United Bank of India is a state-owned financial services company headquartered in Kolkata, West Bengal, India. Presently the bank has a three-tier organizational setup consisting of its Head office in Kolkata, 35 Regional offices and 2001 branches spread all over India. After nationalisation, the bank expanded its branch network in a big way and actively participated in the developmental activities, particularly in the rural and semi-urban areas in conformity with the objectives of nationalisation. You have a wide range of choice of deposits offered by UBI. UBI car loan gives you the best cars avaiable with good rate of interest which saves your money. All you have to do is to follow some simple steps to get attractive deals.
|Interest Rate||New car loan - For men, the interest rate is 1-year MCLR + 0.30% = 8.90% p.a. and for women, it is 1-year MCLR + 0.25% = 8.85% p.a. Used car loan - 1-year MCLR + 1.05% = 9.65% p.a.|
|Processing Fees||0.59% of the loan amount subject to minimum Rs.600 and maximum Rs.11,800. Processing fee is waived off till 31 March 2018.|
|Loan Tenure||Upto 7 years for new car loan and 5 years for used car loan|
Getting a car is one of the goals most people set for themselves and a lot of people get old in the process of saving money to buy a car. With banks providing car loans, now it has become easy for people to fulfill their goal of having their own car while they are still young. United Bank Of India is one of the banks which provides car loans in India.
United Bank of India is one among the major banks in India and was nationalised in 1969. With over 2000 branches and offices across the country, the bank has a wide presence and works actively in the rural development sector.
United Bank Of India has two schemes for car loans -
United Bank Of India’s car loans allow a person to buy the best cars by availing them with good interest rates which helps him in saving money. The bank provides concessions to its borrowers who have a good history of dealing with the bank. It also has a separate scheme for pensioners who can get the benefit of car loans on both old and new cars.
Quantum of Loan -
For United Car Loan Scheme -
For United Car Loan Scheme for Pensioners -
Flexible Repayment Tenure -
Both the schemes allow people to pay the loan along with interest in a maximum of 84 Equated Monthly Installments (EMI). If someone decides to pay it early, then the bank does not charge them any fee.
The Bank provides concessions in interest rates to their existing customers who have proved to be good borrowers. A collateral of 50% of the loan value will entail 0.25% concession in interest rate from card rate. The collateral must be in the form of either liquid or other tangible security.
Existing mortgagors who have been making regular payments for 2 years and credit card holders who have been in a good relationship with the bank for a minimum of 2 years, having a credit risk rating of UBICR - 3 get the benefit of this concession. Corporates, institutions, companies and firms also get to enjoy this concession if they promise to repay the loan through a single cheque or direct credit to the loan a/c.
As per recent RBI guidelines, this bank follows the system of MCLR (Marginal Cost Based Lending Rate) to determine the rates applicable for car loans. Unlike most of the banks which maintain separate slabs of rate for various terms, United Bank follows a uniform approach.United Bank of India Marginal Cost Based Lending Rate (MCLR) for New Borrowers
|New car loan||For men, the interest rate is 1-year MCLR + 0.30% = 8.90% p.a. and for women, it is 1-year MCLR + 0.25% = 8.85% p.a.|
|Used car loan||1-year MCLR + 1.05% = 9.65% p.a|
A concession of 0.25% on the standard rate is provided on provision of collateral worth 50% of the loan value. The above mentioned interest rates are subject to change as per the revised GST rates.
Note:The MCLR 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.
For United Car Loan Scheme -
The car has to be purchased for the use of an individual, family or the private use of a partnership firm, proprietorship, company or society.
Any salaried applicant with a minimum net monthly income of Rs.25,000 after all deductions including the EMI of the proposed loan. For salaried applicants with pensionary income, the repayment age may be extended up to 70 years.
The maximum entry age for a professional, self-employed person, businessman or P&SE would be 65 years, subject to loan repayment within 70 years of age. The minimum post-tax income on an average of the last 2 years must be Rs.4 lakh.
For United Car Loan Scheme for Pensioners -
A person must always calculate his EMI before finalizing his car loan. He can calculate his EMI online using the EMI calculator under the finance tab on Bankbazaar.com. He should have information like loan amount, rate of interest, processing fee (if there is any), loan tenure ready with him before using the calculator.
Using Bank Bazaar EMI Calculator -
To calculate the EMI on Bank Bazaar’s EMI calculator, a person has to go to the first slider and choose the amount of loan. Then he has to go to the second slider and enter the tenure. Then he has to fill in the other information like the rate of interest and processing fee. After filling up all the information, he should click on the calculate button to get his detailed result which includes the EMI and the Amortisation table. Through the help of this information, he can choose the right loan for himself and enjoy a very good deal.
