City Union Bank (CUB) Car Loan Interest Rates

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.

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FAQs on City Union Bank Car Loan Interest Rates

• How do I know how much I have to pay and in what frequency to repay the loan?

  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.

• Can I repay the loan before completion of the repayment tenure?

  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.

• Is there a margin imposed by City Union Bank for the car loan?

  Yes, the margin imposed by the bank for car loans is 10%.

• What is the minimum income eligibility?

  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.

• Where can I apply for the car loan by City Union Bank?

  You can apply for the loan at the nearest branch office of City Union Bank or apply through the official website of the bank.