Federal Bank Used Car Loan

Features and Benefits of Federal Bank Used Car Loan

1. Provides repayment period of up to 84 months
2. Up to 100% of the ex-showroom price is funded on availing this loan.
3. A person can avail free personal accident insurance worth Rs.10 lakh
4. Competitive interest rates
5. No pre-closure charges for a person availing this loan
6. Process is extremely fast in nature
7. No-income document scheme
8. This loan can be availed for buying a new car, used car, and two-wheelers
9. Reimbursement within 30 days of the date of purchasing the car

Conditions for availing loan for used/pre-owned vehicles

1. The vehicle should not be more than 3 years old.
2. Even a part of the year shall be counted as one whole year.
3. Depreciation value of the vehicle will be calculated using the Straight Line Method @15% for the first year and @ 10% for the subsequent years.
4. Only 75% on lower of market value, or purchasing value, or depreciation value is available in case the person is buying a used vehicle.

Income of the loan applicant -

Following types of incomes can be shown by the loan applicant in order to avail this loan. They are:

1. The minimum income after paying all the EMIs including the proposed one must be Rs.20,000.
2. The income of the spouse can also be clubbed in order to avail the loan.
3. The person can also club his/her monthly income with agriculture or rental income. The minimum monthly income should amount to Rs.40,000 in order to avail the loan.

Documents required to apply for Federal Bank Used Car Loans

1. Your proof of identity and address.
2. Two passport size photos each of the applicant and the co-obligant.
3. Proof of your age.
4. Additional documents such as passport, visa, etc., if you are a NRI.

In addition to the aforementioned documents, a salaried individual will also need the following -

1. Form 16 for the last 2 years
2. Last 3 months salary-slip
3. Bank statement of last 6 months

Alternatively, if you are a self-employed individual or a businessman, you will need the following documents (in addition the common documents) -

1. Bank account statements of the last 12 months.
2. Proof of existence of your business.
3. Income tax returns for the last 2 years.

If you are a non-resident salaried individual, then you will have to produce the following documents:

1. Last 3 months salary slip, or salary certificate certified by the Embassy/CRO, or the NRE account statement with any lender for the past 12 months.
2. Salary slip of the last 3 months, or the latest salary certificate supported by the salary credited statement for the last 6 months.

The other option you can avail is:

1. Your NRE account statement or resident account of your parents or spouse for the last two years.

If you are a non-resident self-employed individual, then you will have to produce certain documents in order to avail this loan:

1. Bank account statements of the last 12 months.
2. Proof of existence of your business.
3. Balance sheet for the last 24 months.

The other option you can avail is:

1. Your NRE account statement or resident account of your parents or spouse for the last two years.

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