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  • Union Bank Car Loan Interest Rates is Rated as "Blown Away!" by 36 Users

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    Union Bank Car Loan Interest Rates

    Established in 1919 in Bombay, the Head Office branch, Union Bank of India carries the privilege of being inaugurated by the Father of the Nation, Mahatma Gandhi. Union Bank of India currently functions with over 4200 branches across India, with uninterrupted profits shown for the past 96 years. Union Bank of India believes in prudent management and plays a very important role in the development of the country, by contributing to the different sectors of the economy. The bank has a diverse array of products and has involvement in the following sectors - exports, agriculture, infrastructure, industries, trading etc. Union Bank uses the latest technology to provide state-of-the-art banking services with all its branches being computerised. The bank’s businesses are run using the Core Banking system installed to improve connectivity between its branches.


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    Union Miles is one of the best auto financing schemes available in the market, which is cost-effective and high on returns. Union Bank finances all models of cars and four-wheelers at attractive interest rates. Customers can choose to pay back with flexible loan tenures ranging up to Rs 75 lakhs. The processing fee charged by the bank is quite low, with no charge levied for pre-closure of car loans. Union Bank process a car loan application quickly and sanctions them within two working days, provided all the necessary documents have been submitted and the required eligibility criteria has been met. Hypothecation of the new vehicle is compulsory for all Union Bank car loan borrowers.

    Union Bank of India Car Loan Interest Rates 2018

    Union Bank of India offers car loan with fixed interest rates to customers in India. Depending on the type of applicant, Union Bank provides different interest rates. The interest is calculated on a monthly reducing balance basis by the bank. Any individual at the age of 18 and above with a valid driving license can avail a Union Bank car loan. Single or joint applications along with the spouse can be made for a car loan with Union Bank.

    Base Rate of Union Bank of India - 9.65%

    New Car Interest Rates - FIXED
    For all Applicants inclusive of BSNL employees 10.10%
    Loan Processing Charges 0.50% of the loan amount or a Maximum of Rs 6000 inclusive of service tax.
    Loan Tenure Maximum Tenure - 84 Months
    Quantum of Loan Up to Rs 75 lakhs
    Foreclosure Charges NIL - If loan is closed from own sources. 2% of the balance for the past 12 month, if funds are got from another bank or third party.
    Security Hypothecation of the vehicle. Bank’s lien to be noted in the RTO.
    Loan Margin 15 % of on-road price
    Guarantee Guarantee from spouse is required. If unmarried, then third party guarantees is required

    How do you calculate Interest Rates for a Union Bank of India Car Loan?

    Union Bank customers can easily repay a car loan using equated monthly installments or EMIs. The principal amount and the interest rate constitute the EMI amount, which has to be paid back by the borrower on a monthly basis. In the beginning of the loan tenure, customers would be paying EMIs carrying more interest rate amounts than the actual principal. There is a variation in the EMI amount towards the later end of the tenure, with more principal being added and the interest charges being significantly lowered. The EMI for a Union Miles car loan can be repaid back using the following methods - a) ECS Debit facility, b) Standing Instructions from the Union Bank account to the loan amount, c) internet banking or d) Post-dated Cheques (PDCs).

    The EMI for a Union Bank of India car loan can be calculated as follows -

    EMI (E) = [P x r x (1+r) ^n]/ [(1+r) ^n-1]

    Where,

    P = The Principal Loan Amount

    R = The Interest rate charged per month. Union Bank of India charges a fixed interest rate of 10.10% for all types of applicants. This is calculated depending on the base rate, which is currently 9.65%.

    N = Number of monthly installments i.e. the number of years opted for the repayment of loan.

    For a principal amount of Rs. 1, 00,000 given at an interest rate of 10.10% and a loan tenure of one year, an estimate of the total sum of EMIs that has to be paid by the borrower is Rs. 1, 04, 673, out of which the interest will be around Rs. 4673.

    In the following example, for a car loan amount of Rs. 4,00,000 to be repaid in 60 months at an interest rate of 10.10% from Union Bank of India (Calculations based on EMIs paid in advance):

    Year EMI Amount Interest Amount Principal Amount Balance Due
    2015 Rs. 25,342 Rs. 6,548 Rs. 18,794 Rs. 3,81,206
    2016 Rs. 1,01,369 Rs. 35,508 Rs. 65,861 Rs. 3,15,345
    2017 Rs. 1,01,369 Rs. 28,540 Rs. 72,829 Rs. 2,42,516
    2018 Rs. 1,01,369 Rs. 20,834 Rs. 80,535 Rs. 1,61,980
    2019 Rs. 1,01,369 Rs. 12,312 Rs. 89,057 Rs. 72,924
    2020 Rs. 76,027 Rs. 3,103 Rs. 72,924 Rs. 0

    The total interest to be paid towards a Union Bank of India Car Loan for an amount of Rs. 4, 00,000 would be Rs. 106845.

    Factors affecting Union Bank of India Car Loan Interest Rates

    Some of the important factors affecting Union Bank of India car loans have been explained below. Banks might sanction or reject applications based on these factors.

