• City Union Bank Car Loan

    City Union Bank is an Indian bank. The Kumbakonam Bank Limited, as it was at first called, was incorporated as a limited company on 31 October 1904. The bank initially preferred the role of a regional bank in the Thanjavur District Tamil Nadu. The main purpose of the loan is helping the deposit holders to get financial help against their deposit at the time of need, and the advance is for immediate family or business expenses. To know more, follow some simple steps given below to get attractive deals.

    Documentation needed to apply for an City Union Bank Car Loan

    • 1. Signed application form with photograph
    • 2. Photo ID and age proof
    • 3. Residence proof
    • 4. Last 6 months bank statement
    • 5. Documentation for salaried applicants:
      • Last 3 months salary – slips
      • Form 16 or Income Tax Returns
    • 6. Documentation for self-employed applicants:
      • Last 3 years Income Tax Returns with computation of Income
      • Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account

    City Union Bank Car Loan Interest RatesUpdated on 17 Oct 2021

    City Union Bank Car Loan Details
    Interest Rate (Monthly reducing balance) 14.50%
    Processing Fees 1.25%; Minimum Rs.700
    Loan Tenure 5 years

    Overview About City Union Bank Car Loan

    Owning a car of your choice is a dream that every individual carries life-long. But getting the right car with the right kind of financing, takes effort and considerable research from the individual’s end. Car owners generally look for affordable interest rates when they choose a car loan. Along with other aspects of a car loan the extra charges levied should also be taken into account by prospective borrowers.

    As one of the best car loans in the market, City Union Bank offers a car loan product with competitive pricing and complete transparency. Car owners can also get a comprehensive car insurance policy along with their CUB car loans. City Union Bank offers complete flexibility of repayments with variable tenures.

    Why choose a City Union Bank Car Loan?

    The Yoha Vahana car loan scheme from City Union Bank is a comprehensive financing solution for your new car, giving you maximum returns when you plan to invest on a four-wheeler. Low processing charges and flexible repayments make a City Union Bank car loan, one of the most sought-out debt product in India.

    Features of a City Union Bank Car Loan

    Quantum of Loan

    City Union Bank sanctions car loans up to a maximum of Rs.5, 00,000/- for professionals and self-employed businessmen with an annual income of above 1.5 lakhs.

    Loan Margin

    The loan margin required for a City Union Bank car loan is 10%.


    The hypothecation of the vehicle is required while availing a City Union Bank car loan.

    Third Party Guarantee

    A co-obligant can be given when an application is made to City Union Bank. The third party can be the spouse considered for the eligibility or any other individual.


    Customers have to make repayments in the form of monthly installments within a maximum tenure of 60 months. CUB does not allow any moratorium period to be included.


    An all-inclusive car insurance policy can be got for a CUB car loan, with the borrower bearing the cost of the insurance policy.

    Processing fees

    City Union Bank charges 1% of the total loan amount as processing fees for car loans, with no extra charges.

    Disbursal of the loan

    City Union Bank disburses the car loan directly to the car dealer or supplier.

    City Union Bank Car Loan Interest Rates

    City Union Bank offers car loans at a competitive interest of 15%, fixed for the entire loan tenure.

    Eligibility criteria City Union Bank for a Car Loan

    • Salaried employees and self-employed businessmen are eligible to apply for a City Union Bank car loan.
    • Individuals need to show a net monthly income of 15000/- to qualify for the car loan.
    • Self-employed professionals need to show an annual income of 1, 50,000/- to qualify.
    • Customers who have already taken credit from CUB can also apply for a car loan.
    • To calculate the total eligibility for an applicant, the income of the spouse can be considered and added as a co-applicant.

    City Union Bank Car Loan EMI calculator

    When you decide to buy a new car, you are generally very decisive about the car model and make. What actually puts you in a dilemma is how you are going to finance the car and if you do choose a car loan how much will that actually cost you. It is very important that you plan your finances and understand how much you would actually be paying towards a car loan. Helping you in this decision making process are intelligent tools called car loan EMI calculators. This tool will show you the actual cost of a City Union Bank car loan with a break-up of interest rates and monthly installments. As inputs, certain details like processing fees, loan amount, loan tenure and interest rates need to be entered. The car loan EMI calculator projects a repayment forecast, helping you manage your money better.

    City Union Bank Car Loan FAQs

    1. Can I take a CUB Yoha Vahana car loan for my used car?

      No, City Union Bank does not provide car loans for second hand cars.

    2. Is Hypothecation of the new vehicle mandatory for customers?

      Yes, Hypothecation of the vehicle has to be mandatorily done while applying for a CUB car loan.

    3. Can I apply for a City Union Bank car loan on the bank’s web portal?

      Yes, customers can easily apply for a City Union Bank car loan using the online form. They need to fill-in certain personal details when they file an application.

    4. Does the CUB Yoha Vahana scheme cover loans for two-wheelers?

      No, the CUB Yoha Vahana scheme does not provide loans for two-wheelers. City Union Bank offers the CUB Easy Ride loan scheme exclusively for two-wheelers.

    5. Can I get a moratorium period for my City Union Bank car loan?

      No, City Union Bank does not provide any kind of moratorium period for car loans availed by customers.

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    City Union Bank Car Loan Reviews

    • City Union Bank
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I have taken a Car Loan with City union bank.The loan amount is four lakhs,rate of interest is nominal as compared to other banks.The tenure is for 4-5 years .I pay am EMI of 11300.I am totally happy banking with them,i pay my EMI through online transfer.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jan 11, 2018
    • City Union Bank
      City Union Bank
      "Its Excellent"
      0.5 4.0/5 "Great!"
      Being a staff of city union bank, they offered me good car loan offer. I have submitted only my RC copy and hypothication and insurance of the car. Within two days they have processed my car loan with the interest rate of 8.85% . My vehicle price was around Rs.10 lakhs, I have paid Rs.2 lakhs as processing fee remaining all converted into an EMI.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jul 03, 2017
    • City Union Bank
      "Need Transparency in the process"
      0.5 1.0/5 "Really Bad"
      I got a car loan experience with City union bank 7 years ago. It was very bad experience. When I got the loan thy haven't explained me about the product and their interest rate. At the time of purchase, the interest rate was 13%, they have charged the processing fee of Rs,4000. After a year they have made an additional charges around Rs,2700, I got this car loan with the floating interest rate and they never informed me about the floating interest rate and then I have started paying the 14.2% from the 2nd Year. By the end of 5th years I paid around 15 % interest rate for the car loan. They need to have transparency in their service .
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 03, 2017
    • City Union Bank
      "Satisfied Experience"
      0.5 5.0/5 "Blown Away!"
      City Union Bank was excellent in all aspects, I directly visited to the branch and approached for car loan. Based on existing current account they had considered and processed my application. But I informed them will get my new car in 2017. Overall I was satisfied with CUB Bank.
      Was this review helpful? 2
      , chennai
      Reviewed on Nov 28, 2016
    • City Union Bank
      "Best customer service"
      0.5 4.0/5 "Great!"
      I availed car loan from Citi union bank before 3 years and everything is pretty good. If the customer is an existing customer, loan disbursement happens within 1 day and am feeling happy about it. Interest rate and processing charges are quite higher but it can be compensated with the customer service. I was able to get my 85% of the loan amount which i quoted.
      Was this review helpful? 3
      , kolkata
      Reviewed on Jun 02, 2014
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