Federal Bank Car Loan Overview

Your search for finding the best financing scheme for your new four-wheeler just ended. Avail a Federal Bank car loan and enjoy complete transparency with regards to charges and faster processing of loans. The personal car loan scheme from Federal Bank comes with lower EMI amounts and affordable interest rates to suit every type of borrower. Salaried individuals can take longer loan tenures up to 84 months and Federal Bank does not require any security to be provided for loan amounts of up to Rs 10 lakhs. A Federal Bank car loan can be availed by customers to finance either new four-wheelers or two-wheelers.

Federal Bank Car Loan Eligibility

Federal Bank car loans can be procured by salaried individuals, self-employed businessmen, corporate firms and Non-resident Indians (NRIs).

Income Eligibility

• For an applicant, the minimum net take home after deducting the intended monthly EMI amount and other liabilities should be Rs 7500.
• If the applicant is clubbing any other sources of income like house rent or agricultural income, the required minimum monthly income should be atleast Rs 40,000.

Factors affecting Federal Bank Car Loan Eligibility

Net Take Home - Most banks have a specific net home amount that applicants have to meet in order to cross the eligibility mark. If after deductions, the applicant’s income does not meet the required net take home amount, banks might not sanction car loans. This is generally done to ensure that borrowers have the financial capacity to comfortably repay a car loan.

CIBIL Score - Every bank that sanctions any type of car loan ensures that applicants have a good credit history and are regular in their bill payments and repayments. For getting easy sanctions and quick approvals, holding a good credit score always plays a key role for borrowers. This is a major criteria that banks will consider to ensure that the applicant will pay back the car loan without any hassles.

Profession - The type of profession an applicant is involved in also affects the eligibility for a car loan. Federal Bank approves car loans with longer loan tenures for salaried employees, which helps them repay the debt in a comfortable manner. Some banks sanction different loan amounts, also depending on the profession of the applicant.

How do you increase your eligibility for a Federal Bank Car Loan?

• While availing a Federal Bank car loan, always take your spouse as the co-applicant. This will ensure that the income eligibility to be considered for the application will improve, with the bank taking into account the combined income of the applicant and co-applicant.
• Federal Bank car loan borrowers can also include any other form of income like house rent or additional agricultural income to increase their eligibility criteria. The minimum monthly income of the applicant has to be atleast Rs 40,000/-.
• An easy solution to improve your eligibility for a Federal Bank car loan, is to pay off all pending debts and loans. This will positively increase your eligibility, allowing the bank to sanction higher loans amounts.
• In cases, where pre-closure or full repayments of debts are not feasible, then the applicant should consider increasing the loan tenure for an existing loan. This will lower the current EMI amounts and will also provide some funds to procure the new car loan.

Federal Bank Car Loan Eligibility Calculators

Federal Bank car loan borrowers should also ensure that they meet the required eligibility criteria with regards to age and income before reaching out to the banks for approvals. Doing a check on their eligibility before a loan is approved, helps them assess their financial situation and adjust their funds to suit the criteria given by the bank. Helping them here are specially designed tools named car loan eligibility calculators, which instantly inform borrowers whether they meet the eligibility criteria. These tools are easily available on the internet and require very minimum inputs. A car loan eligibility calculator requires details like name, age, profession, income, make of the car, model of the car, ex-showroom price or on-road price. The result is displayed in matter of seconds to users, helping them understand whether they qualify or not.