Personal Car Loan

Features & Benefits

Finance shall not be a red signal when your dream car opens door for you. Drive home with Federal Car Loan.


Funding upto 100% of ex-showroom price
Repayment period upto 84 months
Competitive interest rates
Free Personal accident insurance upto Rs. 10.00 lakhs for individuals
Nil Pre-closure charges for individuals
Can be availed for buying new car, used car and new two-wheelers
Re-imbursement within 1 month of car purchase date
No-income document scheme
Faster processing

Documents Required

KYC Documents

  • Two passport size photos each of the applicant/ and the co obligant
  • Identity Proof – Passport / Voters ID / Driving License/ PAN Card / Aadhaar Card
  • Address Proof – Passport / Voters ID / Driving License / Aadhaar Card
  • Age Proof – Passport / Birth Certificate / Driving License / SSLC or AISSE Certificate
  • Additional documents for Non Resident Customers - Certified copy of Passport, Visa, Work Permit, ID card


Resident Salaried

  • Latest Salary Certificate /  Salary Slip (3 months)
  • Copies of IT returns (2 years) or Form No.16 (2 years) 
  • Latest 6 month's Bank Account statement evidencing the salary credits

Resident Self Employed

  • Proof of Business existence & Business Profile
  • Last 12 months bank a/c statements
  • IT returns for 2 years supported by Balance Sheet, P&L Account for the past two years. Where ever available, Tax paid challans may also be collected OR Last 2 years IT returns supported by Tax calculation sheet & Tax paid challans

Non Resident Salaried (either of option1 or option 2)

Option 1

  • NRE account statement with any bank for last one year
  • Embassy / CRO certified Salary Certificate/ latest 3 months salary Slip OR Latest Salary Certificate / Slip (3 months) supported by 6 months Salary Crediting Statement

Option 2

  • Two years NRE a/c statement of the customer and/or resident accounts of spouse/parents (with us/ other Bank) in which remittance is made.

Non Resident Self Employed (either of option1 or option 2)

Option 1

  • Proof of Business existence & Business Profile
  • Last 12 months bank a/c statements
  • Balance Sheet, P&L Account for the past two years. Where ever available, Tax paid challans may also be collected 

Option 2

  • Two years NRE a/c statement of the customer and/or resident accounts of spouse/parents (with us/ other Bank) in which remittance is made.


Other Documents

  • Invoice
  • Latest land tax receipt or own house proof (latest land/building tax receipt, Electricity Bill, Water bill Etc.) 
  • Sale Letter & Valuation letter from authorized used car dealer /dealer in case of Used Car
  • Property Documents (In case of loans over 25 Lakhs)
  1. Documents of title
  2. EC for 13 years
  3. Possession certificate
  4. Location sketch
  5. Land tax receipt
  6. Building tax receipt

Interest Rates

Car loan interest rates will change subject to the changes made by Bank/RBI from time to time. Federal Bank Car Loan interest rates starts from 8.85% p.a.

Present Repo Rate  6.50%  (p.a)


Car Loan - New


Interest Rate (%) * 


8.85 (Repo Rate+ 2.35) Onwards 


16.30 (Repo Rate + 9.80)  

*T&C Apply

Click here for detailed Interest Rates

Whenever car loan interest rates are changed, new rates and corresponding EMI shall be communicated to the borrower.

Terms & Conditions

Income of the applicant

  • Minimum take Home after meeting all monthly EMI commitments including the proposed one should be at least Rs.20000 (lower take home pay requirement for rural, semi urban locations)
  • Spouse's income can be clubbed.
  • Agricultural Income/Rental can be clubbed with regular income(minimum monthly income to be At least Rs.40,000, including agriculture income/rental income)

Period of the loan

  • New Vehicles (other than two wheelers) - 60 months
  • New Vehicles (for Salaried) - 84 months*
  • Used Vehicles - 60 months
  • New two wheelers - 48 months

*Salaried Category as per Bank's Policy


Conditions for used vehicles

  • Depreciation using Straight Line Method @ 15% for the first year and @ 10% for subsequent years.
  • Part of the year shall be counted as one year.
  • Age of vehicle not more than 3 years
  • In the case of used vehicles 75 % on lower of depreciated /market / purchase value only eligible.
Drive home with Federal Car Loan
Many banks offer car loans to their NRI customers. However, most banks make it a mandate to have an Indian guarantor for NRIs while applying for a car loan. NRIs can make the repayment through NRE/NRO bank account or through easy remittances. An NRI or a PIO (People of Indian Origin) should hold a valid Indian passport for availing a car loan. Car loan rates in India varies from bank to bank.

The eligibility for an NRI car loan includes criteria such as both the applicant and guarantor should be between 21-65 years, the loan amount must be repaid before the guarantor reaches 65 years of age, the applicant should be physically fit and hold a driving license, etc. There is a minimum benchmark for net monthly income also which differs from bank to bank. The NRI Car loan can be availed for buying a new car, used car and new two wheelers. The normal reimbursements will begin within 1 month of the purchase of the car. Usually, the interest rate for NRI car loans is the same as other normal car loans in the country. Some banks fund 100% of the ex-showroom price and provide a tenure up to 60 months for repayment of the loan based on the income details furnished. Banks often furnish the eligibility criteria, interest rates and other documents required on their website. They also provide the option to calculate EMI through the EMI calculator which is also available on the website.

The features and benefits of the loan, income proof, documents required, repayment options, interest rate, other terms, and conditions are available on the website. NRI car loans also get processed at a faster rate when compared to other loans that are available in the market. Ultimately, owning a four-wheeler is a dream for everyone even if you are not in India, your family can avail the comfort and luxury of a good vehicle, without the hassles of a long drawn out paperwork.

You might be interested

Recommendations for a safe and easy banking experience


Stay connected with the evolving landscape of banking innovations, enabling you to make intelligent financial decisions.

Learn More
Tutorial Videos

Immerse yourself in the nuances of banking with our tutorial video hub, providing step-by-step guidance on a wide array of products and services.

Learn More
Safe Zindagi

Your go-to source for secure banking guidelines and a comprehensive understanding of the vast array of products and services in the banking sector.

Learn More