PERSONAL CAR LOAN

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Personal Car Loan

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

 

  • Features & Benefits
  • Documents Required
  • Repayment options
  • Car Loan Interest Rates
  • Other Terms & Conditions
  • Offers for Car Loans
  • 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
 

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

Repayment of the loan can be made as EMIs.

Car loan interest rates will change subject to the changes made by Bank/RBI from time to time. Please click here to know latest interest rates on car loans. Whenever car loan interest rates are changed, new rates and corresponding EMI shall be communicated to the borrower.

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.

Now you can avail attractive offers for Federal Bank Car loan while purchasing vehicles from Maruti, Hyundai etc.

Click here to know more.

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Frequently Asked Questions- Car Loans

Frequently Asked Questions- Car Loans

What is the Eligibility Criteria for a Car Loan?

Car loans are granted to:

Individuals, Sole Proprietorships, Partnership firms, Companies, Trusts, Educational Institutions and any other lawful organizations with adequate / regular income to repay the loan.

What is the tenure of a car loan?

New Vehicles : Maximum 84 months for Resident customers and maximum 60 months for NRI customers 

Used Vehicles : Maximum 84 months for Resident customers and maximum 60 months for NRI customers with the condition that the total of loan period and age of the vehnicle shall not exceed 10 years

What is the interest rate for car loan?

Car loan interest rate will change subject to the changes made by Bank/RBI from time to time. Please click here to know latest car loan interest rates. Whenever car loan interest rates are changed, new rates and corresponding EMI shall be communicated to the borrower.

How can I make repayment of car loan?

Repayment of car loans are to be made in Equated Monthly Installments (EMI).

What is EMI?

EMI stands for Equated Monthly Installment. It includes repayment of the principal amount and payment of the interest on the outstanding amount of your Federal Bank car loan. Your housing loan EMIs are fixed at the time of availing the loan. EMI's are used to pay both interest and principal amount of a loan in a way that over a specific number of years, the loan amount is repaid to the bank along with interest.

What are the factors affecting car loan EMI?

  • Principal - The principal is the loan amount that you avail from Bank. Lower principal will lower your EMI and vice versa.
  • Rate of Interest - The rate of interest is the rate at which Bank offers you the car loan. It is also directly proportional to your car loan EMI.
  • Tenure - The tenure or the period is the time within which you repay your loan. It is inversely proportional to EMI. It means longer tenure makes EMIs cheaper and vice versa.

What is Fixed rate of interest?

Fixed rate of interest means interest rate remains constant during the entire tenure of the loan.

What is Floating rate of interest?

Floating rate of interest means interest rate fluctuates based on the changes in RBI’s Repo Rate.

What is Repo Rate?

Repo rate is the rate at which Reserve Bank of India lends money to commercial banks in the event of any shortfall of funds. Repo rate is used by monetary authorities to control inflation.

What is Pre-EMI?

Under the Pre-EMI option, the borrower is required to pay only the interest on the loan amount that will be disbursed as per the progress on the construction of the project. The actual EMI payment starts after the possession of the house / flat.

How can I calculate car loan EMI?

You can calculate car loan EMI using our Car Loan EMI calculator by entering principle amount, tenure, rate of interest etc.

What is an amortization schedule?

Amortization is a tabular schedule with details of interest payment and periodic principal of a loan along with the amount outstanding after each payment and the decrease of loan balance till zero.

Can I prepay my car loan?

Yes, you can make your prepayment in either part or full.

What are the service charges for Federal Car loan?

Please click here to know more service charges for car loans.

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