United Bank Car Loan - Features & Eligibility Criteria

United Bank of India Car Loan Interest Rates

Overview of United Bank of India 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.

Why Choose United Bank of India Car Loan?

United Bank Of India has two schemes for car loans -

• United Car Loan Scheme for new cars
• United Car Loan Scheme for Pensioners for new and old cars (the car should be less than 4 years old)

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.

Features of Car Loans from United Bank of India

Quantum of Loan -

For United Car Loan Scheme -

1. In case of individuals, the quantum of loan is Rs.40 lakh maximum. In case of Non- Individual, there is no limit on the quantum of loan.

For United Car Loan Scheme for Pensioners -

1. 48 month's net pension disbursed as loan amount, subject to a maximum of Rs.4 lakh.

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.

Margin -

1. New car - 15% of on road price of the vehicle.
2. Used car - 25% of the valuation of the second-hand car as certified by the valuer.

Concessions -

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.

United Bank of India Car Loan Interest Rates

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

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.

Eligibility Criteria for a Car Loan

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 -

1. Age limit: The loan must be repaid before the borrower reaches 75 years of age.
2. Eligible applicants: Pensioners of central and state government undertakings, central and state governments, public sector undertakings, educational institutions, reputable companies, Defence Services, and United Bank of India.
3. A pensioner drawing pension from UBI and meeting the following criteria will be eligible to apply for a car loan under the scheme:
   1. Income: The applicant must have a minimum net monthly (pension) income of Rs.20,000. If the applicant's spouse is still in employment, then the net income of the spouse could be considered to determine the total net income and EMI, provided the spouse signs on as a co-applicant. The applicant can avail the loan with his or her spouse or employed offspring. The income criteria of the spouse/working offspring will be computed with reference to income of IT Returns.
   2. If a family pensioner is dead or not available, then the loan should be sanctioned jointly either with a working offspring or a close relative having sufficient income based on the IT Returns.
4. A retired or VRS employee of UBI is also eligible for car loan under the scheme.
5. A family pensioner is not eligible for car loan.

How to Calculate EMI for a United Bank of India Car Loan?

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.

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