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.
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
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Resident Salaried |
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Resident Self Employed |
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Non Resident Salaried (either of option1 or option 2) |
Option 1
Option 2
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Non Resident Self Employed (either of option1 or option 2) |
Option 1
Option 2
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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)
- Documents of title
- EC for 13 years
- Possession certificate
- Location sketch
- Land tax receipt
- 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) |
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Car Loan - New |
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Type |
Interest Rate (%) * |
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New |
8.85 (Repo Rate+ 2.35) Onwards |
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Used |
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.
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.
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