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Federal Bank is one of the oldest private sector banks in the country and is a scheduled commercial bank having its headquarters in Kochi, India. Federal Bank has many loan products suitable for personal or commercial needs of the consumers. The customers can avail easy hassle free loans to fulfill their need or desire for a new or used car (not more than 3 years old).

The details of the bank’s used car loans are provided hereunder.

Eligibility for Federal Bank Used Car Loans

Federal Bank Used Car Loan

The eligibility persons and the criteria are similar for the new car loans or used car loans offered by the bank. The customers can contact the bank for any details that they may require for the same. The list of eligible persons and the minimum income criterion set by the bank for each category of individuals are listed below.

  • Salaried persons – minimum monthly take-home pay to be (including the proposed EMI) to be at least Rs. 20,000.
  • The bank allows joint application for used car loans (income of the spouse can be clubbed for calculating the minimum income requirement)
  • Self –employed persons are also eligible for the bank’s used car loans.
  • Persons engaged in agricultural and allied activities or persons having rental income – the minimum monthly income for such persons to be at least Rs. 40,000 (including agricultural income or rental income).
  • Non-resident individuals (whether salaried or self-employed) also can apply for the bank’s used car loans.

Documents for Federal Bank Used Car Loan

The bank has a very comprehensive list of documents that are required from each category of applicants along with the certain basic KYC documents that are applicable across all categories.

The list of KYC documents required by the bank is mentioned here.

  • Two Passport size photographs (both applicants in case of joint application)
  • Identity Proof (Aadhaar Card/ Passport/ Voter’s Id/ Driving License/ PAN Card)
  • Address Proof (Aadhaar Card/ Passport/ Voter’s Id/ Driving License)
  • Age Proof (Passport/ Birth Certificate/ SSC Certificate)
  • Additional documents required for Non-Residents are,
    • Certified copy of passport
    • Visa
    • Work permit
    • ID Card

Other Documents required for all categories of applicants are,

  • Invoice
  • Own house proof (electricity bill/water bill/ latest land or building tax receipt)
  • Sale agreement or letter from the seller of the car or the authorized dealer
  • If the loan is over Rs. 25,00,000, the applicant will also have to provide following details of his/her property
    • Title document
    • EC for 13 years
    • Possession certificate
    • Sketch of the location
    • Land tax receipt 
    • Building tax receipt

Apart from the above list of KYC and other documents, the bank also requires certain documents that are specific to the category of applicant. The details of the same are tabled below.

Resident Salaried PersonsResident Self-Employed PersonsNon-resident Salaried PersonsNon-Resident Self-Employed Persons

- Latest Salary Slip (3 months

- Form 16/ ITR return Copies for the past 2 years

- Bank statements for last 6 months (latest)

- Proof of Business existence and business profile

- Bank statements for past 6 months

- past 2 years ITR and Financial Statements + available Tax Paid Challans


ITR for past 2-year +tax calculation sheet and Tax Paid Challan

Option 1 –

- last year’s NRE bank Statement with any bank

- Embassy/ CRO Certified Salary Certificate/Latest 3 months salary slip


Latest Salary Certificate/Slip + Salary credit statement for past 6 months

Option 2- 

NRE Account statement for past 2 years and/or resident accounts of spouse/parents (with any bank)which receives the remittance

Option 1 –

- Proof of Business existence and business profile

- Bank statements for past 12 months

- past 2 years Financial Statements + available Tax paid Challans

Option 2 – 

NRE Account statement for past 2 years and/or resident accounts of spouse/parents (with any bank)which receives the remittance

All the above documents have to be duly submitted for the application to be complete and to process it faster.

Features of Federal Bank Used Car Loans

Federal Bank used car loans are easily accessible due to the huge network of bank’s branches as well as its national and international reach through its online portal. The various features of the Federal Bank Used Car Loans that make it an attractive option are highlighted below.