    Down Payment - The down payment amount given by a customer also defines the interest rate that the bank will be offering for a car loan. The higher the down payment amount, the lower the interest rate and vice versa. Customers should always pay a good lump sum before they start their car loan. There are dual benefits attached to this, the first being that the interest rate is lowered and second being that the monthly installment amount also comes down considerably.

    Income to Debt Ratio - The income to debt ratio translates to the amount of debts that a borrower has, to the income earned on an annual basis. Banks consider this to be a major criteria when they sanction a car loan. If the income to debt ratio is good for an applicant, then the lender will give better interest rates.

    Loan Tenure - Lending institutions might offer low interest rates for car loans with shorter loan tenures. Since the borrower has made a huge lump sum down payment, the procured loan amount will be lower, thereby shortening the loan tenure. Shorter loan tenures ensure that customers are able to save on monthly installments through the tenure and they do not have to bear the huge burden of paying extra interest charges.

    Market Fluctuations - The interest rate might vary based on market fluctuations and changes too. For example, if the Reserve Bank of India lowers its repo rate, then lending institutions might offer relatively lower interest rates. This would benefit the customers and it would be an ideal time to avail a car loan. Inflation rate also contributes to the increase and decrease of a car loan interest rate.

    How does CIBIL score affect Union Bank of India Car Loan Interest rates?

    Prospective borrowers must always keep in mind that their CIBIL scores play an integral part in determining the interest rate for their car loans. Any applicant should have regular payment cycles and should not be overburdened by liabilities. Holding a good score always ensures that the bank gives the lowest interest rates. Banks will mostly not consider giving low interest rates for customers presenting a bad score and might even increase the rate significantly. The car loan will cost the customer more, than the actual amount he intended to invest. Since the CIBIL score represents the customer’s financial profile, it is important that customers have a clean credit history and a high score with regular payments and lesser outstanding liabilities.

    Key Pointers to know about Union Bank of India Car Loan Interest Rates

    • The Union Bank car loan interest rate is decided depending on the base rate of the bank and might be revised accordingly by the lender.
    • Union Bank offers car loans at fixed interest rates and so customers do not have to worry about rate changes and market fluctuations.
    • The interest rate for a Union Bank of India car loan is calculated on a month balance reducing basis. When the calculation is done in this manner, the principal amount reduces every month, which helps borrowers save significantly during the entire loan term.

