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    Federal Bank Used Car Loan Reviews

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    Federal Bank Used Car Loan is Rated as "Pretty good" by 40 Users

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    Federal Bank Used Car Loans

    Headquartered in Kerala, Federal Bank is one of the major Indian commercial banks in the private sector. It has a widespread network of more than a 1000 branches and ATMs, across the nation. The bank came into existence during pre-independent India. Founded by K.P Hormis, initially it was known as Travancore Federal Bank. In the year 1947 it was officially named as Federal Bank Limited. Currently, it is one of the most stable and known banks of the country.

    Having won several awards and accolades, Federal Bank offers multiple services to its Indian and NRI customers. It also offers Gold Loans, Property Loans, House Loans and Car Loans for the purchase of both new and used/pre-owned cars. With features like faster processing, competitive rates of interest, lower EMIs, immense credibility and transparency, Federal Bank Used Car Loans make it very easy for you to purchase your dream car.

    Features and Benefits of Federal Bank Used Car Loan –

    • Lower and affordable Equated Monthly Instalments (EMIs)
    • Lower and affordable interest rates
    • Enjoy a longer repayment period – 60 months
    • Faster and hassle-free loan processing
    • Practical and transparent charges
    • The loan can be availed by both resident individuals and corporates.

    Conditions for availing loan for used/pre-owned vehicles

    • The vehicle should not be more than 3 years old.
    • Even a part of the year shall be counted as one whole year.
    • Depreciation value of the vehicle will be calculated using the Straight Line Method @15% for the first year and @ 10% for the subsequent years.

    Income of the loan applicant –

    75% on lower of depreciated/ market/ purchase value makes you an eligible applicant for used car loan.

    Documents required to apply for Federal Bank Used Car Loans

    • Your proof of identity and address.
    • Recent passport size photograph.
    • Proof of your employment or business.
    • Proof of your income (relevant documents)

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

    • Form 16 for the last 2 years
    • Last 3 months salary-slip
    • 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) –

    • Audited Balance Sheet
    • Profit and loss statements of your firm
    • ITRs/ tax paid challans

    Federal Bank Used Car Loan Interest Rates

    Federal Bank offers an Auto Loan to customers looking to purchase a used car. The interest on this loan is computed using MCLR or Marginal Cost of Funds based Lending Rate, which primarily takes factors like the repo rate, cash reserve ratio, operating costs, etc. into consideration while calculating the interest for a particular period.

    Federal Bank Marginal Cost of Funds based Lending Rate (MCLR) (For new borrowers)

    New customers who opt for an auto loan to purchase a used car will fall under the purview of MCLR, with Federal Bank publishing new rates on a regular basis. The table highlights the MCLR rates for the month of May 2016.

    MCLR Benchmark Tenure (Period) Benchmark Rates (MCLR)
    Overnight 9.08% per annum
    1 month 9.41% per annum
    3 months 9.55% per annum
    6 months 9.54% per annum
    1 year 9.49% per annum

    Used car loan interest rates – May 2016

    The interest rate charged by Federal Bank on its auto loan are highlighted in the table below.

      Minimum Maximum
    Interest Rates (Based on MCLR) MCLR + 0.40% per annum MCLR + 1.00% per annum

    Federal Bank Base and Prime Lending Rates (For existing borrowers)

    Existing customers of Federal Bank can choose to migrate to MCLR or stick to the base rate.

    Federal Bank Base Rate 9.63% per annum (effective 1st Dec, 2015)
    Federal Bank Prime Lending Rate 17.75% per annum (effective 7th Nov, 2011)

    Federal Bank interest rate for used car loans (Based on Base Rate)

    The interest rate for existing borrowers depends on the security offered, with the rate varying on a case to case basis.

    Note: The Interest Rates mentioned above are as of June 1, 2016 and are subject to change at the sole discretion of the bank. Customers are advised to check the prevailing rates at the time of application.

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