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    Union Bank of India Used Car Loan Reviews

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    Union Bank of India Used Car Loan is Rated as "Blown Away!" by 20 Users

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    Union Bank of India Used Car Loans

    Union Bank was established in the year 1919 and the head office building in Mumbai was inaugurated by Mahatma Gandhi in 1921. Union Bank of India’s growth was accelerated after independence when it was nationalized by the Government of India in 1969. United Bank of India merged with Belgaum Bank and Miraj State Bank shortly after nationalization. The bank now has operational presence in all major states with over 4000 branches across India. In all its 93 years of operation, the bank has shown uninterrupted profit that stands as a testimony to the trust the people of India has placed on UBI. A real trendsetter, Union Bank of India offers top-notch internet banking facilities to both corporate and core banking customers. The bank serves to the banking needs over 49 million customers by offering services in areas like lending, asset management and deposits.

    Union Bank of India used car loan, UnionMiles, is one of the most sought-after product when it comes to vehicle financing. With many unique benefits like attractive interest rates and easy repayment tenures, UBI’s used car loan will take you closer to your dream of owning a car.

    Features and Benefits of Union Bank of India Used Car Loans

    • High Quantum of Loan

      For used cars, Union Bank of India offers up to 10 lakhs as loan amount for used cars not older than 3 years.

    • No Prepayment Penalty

      If the loan amount being pre-paid by the borrower is from own verifiable legitimate sources, there is no pre-payment penalty for foreclosure of loan.

    • Attractive Interest Rates

      Union Bank of India used car loans comes with the most competitive interest rate in the market.

    • Low Processing Charges

      With processing charges as low as 0.5% of the loan amount, subject to a maximum of Rs.6000, UBI used car loan helps you save the money even while applying for a loan.

    • Convenient Repayment Modes

      You can repay the EMI through ECS, internet banking facility, post-dated cheques or directly remit from the savings account, whichever is comfortable.

    Union Bank of India Used Car Loan Eligibility

    To be eligible to apply for Union Bank of India used car loan, the individual should be aged at least 18 years and should hold a valid driving license. The individual can also choose to apply for the loan either singly or jointly with spouse. Also, the applicant should be a resident of India.

    Documentation Requirement for Union Bank of India Used Car Loans

    Having all the required documents handy during the loan application process will ensure that the loan is processed faster. The applicant should submit the following documents while applying for a used car loan with UBI.

    • Proof of Identity – Passport, PAN card, employee identity card or any valid proof with authorized signatory can be submitted as ID proof.

    • Proof of Address – Electricity bill, telephone bill, ration card or a valid proof with address mentioned on it can be provided as address proof.

    • Pro forma or invoice of the purchase.

    • Proof of Income – Salaried employees can submit the Income tax Returns statement for last year, Form 16, letter from employer or last 6 months salary slip. Corporate applicants can submit either last three year’s Income Tax Returns Statement or the balance sheet as proof of income.

    • Depending on the applicant’s source of income and nature of employment, other documents may also be required. Please make an enquiry with the bank about the complete list of necessary documents before proceeding with the application.

    Union Bank of India Used Car Loan Interest Rates

    “Union Miles”, Union Bank of India’s exclusive car loan can be used to purchase a pre-owned car at competitive interest rates. UBI charges an interest depending on the date of loan sanction, with Benchmark MCLR and Base Rates applicable on a case to case basis.

    Union Bank of India Marginal Cost of Funds Based Lending Rate (MCLR) (For new borrowers)

    Customers who avail a loan after 01/04/2016 will automatically be charged an interest computed using the MCLR benchmark. This follows RBI’s new directive to all banks, with the MCLR benchmarks expected to change on a regular basis. The table below indicates the current benchmark rates.

    MCLR Benchmark Tenure (Period) Benchmark Rates (MCLR)
    Overnight 9.20%
    1 month 9.25%
    3 months 9.30%
    6 months 9.40%
    1 year 9.45%
    2 years 9.50%
    3 years 9.55%

    Used car loan interest rates

    Borrowers who have availed a loan under MCLR will be paying an interest equivalent to 12.95% per annum. This is computed using the following formula.

    Interest Rate = 1 year MCLR + 3.50% = 12.95%

    Union Bank of India Base and Prime Lending Rates (For existing borrowers)

    Base Rate 9.65% per annum (effective October 5, 2015)
    Prime Lending Rate 14.25% per annum (effective March 1, 2016)

    Union Bank of India interest rate for used cars (Based on Base Rate)

    UBI charges existing used car borrowers an interest which ranges between 14 to 16% per annum, depending on the base rate, tenure and banking relationship of the customer with UBI. Customers who wish to move to an MCLR based platform can do so by requesting the bank.

    Note: Interest rates mentioned above are valid as of June 2016, with UBI having the sole discretion to modify/change rates. Eligible borrowers are advised to check rates prevailing at the time of application.

    EMI Calculation for Union Bank of India Used Car Loans

    Using an EMI calculator before deciding the tenure and loan amount has many advantages – it will not only help you decide if the EMI fits your monthly budget but will also give an idea of how much you should actually borrow.

    In the UBI’s EMI calculator, enter mandatory details like loan amount, tenure in months and interest rate per annum. The calculator will automatically output the EMI, average interest and monthly interest in an instant. Keep changing the loan amount and tenure till you arrive at a suitable EMI.

    Union Bank of India’s UnionMiles is a unique vehicle financing scheme under which loans up to 10 lakhs can be availed for used cars not older than 3 years. A pioneer in auto loans, UBI’s UnionMiles scheme will melt away your financial worries and help you own your dream car.

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