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Car Loan

The Federal Bank is a leading private sector Indian commercial bank established in the year 1945. Initially, the Bank was known as the Travancore Federal Bank, but with the passage of time the Bank gradually transformed into a full-fledged bank under the guidance of its Founder, Mr. K P Hormis. In the year 1947, the Bank was officially christened the Federal Bank Limited. Being one of the oldest Banks of India, the history of Federal Bank dates back to the pre-independence era. The Bank has witnessed some major advancement and has become one of the most stable and leading private banks of the country. As on 19 October 2015, Federal Bank has a network of 1251 branches situated across 24 states and 1526 ATMs spread out throughout the country.


In terms of its capital base, Federal Bank limited is the fourth largest bank in the country. A major Indian commercial bank in the private sector, Federal Bank is a "customer-centric" organization, with its headquarters located at Aluva, Kochi, Kerala, providing a number of financial services to all its customers.
 

Features of Federal Bank car loan

Before applying for the Federal Bank car loan, make sure you check out the key features.

  • Both corporates and Indian residents can apply.
  • Competitive interest rates and hence low EMIs.
  • Car loans available for old and new cars.
  • Repayment tenures of 5 years for old vehicles and 7 years for new vehicles .
  • Fast application processing and swift disbursements.
  • Minimal documentation.
  • Eligibility can be improved by clubbing the spouse’s income with that of the applicant’s.
  • Quick car loan disbursals

Federal Bank Car Loan Eligibility Details

Eligibility

  • The applicant must be a resident of India or at least a documented NRI.
  • The applicant should be at least 21 years of age.
  • The applicant must not be older than 65 years at the time of loan maturity.
  • After meeting loan EMI commitments, the applicant must have a take home amount of at least Rs.7500.

 

Income of the applicant

  • The minimum take home salary of the loan applicant after meeting all monthly EMI commitments including the proposed one should be not be less than Rs.7500
  • The income of spouse can be clubbed with the applicant’s in order to make up for the income eligibility criteria.
  • Agricultural Income or rental income can also be added to the regular income. When the agricultural and rental income is clubbed, the minimum monthly income must be at least Rs.40,000, including agriculture income/rental income.
  • For used vehicles, 75 % on lower of depreciated /market / purchase value only eligible.


Why check your eligibility for Federal Bank car loan?

Check your eligibility for Federal Bank car loan before you apply for the loan so that you fully understand the eligibility criteria which you need to meet in order to avail the loan. You must check all the requirements for Federal Bank car loan so that your loan application process is smooth and hassle-free. There are a number of benefits for checking whether you are eligible for a Federal Bank car loan:

  • You understand the eligibility criteria
  • If you do not fulfill the criteria you can take possible steps for the same
  • Checking Federal Bank car loan eligibility saves you from loan denials as you have checked before that you fulfill the loan eligibility criteria or not.
  • Once you check your process of applying for the car loan becomes easy and less time consuming.

With people becoming more open to using the online medium, many things have been made available over the internet. You can also check your loan eligibility using the loan eligibility calculator available on Bank and other financial websites. Using online tools saves both time and money.
 

How to check your Federal Bank car loan eligibility?

You can check your eligibility at PaisaBazaar.com. The car loan eligibility calculator at PaisaBazaar.com is easy-to-use and checks your eligibility in a few minutes. Here’s how you can check your Federal Bank car loan eligibility at PaisaBazaar.com:

  • Go to PaisaBazaar.com and select other loans. From the drop down menu choose car loans.
  • When you click on the car loan, you will be taken to a page where you can check your car loan eligibility.
  • You will have to fill out a simple questionnaire to check your eligibility. The questionnaire includes questions pertaining to your personal details and the loan you intend to borrow.
  • Once you enter all the details, the eligibility calculator checks your eligibility and displays results. The calculator displays the best deals on car loans as per your eligibility and requirements. The car loans are tabulated with their key features, so that you are able to compare the displayed options and make the best choice.

Federal Bank car loan Interest Rates

Interest rate is the rate at which interest is charged on the lent amount. The interest rates can either be fixed or floating. In case of fixed interest rate, the rate remains fixed for the entire loan tenure and is not affected by market fluctuations. Whereas, in case of floating car loan interest rates, the rates keep changing and can increase or decrease over the tenure of the loan. Federal Bank car loan interest rate is of the fixed type, which means it stays the same for the whole tenure of the loan.


