Key Insights

Use the Federal Bank car loan EMI calculator to estimate your monthly payments. Government employees and salary account holders may be eligible for special rates.

You can get a new car loan with rates starting at 10.00%, or a used car loan from 15.30%, depending on your needs and budget, at Federal Bank Car Loan Interest rate.

Be sure to check the processing fees and prepayment rules. You can apply online using the app or visit a branch if you need help with your application.

Wo waqt aa hi gaya jab main apni new car lunga, par kaunsa loan mere liye accha hoga?

Start by checking the Federal Bank car loan interest rate. Use the official Federal Bank car loan EMI calculator to find out your monthly payment right away.

You can think of the Federal Bank car loan interest rate like the yearly fuel cost for your loan, since it keeps your EMI going.

This rate can change based on your profile, such as the Federal Bank car loan interest rate for NRI applicants or salary account holders who may get special terms.

I’m a government employee, so I looked into the special Federal Bank car loan interest rate for govt employees offers for people like me. For a ₹10,00,000 loan at 8.5% in 2025, my EMI came to ₹20,520. Using my salary account made the approval faster and the process easier.

Types of Car Loans Offered by Federal Bank

If you’re looking for a new luxury car or a reliable used one, Federal Bank can help with a car loan to get you on the road.

Here is the list of the types of car loans, features and interest rates of the Federal Bank Car Loan:

Types of Federal Bank Car Loans

Key Features

Federal Bank Car Loan Interest Rate

New Car Loan

Federal Bank can help you get the full amount of funding you need.

You only need a few documents to apply.

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.

Starting from 10.00% - 11.90%

Second-Hand Car Loan

Starting from 15.30%

Whether you’re buying a new car or a reliable used one, the Federal Bank car loan can help you get on the road.

Bonus Tip: Do you know? For used vehicles, Resident customers can get a loan for up to 84 months, while NRI customers can get a loan for up to 60 months. The combined loan period and the vehicle's age must not be more than 10 years.

Federal Bank Car Loan Processing Fees & Charges

Are you excited to drive your new car home? Before you do, make sure you understand the total cost. Learn how Federal Bank car loan charges can affect what you pay in the end.

Here is the list of the Federal Bank Car Loan fees and charges:

Loan Product

Processing Fees

Prepayment / Pre-closure charges

Charges for switching a loan from fixed to floating rates and vice versa

Charge for CIBIL report

Cersai registration/modification charges

Personal Car Loan

New Car Loans:

Upto ₹5,00,000 to ₹2000/-

Above ₹5,00,000-₹4500

Used Car Loans:

Upto ₹5,00,000-₹3000/-

Above ₹5,00,000-₹5500/-

1) Floating rate loans to Individuals – Nil

2) Non-Individuals, Fixed rate, Overdraft – 3% on the balance outstanding or DP, whichever is higher

3) Hybrid Loans – Fixed Rate period- 3% on the balance outstanding or DP, whichever is higher, Floating Rate period

a) Term loans to Individuals – Nil

b) Non – Individuals, overdraft loans - 3% on the balance outstanding or DP, whichever is higher.

0.25% of the balance outstanding / Drawing power, whichever is higher

NIL

NIL

Make sure you know what to expect when shopping for a new car. Learning about Federal Bank car loan interest rates can help you avoid surprises and make the process smoother.

Bonus Tip: Do you know? Amortisation is a table that shows each loan payment, breaking down how much goes to interest and how much to the principal. It also tracks the remaining loan balance after every payment until the loan is fully paid off.

How to Apply for a Federal Bank Car Loan?

Ready to purchase your new car? Learn how to apply for a Federal Bank car loan and get on the road sooner.

Federal Bank Car Loan Online Process:

Here are the steps you can use to apply for a Federal Bank Car Loan online in just a few minutes.

Fed Mobile App

Online Process:

Open the FedMobile app and log in.
Tap the “Loans” section at the bottom of your home screen.
Select “Request Loans” in the Overview section.
Choose “Vehicle” on the next screen.
Answer the questions about your vehicle and loan needs. You can save your request at any time and finish it later.
Enter your MPIN, then submit your request.
A bank official will get in touch to help you continue your application.

Through the Federal Bank Website

Go to the official Federal Bank website and find the Car Loan section.
Fill in the enquiry form with your name, address, mobile number, state, district, and the branch you prefer.
Send the callback request form.
A bank representative will get in touch and help you with the application process, including the paperwork and verification steps.

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.

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

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