Federal Bank Car Loan at a glance
| Feature | Federal Bank Car Loan |
|---|---|
| Product name | Federal Personal Car Loan (new) |
| Interest rate | 7.90% - 9.00% |
| Rate type | Fixed (product page also lists 10.15% floating, repo-linked) |
| Maximum tenure | 84 months |
| How much it funds | Up to 95% of on-road price |
| Processing fee | 1% of loan (min ₹1,000, max ₹50,000) |
| Pre-closure / prepayment | Nil |
Source: federal.bank.in, checked 4 October 2026. Federal Bank shows slightly different rate tables on two official pages; we use its main rate card.
What the EMI looks like
For a car loan of ₹8 lakh over 5 years, here is what Federal Bank's published rates mean in rupees:
| Rate a year | Monthly EMI | Total interest |
|---|---|---|
| 7.9% (lowest published) | ₹16,183 | ₹1,70,971 |
| 9% (highest published) | ₹16,607 | ₹1,96,401 |
The gap between the two ends of the range is ₹25,430 over the loan, which is why your credit score and the loan provider's assessment of you matter so much.
Try your own amount and tenure in the Car Loan EMI calculator.
Federal Bank Car Loan EMI for ₹5, ₹10, ₹15 and ₹20 lakh
The table shows the monthly EMI at 7.9% a year, the lowest rate published for this loan on the table above. Most borrowers are offered a rate somewhere in the published range, so treat these as the best case and check your own rate in the sanction letter.
| Loan amount | 3 years | 5 years | 7 years |
|---|---|---|---|
| ₹5 lakh | ₹15,645 | ₹10,114 | ₹7,768 |
| ₹10 lakh | ₹31,290 | ₹20,229 | ₹15,536 |
| ₹15 lakh | ₹46,935 | ₹30,343 | ₹23,305 |
| ₹20 lakh | ₹62,581 | ₹40,457 | ₹31,073 |
Reducing-balance method. Processing fees, GST and insurance are extra. Use the EMI calculator to try your own amount, rate and tenure.
Federal Bank vs other loan providers for car loans
Published figures from each loan provider's own website. Some loan providers publish a starting rate, some a range actually given to customers, and some only a maximum, so read the column with care and compare final offers on the APR in the Key Fact Statement.
| Loan provider | Published rate | Max tenure | Type |
|---|---|---|---|
| Canara Bank | 7.50% - 10.70% | 84 months | public sector bank |
| HDFC Bank | 7.60% - 14.00% | Up to 7 years | private sector bank |
| Punjab National Bank | From 7.60% | 84 months | public sector bank |
| Bank of Baroda | Floating 7.60% - 11.30%; fixed 8.50% - 11.20% | 84 months | public sector bank |
| Union Bank of India | 7.60% - 10.00% | — | public sector bank |
| Federal Bank | 7.90% - 9.00% | 84 months | private sector bank |
| Mahindra Finance | 8% - 25% p.a. | 5 years | NBFC |
| SBI | 8.40% - 9.35% | 7 years | public sector bank |
| ICICI Bank | From 8.40% | Up to 84 months | private sector bank |
| Axis Bank | 8.90% - 11.70% | Up to 8 years | private sector bank |
| IDFC FIRST Bank | From 8.99% | 10 years | private sector bank |
| Hero FinCorp | 9% - 18% p.a. | 120 months | NBFC |
| Chola | 9% - 20% p.a. | — | NBFC |
| Tata Capital | From 9.49% p.a. | 84 months | NBFC |
| Kotak Mahindra Bank | — | 12 - 84 months | private sector bank |
| IndusInd Bank | — | 60 months | private sector bank |
| Yes Bank | — | 96* months | private sector bank |
| Bajaj Finance | Up to 12.25% p.a. | 12-96 months | NBFC |
What kind of loan provider Federal Bank is
Federal Bank is a private sector bank. Private banks tend to approve and disburse quickly, often digitally or at the dealership, and cover a wide range of credit profiles. The spread between their lowest and highest rates can be wide, so the rate you are offered depends heavily on your credit score, income and the vehicle.
Kerala-based private bank whose Personal Car Loan covers new cars, used cars and new two-wheelers on fixed rates, with no prepayment charges and free personal accident cover.
Features Federal Bank lists for this loan
- Free personal accident cover up to ₹10 lakh
- No-income-document scheme
Documents you will usually need
Most loan providers ask for a similar set. Federal Bank may ask for more depending on your profile.
- Identity proof such as Aadhaar, PAN, passport or voter ID
- Address proof such as Aadhaar, utility bill, rent agreement or passport
- PAN card (mandatory)
- Last 3 to 6 months of salary slips and bank statements for salaried applicants
- Last 2 years of ITR with computation, and 6 to 12 months of bank statements for self-employed applicants
- Proforma invoice or quotation from the dealer for a new car, or seller details for a used car
- Passport-size photographs and a signed application form
Before you sign with Federal Bank
- Get the Key Fact Statement (KFS). RBI requires loan providers to give you a KFS before you sign, showing the interest rate, all fees, the annual percentage rate (APR) and the total amount you will repay.
- Compare the APR, not the headline rate. A low rate with a high processing fee can cost more than a slightly higher rate with no fee.
- Ask about pre-closure charges. Fixed-rate vehicle loans often carry charges for paying early; floating-rate loans to individuals cannot.
- Check what is bundled. Insurance, extended warranty or accessories added to the loan raise the amount you pay interest on. You are free to buy insurance elsewhere.
- Make sure the hypothecation is recorded and later removed. The loan provider's name is noted on the registration certificate; after the last EMI, collect the NOC and get it removed at the RTO.
Apply on federal.bank.in or at a branch. Never pay anyone an upfront fee to "get a loan approved"; genuine loan providers deduct fees only from the loan itself.
More from Federal Bank and similar loans
Other vehicle loans from Federal Bank:
Buying a used car? Read the used car loan guides
A second-hand car changes the rate, the tenure and the paperwork. These guides cover rates by loan provider, car age limits, valuation, down payment and RC transfer.
Compare Federal Bank with other loan providers
See Federal Bank's published vehicle loan rates, fees and tenure next to another bank or NBFC.
Frequently asked questions
What is the Federal Bank car loan interest rate?
Federal Bank publishes 7.90% - 9.00% (checked 4 October 2026). Your own rate depends on your credit score, income, loan amount and the vehicle.
What is the maximum tenure for a Federal Bank car loan?
84 months, as published by Federal Bank. A longer tenure lowers the EMI but raises the total interest.
How much of the vehicle cost does Federal Bank fund?
Up to 95% of on-road price, according to Federal Bank. The rest is your down payment.
What processing fee does Federal Bank charge?
1% of loan (min ₹1,000, max ₹50,000). GST is usually added on top unless stated.
Can I close a Federal Bank car loan early?
Nil.
Is Federal Bank regulated?
Yes. Federal Bank is regulated by the Reserve Bank of India as a private sector bank. If a complaint is not resolved by the loan provider within 30 days, you can approach the RBI Integrated Ombudsman.
What is the EMI on a ₹10 lakh Federal Bank Car Loan?
At 7.9% a year, the EMI on a ₹10 lakh loan is about ₹20,229 over 5 years and about ₹31,290 over 3 years. This uses the lowest published rate, so your own EMI may be higher. Processing fees, GST and insurance are extra.
KhatuLoans is not a loan provider and is not paid by the loan providers or brands named here to rank them. Rates, fees and prices change; always confirm with the loan provider and dealer. Read our editorial policy and how we make money.