Federal Bank is one of the largest private sector banks in the country, boasting of a legacy spanning over 8 decades. It offers a range of products and services to meet the demands of its customers and if you are looking to buy a car and need a car loan you should consider the loan option provided by the bank. Drive home with a Federal Car Loan. To know more, follow some simple steps given below to get attractive deals.
|Range over MCLR||
New car - 9.15%
Used car - 14.95%
|Loan Tenure||Upto 7 years|
In an average Indian’s life, owning a car is a major milestone. True, a while back, this was a luxury that would have been out of reach of a majority of Indians, but the situation has dramatically changed in the last few decades. Today, a car isn’t a luxury- but is an essential component of modern living. And with friendly, customer centric car loan offerings from progressive institutions like the Federal Bank, more and more Indians are driving their own dream cars into the sunset. The Federal Bank Personal Car Loan is a comprehensive product, designed specifically for Indian customers.. The following article examines this dynamic product in detail, and helps you answer that primary question- ‘Why apply for a Federal Bank Car Loan?’
Dating back to the pre-independence era, the Federal Bank has always been an influential and respected banking institution in the south of India. Headquartered in Kerala, and with an active presence across the country, the Federal Bank has earned a reputation as a very stable and customer centric banking organization. The personal car loan from Federal Bank is a very dynamic product, inclusive of a number of thoughtful features and attractive benefits. A simple application process, low EMIs and hassle free loan processing make this product stand out from the rest.
Purchasing a car is a big decision, which can have major financial implications. It is imperative that one chooses a car loan which does not strain his/her resources, while at the same time providing sufficient financial aid to purchase the car. As such Federal Bank’s Personal Car Loan is extremely beneficial. One can get a loan which covers the entire cost (ex-showroom price) of a car model. The bank offers loans at extremely competitive rates, with personal accident insurance added as well.
This loan can be used to buy either a new car or a used car, with Federal Bank following a simple and hassle free procedure to sanction the loan.
Some of the key features of the Personal Car Loan are highlighted below:
The rate is computed after factoring the MCLR.
|Car condition||Range over MCLR|
An applicant, seeking the car loan offering from Federal Bank must satisfy the following conditions to qualify for this loan,
The documents needed for the Federal Bank Personal Car Loan vary, depending on the applicant.
|Category of applicant||Salaried (resident)||Self-employed (resident)||Salaried (Non-resident)||Self employed (non-resident)|
Additionally, the applicant will also have to provide address proof, age proof, recent passport size photos and ID proof, along with the sale letter of a used car (if the car is used). In case of NRI applicants a copy of the passport/visa/work permit needs to be provided.
In cases where the loan amount is in excess of Rs.25 lakh the applicant will have to provide property documents for the same.
Computing the EMI for a Federal Bank Personal Car Loan is simple and straightforward. One can choose to use the Calculator tool on the official website of Federal Bank or could use the car loan EMI calculators tool provided by BankBazaar. All one has to do is enter a few basic details like the loan amount, loan tenure, interest rate, etc. and the calculator will compute the EMI.
|New vehicle (4 wheelers - For salaried borrowers)||84 months|
|New vehicle (4 wheelers - For non-salaried borrowers)||60 months|
|Used/ Second hand vehicles||60 months|
For loans above Rs.25 lakh, security is a must. This is to be in the form of a property.
Include your spouse’s income to improve your gross monthly income to match upto the eligibility factor. You can also include earnings from other sources such as agriculture, rentals, etc. to increase this number.
After ascertaining your eligibility, you can apply at any Federal Bank branch.
Yes, you can. However, ensure that you have all the documents required to confirm upon your NRI status, employment and repayment capabilities. The application process itself is similar to that of the other applicants.
Corporates and Resident Individuals can apply for a car loan from Federal Bank.
Yes, NRIs can apply for a car loan from Federal Bank.
You can purchase either a new car or a used one using the car loan from Federal Bank.
The rate of interest on Federal Bank car loan ranges between 9.88 percent per annum and 11.33 percent per annum.
To be eligible for a car loan from Federal Bank, your minimum income (take home) should be at least Rs.7500 after deducting EMI of the proposed car loan.
Yes, Federal Bank will allow you to include the income of your spouse to apply for the car loan.
Yes, you can club your income from agriculture or rent with your regular income when you apply for a Federal Bank car loan. This is allowed only if your minimum income is at least Rs.40, 000 per month (including the income from agriculture or rent).
Yes residing in India, you have to submit the following documents when you apply for a car loan from Federal Bank –
Apart from these, you have to provide other documents that the bank requests you to submit.
If you are a Salaried Employee, then you have to submit the following documents as income proof when you apply for a Federal Bank car loan –
If you are a Self – Employed Individual, residing in India then you have to submit the following documents as income proof when you apply for a Federal Bank car loan –
If you are a Non – Resident Indian (NRI), then you have to submit the following documents as income proof when you apply for a Federal Bank car loan –
Yes, people can apply for a Federal Bank car loan online.
To apply for a Federal Bank car loan online, you have to first open the website of the bank and click on ‘Apply Online for Car Loan’ under the ‘Solutions for You’ tab on the homepage. On the next page, click on ‘Apply Online’ and select ‘Vehicle Loans’. Fill the application form and submit it.
The maximum tenure for Federal Bank car loan for new cars is 84 months (in case of salaried borrowers).
The maximum tenure for Federal Bank car loan for used cars is 60 months.
A used car should be maximum 3 years old for you get a car loan from Federal Bank.
The depreciation on used car is calculated by Federal Bank using the Straight Line Method. It is calculated at the rate of 15 percent for the 1st year and at the rate of 10 percent for the succeeding years.
The maximum tenure of Federal Bank car loan is 84 months for new cars purchased by Salaried Employees.
You can repay your Federal Bank car loan in Equated Monthly Installments (EMI).
Yes, Federal Bank charges the following amount as processing fee on car loan –
Yes, you can prepay your Federal Bank car loan. When you prepay, you have to pay a small prepayment fee to the bank.
There are no pre closure charges for individuals.
The late payment penalty for Federal Bank car loan is 2 percent of the amount that is overdue. This fee has to be paid if the borrower delays the payment by more than 30 days.
If you have a very good CIBIL score, then it will make it very easy for you to get a car loan from Federal Bank. Banks consider people with a high CIBIL score to be financially responsible and are willing to trust them with their money.
No, Federal Bank does not charge any fee for CIBIL report and check in case of car loan.
The verification process of Federal Bank car loan is very simple. The bank first checks if the applicant is eligible for the car loan or not. If he or she is eligible, then they check and verify all the documents they asked for from the applicant. If everything is in order, then they approve the car loan quickly.
Yes, you can calculate the EMI that you have to pay every month as part of the proposed Federal Bank car loan before applying for it. You can use the Loan Calculator on the website of the bank for this purpose.
Yes, you can get the loan amortization details before applying for a car loan from Federal Bank. You can calculate the loan amortization using the ‘Loan Amortization’ calculator on the website of the bank.
Federal Bank processes the car loan applications very quickly if the applicants pass the verification process.
To get more information on the Federal Bank car loan, you can contact the customer care department of the bank. You can reach them by calling up on the toll – free number of the bank. You can also visit any branch of the bank to get further details about their car loan.
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