Union Bank of India Car Loan Interest Rate

Union Bank of India is known to be one of the largest government-owned banks in India. Rajkiran Rai G has been the CEO of Union Bank of India since 2017. Union Bank of India was established in 1919 and is based in Mumbai.

Union Bank of India offers a car loan to candidates who want to buy a car but are having difficulty allocating finances. You can get a Union Bank of India vehicle loan at an average interest rate if you have a good CIBIL score and meet the eligibility requirements.

Features of the Union Bank of India Car Loan

Here is the list of the characteristics of the Union Bank of India car loan-

  • The bank provides financing for the purchase of a new or used car.
  • Applicants possessing a CIBIL score of 700 or higher are not required to provide a guarantee.
  • A bank can provide financing for up to 85% of the on-road price of a new car.
  • Get a car loan with a payback term of up to seven years (84 months).
  • Car loans are available at competitive interest rates.
  • Salaried applicants who have a salary account with Union Bank of India can earn a 5% margin discount.

Union Bank of India Car Loan Interest Rate 2022

Type

Current Union Bank of India Car Loan Interest Rates

New Car Loan

7.40% - 7.50% p.a

Used Car Loan

10.40% - 10.50% p.a

Factors that Will Affect the UBI Car Loan Interest Rate

Some factors that may influence your Union Bank loan interest rate include-

1) Initial Payment

If you have made a substantial down payment, you may be eligible for a Union Bank home loan with a low-interest rate.

2) Income

Your ability to repay your Union Bank home loan will be determined by the amount of money you make each month. The greater your monthly cash inflow, the lower your Union Bank home loan interest rate, and vice versa.

3) Credit Score

Your CIBIL score indicates your ability to repay loans. If your CIBIL score is 750 or more, you may be eligible for a Union Bank loan with a low-interest rate. If the CIBIL score is lower than 750, you may still be eligible to receive a house loan online from Union Bank, but at a higher interest rate.

4) Amount of the Loan

If you take out a large loan, you may be required to return it at a higher house loan interest rate. If the amount of your Union Bank house loan is little, the opposite may be true.

5) Period

The repayment duration of a bank car loan is determined by the type of vehicle to be acquired with loan funds. The maximum payback duration for new cars is seven years (84 monthly EMIs), whereas, for used cars, it is five years (60 monthly EMIs). The bank does not impose a minimum payback term for car loans. Customers can choose the loan tenure based on their discretion and repayment capabilities.

Other Charges Associated with the Car Loan Rate of Interest Union Bank of India

Processing Fee

Rs. 1,000 for cars (there are no charges for the bank staff)

Relaxation Costs

0.10% of the amount of the loan, which will be subject to a minimum of Rs. 500 and a maximum of Rs. 5,000.

Who is Eligible for the Union Bank of India Car Loan Scheme?

Any resident of the country or a non-resident Indian can apply for a Union Bank of India car loan (NRI). The vehicle must be purchased only for personal use.

For such people, the age criterion is:

  • The minimum age is 18 years.
  • The maximum age is 75 years.

An individual and qualifying family members can apply for the loan jointly. The following members are qualified for this purpose:

  • Son
  • Spouse
  • Father
  • Mother
  • Daughter

The bank also permits businesses to apply for loans for the usage of their directors or employees. The bank does not establish an income condition for qualifying. However, a client with poor repayment capacity will be denied.

What are the Documents Needed in Order to Apply for the Union Bank of India Car Loan?

The paperwork required for Union Bank of India car loans includes basic KYC documents, vehicle-related documentation, and documents proving the applicant's income. To complete the application, these documents must be sent together with it.

1) ID Proof

  • PAN Card
  • Driving License
  • Aadhaar Card
  • Passport

2) Address Proof

  • Aadhaar Card
  • Driving License
  • Latest Utility Bills
  • Registered Rent Agreement/ Lease Agreement/ Sale Deed
  • Passport
  • PAN Card

3) Form

All applicants must sign a completed and signed application form (in case of more than one applicant)

4) Photos

The applicant, as well as any co-applicants, must provide three recent passport photographs (if any)

5) Car Associated Documents

  • Invoice
  • Proforma
  • For an ancient vehicle, a valuation report from an accredited automobile engineer is required.

6) Income Proof

  • Last year ITR
  • For salaried class 
  • For business class
  • P/L, Balance sheet
  • Last three years ITR
  • Last six months' salary slip
  • Form 16
  • Letter from Employer

How to Apply for the Car Loan from Union Bank of India?

You can apply for a car loan through two modes-

  • Offline Mode: In this method, you will have to visit the closest Union Bank of India with the required documents and a representative will help you through the process.
  • Online Mode: In this method, you will have to visit the official website, and complete the application process in the car loan section.
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