Federal Bank Car Loan Eligibility
The borrower must have following eligibility criteria to get car loans for the purchase of new and used cars.
| AGE | The age eligibility is determined by the income and repaying capacity. |
| Salary Requirement | The applicant should have minimum income of INR 20,000 per month. |
| Employment status | Should be in the current employment for a consistent period of time |
| Residential Stability | You should have proof of residence to show whether you live in a rented or owned or parental accommodation. |
Federal Bank Car Loan Interest Rates and Other Charges
The interest rate for a new vehicle is one-year MCLR and for old vehicle, the interest rate is one-year MCLR + 4.55%.
Foreclosure Charges: The borrower does not have to pay anything on foreclosing the loan.
Documents Required
The following are the documents required for Federal Bank car loan
- Age proof
- ID proof
- Application form
- Two passport size photos
- Residence proof
For Salaried:
- Pay slip of last 3 months
- Bank statement of last 6 months
- IT returns and form 16 for the last 2 years
For Self-employed:
- Proof of business existence
- Bank statement of last 12 months
- IT returns for the last 2 years
Other Documents:
- Invoice
- Sale letter and valuation letter from authorized used car dealer
- Property documents for car loans over INR 25 Lakhs
Conditions for Federal Bank Pre-Owned Car Loans
The borrower must be informed about the terms and conditions before applying for the loans for the used cars.
To avail used car loans, the car should not be older than 3 years. The depreciation value is calculated using straight line method. The value depreciates at 15% at the first year and 10% for subsequent years. The borrower can get up to 75% of funding on the value of the used cars.
How to apply for a car loan with Federal Bank
The customers can apply for a car loan with Federal bank either online or visiting the nearby branch. At the bank, the executives will help you out towards applying for the loan. You may have to submit all the required documents.
While applying online, you can initially enquire for the car loan by providing your personal and contact details. Once, you have submitted your details, the executives of the bank will contact you immediately on the application. Further enquiries will be made on car model, loan amount, interest rate and tenure. Once you have acknowledged the terms and conditions, the loan will be processed and disbursed in your account.
Federal Bank Car Loan Eligibility Check
Before a person applies for a Federal Bank car loan it is best to do an eligibility check which is available on the Federal Bank website and at CreditMantri.com This way your credit score will not be affected as the bank will only soft pull your credit score and compares with other internal criteria to make sure you are eligible.
Car Loan EMI Calculator
Customers can use the car loan EMI calculator to know how much EMI they will be paying each month. Customer can make use of the CreditMantri Car Loan EMI calculator and the Federal Bank Car Loan EMI calculator.
The importance of this is that customers will know how much EMI they will have to pay based on their loan requirement. This helps them to plan far ahead.
CreditMantri’ s Car Loan EMI Calculator and Federal Bank Car Loan Calculator are among the best and probably the easiest ways to compare various car loan offers and choose the loan best suited to your requirements. Using the Car Loan EMI Calculator, you get a simple and quick way to accurately compare the various loans and determine what your EMI will be with the different lenders.
Federal Bank Car Loan EMI Payment Methods
Your Federal Bank car loan can be repaid in following three ways.
- Standing Instruction- EMI will be automatically debited from the bank account of the customer based on the instruction
- ECS- This is also an automatic clearance for method for non-Federal bank customers
- Post-Dated Cheques – Cheques can be submitted at the nearest Federal bank for making the repayment
Federal Bank Car Loan FAQs
1. What is maximum loan amount for Federal Bank car loan?
The loan amount is determined based on the income and repaying ability of the borrower. No ceiling is fixed on the upper limit.
2. What is the maximum tenure for Federal Bank car loan?
The maximum loan tenure is up to 84 months for new vehicles and 60 months for old cars.
3. What type of cars do Federal Bank provide car loans for?
Federal Bank offers auto loans for most passenger cars, multi-utility vehicles and sports-utility vehicles that are available in India and are bought for personal use.
4. Do I have to provide any security to avail a Federal Bank car loan?
Federal Bank car loan is a form of secured loan where your car will act as a collateral.
5. Can I sell my vehicle before I repay the entire car loan taken from Federal Bank?
You cannot enter a transaction with any seller without a 'No Objection Certificate' (NOC) from Federal Bank. The NOC can only be obtained after foreclosure or after you have paid off your loan.