*Please note quotes shown will be from Our Partners

Car Loan

About the Bank
 

Union Bank of India (UBI) was established on 11th November 1919 with its headquarters in Mumbai. Union Bank of India is one of the largest government-owned banks of India Furthermore, Union Bank of India has won various honors, the most recent being 6 IBA Banking Technology Awards 2015-16 under different categories.


Currently, Union Bank of India is operating in the country from over 4000 plus branches and over 6,400 ATM’s, where around 31,000 bankers are employed. The bank has a wide base of customer and is today offering banking services to more than 49 million customers. The Union Bank of India offers a huge gamut of personal banking services to the customers, ranging from Accounts, Retail Loans, Online Payments, Cards, Insurance Services, and Investment Services.
 

About Union Bank of India Car Loan
 

The Union Bank of India car loan is for people who wish to fulfill their desire of having a car but call off their car finance plans every time due to financial reasons. This Union Bank of India car loan, the Union Miles, is a special scheme to purchase a four-wheeler, be it a brand new car or a pre used car (up to 3 years).


Features of Union Bank of India Car Loan
 

  • Type of car: Union Bank of India  offers loan for a new car as well as pre used car loan (for car not more than 3 years old)
  • Maximum quantum of loan: Maximum loan quantum of Union Bank of India car loan for a new 4-wheeler is Rs. 125 Lakhs and Maximum loan quantum for an Old 4-wheelers is Rs. 20 Lakhs.
  • Loan Margin: Union Bank of India car loan margin for new car is 15 % of on-road price and for old car is 40 % of its valuation cost
  • Repayment tenure : Repayment tenure of Union Bank of India car loan for new car is 7 years and for old is 5 years
  • Processing charges : Processing charges at the rate of 0.50% of the loan amount, subject to maximum of Rs. 15,000 plus service tax as applicable (currently 100% waived till march 2017)
  • Penalties: There is no prepayment penalty. But a penalty of 2% on the average balance of the preceding 12 months is charged, if the Union Bank of India car loan is taken over by any other Bank or adjusted by the borrower in lump sum from any third-party source.

Eligibility of the Union Bank of India Car Loan

To stand at par on the eligibility parameters to apply for a Union Bank of India Car Loan for a new car or pre-used car, an intended car loan borrower has to match the preset requirements of eligibility criteria. The Union Bank of India has established its car loan amount eligibility criteria based on several factors namely; applicant’s age, applicant’s employment type, applicant’s income, applicant’s (or co-applicants) CIBIL score, and on road price of the car.
 

  1. Nationality Criteria: To stand eligible for availing car loan from Union Bank of India, an applicant should be an Indian resident, and for NRI’s they must have relevant documents to prove NRI status.
  2. Age Criteria: Union Bank of India has fixed minimum and maximum age bracket for intended Union Bank of India car loan borrowers.
  • Minimum Age: The applicant’s age should be no less than 18 years to avail car loan offered by Union Bank of India
  • Maximum Age: The applicant’s age at the time of loan maturity should be no more than 70 years.
  1. Criteria for Employment type: The following individuals are eligible for an Union Bank of India Car Loan-            
  • Non-salaried group: Established professionals & self-employed, businessmen  
  • Salaried group: Regular employees who have completed minimum 6 months  service
  • Farmers and agriculturists.
  • Business concerns (Corporates & Non Corporates)
  • NRIs
  1. Co-applicant Criteria: Individual, either singly or jointly with other family members as co-applicants for higher Car loan amount eligibility Check your eligibility

Steps to check eligibility for Union Bank of India Car loan at Paisa Bazaar


To find out whether an individual is eligible to apply for a Union Bank car loan is simple, easy & quick with eligibility calculator tool. With the help of this eligibility calculator by Paisa Bazaar.com, anyone can easily know his eligibility status to avail Union Bank car loans.


Here is the process to use Union Bank of India Eligibility Calculator at PaisaBazaar!
 

Step 1: Click on  Union Bank of India Car Loan eligibility calculator tab at the homepage.
 

Step 2: The user will then be required to answer few basic questions which can be:
 

What type of car are you looking to buy?
 

  • Loan amount you want to mortgage
  • The city you are currently living in
  • Employment status
  • Make or model of the car that you want to buy
  • Tenure of car loan
  • Time for buying the car

Step 3: Once all the questions are answered, the Union Bank of India Car loan eligibility tool would automatically display the eligibility status within an eye blink.


