If you really think about it, it's easier getting a loan for a car than a loan for bus fare!
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  • Federal Bank Car Loan Interest Rates is Rated as "Great!" by 45 Users

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    Federal Bank Car Loan Interest Rates

    Overview About Federal Bank Car Loan

    Headquartered in Kochi, Kerala, Federal Bank provides customers with affordable loans that are easy to avail. With low interest rates and guaranteed transparency, Federal Bank offers loans for those desiring a car but are unable to pay for it with a lump sum amount. Customers can avail loans at some of the best interest rates available in the market. Loans are available for a variety of cars and these loans can be paid back in easy installments.


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    Federal Bank Car Loan Interest Rates 2017

    Federal Bank Car loans are easy to procure and are can be completed with hassle free repayments. These loans are available for a variety of cars with a flexible loan repayment tenure of up to 84 months. Customers can procure car loans based on their occupation and subsequent income.

    Federal Bank Car Loan Rates table

    Base Rate 9.75%
    Interest rate (fixed) 9.75%
    Interest rate (floating) 9.75% to 10.10%
    Loan Tenure A maximum of 84 months
    PF/Administration fee
    • Up to Rs. 5 lakhs - Rs. 1500
    • Above Rs. 5 lakhs - Rs. 2500
    Prepayment charge For credit limit of over Rs. 2 lakhs, 2% on the outstanding balance or DP
    Delayed payment penalty If delayed for over 30 days, then 2% of the amount that is overdue
    Charges applicable if interest rate on loan is switched from floating to fixed or vice versa Nil
    CIBIL Report charge 00

    How do you calculate Interest Rate for a Federal Bank Car Loan?

    Customers after procuring a car loan from Federal Bank can repay the loan in easy installments known as EMIs or Equated Monthly Installments. Most cannot afford to repay the entire amount in a lump sum payment and this is where EMIs come into the picture. EMIs consist of the principal amount as well as the interest amount. This interest amount is based on the rate of interest determined by the bank. As the tenure to repay the loan gradually ends, the principal portion increases with a reduction in the amount of interest. Customers can also calculate the amount of EMI that is to be paid by using a simple formula.

    The method for calculating the EMI on a car loan is -

    E = P*r*[(1+r)^n/((1+r)^n-1)]

    Where E is the Monthly EMI, P is the principal amount, r is the rate of interest per month, n is the number of years.

    For an amount of Rs. 1,00,000 at an interest rate of 12% with a loan tenure of 1 year, the total amount to be paid would tentatively be Rs. 1,05,563 with the EMI being Rs. 8,797.

    Illustrated below is the amortization table for a car loan of Rs. 8,00,000 for a period of 3 years at an interest rate of 12% from Federal Bank (starting from August 2015).

    Year Total Payment Balance Principal Portion Interest Portion
    2015 Rs. 78,925 Rs. 7,36,363 Rs. 63,637 Rs. 15,288
    2016 Rs. 3,15,700 Rs. 4,96,096 Rs. 2,40,267 Rs. 75,434
    2017 Rs. 3,15,700 Rs. 2,25,358 Rs. 2,70,738 Rs. 44,962
    2018 Rs. 2,36,755 0 Rs. 2,25,358 Rs. 11,417

    The principal portion increases with the the loan repayment time period and the interest rate reduces until the loan is completely repaid.

    Factors affecting Federal Bank Car Loan Interest Rates

    Federal Bank Car Loan interest rates are dependent on a number of factors which in turn decides the loan amount that is given and the EMI amount. Some of these factors include -

    • Down Payment - Higher the down payment provided by the customer, lower is the amount to be availed as a loan therefore a lower rate of interest is charged by the bank. A smaller down payment increases the risk of loan repayment hence there is a lesser chance of receiving good interest rates from the bank.
    • Income - Banks mandate a certain minimum income as a criteria to be met before providing loans. If a person earns a lot more than the minimum requirement, then they stand a higher chance of availing loans with a good rate of interest as they present a higher chance of loan repayment without any hassles. The minimum amount required by banks varies based on the occupation of the applicant for example, if the applicant is salaried then his/her minimum income requirement varies and similarly if the applicant is self employed.
    • Loan Tenure - Commonly, customers opt for longer tenures so that the EMI amount to be paid each month is lesser, however they will end up paying a lot more in terms of the interest rate. Also banks consider longer tenures to be financially risky hence may also charge a higher interest rate which is why shorter tenures are advised.
    • Prior relationship with the bank - Federal Bank provide loans to those who are already customers or have an account with the bank, more easily and at better rates.
    • Car model and make - Cars are a depreciating asset hence in the event that loans cannot be repaid and they have to be seized and sold, they need to fetch a good value. Expensive or high-end cars with additional features may invite higher interest rates.

