If you really think about it, it's easier getting a loan for a car than a loan for bus fare!
  • Union Bank Car Loan

    Union Bank Car Loan
     4.5 / 5.0   by 11 users
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    Promised Interest Rate

    Customer Service


    Union Bank of India was established on 11th November 1919 with its headquarters in the city of Bombay now known as Mumbai. The Head Office building of the Bank in Mumbai was inaugurated by Mahatma Gandhi, the Father of the nation in the year 1921. Union Bank has been playing a very proactive role in the economic growth of India and it extends credit for the requirements of different sectors of economy. Industries, exports, trading, agriculture, infrastructure and the individual segments are sectors in which the bank has deployed credit to spur economic growth and to earn from a well diversified portfolio of assets. Now you can fulfill your dreams of owing a vehicle by availing Union Miles. You can avail this special scheme to purchase of new or old (up to 3 years) four-wheeler, and you can also avail this loan to purchase a new two-wheeler. To know more, follow some simple steps given below to get best interest rates.

    You’re probably eligible for an Union Bank Car Loan if you are

    Union Bank Car Loan Minimum Age

    At least 18 years old

    Union Bank Car Loan Maximum Age

    No Maximum Age Stipulation

    Union Bank Car Loan Eligible Employment Type

    Salaried or self-employed
    with regular income

    Union Bank Car Loan Minimum Income

    Earn more than the minimum
    income required

    Your Union Bank Car Loan amount eligibility is based on these factors

    Union Bank Car Loan Minimum Salary

    Salaried with Regular Income

    Union Bank Car Loan Maximum Loan to Value

    Loan capped @
    85% of the ex-showroom price

    Union Bank Car Loan EMI

    EMIs of other loans lower
    your eligibility

    Increase your eligible Union Bank Car Loan amount by these steps

    Union Bank Car Loan Payoff Outstanding Credit Card Bills

    Pay off your credit card bills

    Union Bank Car Loan Maximum Tenure

    Choose longer tenure loan up to 7 years

    Documentation needed to apply for an 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

    Union Bank Car Loan Interest RatesUpdated on 06 Oct 2015

    Union Bank Car Loan Details
    Interest Rate 10.10% fixed
    I-Base – 9.65%
    Loan Tenure 1 year to 7 years
    Guarantor Requirement Guarantor required
    Processing Fee 0.50% of the loan amount, subject to maximum of Rs. 6,000 plus service tax as applicable

    Union Bank Overview

    Union Bank of India is one of the largest Govt. of India owned banks in the country. Established in November 1919, the head office campus in Mumbai was inaugurated by Mahatma Gandhi in 1921. A popular banking brand in India, Union bank operates over 4000 plus branches across the length and breadth of the country supported by over 6,400 ATM’s.

    Steady profits in 94 years of its existence is a testimony of UBI’s strong commitment and value system. An enormous customer base of over 49 million is serviced by a commensurate staff of 31,000 bankers across India. Union bank has been instrumental in making significant contribution to the economic and social development by extending banking and credit facilities to the average Indian. The bank has been leveraging technology in finding solutions to automate its network, reduce costs and pass the benefits to its customers.

    This BSE listed bank offers a wide range of banking and financial products catering to needs of individuals & business enterprises alike. UBI also has presence in key cities across the globe in various continents. In the personal banking space, UBI offerings are as below.

    • Accounts
    • Retail Loans
    • Online Payments
    • Cards
    • Insurance Services
    • Investment Services

    With so many solutions on the menu, a discerning customer can find answers to all his banking needs with Union Bank of India.

    About Union Bank Car Loan

    Car financing is one of the leading offerings from Union Bank under retail loans. With Union Miles(The car loan brand of Union Bank), your dream of owning a car is steps away. Union Bank car loans offer financing towards purchase of both new and used cars(up to 3 years).

    The elementary terms and conditions makes Union Bank Car Loans, one of the most gettable car loan products in the market . Also, zero prepayment penalty and processing fees clauses make it pocket friendly scheme helping you save thousands of rupees in costs.

    The documentation is minimal and high on transparency. At 75 lakhs, the quantum of financing is one of the highest compared to other bank car loans. If you’re someone aiming at a luxury car, Union Miles can fulfill your dream of owning one. The fixed interest rates, based on monthly reducing balance is one of the lowest in the car loan segment. For new cars, the current rate of interest is just 10.45% and 15.25% for used cars.

    Why choose Union Bank Car Loan?

    For its pro consumer policies and terms. With such low interest rates and fast track processing (applications with proper paperwork are approved in just under 2 business days), you can bank on Union miles to own your dream car. Go for it , if you’re looking for a friendly bank and great post sales service.

    As detailed earlier, the interest rates are really low. Very few banks are capable of offering such competitive rates in the market. As a customer, you have sufficient bandwidth to repay the car loan. Up to 84 EMI’s(7 years) and and 60 EMI’s(5 years) is the loan repayment period. If you’re someone with a limited monthly budget and dreams of buying a car, Union miles fits the bill.

