Federal Bank Car Loan Interest Rate – Complete Guide & EMI Tips

• Once approved, you’ll get your loan quickly.

• Take advantage of our competitive interest rates.

• Find out if you’re approved right away.

• You can get in-principle approval at your location.

• Visit any of our convenient branches to access our services.

• Our digital approval process is simple and easy to use.

*T&C Apply

Apply for your Federal Bank car loan online using our easy-to-follow app or website.

Federal Bank Car Loan Offline Process: 

Visit your nearest Federal Bank branch for personalised guidance tailored to your needs.

1. Use the Branch Locator to find the F branch closest to you.
2. Talk to a loan officer and ask for the car loan application form.
3. Fill out the form and submit it along with your KYC, income, and vehicle documents.
4. Pay the processing fee as set by the bank.
5. The bank will check your details, see if you are eligible, and value the vehicle.
6. If your loan is approved, sign the agreement.
7. The bank will send the loan amount, usually straight to the car dealer.

Customers may obtain in-person support and clear guidance by visiting a branch.

Conclusion

Start by using the Federal Bank car loan EMI calculator to figure out your monthly payments. Next, see if there are special rates for salary account holders or government employees. Take note of the clear fees, and decide whether to apply online or at a branch so you can move forward with confidence.

FAQs

Car loan for 7 years tenure. Is this a problem? 

A 7-year (84-month) car loan is not hard to get, but it can lead to some financial drawbacks. Lenders use these longer terms to lower monthly payments, which can make pricier cars look more affordable.

How can I negotiate a better interest rate on a car loan?  

To get a better interest rate on your car loan, improve your credit score and make a larger down payment if possible. Get pre-approved by a few lenders to compare offers and use them to negotiate. When talking to dealers, stay polite and confident. Try negotiating at the end of the month when they may be more open to making a deal. 

What is the interest rate of a car loan for a bank PO? 

Car loan interest rates for bank employees, such as POs, are not usually set as a separate public rate. Instead, banks offer special concessions or lower rates on their regular car loans, which generally range from about 7.7% to 9.2% per year in India. The exact rate depends on your bank, your credit score, and the type of car. 

Are interest rates lower on new vehicles than on used ones? 

Yes, interest rates for new car loans are usually lower than for used cars. Lenders consider new cars less risky because they come with full warranties, are in known condition, and serve as better collateral. Used cars lose value more quickly and might have hidden issues, so lenders charge higher rates to make up for the extra risk.

Will the interest rate on the Federal Bank car loan change if I change the repayment tenure?

The interest rate will stay the same, but your EMI amount will change.