Federal Bank car loan interest rates is as follows:

  • Interest Rate: 9.52% to 9.75%

Additional charges associated with Federal Bank car loan

1. Processing fee for Federal Bank car loan

  • For loan amounts up to Rs. 5.00 L– Rs.1500/-
  • For loan amounts above Rs.5.00L–Rs.2500/

 

2. Prepayment charges

  • 2% of the outstanding balance or DP whichever is higher for credit limits above Rs.2 Lacs.

 

3. Penalty for delayed repayments

  • 2% of overdue amount per month, in case the payments are delayed for more than 30 days

 

Federal Bank does not charge any fee for the following:

  • CIBIL report
  • CIBIL Detect / Mortgage check

 

The loan tenure options for Federal Bank Car Loan are as follows:

  • For new car the tenure is 60 months and for salaried class the tenure is 84 months
  • For second hand cars the tenure is 60 months

 

Terms and conditions in case of used vehicles :

  • Depreciation for used vehicles is calculated using the Straight Line Method at the rate of 15% for the first year and at the rate of 10% for subsequent years.
  • Part of the year is considered to be one year.
  • Age of vehicle which is financed under the car loan scheme should not more than 3 years.

Documents for Federal Bank car loan

Documents that are required to be submitted along with the Federal Bank car loan application include the following:
 

1. KYC Documents

  • Two passport size photographs of applicant and co-applicants
  • Proof of identity – Passport /   Driving License/ Voters ID/ PAN Card / Aadhaar Card
  • Proof of Address – Passport /   Aadhaar Card/ Voters ID / Driving License
  • Proof of Age– Passport /  SSLC or AISSE Certificate/ Birth Certificate / Driving License

Additional documents for Federal Bank car loan for Non Resident Customers

  •  Certified copy of Passport with  Visa, Work Permit, Identity card

 

2. Income Proof Documents
For Salaried Residents:

  • Recent Salary Certificate or Salary Slips for 3 months
  • Copies of Income Tax returns or Form No.16 for 2 years
  • Latest 6 month's Bank Account statement showing salary credits

 

For Self Employed Residents:

  • Proof of business profile and existence of business
  • Past 12 months bank account statements
  • Income Tax returns for 2 years supported by Balance Sheet, P&L Account for the two years.

 

Non Resident Salaried (either option1 or option 2)

Option 1

  • NRE account statement of any bank for the past one year
  • Embassy / latest 3 months’ salary Slip/ CRO certified Salary Certificate/  OR Latest Salary Certificate / Slip (3 months) supported by 6 months’ Salary Crediting Statement

Option 2

  • Two years NRE account statement of the customer and/or resident accounts of spouse/parents (with us/ other Bank) in which remittance is made.

 

Non Resident Self Employed (either option1 or option 2)
Option 1

  • Proof of business profile and existence of business
  • Past 12 months bank account statements
  • Balance Sheet, P&L Account for the latest two years. Where ever available, Tax paid challans may also be collected                                

Option 2

  • 2 years NRE account statement of the customer and/or resident accounts of spouse/parents (with us/ other Bank) in which remittance is made.

 

3. Other Documents

  • Invoice
  • Latest land tax receipt or own house proof(latest building tax receipt)
  • Sale Letter & letter of valuation from authorized used car dealer
  • Property Documents (In case of loans over 10 Lakhs)
  • Documents of title
  • EC for 13 years
  • Possession certificate
  • Location sketch
  • Tax receipt of land
  • Tax receipt of building

Car Loan EMI

When you take a loan for the purchase of a car, the lender gives you money which you will have to pay back in parts with the accrued interest. These parts in which you pay back the money are the EMIs or Equated Monthly Installments of the loan. The car loan EMI depends upon the loan amount, tenure and the interest rate of the loan. The car loan EMI can be either fixed or can vary. Fixed EMIs mean the applicable rate of interest is fixed throughout the loan tenure whereas EMIs change when floating rate of interest is applied.
 

It is always advisable to calculate the car loan EMI before availing car loan as you know how much amount you will have to pay each month to repay the loan within the tenure. Car loans are secured loans which means that the car you purchase using the loan is kept as security for the loan. If by any chance you default on the repayment of the loan, the lender can take back your car and sell it off. Therefore, you must pay all your EMIs on time. Further, if you default on loan repayments, your credit score might get affected badly, hence affecting your future loans. For this reason, you must borrow a loan which you can pay back comfortably. Similarly, the car loan EMI should also be according to your monthly income. High EMIs which you cannot pay back comfortably can hurt your budget and also your credit score. Hence, it is best to choose an EMI amount which is not too high for you to pay.
 

