Federal Bank Car Loan
Last Updated : May 5, 2017, 8:57 p.m.
About Federal Bank Car Loan
Federal Bank, founded in 1939 in Kerala, was previously called as Travancore Federal Bank. The name change took place ten years later to its foundation date in 1949. What followed the name change a complete change in the bank’s fortunes as it started notching ahead by expanding its presence across the geographical sphere of India. The Kochi-headquartered bank now rules more than 1,000 branches and ATMs across the country and giving its competitor a run for their money through its wide range of customized products, including a car loan. Available at affordable rates with flexible tenures, the bank’s car loan caters to the needs of the masses. So, if your dream car is eluding you for long, Federal Bank can just be the impetus you require to own a 4-wheeler of your liking. But before you apply for Federal Bank Car Loan, get updated with the pertinent information related to the same. We can help you by providing exhaustive information related to the bank’s car loan offering. So, look below and find all that before jumping to the driving seat of a car.
Federal Bank Car Loan Interest Rate
| Particulars | Details |
|---|---|
| Interest Rate | 7.65% Onwards |
| Loan Amount | Depends Upon Your Income and Repayment Capability |
| Loan Tenure | Upto 7 Years for Salaried, 5 Years for non-salaried |
| Processing Fee | As Applicable |
| Prepayment Penalty | As Applicable |
Federal Bank Car Loan Eligibility Criteria
While approving the loan, Federal Bank looks into various factors related to income. Want to check out those factors? Take a look below.
- The take home income of the applicant after all the loan commitments, if any, and the proposed one must not be less than ₹7,500.
- The addition of spouse income is allowed.
- Minimum monthly income should be a minimum of ₹40,000, including agricultural and rental income.
Federal Bank Car Loan EMI Calculator
What boils down to a smooth repayment is the know-how of the EMI beforehand, don’t you think so, folks? And if you get to know the tool that enables the same, what would be your reaction? Happy, right! For this, you can use the bank’s car loan EMI calculator which uses the loan amount, interest rate and tenure to provide the result you are seeking for. EMI, which is a short form of Equated Monthly Installment, forms repayment of both principal and interest amounts. The calculator’s job is not only to show the indicative EMI. But it also shows how much interest repayments lie ahead for you to make.
For example- You are a salaried want to avail a ₹6 lakh car loan for a 7-year tenure. You want to know the applicable EMIs and interest repayments. For that, you can glance at the below table.
Table Showing Repayment of EMI, Interest Outgo and Total Outflow Over the Loan Term
| Loan Amount (In ₹) | Tenure (In Years) | Interest Rate (In ₹) | EMI (In ₹) | Total Interest Outgo (In ₹) | Total Payout ((In ₹) |
|---|---|---|---|---|---|
| 6,00,000 | 1 | 7.65% Onwards | 52,540-52,736 | 30,486-32,827 | 6,30,486-6,32,827 |
| 6,00,000 | 2 | 7.65% Onwards | 27,480-27,673 | 59,513-64,155 | 6,59,513-6,64,155 |
| 6,00,000 | 3 | 7.65% Onwards | 19,150-19,346 | 89,390-96,464 | 6,89,390-6,96,464 |
| 6,00,000 | 4 | 7.65% Onwards | 15,002-15,203 | 1,20,113-1,29,751 | 7,20,113-7,29,751 |
| 6,00,000 | 5 | 7.65% Onwards | 12,528-12,733 | 1,51,676-1,64,008 | 7,51,676-7,64,008 |
| 6,00,000 | 6 | 7.65% Onwards | 10,890-11,100 | 1,84,074-1,99,227 | 7,84,074-7,99,227 |
| 6,00,000 | 7 | 7.65% Onwards | 9,730-9,945 | 2,17,299-2,35,398 | 8,17,299-8,35,398 |
Amortization Schedule of Loan Repayment
| Year | Principal (In ₹) | Interest (In ₹) | Outstanding Balance (In ₹) |
|---|---|---|---|
| 1 | 62,439-63,922 | 52,835-56,903 | 5,36,078-5,37,561 |
| 2 | 68,943-70,092 | 46,665-50,399 | 4,65,986-4,68,618 |
| 3 | 76,125-76,857 | 39,899-43,218 | 3,89,129-3,92,493 |
| 4 | 84,054-84,276 | 32,481-35,288 | 3,04,853-3,08,439 |
| 5 | 92,411-92,810 | 24,346-26,533 | 2,12,442-2,15,629 |
| 6 | 1,01,331-1,02,477 | 15,426-16,865 | 1,11,111-1,13,152 |
| 7 | 1,11,111-1,13,152 | 5,646-6,191 | 0 |
Documents Needed to Avail Federal Bank Car Loan
| Documents | Salaried | Self-employed |
|---|---|---|
| Photographs | Two passport size photographs of of the applicant and the co obligant | Two passport size photographs of of the applicant and the co obligant |
| Identity Proof | Passport/ Voter ID/ PAN Card/Aadhaar Card | Passport/ Voter ID/ PAN Card/Aadhaar Card |
| Residence Proof | Passport/ Utility bill/ Allotment Letter/Aadhaar Card | Passport/ Utility bill/ Allotment Letter/Aadhaar Card |
| Income Proof | Latest Salary Certificate/Last 3 Month Salary Slip, Form 16 or ITR for Last 2 Years | ITR, Profit & Loss A/c and Audited Balance Sheet for Last 2 Years |
| Bank Statement | Last 6-month Bank Statement Showing Credit of Salary | Last 12-month Bank Statement |
| Business Establishment Proof | - | Utility Bills of Firms, Tax Registration Copy |
| Other Documents | Sale Letter & Valuation letter from authorized used car dealer /dealer in the case of Used Car Property Documents for loans more than ₹10 Lakhs) Documents of title EC for 13 years Possession certificate Location sketch Land & building tax receipt | Sale Letter & Valuation letter from authorized used car dealer /dealer in the case of Used Car Property Documents for loans more than ₹10 Lakhs) Documents of title EC for 13 years Possession certificate Location sketch Land & building tax receipt |