Benefits of Union Bank of India Car Loan eligibility calculator


There are a lot of reasons to use Union Bank of India Car Loan calculator. Some of those reasons include:
 

  1. It saves crucial time: Using Paisa Bazaar’s Union Bank of India Car Loan eligibility calculator saves a lot of crucial time, as the intended Union Bank car loan borrower is not required to personally visit a Union Bank of India branch and take appointments of bank representatives. With this online calculator tool, anyone can instantly check his eligibility for Union Bank car loan within few minutes in just few clicks and can take decision accordingly.
  2. It saves energy & efforts: Union Bank of India Car Loan eligibility calculator is automatic, and saves a person from trying and testing his eligibility for every other car loan scheme by different financial institutions. With this calculator, one gets to see all the suggestions for all the other alternative loan products that you can consider while availing car loan. 
  3. It is easy to compare: everyone wishes to avail good deals on car loans. If you are one of them and hope for the same, then Paisa Bazaar’s online eligibility calculator tool can help you. You can easily make comparison for different car loans offered by Union Bank of India and compare them from different car loan plans offered by other banks to find the most suited car loan plan. 

Applicable Union Bank of India car loan interest rates

Union Bank car loan interest rates are of floating type and are considered too competitive as compared to other car loan products provided by various leading banks in India. Due to floating nature, the Union Bank car loan interest rates are subject to fluctuate with market conditions as well as change in the MCLR of the bank. 


Prevailing Interest rates for Union Bank of India Car Loan are as follows:


New 4-wheeler (MCLR+ 0.50) %                 -              09.90% (floating)


Old 4-wheeler (MCLR + 3.50) %                 -              12.90% (floating)

Documents for Union Bank of India car loan

An interested Union Bank of India car loan borrower is expected to submit list of documents while applying for the Union Bank of India car loan. The documents for Union Bank of India Car Loan that are required to be submitted to Union Bank of India are:
 

  • Application Form for Union Bank of India  car loan
  • Proof of identity (any of the following)
  • Passport
  • PAN Card
  • Employee identity card
  • Any other valid proof
  • Proof of address (any of the following)
  • Electricity bill
  • Telephone bill
  • Ration card
  • Any other valid proof
  • Proforma /  Invoice
  • Valuation report from approved automobile engineer for old vehicle
  • Proof of income
  • For salaried class
     
    • Last one year ITR
    • Form16 / letter from Employer
    • Last 6 months salary slip
       
  • For business class
    • Last three years ITR
    • P & L, Balance sheet
  • 3 passport sized photographs
  • Any other document which may be required from case to case

How to calculate EMI for Union Bank of India Car loans?

To calculate EMI for a Union Bank of India car loan, a person needs to have car loan details about:
 

  • Total Union Bank car loan amount to be paid
  • Car loan interest rates
  • Tenure for the car loan

Two different methods to calculate Union Bank car loan EMI:


Calculation Method 1: (The difficult one)


To calculate EMI for Union Bank of India car loan, you need to apply the following formula:


EMI = [P x R x (1 + R) ^ n] / [(1 + R) ^ n - 1]


In this formula, P refers to the Principal loan amount; R refers to the Car loan interest rates offered by Union Bank of India; and N refers to the loan tenure, in months (or, the number of installments applicable)


Using this formula and the Union Bank of India Car loan details, you can compute monthly car loan payments for Union Bank car loan.


Calculation Method 2: (The easier & quicker one)


To calculate the Union Bank car loan EMI in a much easier and quicker way, use PaisaBazaar’s online tool - car loan EMI calculator. To use PaisaBazaar’s EMI Calculator for Union Bank car loan online, you would need certain Union Bank of India car loan details:
 

  • Details of exact amount of Union Bank of India car loan to be borrowed,
  • Offered rate of interest on car loan by Union Bank of India, and
  • Details of Union Bank car loan tenure for which you intend to borrow the money.

USEFUL TIP: You can also use the Union Bank of India’s Car Loan EMI Calculator to figure out the right loan amount and tenure for yourself. It is easy to do that by trying different permutations and combinations of loan amount, rate of interest as well as loan tenure.


How to use PaisaBazaar’s Car Loan EMI Calculator?


Step 1: Using the slider, fill the details about principal amount of the Union Bank of India car loan.


Step 2: Fill the details about Union Bank of India car loan interest rate that has been offered to you by the Union Bank of India. To fill this, you can either use the slider or directly enter the figure in the box.


