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
At least 18 years old
No Maximum Age Stipulation
Salaried or self-employed
with regular income
Earn more than the minimum
Your Union Bank Car Loan amount eligibility is based on these factors
Salaried with Regular Income
Loan capped @
85% of the ex-showroom price
EMIs of other loans lower
Increase your eligible Union Bank Car Loan amount by these steps
Pay off your credit card bills
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 10 Feb 2016
|Interest Rate|| 10.00% fixed |
I-Base – 9.65%
|Loan Tenure||1 year to 7 years|
|Guarantor Requirement||Guarantor required|
|Processing Fee||Charges waived (From 15th Aug 2015 to 31st Mar 2016)|
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.
- Retail Loans
- Online Payments
- 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 LoanLow 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 RateInterest 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
- 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.
- 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).
- 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.
- 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.
- 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.
- 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