Union Bank Car Loan Eligibility Overview
Union Bank of India is a nationalised bank established in 1919, with its headquarters in Mumbai. At present it has approximately 4000 branches across India with ease-of-access ensured by around 6,400 ATMs. UBI offers a varied portfolio of personal banking products and services such as: Accounts, Online Payments, Retail Loans, Cards, Investment services, Insurance services, etc.
Union Miles, the car loan scheme offered by Union Bank, offers finance for purchase of both new and used cars which is not more than 3 years old. The unique features of Union Bank car loan includes no additional processing fees or prepayment penalty charges, making it an affordable scheme that helps you save on overall cost of taking a car loan. It also has minimal documentation and a high loan quantum.
Union Bank Car Loan Eligibility Criteria
In order to be eligible for the Union Miles car loan from Union bank, the applicant should have the following qualifications:
- He/she should not be below 18 years of age.
- The applicant should be Self-employed, Salaried, or a Business concern.
- The applicant should also have a stable and reliable credit score with no history of default.
- He/she should provide a guarantor - in case the applicant is married, the spouse can be the guarantor.
- There is no specific income criteria applicable.
Factors Affecting Union Bank Car Loan Eligibility
- Union Bank will run a check on your credit report before processing your loan application. The CIBIL score reflects an applicant’s financial records such as: current and closed credit accounts, repayment history, etc. A low credit score would convince the Bank to not consider the application favourably. However, with a high credit score, the application will be considered for further processing. The higher the CIBIL score, the better your chances of car loan approval.
- Debt-to-Income Ratio: The debt burden of a particular applicant is compared to the amount of money earned by him/her in a given period of time through debt-to-income ratio analysis. This shows the Bank the borrower’s repayment capability and creditworthiness.
- Loan Quantum and loan margin: If the borrower pays a large portion of the value of the car as downpayment, then the loan amount decreases. This is considered by the Bank as a positive evaluation factor. The larger the applicant’s contribution and lesser the loan amount, the higher the chance that the car loan will be approved by Union Bank.
- Age: Older applicants have a lower chance of getting car loan approval unless they have high income and/or opt for a lower loan tenure.
- Loan Tenure: A lower car loan tenure means faster loan repayment, as per any banks’ calculations of risk factor. Hence, the loan approval might be more favorable to the applicant.
How to increase your Union Bank Car Loan Eligibility
- Improve your CIBIL Score: A high credit score from CIBIL reflects a good credit history. Thus, the probability of getting your car loan approved is higher. In order to have a good credit history or CIBIL score, you have to:
- Pay back all dues in a time. Late payments and defaulting on loans leads to a low credit score.
- Try to have not just unsecured loans but also secured loans. This ensures a healthy mix of active credit that the bank can track.
- Make sure that there are no defaults made on transactions all your co-signed, guaranteed and/or joint accounts. This is important as your financial liability in these accounts is reflected in your credit score.
- As a co-signatory to a loan or any other credit, it is important that you review such accounts frequently. Defaulted payments in these accounts will also reflect on your credit score poorly.
- A good, reliable guarantor can increase your eligibility for a Union Bank car loan.
- Pledging a collateral or security in the issuing bank in exchange of the car loan can also increase your car loan eligibility.
Union Bank Car Loan Eligibility Calculator
You do not have to visit Union Bank branches or get in touch with the Bank’s executives to find out your eligibility for a Union Bank car loan. In order to know whether you are eligible for a Union Bank Car Loan, you can use the car loan eligibility calculator which is available online. It is quick and easy to use, and gives you instant results. All you need to do is enter information such as the make and model of the car of your choice, its price, personal details such as date of birth, income, etc. and click on the “calculate” tab. The results page will provide you the information needed, i.e., whether you are eligible or not.