Step 3: Again with the help of a slider or by directly mentioning the figures, state the car loan tenure for which you would like to take the Union Bank of India car loan. You have to mention the total number of years (in months or in years)


Step 4: As soon as you enter the details in the 3 required columns, you would get the results for monthly EMI to be paid in the right side of the calculator for the Union Bank of India car loan.

Apply for the Union Bank of India Car Loan at Paisa Bazaar

For the ease of the loan borrowers, Paisabazaar.com aims to simplify the process of applying for new car loan as well as pre-owned car loan. The individuals who wish to avail a car loan including Union Bank of India car loan can now easily find out exclusive car loan deals at PaisaBazaar.com using its numerous online calculation tools.


Further, to ensure ultimate comfort of the car loan borrowers, PaisaBazaar.com has updated the process of applying for the Union Bank plans for car Loan. At PaisaBazaar.com, borrowers can easily find out their eligibility for Union Bank of India Car Loan, calculate Union Bank car loan EMI, and even search for the best car loan plans in India. When borrowers select the banks and the car loan deals, they can easily compare car finance plans and then apply for a Union Bank of India Car Loan online. That’s not all, as car loan borrowers can further enjoy the benefit of pre-approved car loans for Union Bank car loan if they possess all the essential documents required to apply for a car loan online.


The role of PaisaBazaar.com does not end with loan application. PaisaBazaar aims to make the borrowers experience of availing car loan smooth and easier. For the same, it offers online EMI calculator, which can be used by the customers to easily manage their car loan amount repayments. The customers can also make good use of the online EMI Calculator to check EMI on Union Bank of India pre used car loan or Union Bank of India new car loan. Also, the Union Bank Car Loan EMI calculator offered by Paisa Bazaar can be utilized for trying different permutations & combinations of Union Bank of India car loan interest rate or tenure for a car loan to identify the scheme that is best suited for the borrower (depending upon personal & budget requirements).


Expert’s advice to remember while applying for the Union Bank of India car loan
 

Loan expert’s at Paisa Bazaar.com suggests every car loan borrower to consider certain factors , as availing loan also means agreeing for a long term financial commitment. So to make this a trouble free & happy experience, Union Bank of India car loan borrowers must ensure that they have taken a well thought decision.


Some of those factors to be considered include:
 

  • Interest Rate applicable on Union Bank of India car loan
  • Car loan EMI levied on Union Bank of India car loan
  • Tenure for a car loan availed by Union Bank of India
  • Processing Fees charged by Union Bank of India for car loan
  • Prepayment Charges on Union Bank of India Car loan
  • Down Payment charges for Union Bank of India car Loan

Union Bank Car Loan FAQs

1. What is the maximum loan amount approved for Union Bank of India car loan?


A. Union Bank of India sanctions maximum amount of loan in one of the following ways:
 

  • Total cost of the vehicle minus the margin requirement
  • Loan amount as per Union Bank of India’s eligibility calculations based on repayment capacity of the borrowers
  • New four wheeler - Rs. 125 lakhs, old four wheeler Rs. 20 lakhs, new two wheeler - Rs. 10 lakhs


2. What are the margin requirements for Union Bank car loan?


A. To avail car loan from the Union Bank of India the borrower’s contribution is as follows –
 

  • 15% margin of the on-road price of the new vehicle
  • 40% margin in case of old 4-wheelers

3. I want to avail car loan from Union Bank of India. Can I include a co-applicant? If yes, who can be the co-applicants for the car loan?


A. Yes, you can avail car loan by Union Bank of India either singly or jointly with father, mother, son, daughter or spouse as co-applicants.


4. What are the car loan tenure options provided by Union Bank of India?


A. The Union Bank of India has pre-defined the repayment period as a maximum of 7 years (84 EMIs) for a new 4-wheeler loan, and 5 years (60 EMIs) in case of old 4-wheeler.


5. What are the applicable rates of interest for car loan offered by Union Bank of India?


A. The floating interest rates for car loan provided by the union Bank of India for new cars is just 9.90% and 12.90% for used cars.


6. What is the processing fee for Union Bank car loan?


A. The processing fees charged by the union bank of India for car loan is as follows:
 

  • 0.50% of the loan amount, subject to maximum of Rs. 15,000 plus service tax as applicable
  • In case applicant/co-applicant is Union Bank of India account holder in silver/gold/platinum category or has availed any credit facility with Union Bank, processing charges is 0.25% of the loan amount, subject to maximum of Rs. 7,500 plus service tax as applicable.
  • Currently all these processing charges are waived off (offer applicable till March 2017)

7. How does Union Bank of India charge or calculate the rate of interest on the car loan?


A. The Union Bank of India charges rate of interest on the car loan amount borrowed on the basis of reducing balance method at monthly rests.


