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

    Bank Name
    Interest Rate Range
    Processing Fee Range
    Loan Amount
    Tenure Range
    9.75% Fixed
    0 One time fee
    50K - 2.5Crs
    1-5 Years
    Response Time Within 30 minutes
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria

    Federal Bank Car Loan is Rated as "Pretty good" by 38 Users

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    Car Loan BYTES FROM OUR KITCHEN

    Federal Bank Limited is a major Indian commercial bank in the private sector, headquartered at Aluva, Kochi, Kerala. It is the fourth largest bank in India in terms of capital base. Finance shall not be a red signal when your dream car opens door for you. Drive home with Federal Car Loan. To know more, follow some simple steps given below to get attractive deals.


    You’re probably eligible for an Federal Bank Car Loan if you are

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    02
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    Federal Bank Car Loan Minimum Age

    At least 18 years old

    Federal Bank Car Loan Maximum Age

    Less than 60 years old

    Federal Bank Car Loan Eligible Employment Type

    Salaried or self-employed
    with regular income

    Federal Bank Car Loan Minimum Income

    Earn more than the minimum
    income required


    Your Federal Bank Car Loan amount eligibility is based on these factors

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    Federal Bank Car Loan Minimum Salary

    Minimum income required
    Minimum take Home after meeting all monthly EMI commitments including the proposed one should be at least Rs.16,000

    Federal Bank Car Loan Maximum Loan to Value

    Loan capped @
    80% to 90% of the ex-showroom price

    Federal Bank Car Loan EMI

    EMIs of other loans lower
    your eligibility


    Increase your eligible Federal Bank Car Loan amount by these steps

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    02
    Federal Bank Car Loan Payoff Outstanding Credit Card Bills

    Pay off your credit card bills

    Federal Bank Car Loan Maximum Tenure

    Choose longer tenure loan up to 5 years


    Documentation needed to apply for an Federal Bank Car Loan

    • 1. Residence proof
    • 2. Signed application form with photograph
    • 3. Photo ID and age proof
    • 4. Last 6 months bank statement
    • 5. Documentation for salaried applicants:
      • Last 3 months salary – slips
      • Form 16 or Income Tax Returns
    • 6. Documentation for self-employed applicants:

      • Last 3 years Income Tax Returns with computation of Income
      • Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account

    Federal Bank Car Loan Interest RatesUpdated on 27 Sep 2016

    Federal Bank Car Loan Details
    Interest Rate (Monthly reducing balance) 9.75%
    Processing Fees Nil
    Loan Tenure 1 year to 5 years
    Pre Closure Charges 2% on the principal outstanding (plus ST)
    Guarantor Requirement No guarantor required

    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 Car Loan is a comprehensive product, fully tuned to the express requirements and limitations of the Indian customer. The following article examines this dynamic product in detail, and helps you answer that primary question- ‘Why apply for a Federal Bank Car Loan?’

    Introduction to Federal Bank Car Loan

    Dating back from 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 many southern states, the Federal Bank has earned a reputation as a very stable and customer centric banking organization. The car loan from Federal Bank is a very dynamic product, inclusive of a number of thoughtful features and attractive benefits. Simple application process, low EMIs, hassle free loan processing, zero red-tape and hidden charges, form the crux of the obvious advantages, while a solid customer support initiative and Federal Bank’s hard earned aura are working behind the scenes to make your association with the bank as comfortable and satisfactory as possible.

    Why Choose Federal Bank Car Loan?

    In simple terms, the following pointers are solid incentive to choose the Federal Bank Car Loan, when the need for such a loan arises-

      Easy Loan Application Process- the procedure starting at loan application to the final loan reimbursement is fast, hassle free and immensely customer friendly. Apply Online- While the traditional offline option is fast, nothing beats the online advantage. Robust Customer Support- An expert team of customer support personnel are at hand, 24x7, to help with all your queries and concerns. Traditional Meets Techno Savvy- Federal Bank retains its traditional banking charms, while also actively inculcating new age technologies and methodologies. Enjoy the best of both worlds.

    Features of Federal Bank Car Loans

    As with any competent loaner, Federal Bank has loaded its car loan product with sufficient attractive features to reign in your undivided attention-

    1. Both resident Indians and Corporates can apply.
    2. Low EMIs alongside very friendly interest rates.
    3. Long repayment tenure of upto 7 years for salaried individuals.
    4. Hassle free, transparent and fast loan application, processing and disbursement cycles.
    5. Loan applies for both new and used four wheelers.
    6. Limited documentation and easy terms and conditions.
    7. Spouse’s income can be clubbed with the main applicant’s to improve eligibility.

