Federal Bank Car Loan
Federal Bank is Indian private sector bank which provides various banking facilities to its customers. The bank has 1,336 branches spread across different states in India. It also has representative offices abroad in Abu Dhabi, Kuwait, Oman, and Dubai. Federal Bank provides loans to its retail as well as corporate customers. Retail loans include many loan products like home loans, car loans, personal loans etc.
|Headquarters||Kochi, Kerala, India|
|Industry||Banking Financial Services|
|Founded||23 April, 1931|
Federal Bank Car Loan
Federal Bank car loan interest rate ranges from 9.15% p.a. The car loan interest rate for new cars ranges from 11.00% p.a. onwards on the other hand for used cars interest rate is 16.30% p.a. In this post we will have a close look on how to apply for Federal bank car loan, its application process, charges etc.
Also Read: YES BANK Car Loan
Benefits and Features of Federal Bank Car Loan
- Flexible loan repayment options
- Competitive interest rates
- 100% funding on road price of the vehicle
- Free insurance cover up to Rs 10 lakhs
- Quick processing of the loan
Interest Rate and Other Charges
|Particulars||New Car||Pre-Owned Car|
|Interest Rates||9.15% p.a.||14.95% (One Year MCLR 9.15% p.a.)|
|Loan Repayment Tenure||84 months||84 months|
|Financing||Up to 100% of car’s ex-showroom price||Up to 100% of car’s ex-showroom price|
|Pre-payment Charges||NIL||NIL charges for individual borrowers|
How to Apply
Those who want to apply for a car loan from Federal Bank they can do so through a variety of ways, such as –
- You can visit the BANK branch, and directly get yourself a loan
- Another way to apply is through online. You will have to visit the Bank’s website and can apply for the loan by filling up the loan application form
- The applicants age should be minimum 21 years of age and should not be more than 65 years of age at the time of loan maturity
- Applicants should have minimum income of Rs 20,000 per month and agriculture and rental income of Rs 40,000 per month
- Should be in the current employment for a consistent period of time of 1 year
- Residents of the country, as well as qualifying non-residents can apply for the Bank’s car loan
- Application form
- Passport sized photographs
- KYC documents
- Office Business Proof
- Income proof
- Bank statement
- Age proof
- Sign verification proof
- Additional documents
Factors Affecting Federal Bank Car Loan Interest Rates
Credit Score: A credit score of 725 or above is typically considered good.
Income-to-debt-ratio: You must maintain your debt-to-income-ratio. The higher income and less debts will be at a lower risk for a money lender or bank. The more money you owe, the less likely you are to get a lower rate of interest.
Loan Duration: The less tenure you will choose, you will face a lower rate of interest. A longer tenure means having to pay higher rate of interest.
Vehicles Age: The rate of interest is higher for used cars then the new cars. The condition of the used car plays an integral role in determining the rate of interest.
EMI is the amount that is paid on a monthly basis against the loan availed from the lender. Before availing a car loan you must know how much loan amount you are eligible for and how much would be the EMI on your car loan. Use Federal Bank online EMI Calculator to calculate the amount you need to pay per month towards your loan, based on the Principal Loan Amount, Interest Rate and Loan Tenure.
1. What is a car loan?
Ans: Ans: A car loan is a loan that is obtained to purchase two and four-wheelers for personal use. The lender loans the money to the borrower while the buyer must repay the loan in equated Monthly Instalments (EMIs) over a specific tenure at a specific interest rate.
2. How can I get a car loan with lower interest rates?
Ans: Your interest rates depends on various factors, if you have a good credit score you will be eligible for lower interest rate, if you choose shorter loan repayment tenure, if you have a good credit history with the bank and have a steady source of income, you can become eligible for lower interest rate on a car loan.
3. What is the interest rate for Federal Bank car loan?
Ans: Federal Bank car loan interest rate starts from 10.40% p.a. onwards.
4. What is the maximum tenure for a car loan at Federal Bank?
Ans: Maximum tenure for a car loan at Federal Bank is up to 84 months.
5. What are the documents required for applying a car loan?
Ans: The documents one required to apply for a car loan are as follows:
- ID proof
- Address proof
- 2 passport size photographs
- Income proof
- Bank statement of last 6 months
- Income Tax Returns for the
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