8. What is known as Monthly Reducing balance on a Union Bank car loan? How is it beneficial for loan borrowers?


A. An Equated Monthly Installment (EMI) has 2 components, interest and principal. When the interest is calculated on a monthly basis, the principal on which the interest is charged reduces every month. This results in a significant saving for the customer over the tenure of the Union Bank car loan.


9. How do I repay the Union Bank car loan provided by Union Bank of India?
 

  • The Union Bank car loan can be repaid via equated monthly installments (EMIs).
  • A Union Bank car loan borrower can pay the EMI in one of the following ways :
     
    • Through standing instruction to your Union Bank of India savings account to directly remit the EMI amount to your loan account
    • Through internet banking facility available on your Union Bank of India savings account
    • ECS (Debit) facility
    • Post Dated Cheques (PDCs)

10. Is it possible to prepay Union Bank car loan?


A. Yes, you a loan borrower can make prepayment for the Union Bank car loan obtained from Union bank of India. The Union Bank of India does not charge additional fee on pre-payment of the car loan, if the loan amount paid by the borrower is from his own legitimate and verified sources.


However, the Union Bank of India does charge a processing fee of 2% on the average balance of the previous year if the loan is taken over by any other Bank/FI or lump sum payment made is borrowed from any third source/party (except genuine sale).


11. If I avail Union Miles car loan from the Union Bank of India, what security or collateral do I have to provide?


A. Hypothecation of the vehicle proposed to be purchased from Bank's finance, is required.


12. Is it important to have a guarantor to avail car loan from Union Bank of India?


A. Yes, Union Bank of India needs a guarantor to sanction Union Miles, the Union Bank car loan. Following can be a guarantor of the borrower.
 

  • The spouse has to join-in as the guarantor. If the borrower is unmarried then suitable third party guarantee of sufficient means is required.
  • In case of NRIs guarantee of one/two local resident Indian is required.
  • In case of companies guarantee of one promoter/director is required.

13. Is it important to open a Union Bank of India bank account for availing Union Bank car loan?


A. It is not mandatory to have a bank account with Union Bank of India for availing a car loan. However, a person who has bank account with Union Bank of India is entitled to avail several benefits other than value added services.


14. What is the list of documents required to be submitted for availing Union Bank of India’s car loan-Union Miles loan?


A. Documents required for Union Bank of India car loan are:
 

  • Application Form for Union Bank of India  car loan
  • 3 passport sized photographs
  • Proof of identity (Passport/ PAN Card/ Employee identity card/ Any other valid proof)
  • Proof of address (Electricity bill/ Telephone bill/ Ration card/ Any other valid proof)
  • Proforma /  Invoice
  • Valuation report from approved automobile engineer for old vehicle
  • Proof of income
  • For salaried class
     
    • Last one year ITR
    • Form16 / letter from Employer
    • Last 6 months salary slip
       
  • For business class
     
    • Last three years ITR
    • P & L, Balance sheet

15. How much time does Union Bank of India take to approve a loan application?


A. The Union Bank of India takes about 2 days after you have submitted all the required documents, to sanction or approve the car loan application.


16. What are the stages for applying for the car loan with the Union Bank of India?


A. The complete loan process involves three main stages -
 

  • Car Loan Application – The first step is to apply for a Union Bank of India car loan and submit Union Bank car loan application form along with all necessary documents.
  • Loan approval from Union Bank- The next stage is the approval stage, wherein, after verification of documents bank approves a specific loan amount based on the value of borrower’s property and repayment capabilities
  • Car loan disbursals- The last stage comprises of car loan disbursal. Banks disburse car loans by crediting the approved loan amount in the account of the dealer from which the borrower is purchasing the car.

17. How can an intended car loan borrower approach Union Bank of India for availing Union Miles car loan?


A. You can approach Union Bank of India in any of the following ways:
 

  • You can visit any of Union Bank of India’s special retail lending branches called Union Loan Points (ULPs).
  • You can visit any of Union Bank of India’s branches.
  • You can request for a contact online
  • You can also contact Union Bank of India 24 x 7 Call Centre
  • You can also avail Union Miles by visiting the Paisabazaaar website and applying for it via the website.