Bayern have romped to the title in each of the last two seasons and look set to do so again in 2014-15 as they enjoy an 11-point lead over Wolfsburg with nine matches remaining.
Monchengladbach, who finished sixth last term, have improved on that this time around and occupy third, the final automatic UEFA Champions League qualification spot.
Favre's men have lost just once in their past eight league outings and are in confident mood ahead of the trip to the Allianz Arena.
"Bayern's clear advantage at the top isn't by chance," he said. "Their team is full of quality.
"We aren't scared of them. We're also a good team and we've shown that frequently this season.
"If we put in a good performance, picking up points in Munich is possible. It's certainly going to be an interesting match; we're looking forward to it.
"We need to play intelligently and defend strongly. We need to react quickly when we lose the ball and be ready for anything they throw at us.
"I will have a look at how the lads perform in training but my instincts will also come into play. The best team will start the game."
Favre has Julian Korb and Havard Nordtveit available after they missed the 2-0 win against Hannover last time out, while Roel Brouwers has overcome a bout of illness.
Despite Favre's confidence, Monchengladbach must attempt to topple a Bayern side that have lost just one home Bundesliga game in their last 41 outings.
Bayern's record this season at the Allianz Arena reads 11 wins and a draw from 12 games. However, the visitors can take heart from being one of only two sides to keep a clean sheet against Bayern in the Bundesliga this season, after a goalless draw in the reverse fixture back in October.
Pep Guardiola, whose side were drawn against Porto in the last eight of the Champions League on Friday, has a fully fit squad to choose from after the return of Philipp Lahm in the 4-0 thumping of Werder Bremen last weekend.
Monchengladbach lost 3-1 on their last visit to the Allianz Arena, but that is one of only three Bayern victories in the past eight meetings between these two sides.