Why is it important to calculate car loan EMI before applying for one?
As you know, car loans like any other other loan are repaid by the borrower in Equated Monthly Installments (EMIs) to the lender (bank) over the loan tenure. The principal and interest amount that the borrower has to pay each month make up the car loan EMI. Before applying for a car loan, take the time to calculate the EMI of your proposed car loan in order to find out how much the loan will cost you on a monthly basis. Based on the EMI, you can create a monthly budget and ensure your EMI doesn't exceed your income. This is called the low debt-to-income ratio. This way, there are fewer chances of you defaulting on your car loan.
Car loan EMI is calculated using the below formula:
E = P x r x (1+r)^n/((1+r)^n -1)) where, EMI is the Equated Monthly Installment, P is the principal loan amount, r is the interest rate per month, and n is the loan tenure in months.
To save time and money, you can use the United Bank of India Car Loan EMI Calculator. It is a free and easy-to-use online tool. Just enter the proposed car loan details like loan tenure, interest rate, and loan amount into the tool and click on the 'calculate' button. You will get a breakdown of the principal amount, interest, EMI, and the outstanding due after each EMI payment. The car loan EMI calculator can be used to pick a loan amount that you can afford to repay and a suitable loan tenure to save on interest payments.
How to apply for a United Bank of India car loan?
Download the United Bank of India car loan application form from the bank website or get it from the nearest bank branch. Submit the duly-filled and signed application form online or at a UBI branch along with the necessary document proofs.Use the ‘Branch Locator’ tool on the bank website in order to locate a UBI branch near you. Or, request a ‘Call Back’ on the bank website for assistance with the car loan application. You can also call the toll-free number of the bank for assistance.
You can avail of finance to purchase any kind of four-wheeler for personal use from United Bank of India.
Yes, United Bank of India will finance used cars provided the car is not more than 4 years old.
United Bank of India provides car loan application forms online and at its bank branches.
To apply for a car loan from United Bank of India, you can choose either of the two methods listed below.
To apply for a car loan on the United Bank of India website, follow these simple steps.
Yes, you can. Access the same tab under online services called “Home loan/car loan”. On the top of the application form you will see “Status Track”. Click on it and enter your application number. Select your loan type and click on submit to view your loan status.
The eligibility requirements are given below.
Credit score required isn’t specified by UBI. The bank has the authority to enquire about your score. The usual limits to get a loan sanctioned are 750 and above. Banks may relax it to 550 under certain terms and conditions.
For individuals, United Bank of India has set the maximum loan amount for new vehicles at Rs. 30 lakhs. For non-individuals there is no maximum loan limit.
United Bank of India has not specified any minimum time period for repayment.
The current base rate of United Bank of India is 9.65% per annum. The interest rates on car loans are given in the table below.
Effective Interest Rate
Up to 84 months
9.05% p.a. for Men
9% p.a. for Women
Effective Interest Rate
Up to 60 months
Yes, United Bank of India offers 0.25% concession on the interest rate if collateral is offered for 50% of the value of the loan. Collateral offered should be liquid. Any other tangible collateral will be accepted by the bank.
United Bank of India charges processing fees of 0.50% of the loan amount. This is subject to a maximum of Rs. 10,000 and a minimum of Rs. 500.
There are no document charges for UBI car loans.
Yes, you can prepay the loan before the maturity date.
United Bank of India does not levy any charge for prepayment of car loans.
Hypothecation of the vehicle is required.
For new vehicles, 15% of the on road price is required as margin for individual borrowers as well as companies.
For used vehicles, 15% of the valuation of the vehicle by a certified valuer will be taken as margin.
United Bank of India hasn’t mentioned the charges for late payment. Charges for late payment could include a fee of 1% of the defaulted amount and an increase in the rate of interest.
Yes, if you have a bank account with United Bank of India, you can register for online banking to make payments online.
United Bank of India offers a special scheme for pensioners to buy cars. If you have a net monthly pension of Rs. 20,000, you can avail of this loan. You should repay the loan before the age of 75 years.
Anyone falling under the eligibility bracket below can apply:
Pensioners can avail of up to 48 times their net pension subject to Rs. 4 lakhs maximum. Margin requirements are 20% of the on road price of new cars, and 30% of the assessed value of used cars. Processing charges are 0.50% of the loan amount. There are no prepayment charges.
Yes, United Bank of India and BankBazaar provide EMI calculators online. You can enter your details and view your EMI amount, total interest payable and the total cost of the loan.
Click on the Calculator tab available on the United Bank of India home page. Enter the following details.
No, United Bank of India does not provide loans to buy vehicles for commercial purposes.
The United Bank of India customer care helpline can be reached on their toll free number 1800 - 345 - 0345. You can also contact them via email at email@example.com.
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