Union Bank Car Loan
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]( "Union Bank Car Loan Minimum Age")
At least 18 years old
![Union Bank Car Loan Maximum Age]( "Union Bank Car Loan Maximum Age")
Maximum 70 years old
![Union Bank Car Loan Eligible Employment Type]( "Union Bank Car Loan Eligible Employment Type")
Salaried or self-employed
with regular income
![Union Bank Car Loan Minimum 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]( "Union Bank Car Loan Minimum Salary")
Salaried with Regular Income
![Union Bank Car Loan Maximum Loan to Value]( "Union Bank Car Loan Maximum Loan to Value")
Loan capped @
85% of the ex-showroom price
![Union Bank Car Loan EMI]( "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]( "Union Bank Car Loan Payoff Outstanding Credit Card Bills")
Pay off your credit card bills
![Union Bank Car Loan Maximum Tenure]( "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 20 Oct 2017
Union Bank Car Loan Details
| Interest Rate | 8.70% |
| Loan Tenure | 1 year to 7 years |
| Guarantor Requirement | Guarantor required |
| Processing Fee | 0.50% of the loan amount, subject to maximum of Rs. 15,000 + S.T |
Mr. Sharma was tired of taking a cab every day. We helped him get his own car.Explore Car Loans
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.
Perfect Car Loan Deals for you
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 Rates
As per RBI guidelines, the bank has mandated MCLR (Marginal Cost Based Lending Rate) to determine the effective rate for car loans. The table below provides further details.
Union Bank Marginal Cost Based Lending Rate (MCLR) for New Borrowers
| Benchmark MCLR rate |
9.45% |
| Rate of interest |
9.80% |
Note: The interest rate is subject to periodic revision as per bank’s credit policy and RBI’s quarterly reviews. Make sure to confirm with the bank on prevailing rates at the time of applying and choose the terms accordingly. The above mentioned interest rates are subject to change as per the revised GST rates.
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
- What is the eligibility criteria to apply for an Union Bank Car Loan?
An applicant has to meet the following eligibility criteria to apply for an Union Bank Car Loan.
- Indian citizens above the age of 18 years can apply for this car loan.
- The applicant must hold a valid driving license.
- The customer can apply either singly or jointly (with spouse).
- What is the maximum quantum of loan that will be offered under Union Bank Car Loan?
The maximum loan quantum that will be offered for the purchase of new four wheeler is Rs. 75 lakhs. For old four wheelers, Rs. 10 lakhs is the maximum loan quantum that will be offered.
- What types of vehicles can be purchased with an Union Bank Car Loan?
Union Bank Car Loan borrowers can purchase any type of new four wheeler. Also, old four wheelers, not more than 3 years old, can be purchased using the loan.
- What is the margin for new four wheelers to be purchased with Union Bank Car Loan?
For new cars, the margin is set at 15% of the on-road price which includes vehicle cost, insurance, road tax and registration charges.
- What is the margin or down payment to be done for old cars to be purchased with Union Bank Car Loan?
For old cars to be purchased with Union Bank Car Loan, the margin is set at 50% of vehicle’s cost.
- What are the processing charges for Union Bank Car Loan?
Union Bank charges a nominal processing charge of 0. 5% of the loan amount, subject to a maximum of Rs. 6, 000 plus GST for car loans.
- What is the maximum repayment tenure that one can avail for purchasing a new car with Union Bank Car Loan?
For new 4 wheelers to be purchased with Union Bank Car Loan, customers can choose a maximum repayment tenure of 7 years.
- 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 to be purchased with Union Bank Car Loan, borrowers can choose a maximum repayment tenure of 5 years.
- What are the current interest rates for Union Bank Car Loans?
The prevailing interest rates for Union Bank Car Loans are presented in the following table.
|
Loan / Purpose
|
Interest Rate
|
|
New four wheeler
|
Base Rate + 0. 35%
Currently set at 10. 00%
|
|
For four wheelers not older than 3 years
|
Base Rate + 3. 00%
Currently set at 12. 65%
|
As interest rates are subject to frequent change, do enquire with Union Bank about prevailing rate of interest before applying for a car loan.
