Federal Bank Two-Wheeler Loan at a glance
| Feature | Federal Bank Two-Wheeler Loan |
|---|---|
| Product name | Federal Personal Car Loan (new two-wheeler) |
| Interest rate | 12.60% - 16.00% |
| Rate type | Fixed |
| Maximum tenure | 60 months |
| How much it funds | Not published on the loan provider's website. Ask for it in the Key Fact Statement. |
| Processing fee | 2.50% (min ₹2,500) |
| 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 two-wheeler loan of ₹1 lakh over 3 years, here is what Federal Bank's published rates mean in rupees:
| Rate a year | Monthly EMI | Total interest |
|---|---|---|
| 12.6% (lowest published) | ₹3,350 | ₹20,606 |
| 16% (highest published) | ₹3,516 | ₹26,565 |
The gap between the two ends of the range is ₹5,960 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 Two Wheeler Loan EMI calculator.
Federal Bank vs other loan providers for two-wheeler 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 |
|---|---|---|---|
| IDFC FIRST Bank | From 9% | 60 months | private sector bank |
| HDFC Bank | 9.99% - 25.02% | — | private sector bank |
| Axis Bank | 10% - 28% | 12-48 months | private sector bank |
| Punjab National Bank | From 10.00% | 60 EMIs | public sector bank |
| ICICI Bank | 10.25% - 26.10% | Up to 36 months | private sector bank |
| Union Bank of India | 11.10% - 11.20% | — | public sector bank |
| SBI | 11.70% - 15.70% | Up to 60 months | public sector bank |
| Tata Capital | From 12.5% p.a. | 60 months | NBFC |
| Federal Bank | 12.60% - 16.00% | 60 months | private sector bank |
| Hero FinCorp | 14% - 36% p.a. | 60 months | NBFC |
| Chola | 15% - 28% p.a. | — | NBFC |
| Kotak Mahindra Bank | — | 12 - 36 months | private sector bank |
| Bank of Baroda | Floating from 13.60%; fixed from 13.65% | 60 months | public sector bank |
| IndusInd Bank | — | 36 months | private sector bank |
| Bajaj Finance | Up to 24.25% p.a. | — | NBFC |
| Bajaj Auto Credit | Up to 30% p.a. | 3-60 months | NBFC |
| TVS Credit | Up to 36% p.a. | 12-60 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.
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, voter ID, passport or driving licence
- Address proof such as Aadhaar, utility bill or rent agreement
- PAN card or Form 60 where PAN is not available
- Recent salary slips or 3 to 6 months of bank statements
- Passport-size photographs and a signed application form
- Dealer quotation or proforma invoice for the chosen model
- Cancelled cheque, e-mandate or post-dated cheques for EMI payment
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 two-wheeler loan interest rate?
Federal Bank publishes 12.60% - 16.00% (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 two-wheeler loan?
60 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?
Federal Bank does not publish a funding limit for this loan; it depends on your profile and the vehicle.
What processing fee does Federal Bank charge?
2.50% (min ₹2,500). GST is usually added on top unless stated.
Can I close a Federal Bank two-wheeler 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.
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.