    How does CIBIL score affect Federal Car Loan Interest rates 2017

    Banks and financial institutions prefer to provide loans to those who they believe will repay loans on time with the due interest amount. One of the important methods of deciding a person’s eligibility to procure a car loan is the CIBIL TransUnion Score provided by CIBIL or Credit Information Bureau India Limited. CIBIL summarizes and provides information regarding a customer’s credit history, payments, loans availed, minimum balance maintained and so on. This score consists of a 3 digit number between 300 and 900. Scores above 750 are considered positive by lenders and creditors. Therefore, customers with CIBIL scores above 750 stand a higher chance of procuring loans of their choice at a good interest rate as compared to those with lower scores who stand to procure loans with higher interest rates.

    FAQ’s about Federal Car Loan Interest Rates

    • What are the documents required to avail a car loan from Federal Bank?

      The documents required are as follows -

      ~ Address and Identity proof of the borrower

      ~ Passport size photographs

      ~Proof of business/employment

      ~ Indicative Income documents

      Certain other documents are required on the basis of the applicant’s occupation -

      For salaried individuals, in addition to the above, 3 months’ salary slip, ITR/Form 16 for 2 years and Bank statement for 6 months is required.

      Customers who are self employed are required to provide their P&L statement, Balance Sheet and tax paid challans.

    • What is the minimum income of the individual required in order to procure a car loan from Federal bank?

      Minimum monthly income after meeting monthly EMI related commitments should not be less than Rs. 7500. Applicants can also meet this requirement by clubbing in the income of their spouse.

    • How can an application for a Federal Bank car loan be made?

      Individuals and corporates can apply for a Federal Bank car loan by visiting the Federal Bank website and applying online by providing a few basic details.

    • Is there a penalty charged on late repayment?

      In case the repayment has not been made for over 30 days, then 2% of the overdue amount per month will be charged as penalty.

    • Is there an additional fee charged for procuring a CIBIL report?

      No, there are no additional fees charged.

