6 June 2019 – RBI reduces repo rate to 5.75% by 25 bps
Union Bank Car Loan Interest rate for new car loans is 9.05% and for used car loans is 12.05%. For borrowers who are BSNL customers, the interest rates for new car loans are 8.65% and 8.90% and for used car loans is 11.15%. The interest is applied on the loan according to the reducing balance method at monthly rests.
The interest rate on your Union Bank Car Loan will be fixed after considering factors such as your income, loan tenure, credit score, down payment, and so on.
Union Bank Car Loan
|Features||New Car Loan||Used Car Loan|
|Union Miles Car Loan||9.05%||12.05%|
|Union Miles - Special Scheme for BSNL Employees||8.65% (up to 3 years) and 8.90% (3 to 5 years)||11.15%|
|Loan tenure||Up to 7 years||Up to 5 years|
|Union Miles Car Loan||0.5% of loan amount + tax Maximum: Rs.15,000 plus tax||0.5% of loan amount + tax Maximum: Rs.15,000 plus tax|
|Union Miles - Special Scheme for BSNL Employees||Nil||Nil|
|Loan amount||Up to Rs.125 lakh||Up to Rs.20 lakh|
|Lowest EMI per lakh||Rs.1,611||Rs.2,227|
Factors affecting Union Bank of India Car Loan Interest Rates
Some of the significant factors that can affect Union Bank of India car loans have been explained below. Banks might sanction or reject applications based on these factors:
Union Bank charges floating interest rates for car loans.
Yes, Union Bank provides loans to buy used cars that are not older than 3 years.
This loan can be availed only by a permanent employee working at BSNL or an employee who is on a permanent deputation from Department of Telecom (DOT) to BSNL with a salary account at Union Bank of India and with a regular income flow. It can be taken by an individual singly or along with their spouse.
Under Union Miles Car Loan scheme, the margin is 15% of on-road price for a new car loan and 40% of the used car’s valuation cost for a used car loan. Under Union Miles - Special Scheme for BSNL Employees, the margin is 15% of on-road price for a new car loan and 33% of the used car’s valuation cost for a used car loan.
Yes, the bank requires a guarantee from the spouse of the borrower. If the applicant is unmarried, then a third party can give the guarantee. If the applicant is an NRI, 1 or 2 local residents have to provide a guarantee. If the applicant is a company, then a director or promoter has to give a guarantee.
Yes, the security will be the hypothecation of the car that is bought with the loan from the bank. One will also have to give the bank’s lien to the Road Transport authorities.
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