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  • United Bank of India Car Loan Interest Rates

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    United Bank of India Car Loan Interest rate for new car loans is 8.95% for women borrowers and 9.00% for other borrowers. For used car loans, the interest rate is 9.75%. The bank charges a floating interest rate.

    The interest rate for your United Car Loan Scheme will depend on your loan tenure, down payment, monthly income, existing debts, collateral, etc.

    United Bank of India Car Loan

    Features New Car Loan Used Car Loan
    Interest rate (p.a.)  Women: 8.95%  Others: 9.00%  9.75% 
    Loan tenure  Up to 7 years  For pensioners: Up to 6 years  Up to 5 years  For pensioners: Up to 4 years 
    Processing fee  0.59% of loan amount Min: Rs.600 Max: Rs.11,800  0.59% of loan amount Min: Rs.600 Max: Rs.11,800 
    Lowest EMI per lakh  Rs.1,606  Rs.2,112 
    Prepayment charge 
    Loan amount  Up to Rs.40 lakh   For pensioners: Up to Rs.10 lakh  Up to Rs.40 lakh   For pensioners: Up to Rs.10 lakh 

    Factors affecting United Bank of India Car Loan Interest Rates

    The interest rates for a United Bank of India Car Loan will typically be based on various factors along with the applicant’s financial profile. Some of the important factors that can have an impact on the interest rates have been listed below:

    • Down payment: Financial experts always suggest that customers should make higher down payments to lower the burden of repayments. Higher down payments will also help customers shorten their loan tenures and reduce the EMI amounts, thereby cutting the total cost of the car loan.
    • Collateral: If you furnish 50% of your loan value as collateral, you will be entitled to a concession of 0.25% on your interest rate. The collateral will need to be a tangible security or in the form of liquid.
    • Income: A customer’s income plays a vital role in determining the interest rate for a car loan. If the applicant has an acceptable income, then he will be able to make a higher down payment amount, thereby getting a car loan deal at low interest rates. To improve the income criteria, customers can opt for a co-applicant, where the bank will consider the combined income of both the applicants.
    • Credit score: Most banks approve car loans based on the credit score and credit history of an applicant. It is very important that every applicant presents a good score to get an affordable car loan deal. A good score is a reflection of the customer’s regular payment patterns and efficient money management capabilities. Having a high CIBIL score boosts the bank’s confidence in the customer and this might open various avenues for the borrower to save money. Lending institutions might not sanction car loans for applicants with bad scores and even if they do offer a loan package, it will be at high interest rates.
    • Existing debts: As a general rule, customers should apply for any kind of loan with minimum liabilities and outstanding debts. The debt-to-income ratio is an important factor that banks consider while granting car loans. Any borrower should be able to comfortably repay the new car loan along with his/her current liabilities and commitments.
    • Loan tenure: When a car loan is availed, customers should always opt for shorter tenures. Longer tenures attract more interest rate charges. If the tenure is short and if the customer has made a huge down payment amount, then the lender will most likely give the applicant the best interest rates.

    FAQs

    1. Is there a margin on United Bank Car Loan schemes?
    2. Yes, for buying a new car, the margin is fixed at 15% of the car’s on-road price. This is applicable to both individuals and corporates. For old cars, the margin is fixed at 25% of the used car’s valuation that is certified by a valuer.

    3. Can I purchase a used car with a car loan from United Bank of India?
    4. Yes, you can buy a used car that is not older than 3 years.

    5. Is there a ceiling on the United Car Loan quantum for non-individual applicants?
    6. No, for non-individual applicants, there is no ceiling on the loan quantum.

    7. Can a family pensioner get a car loan from United Bank of India?
    8. No, family pensioners will not be able to avail this loan.

    9. What are the car loan schemes offered by United Bank of India?
    10. The bank offers 2 car loan schemes namely, United Car Loan Scheme and United Car Loan Scheme for Pensioners. The United Car Loan Scheme is offered to salaried individuals as well as businessmen and professional and self-employed persons. The United Car Loan Scheme for Pensioners is given to pensioners of United Bank of India, of Central and State Governments, defence services, Public Sector Undertakings, etc.

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