    Car Loan Reviews

    • Federal Bank Car Loan
      "Swift "
      0.5 5.0/5 "Blown Away!"
      Federal bank car loan is very swift in processing the request. I had some issues they executed the request after analyzing my needs. Though i am not a customer of Federal bank they have considered my profile and details they have processed the loan with ease. Because of the above mentioned reasons i prefer using Federal bank services
      Was this review helpful? 0
      , coimbatore
      Reviewed on Sep 30, 2017
    • Federal Bank Car Loan
      "Federal bank car loan"
      0.5 5.0/5 "Blown Away!"
      My experience with Federal bank is far beyond words, as they have accepted my proposal with one hour and the funds were disbursed in 2 days, they took 2 days because there was some delay with the deliver of car because of waiting period it took 2 day s otherwise they were ready to do it instantly. No prepayment nor processing fee. I can even repay the amount the very next day of receiving the loan amount. I hardly pay only 1000 as the documentation charge which is too meager. I had changed the car model initially it was MARUTI SUZUKI BALENO later I changed it.
      Was this review helpful? 0
      , pune
      Reviewed on Sep 27, 2017
    • Federal Bank Car Loan
      "Timely Service"
      0.5 5.0/5 "Blown Away!"
      The interest rate with Federal bank for the car loan is around 8.9%. They had already approved my car loan application. And they are providing timely service. It is in process. They are calling me and updating the status of the loan properly.
      Was this review helpful? 0
      , pune
      Reviewed on Aug 23, 2017
    • Federal Bank Car Loan
      "Good Process"
      0.5 5.0/5 "Blown Away!"
      Interest rate is around 8.5% for the car loan from Federal Bank. Actually the car showroom suggested the federal bank for my loan process and the entire process was taken care by the showroom people. The loan process went smooth and I got the loan on time without any hassles.
      Was this review helpful? 0
      , chennai
      Reviewed on Jul 01, 2017
    • Federal Bank Car Loan
      "Very Good"
      0.5 5.0/5 "Blown Away!"
      Federal bank have provided the car loan with the rate of interest as 7% , also they have provided funds up to 95% of the cost of car. Response was really good one like the loan amount got disbursed within three days of time. Documentation procedures were really nominal one with them.
      Was this review helpful? 1
      , ahmednagar
      Reviewed on May 23, 2017
    • Federal Bank Car Loan
      "Good Service"
      0.5 4.5/5 "Excellent!"
      From Federal Bank, I got the better interest rate for my car loan. The interest rate is 8.64%. Also, it was easy to avail a loan from them, the process went without any hassles. They were very responsive on my loan application and they provided all the information on my loan.
      Was this review helpful? 0
      , chennai
      Reviewed on Mar 27, 2017
    • Federal Bank Car Loan
      "Excellent and prompt service"
      0.5 5.0/5 "Blown Away!"
      Federal bank had coordinate well they gave very prompt and genuine service. They processed the application very shortly disbursed the amount on time.I am happy about the Rate of interest was normal of 9.75% it was normal. I totally had very good service from Federal.
      Was this review helpful? 0
      , mumbai
      Reviewed on Nov 15, 2016
    • Federal Bank Car Loan
      "Best "
      0.5 3.5/5 "Pretty good"
      Bank Bazaar is Best For Loan, Details, Contact, Everything is up to date I wish You To help Me With The Car Loan For the New suzuki Swift Desire Car first time I am applying For the loan Fir The Procees Am Hoping For A Positive Response ThankYou Bank Bazaar.
      Was this review helpful? 2
      , mumbai
      Reviewed on Jul 15, 2016
    • Federal Bank Car Loan
      "Quick processing "
      0.5 5.0/5 "Blown Away!"
      I bought a Mahindra Xylo and the finance was for Rs.4.75 Lakhs for a tenure of 4 years, around 3 years back. I had availed a car loan from Federal bank on the basis of a current account with them. The rate of interest offered at the time was 12-12.5% and the processing fee was approximately 2-3k and they took about 10 days to process the application. This includes documentation, verification and disbursal. The rest I chose to pay as down payment.
      Was this review helpful? 0
      , chennai
      Reviewed on Jun 21, 2016
    • Federal Bank Car Loan
      "Recommendable "
      0.5 4.0/5 "Great!"
      When i took the car loan with federal bank before two years the service was not up to the mark but now they are very good . They took one month to disburse the amount but the interest rate is very less compared do the other bank and payment option are flexible. The paper required are little complicated.
      Was this review helpful? 1
      , bangalore
      Reviewed on Feb 11, 2016
    • Federal Bank Car Loan
      "Best service "
      0.5 5.0/5 "Blown Away!"
      I was not requiring for a loan since I have bought a used car.The service provided federal bank was really good.They have responded very quick for the application being submitted.The interest rate applied in the loan was a best rate.I would like to recommend about this service to others.
      Was this review helpful? 0
      , mumbai
      Reviewed on Nov 04, 2015
    • Federal Bank Car Loan
      "Good service "
      0.5 5.0/5 "Blown Away!"
      I am satisfied with the service provided by Federal Bank based on the car loan application.I have postponed the plan of getting this loan.They have applied 7% as the precessing fee for this loan.I would definitely recommend about Federal Bank to others.
      Was this review helpful? 1
      , mumbai
      Reviewed on Nov 04, 2015
    • Federal Bank Car Loan
      "Good response "
      0.5 5.0/5 "Blown Away!"
      It was a very good experience with Federal Bank based on the car loan application submitted.They have responded very immediately regarding the application being submitted.The response provided was good and they are providing clear information about the service.
      Was this review helpful? 0
      , kochi
      Reviewed on Nov 04, 2015
    • Federal Bank Car Loan
      "Very good.."
      0.5 5.0/5 "Blown Away!"
      Federal bank is my bank as I am an employee. Once I file the car loan application within a day the loan got sanctioned. They are giving 10.30% in floating and that is for public. Though I am an employee I got it as in public rate. Soon I get reduce in the rate.
      Was this review helpful? 0
      , new delhi
      Reviewed on Oct 31, 2015
    • Federal Bank Car Loan
      "Response can be provided on time!"
      0.5 2.5/5 "Just OK"
      Processing time was pretty late with Federal Bank car loan application. It took around a week for them to respond to my application. I would suggest them to improve their customer service and the response can be provided on time, so that they will not miss the applicants.
      Was this review helpful? 1
      , kochi
      Reviewed on Sep 22, 2015
    • Federal Bank Car Loan
      "Proper reason can be disclosed !"
      0.5 2.0/5 "Expected more"
      Follow up is properly done by the Federal people, when I applied for a car loan with them. Even though my application got closed with them, there is no reason disclosed for that. It would be better if they disclose the proper reason of closure to the applicants.
      Was this review helpful? 1
      , calicut
      Reviewed on Sep 22, 2015
    • Federal Bank Car Loan
      "Good response!"
      0.5 2.0/5 "Expected more"
      The car loan application process is very good with Federal bank. There is no basic requirement to take the loan with them. Since I got my personal loan amount sanctioned, there is no need for me to take the loan with them. The customer service is well offered by them.
      Was this review helpful? 0
      , navi mumbai
      Reviewed on Sep 19, 2015
    • Federal Bank Car Loan
      "Interest rate can be lowered!"
      0.5 4.0/5 "Great!"
      Banking services are good with Federal Bank, but the interest rate is high with them for car loan application. Since I got a better interest rate with ICICI Bank, I dropped the plan of taking the loan with Federal bank in the initial stage itself. I would suggest them to lower the interest rate.
      Was this review helpful? 0
      , mumbai
      Reviewed on Sep 19, 2015
    • Federal Bank Car Loan
      "Response can be improved!"
      0.5 2.5/5 "Just OK"
      There is no proper response from Federal Bank executives once I applied for a car loan with them. The agent interaction was very good over the phone and it would be better if they provide a proper response to the applicants. I would suggest them for a proper follow up till the end of the procedure.
      Was this review helpful? 0
      , kochi
      Reviewed on Sep 19, 2015
    • Federal Bank Car Loan
      "Norms can be flexible!"
      0.5 4.0/5 "Great!"
      Since I got a better interest rate for car loan with SBI bank, I dropped the plan of taking the car loan with Federal bank in the initial stage itself. Federal was ready to provide me the expected loan amount when I applied for a new car loan with them. It would be better if they make the norms flexible in all aspects.
      Was this review helpful? 0
      , kochi
      Reviewed on Sep 19, 2015
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