    Aside from these obvious features, the associative documents when applying for this loan will provide you a comprehensive listing of all available features and benefits.

    Why apply for a Federal Bank Car Loan through BankBazaar?

    Applying for a Federal Bank car loan on BankBazaar.com offers the following unbeatable advantages-

    1. Save Time- BankBazaar.com’s informative and interactive approach allows you to view all available features, confirm your eligibility, breeze through the list of required documents, applicable interest rates, etc. in record time.
    2. Compare and Review- Compare your chosen Federal Bank car loan against other available options to zero in on the obvious and subtle advantages offered by this loan product. Read user reviews from other car loan borrowers and sort any lingering queries by contacting BankBazaar’s customer support team.
    3. Comprehensive Information- With regards to the Federal Bank Car Loan, know the basic terms and conditions, do’s and don’ts, documentation, from little nuggets to the most comprehensive collection of information pertaining to the product in question. Everything you want, is right here!
    4. Simple Online Application Process- Applying for the Federal Bank Car Loan on BankBazaar.com is a simple process that produces quick results. There are no hidden charges, confusing clauses and BankBazaar’s expert support team is always at hand to help out with your queries and concerns.
    5. 100% Safe- All the personal information that you supply on BankBazaar.com, as part of the online application process, is treated with the maximum respect. This information is never shared with anyone other than the Federal Bank, and the systems utilised for the capture, storage and circulation of such crucial data is highly encrypted and robust.

    How to Apply for a Federal Bank Car Loan on BankBazaar.com?

    Applying for the Federal Bank Car Loan on BankBazaar.com involves a series of simple steps. The same have been explained herein-

    1. Access the BankBazaar.com homepage. On the menu bar at the top of the page, select ‘LOANS’.
    2. Select the ‘CAR LOAN’ option off the drop-down. You can immediately select Federal Bank Car Loan option from the adjoining drop-down.
    3. The resultant page details all the updated information about this loan offering. You can see a number of links, including, ‘Check if you’re eligible’, ‘Check how much you can borrow’, etc. These links provide additional, customized information based on your inputs.
    4. The ‘Apply Now’ button is prominently listed on the bottom half of this page. Clicking on the same will get the ball rolling with regards to your loan application.
    5. Next, you are presented an interactive application form. This form takes all of 3 minutes to fill up and isn’t very technical. Complete and submit the document.
    6. Next, you will receive an instant e-approval from Bankbazaar.com. Your application is now transferred to the Federal Bank for further processing. You will be hearing from their customer support team soon.
    7. Track your application through regular SMS alerts and email intimations. And, of course, you can always connect with the BankBazaar customer support team to get current information about your application.

    Federal Bank Car Loan Interest Rates

    Offering one of the most competitive and customer friendly interest rate when it comes to car loans is one of the prime reasons for the enduring popularity of car loans from Federal Bank. Currently, the applicable interest rates are as follows-

    Interest Rate Type. Condition. Interest Rate.
    Floating Personal Car Loan 10.90% to 12.25%
    Fixed Upto 48 months 10.40% to 11.40%
    Fixed Above 48 months 10.30% to 11.30%

    Eligibility Criteria for Federal Bank Car Loan

    An applicant, seeking the car loan offering from Federal Bank must satisfy the following conditions to qualify for this loan,

    1. The applicant must be a resident Indian or a documented NRI.
    2. He/she must not be younger than 21 years or older than 65 years at loan maturity.
    3. Both individuals and corporates can apply.
    4. The applicant must take home a minimum salary of Rs.7,500 after meeting all his loan EMI commitments.
    5. If the applicant’s own numbers don’t match up for eligibility, his/her spouse’s income can also be clubbed into the equation. Also, income from agriculture/rental undertakings can also be clubbed with the regular income.

    Documentation

    At the time of loan application, the following documents must be supplied for verification,

      Completed loan application form, with signatures of all borrowers.
    1. Identity proof (any document that displays the applicant’s identity and is issued by the State/Central government)
    2. Address Proof (any document that displays the applicant’s permanent address and is issued by the State/Central government)
    3. Proof of employment or business ownership
    4. For salaried individuals- 1) ITR/Form-16 accounting for two years, 2) Last 3 months salary slips, 3) Last 6 months bank statement
    5. For Businessmen or Self employed- 1) Audited balance sheet, 2) Profit and Loss statement, 3) ITR copies
    6. For NRIs- 1) Salary certificates, 2) Proof of employment (attested by embassy), 3) Balance sheet (if owning a business),
    7. NRI account statement for the previous two years, 5) External account statement for the previous six months
    8. Any other documents as and when required by the bank

    How to Calculate EMI for Federal Bank Car Loans?

