Union Bank of India is a top public sector lender in the country that offers financing for both new and old four-wheelers. The interest rates for car loans offered by Union Bank of India start at 8.70% p.a. The maximum repayment tenure for loans taken to purchase new cars is 7 years, while the maximum repayment term for loans taken to purchase pre-owned cars is 5 years. Read on to know more about the car loans offered by Union Bank of India.
|Car Loan Type||Interest Rate||Loan Amount||Processing Fees|
||0.5% of the loan amount|
|Union Miles – Special Scheme for BSNL Employees||
*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.
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:
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.
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.
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.
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.
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.
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.
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.
To be?eligible to get a car loan?from Union Bank, you will need to meet the lender’s eligibility criteria:
The lender also has a special car loan scheme for BSNL employees. The eligibility criteria for this scheme are as follows:
To avail a car loan from Union Bank of India, applicants will need to submit the following documents:
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.
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.
For old four-wheelers, applicants can choose a maximum repayment tenure of 5 years.
When availing a car loan from Union Bank of India, the following will be taken as security:
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.
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.
It will take 2 days for the car loan to be sanctioned after all required documents are submitted by the applicant.
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.
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.
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.
Yes, you can apply for a car loan online at Union Bank’s web portal without any hassles.
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