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.
75% on lower of depreciated/ market/ purchase value makes you an eligible applicant for used car loan.
In addition to the aforementioned documents, a salaried individual will also need the following –
Alternatively, if you are a self-employed individual or a businessman, you will need the following documents (in addition the common documents) –
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.
|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.