    The friendly Car Loan EMI Calculator on BankBazaar.com is here for the rescue. Calculating the EMI as applicable to your car loan can be accomplished in a matter of seconds. Just follow these simple steps-

    1. On the navigation bar nestled on top of this page, find the ‘Finance Tools’ option. Click on this to unearth the ‘Car Loan EMI Calculator’ tool.
    2. This simple tool is made up of two essential components- scales denoting ‘Loan Amount’ and ‘Tenure’. Mark your applicable loan amount and tenure on these scales.
    3. Next, provide the applicable interest rate and processing fee in the designated fields. Note that, the fields already contain a default value. Change these numbers accordingly.
    4. All done? Click on the red button that is marked ‘Calculate’. The calculation process is completed.
    5. The resultant page is loaded with information- the applicable EMI amount, total interest due, the amortization details and other specifics concerning your car loan. Voila! Mission accomplished!!

    As promised, the usually tedious task of calculating your car loan EMI is now demoted to a 30 second exercise. And, using this tool is a completely free option, for life.

    FAQ

    1. What is the applicable loan tenure with regards to the Federal Bank Car Loan?
      Condition. Applicable Tenure.
      New vehicle (4 wheelers ONLY) 60 months
      New vehicle (4 wheelers ONLY)- For Salaried people 84 months
      Used/ Second hand vehicles 60 months
    2. Am I supposed to submit any security for the acquired car loan?

      No security/collateral is required for car loans ranging upto Rs.10 lakhs. For loans above Rs.20 lakhs, security is a must. For loans between Rs.10-20 lakhs, the collateral is waived off if the sanctioned amount equals 75% of the ex-showroom price of the vehicle to be purchased.

    3. My monthly income isn’t in line with the eligibility criteria. What do I do?

      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.

    4. How can I apply for the Federal Bank Car Loan?

      After ascertaining your eligibility, you can- 1) Apply at your nearest Federal Bank branch, 2) Apply online on the Federal Bank website, or 3) Apply online on the BankBazaar.com website.

    5. I’am a NRI. Can I apply for a car loan from Federal Bank?

      Of course, 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.

    6. Who can apply for a car loan from Federal Bank?

      Corporates and Resident Individuals can apply for a car loan from Federal Bank.

    7. Can NRIs apply for a car loan from Federal Bank?

      Yes, NRIs can apply for a car loan from Federal Bank.

    8. What type of cars can I purchase using the car loan from Federal Bank?

      You can purchase either a new car or a used one using the car loan from Federal Bank.

    9. What is the rate of interest on Federal Bank car loan?

      The rate of interest on Federal Bank car loan ranges between 9.88 percent per annum and 11.33 percent per annum.

    10. What should be my minimum income to be eligible for a car loan from Federal Bank?

      To be eligible for a car loan from Federal Bank, your minimum income should be at least Rs.7500 after deducting EMI of the proposed car loan.

    11. Will Federal Bank allow me to include the income of my spouse to apply for the car loan?

      Yes, Federal Bank will allow you to include the income of your spouse to apply for the car loan.

    12. Can I club my income from agriculture or rent with my regular income when I apply for Federal Bank car loan?

      Yes, you can club your income from agriculture or rent with your regular income when you apply for 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).

    13. Do I have to submit any documents when I apply for a car loan from Federal Bank?

      Yes, you have to submit the following documents when you apply for a car loan from Federal Bank –

      • Identity Proof
      • Address Proof
      • Passport Size photograph (recent)
      • Employment or Business Proof
      • Income Proof

      Apart from these, you have to provide other documents that the bank requests you to submit.

    14. I am a Salaried Employee. What documents am I supposed to submit as income proof when I apply for a Federal Bank car loan?

      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 –

      • Form 16 or Income Tax Returns of recent two years
      • Salary Slip of the recent 3 months
      • Bank Statement of recent 6 months
    15. I am a Self – Employed Individual. What documents am I supposed to submit as income proof when I apply for a Federal Bank car loan?