    Union Bank of India has dedicated loan processing centers known as Union Loan Points(ULP’s) across key cities and towns which makes car loans, easily accessible. Customer service call centers operate 24/7 giving you that extra edge in loan servicing when compared to other banks in this category which are open for stipulated hours during the day.

    Features of Union Bank Car Loan

    Low age qualification

    Generally, with most banks, the minimum age of an applicant should atleast be 21. With Union Bank, any Indian citizen above the age of 18 can apply for a car loan under the Union Miles scheme. The applicant should hold a valid drivers license.

    High Quantum of loan

    Up to Rs.75 lakhs loan is covered for new cars and Rs.10 lakhs for used cars. With such high financing, you don’t have to limit your desire of owning a luxury car.

    Margin of Financing

    Union Miles finances up to 85% of of the ex-showroom price(Vehicle Cost + Registration Charges + Insurance + Road Tax) of the car which implies only 15% burden for the customer. For used cars, the margin is lowered to 50% of the vehicle cost.

    Flat rate of interest

    The rate of interest is just 10.45% for new cars and 15.25% for old units. If you were to compare other car loan offerings in the market, Union bank interest rate in 2015 is the most competitive.

    Decent repayment period

    With a repayment period of up to 7 years for new cars and 5 years for used ones, you get ample time to repay the loan is easy EMI’s. If you’re under limited financial resources, picking a longer repayment period helps maintain household budget.

    Zero prepayment and processing fee

    At present, Union Bank does not charge a processing fee towards handling your application and paperwork. This is a limited scheme offer valid for a certain period. Plus, no prepayment penalty is levied by the bank on outstanding balance if you decide to pre close the account. With such luring terms, you will save money.

    Car loan security

    The car loan arrangement will be on the basis of hypothecation which means the bank will co own the vehicle until full repayment of the loan amount.

    Union Bank Car Loan Interest Rate

    Interest Rates(Fixed) 10.45% for New Cars 15.25% for Used Cars Repayment Tenure(EMI) Up to 84 EMI’s for news cars & 60 EMI’s for used cars Processing Fee: Currently, not applicable. Otherwise 0.50% of the loan amount plus service tax(Max. Rs. 6,000.00) Preclosure Charges Nil if paid off in full. 2% if the car loan is taken over by other banks Max. Loan Amount Up to 75 lakhs for new and 10 Lakhs for old cars Collateral/Guarantor Guarantor required(Bank’s discretion), If married, spouse can be the guarantor

    Before applying for a car loan with Union bank, do inquire for latest offers and schemes. You may be eligible for enhanced terms based on eligibility.

    Union Bank Car Loan Eligibility

    Union Miles is one of the most customer friendly car loan offerings in the market. Compared to other large public sector banks, the eligibility criteria is simpler with Union bank. They have a process that is streamlined and hassle free for the applicants. To ensure fast track processing of car loan applications, UBI has dedicated loan servicing centers known as Union Loan Points or ULP’s. To be eligible to get a car loan from Union bank, you need to be

    • At least 18 years in age.
    • Salaried, self employed individual or Business concern.
    • Sound credit score and no default history.
    • Able to provide guarantor.(Spouse can be the guarantor in case of married applicants)
    • No Minimum income requirement.

    In addition to the above, the bank may further scrutinize the car loan application on basis of credit history by retrieving reports from credit bureaus like CIBIL to analyse your repayment capability. Union bank representatives will inform you further during the application process.

    How to calculate EMI for Union Bank Car Loans?

    Its paramount for a car loan aspirant to do good amount of homework on various facets of availing a car loan. The onus is purely on you to get the best deal on car loan. One of the tools which help in achieving this is an EMI calculator. Union bank car loan EMI calculator helps you compute EMI, provides breakup of interest charges & miscellaneous fees.

    In less than 3 steps, you will be able to easily compute your car loan EMI without any hassles.

    • Before we begin, you will need the car loan amount, rate of interest and processing fee(%) to calculate the EMI.
    • Use the sliders to navigate and freeze the “loan amount” and “tenure”. The summary of your selection is displayed towards the end of sliders.
    • In the following fields, provide the interest rate and processing fee percentage and click “Calculate”.

    The breakup of EMI and other useful information will now be displayed for reference.

    Union Bank Car Loan FAQs

    1. I am interested in a car loan from Union bank. How do I get the application form?

      With Union bank, you can either conveniently apply online, walk into the closest branch or visit a dedicated Union loan point(ULP) center. If you wish to visit a branch, download a copy of the application form available online.

    2. How do I know my car loan status? I applied online 2 days ago.

      At the end of the application process, a unique tracking number will be sent to your registered email id and mobile number. You can either call the 24/7 operational call center to inquire about the car loan status referencing the tracking number or visit the nearest ULP(Union loan point).

    3. If I decide to pre close my car loan account with Union bank, do they penalise?

      Union bank does not charge for prepayment of car loan outstanding amount if you’re paying off the loan amount in full. However, if another bank is taking over, a penalty of 2% on the average balance of the preceding 12 months is levied.

    4. Do I need to have a Union bank savings account or open one for a car loan application?

      Having an UBI savings account is not mandatory.The monthly EMI’s can be debited from other bank accounts as well.