Car loan EMI calculator

This is a financial tool which can be used to calculate the monthly car loan payments. Car loan EMI calculator is an online tool which is available on Federal Bank’s web portal and also on PaisaBazaar.com. This is a very beneficial tool as it saves you from complex manual calculations, saves your time and is available 24*7. As it is a free tool, you can use it any number of times without worrying about any charges. Further, you can access Car loan EMI calculator without any registration! You simply need to feed in the details of your intended loan and the calculator displays the results instantly. This EMI calculator gives you the freedom to experiment with it to reach an EMI amount which you think you can pay every month without straining your budget.
 

How to calculate EMI for Federal Bank car loans

You can calculate the Federal Bank car loan EMI using the car loan EMI calculator at PaisaBazaar.com or Federal Bank car loan EMI calculator at the Bank’s website. This calculator is an easy-to-use tool which works according to the following three factors:

  1. Car loan amount- A lump sum amount given for the purchase of an old or new car is the car loan amount. The car loan amount eligibility depends upon the cost of the car you intend to purchase and also your net monthly income.
  2. Tenure for a car loan- The time period offered for repayment of the borrowed loan is the car loan tenure, and is in some cases governed by the car loan amount eligibility. Car loan provided by Federal Bank comes with a loan tenure of up to 7 years.
  3. Car loan interest rate- The rate at which interest is charged for the borrowed amount is the interest rate of the loan. The interest rate can either be fixed or floating in type. Federal Bank car loan interest rate is fixed in type which implies that the EMIs will also be fixed for the entire tenure of the loan. Car loan provided by Federal Bank has 9.75% rate of interest.

You can also calculate the EMI manually but using Federal Bank car loan EMI calculator saves you from erroneous and time-consuming calculations.

How to apply for a Federal Bank car loan?

You can apply for a car loan online at PaisaBazaar.com or on the respective Bank website provided it offers this feature. You can visit the Bank’s website for applying for the Federal Bank car loan. You can also access PaisaBazaar.com to apply for a Federal Bank car loan and get instant e-approval from our side. Federal Bank account holders who are privileged customers of the Bank can get pre-approved car loans and enjoy the benefit of minimal documentation.
 

Why choose Federal Bank car loan?

Federal Bank is one of the oldest private sector banks of the country offering a full spectrum of financial products including loans, deposits, credit cards, investments and many more. Federal Bank is a highly trusted Bank of the country offering highly demanded car finance plans. With high loan quantum, faster loan processing, no-hidden charges and low interest rates, car loans offered by Federal Bank are considered to be one of the best car loans in India. Federal Bank car loans provide Car finance plans for both old and new four-wheelers. 


Federal Bank plans for car loans have the following benefits:

  • Loans for both Resident and Non Resident Indians

Federal Bank car loans can be availed by both Resident and Non Resident Indians (NRI).

  • Apply for a Federal Bank car loan online

You can apply for Federal Bank car loans online by visiting the Banks’ web portal. Apply for a Federal Bank car loan online and save yourself from the hassles of running to the Bank every now and then to complete the car loan application process.

  • Faster processing time

The time required to disburse car loans in case of Federal Bank car loans is very less. Fill out the car loan application online and take benefit of the faster application processing.

  • Finance for cars of all makes and models

Car loan from Federal Bank can be availed for the purchase of cars of all types and makes.

  • Loans for both new and second hand cars

Federal Bank offers both new and pre-owned car loan. You can take both new and used car loan under the scheme for car loan from Federal Bank at competitive interest rates.

  • Club income of spouse

Increase your income eligibility for Federal Bank car loan by clubbing the income of your spouse. In case you fail to meet the minimum criteria for monthly income, you can club your spouse’s income.

  • Low rate of interest

Federal Bank car loan interest rates are highly competitive, starting at just 9.52% p.a for a loan tenure of above 48 months. Federal Bank car loan interest rate can be both fixed and floating in type.

  • Long repayment tenure

In case of Federal Bank loan for a new car, the tenure can be up to 84 EMIs i.e. 7 years for salaried persons. Individuals other than salaried employees can avail up to 60 months tenure for a car loan. For used car loan, the loan tenures can go up to 60 months.