- What is the nature of interest charged for Union Bank Car Loan?
The interest rate is floating and will be calculated on a monthly reducing basis.
- Will I incur any prepayment penalty if I foreclose my Union Bank Car Loan?
The borrower will not incur any prepayment penalty if the loan amount is adjusted by the borrower from his own legitimate verifiable sources.
- Will I incur any penalty if my Union Bank Car Loan is taken over by another bank?
Yes, a fee of 2% will be charged on the average balance of the preceding 12 months if the loan is taken over by another financial institution or bank. the same applies if the loan is adjusted by the borrower in lump sum from any third party source except in case of genuine sale.
- What is considered as security for Union Bank Car Loan?
- For Union Bank Car Loan, the following is prescribed as security.
- Lien of bank is to be filed with concerned Road Transport Authorities
- Hypothecation of vehicle purchased out of loan
- Do I have to present any guarantee for Union Bank Car Loan?
Yes, guarantee of the 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.
- How do I procure the application form for Union Bank Car Loan?
You can get the application form for Union Bank Car Loan online at the bank’s web portal. You can also visit the nearest Union Bank branch to get a car loan application form.
- What documents concerning the vehicle do I have to provide while applying for Union Bank Car Loan?
The applicant has to produce the valuation report from an approved automobile engineer for an old vehicle and the pro forma or invoice for new cars while applying for an Union Bank Car Loan.
- I am a self employed applicant. What income documents do I have to submit?
Business class applicants must submit the profit and loss statement, balance sheet and Income Tax return statements for the last three years as income documents.
- What income documents is expected from salaried applicants while applying for an Union Bank Car Loan?
Salaried applicants must submit the following income documents.
- Last 6 months salary slip
- Form 16 or letter from the employer
- Income Tax Returns for last one year
- Apart from income documents, what other documents will be required to apply for Union Bank Car Loan?
- Proof of identity - passport, PAN card or employee identity card
- Address Proof - Ration card, telephone bill or electricity bill
- Duly filled application form
- Three passport size photographs
- 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.
- How do I apply for an Union Bank Car Loan?
Customers can visit any of the Union Bank retail lending branches called Union Loan Points for loan application. Alternatively, the customer can visit the nearest branch or apply online to proceed with the car loan process.
- 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 call centre 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.
- What are the stages involved in an Union Bank Car Loan?
There are three main stages involved in an Union Bank Car Loan.
- Application - submission of application with all necessary documents
- Sanction - approval for a specific loan amount
- Disbursement - distribution of loan amount
- How is the loan quantum decided?
For Union Bank Car Loans, the quantum is calculated based on the applicant’s repayment capacities and the value of property.
- 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 other value added service that come with an Union Bank account.
- How can I repay the Union Miles vehicle loan offered by Union Bank?
You can choose to pay the EMI in any of the following methods.
- ECS debit facility
- Post Dated Cheques (PDCs)
- Internet banking facility available on Union Bank savings account
- Standing instruction to Union Bank of India savings account to directly remit the EMI amount to loan account
- What is monthly reducing basis method for interest calculation?
Union Bank used the monthly reducing basis method to calculate interest for car loans. When the loan interest is calculated on monthly rests, the principal amount on which the interest is charged goes down significantly every month. This method of interest calculation ensures better savings for customers over the loan tenure.
- What are the maximum number of EMIs that I can choose for Union Bank Car Loan?
For new four wheeler loans, customers can choose to repay the loan in maximum 84 EMIs and for old four wheelers, the maximum limit is 60 EMIs.
- How is the maximum loan amount calculated for Union Bank Car Loan?
- The maximum loan amount that would be awarded is the minimum of A, B or C.
- 4 times the net annual salary or net income of the customer as per Income Tax Returns
- Total cost of the vehicle minus the margin
- Rs. 75 lakhs for new four wheelers, Rs. 10 lakh for old four wheelers
- All the above conditions would be subject to the condition of 40% gross income as take home pay.
- 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.
GST of 18% is applicable on all banking products and services from the 1st of July, 2017.
Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar’s partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.
Details
