Union Bank Car Loan Interest rate for new car loans is 7.40% and for used car loans is 10.40%.
The interest rate on your Union Bank Car Loan is 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||7.40% p.a. onwards||10.40% p.a. onwards|
|Loan tenure||Up to 7 years||Up to 5 years|
|Union Miles Car Loan||Rs.1,000 plus GST||Rs.1,000 plus GST|
|Loan amount||No Ceiling||Up to Rs.20 lakh|
|Prepayment penalty||Nil if loan adjusted from own verifiable source||Nil if loan adjusted from own verifiable source|
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.
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.
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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