    Car Loan Reviews

    • Union Bank of India Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I have taken a car loan with Union Bank of India. The customer services and response is good. I got the loan on time and it was a easy process. The rate of interest and processing charges is normal. There has been no issues till date in the after loan services.
      Was this review helpful? 7
      , new delhi
      Reviewed on Sep 24, 2018
    • Union Bank of India Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have taken car loan from Union bank of India . Am not satisfied with the rate of interest which is high They did quick documentation process and approval Their customer service is as there is proper response from them. They provided the tenure period of 7 years but i have pre closed the loan one year .
      Was this review helpful? 3
      , chennai
      Reviewed on Jul 17, 2018
    • Union Bank of India Car Loan
      "Average service"
      0.5 3.0/5 "Satisfactory"
      My car loan experience with Union bank of India was average, the loan amount was sufficient but the rate of interest was bit high when compared to other banks. The process took 2 months to complete. Customer service was not up to the mark, they charge 2% of the principal amount for preclosure and the tenure of this loan is 5 years.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 02, 2018
    • Union Bank of India Car Loan
      "Excellent service"
      0.5 4.0/5 "Great!"
      The car loan service was hassle free with the UNION BANK OF INDIA. They have just disbursed the loan amount within 2 days of time. The customer support and the response was excellent with the UNION BANK OF INDIA. The rate of interest and the charges are average with the UNION BANK OF INDIA.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Feb 14, 2018
    • Union Bank of India Car Loan
      "Best service"
      0.5 5.0/5 "Blown Away!"
      I have taken a car loan with Union Bank of India and my loan experience was very good. The process was very smooth and i received my loan amount on time. The loan amount was for Rs 5.25 lakhs with the nominal rate of interest when compared to other banks. Customer service was good and they followed up on time. The tenure of this loan is 4 years but i foreclosed the loan in 3.5 years, they did not charge any penalty.
      Was this review helpful? 1
      , new delhi
      Reviewed on Feb 14, 2018
    • Union Bank of India Car Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I have taken car loan with Union Bank of India and it was a good loan experience. The process was very smooth and the loan amount was approved within the given time and there was no delay. Customer service was good and they provided door step service to collect the documents. The loan amount was for Rs 3.25 lakhs with the nominal rate of interest when compared to all other banks.
      Was this review helpful? 4
      , ghaziabad
      Reviewed on Dec 13, 2017
    • Union Bank of India Car Loan
      "Good services"
      0.5 4.0/5 "Great!"
      Union Bank of India is pretty good and they were very fast in the process for the car loan. I got the loan within three days. It was a very comfortable process. The rate of interest is good and the charges is also normal. The after loan services is also good.
      Was this review helpful? 1
      , new delhi
      Reviewed on Nov 24, 2017
    • Union Bank of India Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I had a very good car loan experience with Union Bank of India, i have taken loan for Rs 3 lakhs with the rate of interest of 8.5% which is less when compared to other banks. The process was very smooth and the loan amount was approved within 4 days. My loan amount was approved based on the on road price. Customer service was good and their response was also good. The best part i found is there is no processing charges.
      Was this review helpful? 1
      , new delhi
      Reviewed on Nov 16, 2017
    • Union Bank of India Car Loan
      "Good"
      0.5 4.0/5 "Great!"
      My car loan is with UBI for 7 years back and The loan amount was 8 lakhs . The EMI period was 5 years and the rate of interest was 11.5% which is average. I am completely satisfied with the loan process here because It was easy and the executive was very helpful. It took just 2-3 days for the whole process and sanctioned the loan with committed time also.
      Was this review helpful? 0
      , new delhi
      Reviewed on Oct 25, 2017
    • Union Bank of India Car Loan
      "Process is good & swift"
      0.5 5.0/5 "Blown Away!"
      I have taken my car loan from Union Bank of India. The interest rate was around 6% and the processing charges is also normal. The process to get the loan was quick and there were no hassles in the documentation. The after loan services are also good.
      Was this review helpful? 1
      , dhanbad
      Reviewed on Oct 14, 2017
    • Union Bank of India Car Loan
      "Extremely good"
      0.5 5.0/5 "Blown Away!"
      Union bank of India housing loan was simply great, they had helped me out by providing the loan with very minimal conditions.(i.e) terms and conditions were not that much. For instance in my case cheque was issue instantly and that impressed me a lot. It is not a joint loan it is a sole account.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Sep 21, 2017
    • Union Bank of India Car Loan
      "More reliable bank sector in india"
      0.5 5.0/5 "Blown Away!"
      When I applied for the car loan from my same bank, where I hold my account they gave me good service. My car loan got got sanctioned within two days from Union Bank of India. First day I had submitted my documents and next day, they disbursed the amount. Union bank gave me attractive interest, I got all the benefits from them.
      Was this review helpful? 0
      , new delhi
      Reviewed on Aug 04, 2017
    • Union Bank of India Car Loan
      "Fast process"
      0.5 5.0/5 "Blown Away!"
      Union bank of India did a great job for me for the car loan. I got the loan through within two days and the bank transferred the funds to the dealer in the next three days. The rate of interest was of 9% and the processing charges was normal. Overall a satisfactory experience.
      Was this review helpful? 0
      , kochi
      Reviewed on Jun 06, 2017
    • Union Bank of India Car Loan
      "Very good in services & deal on ROI"
      0.5 5.0/5 "Blown Away!"
      Union Bank of India has given me a good deal on the rate of interest and processing charges. The interest rate was of 9% and the charges are minimal. The services was also good with a smooth documentation process. I got the car loan on time and as required.
      Was this review helpful? 1
      , jaipur
      Reviewed on Jun 02, 2017
    • Union Bank of India Car Loan
      "Good in rate of interest"
      0.5 3.5/5 "Pretty good"
      Union bank of India is the lowest in terms of interest rate than any other banks. It is too good. Actually I applied for a car loan with them and it is in process. So far I am getting proper service from the bank. Customer service is also quite approachable.
      Was this review helpful? 0
      , kolkata
      Reviewed on May 10, 2017
    • Union Bank of India Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I haven't taken the car loan with the Union Bank of India. The rate of interest is around 9.15% and which was pretty good for me unfortunately I had to drop the plan of availing loan the process was so fast my loan was sanctioned with short spam of time. I would say that the services was outstanding.
      Was this review helpful? 0
      , nagpur
      Reviewed on May 04, 2017
    • Union Bank of India Car Loan
      "It is good and its recommendable"
      0.5 5.0/5 "Blown Away!"
      My car loan was taken during the year 2005 and it was successfully completed during the year 2009. UBI asked for normal set of documents they did not ask for additional documents. Documents required were FORM 16, salary slip and pan card. I did not face any issues with them till date.
      Was this review helpful? 0
      , barmer
      Reviewed on Oct 19, 2016
    • Union Bank of India Car Loan
      "Very good"
      0.5 5.0/5 "Blown Away!"
      My car loan process was great with union bank of India which was recommended by my friend. Within seven days of time they completed the formalities and disbursed the loan. Interest rate charged was 0.75% less comparing with other banks for the new car.
      Was this review helpful? 0
      , amritsar
      Reviewed on Jul 05, 2016
    • Union Bank of India Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      An excellent experience with Union Bank of India for my Car loan. The process was completed within three days. The documentation was not much. The rate of interest was of 9.36%. And it was a zero processing fee. The services and response was excellent through the process.
      Was this review helpful? 0
      , faridabad
      Reviewed on Apr 23, 2016
    • Union Bank of India Car Loan
      "Very good"
      0.5 4.0/5 "Great!"
      I have taken the car loan with the Union Bank of India and the interest rate was around 9.5%. The loan amount got disbursed to my account within a day of time. The processing charges were nil with them and the documentation process were nominal with them.
      Was this review helpful? 2
      , ahmedabad
      Reviewed on Mar 29, 2016
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