Union Bank Car Loan

*Note: For the Union Miles car loan scheme, if the applicant or the co-applicant is a Union Bank of India account holder in the gold/silver/platinum category or has previously availed any type of credit facility with the lender, the processing fee will be reduced to 0.25% of the loan amount, subject to a maximum fee of Rs.7,500 plus taxes.

Why You Need to Avail a Car Loan from Union Bank of India

If you are in need of funds to purchase a car, you can reach out to Union Bank of India to avail a car loan. The lender offers loans for new cars and pre-owned cars under 3 years. Here are a few reasons why you should consider taking a car loan from Union Bank of India:

• Low Age Qualification

Most lenders require car loan applicants to have attained the age of 21 years at the time of submitting their loan application. With Union Bank, any Indian citizen above the age of 18 years can apply for a car loan.

• High Quantum of loan

A loan of up to Rs.125 lakh can be availed for new cars, while a loan amount of up to Rs.20 lakh can be availed for used cars that are not more than 3 years old.

• Margin of Financing

When you avail a car loan from Union Bank of India, you will need to pay for only 15% of the cost of the vehicle if you are purchasing a new vehicle. In case you are purchasing a pre-owned vehicle, you will need to pay for 40% of the car’s valuation cost.

• Floating Rate of Interest

The lender charges a floating rate of interest on its car loan schemes. Thus, if the interest rate drops, you can benefit from paying lower interest.

• Long 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 EMIs. If you’re under limited financial resources, picking a longer repayment period will help maintain your budget.

• Zero Prepayment and Processing Fee

At present, Union Bank of India does not charge a processing fee towards handling your application and paperwork. Also, no prepayment penalty is levied by the bank if you decide to pre-close the account. That said, keep in mind that a fee of 2% of the average balance of the previous 12 months will be levied if the loan is taken over by another lender.

• Online Loan Application

Prospective borrowers can apply for a car loan from Union Bank of India through online or offline channels. The lender allows online applications through its website.

Union Bank Car Loan Eligibility

To be?eligible to get a car loan?from Union Bank, you will need to meet the lender’s eligibility criteria:

• You should be a resident citizen of India or an NRI.
• You should have a valid driving licence.
• Applicants should have attained the age of 18 years.
• Borrowers should not be over the age of 70 years when the loan matures.
• Applicants can choose to apply for a car loan on an individual basis or on a joint basis with any family member. For joint loans, you can apply for the loan with your parent, spouse, or child.
• Companies or firms can also avail the loan.

The lender also has a special car loan scheme for BSNL employees. The eligibility criteria for this scheme are as follows:

• The applicant should be a permanent employee of BSNL.
• Employees who are on permanent deputation to BSNL from the Department of Telecom can also apply for this loan.
• The applicant should have a regular source of income.
• The applicant is required to hold a salary account at Union Bank of India.
• BSNL employees can apply for a car loan from Union Bank on an individual basis or on a joint basis. The applicant’s spouse can be a co-applicant for the loan.

Documents Required

To avail a car loan from Union Bank of India, applicants will need to submit the following documents:

• Identity proof: Applicants can submit their PAN card, passport, employee identity card, or any other valid proof of identity
• Proof of residence: Applicants can submit their Aadhaar card, utility bills, etc.
• Invoice/proforma
• Valuation report from an approved automobile engineer (applicable for old/pre-owned vehicles)
• Income proof of salaried employees:
• Form 16 or a letter from the employer
• Salary slips of the last 6 months
• Past year’s ITR
• Income proof for self-employed individuals:
• Profit and loss statement
• Balance sheet
• ITR of the last three years
• 3 Recent passport-size photographs
• Any other documents requested by the lender

Once you submit the application form and the required documents to the lender, Union Bank of India will verify the submitted documents, after which your application will be approved.

Union Bank of India Car Loan FAQs

1. For what types of vehicles can I avail a car loan from Union Bank of India?

   You can apply for a loan to Union Bank of India to purchase any type of new four wheelers. Also, old four-wheelers, that are not more than 3 years old, can be purchased using the loan.

2. I am planning to purchase a second-hand four wheeler with Union Bank Car Loan. What are the tenure options available for the car loan?

   For old four-wheelers, applicants can choose a maximum repayment tenure of 5 years.

3. What security am I required to submit to avail a car loan from Union Bank of India?

   When availing a car loan from Union Bank of India, the following will be taken as security:

   • Lien of the bank is to be filed with concerned Road Transport Authorities
   • Hypothecation of vehicle purchased out of the loan
4. Do I have to present any guarantee to avail a car loan from Union Bank of India?

   Yes, the guarantee of one’s spouse is required for Union Bank Car Loan. In case the applicant is unmarried, a suitable guarantee from a third party of sufficient means will be required. In the case of NRIs, a guarantee from 1 or 2 resident Indians is required. For companies, at least one director or promoter of the firm will have to provide their guarantee.

5. How do I procure the application form for Union Bank of India’s car loan?

   You can get the application form for a car loan from Union Bank of India online at the bank’s web portal. You can also visit the nearest Union Bank branch to get a car loan application form.

6. How much time will it take for the approval of Union Bank Car Loan?

   It will take 2 days for the car loan to be sanctioned after all required documents are submitted by the applicant.

7. How do I apply for a Union Bank Car Loan?

   Customers can visit any of the Union Bank retail lending branches called Union Loan Points to apply for a car loan. Alternatively, the customer can visit the nearest branch or apply online.

8. Does Union Bank offer customer service support for car loan borrowers?

   Yes, Union Bank car loan customers can get in touch with a customer care executive through the 24/7 helpline number to get their queries cleared. Customers can also visit any nearest Union Bank branch to get support for anything related to the car loan process.

9. Should I have an account with Union Bank for availing a car loan?

   Although having an account with Union Bank is not necessary for availing a car loan, it is recommended so that the customer can benefit from value-added services that come with a Union Bank account.

10. Can I apply for Union Bank Car Loan online?

    Yes, you can apply for a car loan online at Union Bank’s web portal without any hassles.

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