  • Tenure – 

The tenure for Federal Bank used car loans is 60 months or 5 years which is considered to be on the upper side as compared to many other options available in the market in this category.

  • Rate of Interest – 

Federal Bank offers a floating rate of interest on used car loans. The current rate of interest in this category is 14.55% effective from 16th March 2020 across all applicant classes.

Amount of loan to be sanctioned – 

The bank sanctions loans up to 100% of the ex-showroom price in case of loans for the purchase of new cars. In the case of old cars, the bank will finance 75% of the value of the vehicle. For this purpose, the value of the vehicle will be calculated to be the lower of,

  • Depreciated value, or
  • Market value, or
  • Purchase value.

To calculate the depreciated value, the applicant will have to consider the following method as per the bank’s guidelines.

  • 15% for 1st year using the Straight Line Method
  • 10% for subsequent years
  • Part of the year will be considered as one year.

Other features – 

Federal Bank provides a variety of other features for used car loans as under.

  • Nil or no pre-closure charges for individual borrowers
  • Free personal accident insurance for individuals up to Rs. 10,00,000
  • Reimbursement of loan within one month from the date of purchase of the car
  • Faster processing
  • No-Income Document Scheme

All the above features and benefits associated with the Federal Bank used car loans to make it an attractive option in the market.

Federal Bank EMI Calculator

Federal Bank provides the customers the benefit of correctly estimating the proposed EMIs of the used car loans before actually having to pay them.

Customers can get the benefit of the bank’s EMI calculator at the bank’s website at the following link

Home - Personal - Loans - Personal Car Loan - Calculate EMI

This will take the applicant to a new page on the bank’s website where he/she can calculate the estimated EMI by submitting the following parameters

  • Principal Loan Amount
  • Rate of Interest
  • Loan Term  (in months/ Years)
  • Additional Monthly Payment

The applicant will get the details of the estimated EMI, total interest to be paid on the loan and the final amount paid by him/her at the end or completion of the loan.

Federal Bank provides a graphic display of the principal amount and the loan amount paid during the tenure of the loan as well as the yearly amortization schedule stating the interest and the principal amount paid each year.

This information helps the applicant to make an informed decision about the proposed EMI expense and plan for it in a better manner.

Federal Bank Customer Care

Federal Bank customer care service is available 24x7 for any assistance required by the customers regarding the loan products or any other aspect of their banking needs. Customers can also provide their valuable feedback or give suggestions as well as raise any concerns or grievances at their customer care service.

The various ways to reach the customer care of the bank is given below.

+91 484 2630994 / 080 6199 1199 (for abroad customers)

  • Email id – contact[at]federalbank[dot]co[dot]in (for general /any queries)

     fednetinfo[at]federalbank[dot]co[dot]in (for internet banking queries)

The bank also has an IVR facility that can assist the customers in getting the details of their loans like,

  • Loan amount due date
  • Amount due
  • Total loan amount, etc.

Customers will have to register through the IVR via a four-digit TPIN to avail of this facility of Telebanking.

Federal Bank also has a virtual assistant ‘Ask Anita’ which is an interactive chatbot facility where the customers can get answers to their general queries relating to the bank’s products and services.

FAQs: Federal Bank Used Car Loan

1. What is the maximum amount of loan given by the bank for purchasing used cars?

The bank’s used car loans are sanctioned up to 75% of the value of the car.

2. What is the tenure of the loan?

Federal Bank provides used car loans to be repaid in 60 months (5 years).

3. What is the current rate of interest on Federal Bank used car loans?

the current rate of interest on bank’s used car loans is 14.55%.

4. Can a NRI apply for used car loans of the bank?

Yes. Federal Bank allows a NRI to apply for the bank’s used car loans subject to certain specific documentation requirements as mentioned above.

5. Does the bank charge any pre-closure charges?

Federal Bank does not charge any pre-closure charges for individual borrowers.

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