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  • City Union Bank (CUB) Car Loan Interest Rates 16 Oct 2019

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  • City Union Bank offers a car finance option which can help you get a new car at interest rates starting at 14.5% p.a. The Yoga Vahana allows you to get car loans up to Rs.5 lakh. The bank allows you to repay the loan over a 5-year period. If your annual income is above Rs.1.5 lakh, you can apply for a car loan with City Union Bank.

    Features New Car Loan

    Interest Rate

    14.50% p.a.

    Maximum Loan Amount

    Rs.5 lakh

    Loan Tenure

    Up to 60 Months

    Processing Fees

    1.25% of the loan amount, minimum Rs.700

    Lowest EMI per lakh

    Rs.2,353 (at 14.5% p.a. interest rate for a 5-year tenure)

    Factors Affecting City Union Bank Car Loan Interest Rates

    Read further to understand how different factors influence the interest rate offered by City Union Bank:

    • Credit score: Before your request for the loan is approved, the bank will take a look at your credit score. The score will give the bank an idea of how reliable you are in terms of EMI payment. If your score is high, the bank could offer you a comparatively lower interest rate.
    • Income: If you have a steady income, the bank will be assured that timely payments will be made. Hence, the loan application will be approved. Also, if you have a higher income, you may be offered a lower rate of interest as they do not have to worry about whether you have sufficient disposable income or not.
    • Occupation: The bank will enquire if you are salaried or self-employed. While most banks offer loans to both occupation categories, if you have a job that poses a higher risk, chances are that your interest rate will be high.
    • Debt-to-income ratio: The bank is also concerned with how many debts you currently have. It is always best to clear up as many small loans as possible before applying for a new one as the amount of debt and the number of loans you have could affect the new loan.
    • Loan tenure: The loan tenure is another element the bank takes into consideration when it fixes the interest rate because longer the repayment tenure, higher the chances of default payments. Hence the interest rate is usually affordable for shorter tenures.
    • Make and model of the car: Since the bank will have to sell the car pledged in case you fail to repay the loan amount, the bank will ensure that the car being financed has a good resale value. In case there is a doubt with regard to its resale value in the future, the bank may levy a comparatively high interest rate.

    FAQs

    1. How do I know how much I have to pay and in what frequency to repay the loan?
    2. Loan repayments are typically made in the form of EMIs i.e. equated monthly instalments. You can use the online EMI calculator to understand the amount you have to pay each month by entering basic details of the loan such as the interest rate, loan tenure, and loan amount.

    3. Can I repay the loan before completion of the repayment tenure?
    4. Yes, if the bank allows prepayment, you can pay the amount you desire to pay off your loan. A prepayment charge may be applied for the same.

    5. Is there a margin imposed by City Union Bank for the car loan?
    6. Yes, the margin imposed by the bank for car loans is 10%.

    7. What is the minimum income eligibility?
    8. Individuals are required to have at least Rs.1.5 lakh as their minimum annual income to apply for the CUB Yoga Vahana by City Union Bank.

    9. Where can I apply for the car loan by City Union Bank?
    10. You can apply for the loan at the nearest branch office of City Union Bank or apply through the official website of the bank.

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