    5. Is there a security I need to provide to be eligible for a car loan?

      The type of car loan agreement will be on basis of hypothecation which legally implies joint ownership with the bank. External security is not required. Your car acts as the security.

    6. How do I contact Customer care for more details on Union Bank Car Loan?

      If you have any queries about the terms of car loans or need updated information before applying, the customer service desk will be happy to answer all your queries at 044 66511800

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    Union Bank Car Loan Reviews

  • Page 1 of 1
    • Car Loan
      "Excellent !!!!!"
      0.5 5.0/5 "Blown Away!"
      Union bank of India has the good staffs and overall the bank is good. I took a car loan with them which was disbursed within 4 days with the interest rate of 10% and processing fee charged is Rs.2000 . They completed the work very fast by collecting the easy documents.
      Was this review helpful? 0
      , jodhpur
      Reviewed on Oct 01, 2015
    • Car Loan
      "Best Bank..."
      0.5 4.5/5 "Excellent!"
      I did not expect this kind of response from union bank of India, it was good. They have given the best rate of interest for my car loan compared to axis bank. Since I am an existing customer they collected less documents. Within 2 days they provided me the loan.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Sep 12, 2015
    • Car Loan
      "Best option for the economic people"
      0.5 5.0/5 "Blown Away!"
      I have taken the car loan with the Union Bank of India. The rate of interest is around 9.25% and which is even less than SBI. The services are best with them and they are not having much money in the basket like HDFC do. However UBI driving the business in the customer service approach. I can say its been from the word of mouth thats the policy UBI is keeping to run their business. Customer service and the responsiveness are good with them.
      Was this review helpful? 0
      , chennai
      Reviewed on Sep 03, 2015
    • Car Loan
      "Required Patience "
      0.5 3.0/5 "Satisfactory"
      My car loan was disbursed in one week from Union bank of India.Interest rate offered was 9.5% and processing fee was 0%. Documentation process was little complicated.I visited the bank i directly and completed the process. Employee of the bank are very slow and we have to follow up for our application status. The person who has more patience for those only i will recommend the bank .
      Was this review helpful? 2
      , hyderabad
      Reviewed on Jul 21, 2015
    • Car Loan
      "Good process"
      0.5 5.0/5 "Blown Away!"
      Union Bank of India car loan process is fine. Interest rate offered by them was a fixed rate and the processing fee charged by them was very minimal. The only drawback as there was too much of formalities they kept asking various questions. They came to my place for a house visit also. However when it comes to documentation it was not very complicated I just filled up the form and everything was completed.
      Was this review helpful? 0
      , allahabad
      Reviewed on Jun 15, 2015
    • Car Loan
      0.5 5.0/5 "Blown Away!"
      I have taken a Car loan from United Bank of India. The services offered by the Bank was good. The executive came home and collected all the papers. After which there was no specific reasons given by the Bank for not approving my loan. The processing fee charged was nominal by the Bank.
      Was this review helpful? 0
      , vadodara
      Reviewed on May 06, 2015
    • Car Loan
      "Extraordinary services "
      0.5 5.0/5 "Blown Away!"
      As I am an employee of Union bank I feel that the services are good. I have a car loan which has benefits is like we can avail amount of Rs.5 lakhs with a simple interest rate of 8.5%. I would say that the services was ok and satisfactory as it is a staff loan.
      Was this review helpful? 0
      , jodhpur
      Reviewed on Dec 01, 2014
    • Car Loan
      "Thanks for the support"
      0.5 5.0/5 "Blown Away!"
      I am very much satisfied by availing the car loan from Union bank of India. They are very excellent and supportive. During 2013 I was in little bit economic crunch due to surgery of my family member . At that time I got some cheque bounces wherein they supported me and gave me 3 days as grace period without charging any late payment. Thanks for the support . Now everything in streamline. Interest rate was little low compared with other banks. They are very responsive
      Was this review helpful? 0
      , kolkata
      Reviewed on Sep 23, 2014
    • Car Loan
      "Satisfied with Service"
      0.5 5.0/5 "Blown Away!"
      Car Loan with Union Bank of India with in 2 days i got approval interest rate was same as other banks, charges and processing fee was minimum, it is nationalized bank so i got good benefits best part is i can pay more amount to reduce interest rate pre closure charges is not available.
      Was this review helpful? 0
      , pune
      Reviewed on Aug 26, 2014
    • Car Loan
      "Outstanding Customer Service"
      0.5 5.0/5 "Blown Away!"
      Outstanding Customer Service is what Union Bank of India Car Loan is offering, despite of being a Government Bank it provides excellent Customer service, staff are well knowledge and well trained and they make each and every customer to feel special, on top of that the interest rate what they offer is very less when compared with other banks and processing fee as well.
      Was this review helpful? 0
      , nagpur
      Reviewed on Aug 23, 2014
    • Car Loan
      "Felt comfortable in availing this loan"
      0.5 5.0/5 "Blown Away!"
      Actually submitted the documents previously for home loan, it was easier for getting the car loan. The documentation was simple and its the same for home loan. It was done within 2 days. EMI date is flexible and interest rate is quite comfortable and pay in excess and there is no penalty charges.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jul 04, 2014
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