Why apply for Federal Bank car loan online at PaisaBazaar.com?

You can enjoy the following benefits of applying for Federal Bank car loan online at PaisaBazaar.com:
 

  • Gather information regarding the different car loan schemes
  • Compare the car loan schemes against their key features to make an informed choice
  • Check your eligibility for a car loan
  • Get the best quotes for car loan based upon your eligibility and requirements
  • Apply for a car loan through hassle-free  online car loan application process
  • Get instant e-loan approvals and save time

 

Federal Bank Car Loan FAQs

1.    Is there any collateral or security required for a car loan from federal Bank?

No, securities and collaterals are required for loans up to Rs. 10 lakh. For loans from Rs. 10 Lakh to Rs. 20 Lakh, the collateral can be waived off if the amount which is sanctioned is equal to 75% of the ex-showroom price of the car. For loans above Rs. 20 Lakh, security is required.

 

2.    What can I do if my income falls short of the eligibility bracket?

To get your income to fall in the eligibility bracket, you can also add up your spouse’s income for a gross monthly income that can match the eligibility factor. Similarly, if you are earning via other sources like agriculture, rentals, etc. can also be clubbed with the applicant’s income.

 

3.    What do I need to do to apply for a Federal Bank car loan?

First you should ascertain whether you meet all the eligibility criteria for a Federal Bank car loan. After that has been done, you can:
Apply at a Federal Bank branch nearby.
Apply online at the Federal Bank website
Apply online at the PaisaBazaar.com website

 

4.    What is the application process for a Federal Bank car loan for NRIs?

The application process for NRIs is the similar to that of other applicants. However, if you are an NRI, you should make sure that you have all documents that are required to prove your NRI status, your employment and your repayment capabilities.

 

5.    What is the maximum loan tenure for car loans from Federal Bank?

The maximum tenure that you can opt for under car loans from Federal Bank is:
New Vehicles (other than two wheelers) - 60 months
New Vehicles (for salaried individuals) - 84 months*
Used Vehicles - 60 months

 

6.    Who all are eligible to apply for Federal Bank auto loan?

Both salaried and self-employed individuals are eligible to apply for a Federal Bank car loan. Further, all the applicants need to fulfill the eligibility criteria in order to avail the loan.

 

7.    Can Non Resident Indians apply for the car loan?

Yes, a car loan from Federal Bank is also offered to NRIs.

 

8.    What are the car types that can be purchased using Federal Bank car loan?

You can purchase any car type, either a new or a used car using the car loan offered by Federal Bank.

 

9.    Federal Bank charges interest at what rate on the car loans?

The interest rate charged on Federal Bank car loan is fixed. Federal Bank car loan interest rates range between 9.52% and 9.75% per annum

 

10.    What are the income criteria that a loan applicant must meet to get a car loan from Federal Bank?

To get a car loan, the minimum monthly income of the loan applicant should be Rs 7500 excluding the EMI amount that needs to be paid.

 

11.    Do I have to visit the Bank or I can apply for a Federal Bank car loan online?

Yes, the bank lets you apply online through its web portal. However, you can also visit the branch to apply for a Federal Bank car loan online.

 

12.    How old can be a used car which can be purchased by taking a car loan from Federal Bank?

A used car which can be financed using the Federal Bank car loan should not be more than 3 years old .


13.    What is the maximum loan repayment tenure for Salaried Employees who purchase a new car under the Federal Bank car loan?

Salaried employees are offered a maximum loan repayment tenure of up to 84 months for new cars.

 

14.    Is prepayment allowed in case of Federal Bank car loan?

Federal Bank car loan can be prepaid. Whenever you want to prepay the loan you will have to pay a prepayment charge which is charged as a certain percentage on the outstanding loan amount.

 

15.    I do not have a good CIBIL score. Will Federal Bank sanction me a loan for purchasing a car?

A good CIBIL score, is very necessary to get loans. Moreover, a good credit score can also help you earn a lower rate of interest on the loan. However, if you do not have a good score, either Federal Bank may deny you a loan or even if it offers you a loan, it will be at a higher interest rate. Banks usually offers loans to people with a good CIBIL score as such people have a good past financial record and are trusted for repaying the loan in time.

 

16.    What is the time required for processing a car loan applications?

Federal Bank processes the car loan applications in less time provided the applicants submit duly filled and signed application form with the required documents and fulfill the required eligibility criteria.