      If you are a Self – Employed Individual, then you have to submit the following documents as income proof when you apply for a Federal Bank car loan –

      • Profit and Loss Statement
      • Balance Sheet
      • Income Tax Returns or Tax Paid Challans
    16. I am a Non – Resident Indian (NRI). What documents am I supposed to submit as income proof when I 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 –

      • Employment or Business Proof (if possible attested by the Embassy)
      • Salary Certificate
      • In case of Business, you have to provide the Balance Sheet
      • External Account Statement of the recent 6 months
      • NRI Account Statement of 2 years
    17. Can people apply for a Federal Bank car loan online?

      Yes, people can apply for a Federal Bank car loan online.

    18. How to 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.

    19. What is the maximum tenure for Federal Bank car loan for new cars?

      The maximum tenure for Federal Bank car loan for new cars is 60 months.

    20. What is the maximum tenure for Federal Bank car loan for used cars?

      The maximum tenure for Federal Bank car loan for used cars is 60 months.

    21. How old should a used car be for me to get a car loan for purchasing it from Federal Bank?

      A used car should be maximum 3 years old for you get a car loan for purchasing it from Federal Bank.

    22. How is the depreciation on used car calculated by 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.

    23. What is the maximum tenure of Federal Bank car loan for new cars purchased by Salaried Employees?

      The maximum tenure of Federal Bank car loan is 84 months for new cars purchased by Salaried Employees.

    24. How can I repay my Federal Bank car loan?

      You can repay your Federal Bank car loan in Equated Monthly Installments (EMI).

    25. Does Federal Bank charge a processing fee on car loan?

      Yes, Federal Bank charges the following amount as processing fee on car loan –

      • If the loan is up to Rs.5, 00, 000, the processing fee is Rs.1500
      • If the loan is more than Rs.5, 00, 000, the processing fee is Rs.2500
    26. Can I prepay my Federal Bank 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.

    27. What is the prepayment penalty on Federal Bank car loan?

      The prepayment penalty on Federal Bank car loan is 2 percent of the outstanding balance or DP (whichever is higher), if your credit limit is more than Rs.2, 00, 000.

    28. What is the late payment penalty for Federal Bank car loan?

      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.

    29. I have a very good CIBIL score. Will it help me in getting a car loan from Federal Bank?

      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.

    30. Does Federal Bank charge any fee for CIBIL report and check in case of car loan?

      No, Federal Bank does not charge any fee for CIBIL report and check in case of car loan.

    31. What is the verification process of Federal Bank 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.

    32. Can I calculate the EMI that I have to pay every month as part of the proposed Federal Bank car loan before applying for it?

      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.

    33. Can I get the loan amortization details before applying for a car loan from Federal Bank?

      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.

    34. How much time does it take for Federal Bank to process car loan applications?

      Federal Bank processes the car loan applications very quickly if the applicants pass the verification process.

    35. Who can I contact to get more information on Federal Bank car loan?

      To get more information on 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.

    News About Federal Bank Car Loan

    • Federal Bank initiates dealer financing in an agreement with Hyundai Motor India.

      Posted on 23rd March 2016


      Federal Bank has entered into an agreement with Hyundai Motor India (HMIL), making the lender the preferred financier for passenger car loans and commercial vehicle loans. As a top car manufacturer in the country, Hyundai sells a plethora of vehicles namely Hyundai i10, Hyundai Eon, Hyundai Xcent, Hyundai Grand i10, Hyundai Elantra, Hyundai Santa Fe, Hyundai Elite i20, Hyundai Verna,Hyundai Active i20 and Hyundai CRETA. Federal Bank would be soon expanding into passenger and commercial vehicle financing following the agreement. The signing of the deal to fund the dealer was one of the initiatives to break into the passenger vehicle financing arena.

    • Federal Bank announces 50% discount on Car Loan and Home Loan processing fees as a limited period offer

      Posted on 12th October 2015


      A leading lender in South India, Federal Bank has halved the processing fees levied on home loans and auto loans for a limited period of time. Applications made in the car loan and home loan segments would include this offer till December 31, 2015. Every application that is made within this time period can enjoy the 50% concession, according to a statement released by Federal Bank. This offer has been launched with the festive season in the offing and might see tough competition from other banks coming up with similar short-term schemes.

      Following the launch of this offer, customers have been shifting their home loans and car loans to Federal Bank. The bank is also expecting to see an increased demand for these two retail products in the coming months. This festive offer has also been made available on the Federal Bank home loan overdraft product, with the bank also offering 100% top-up loans for existing home loans. A 1% concession on the interest rate was also announced by Federal Bank for the first 1000 customers, applying for loans against their fixed deposits using the online portal.

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