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Union Bank of India Car Loan

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Union Bank of India Car Loan

In today’s times, being smart with your finances is not a choice, but a necessity. With the ever increasing desire to own various things in life and the urge to spend more, it is indeed a purchaser’s paradise. Owning something that you wish for, has undergone a sea change in the last few decades. The youth in our country have good earning capabilities from the very start. So, does the spending capacity! And what do we not have? From variety to immediate customization, easy availability to numerous financial options, it is all possible with just our fingertips.

But what comes with all these choices is the ability to manage our cash/credit status and its outflow. While it is quite easy to splurge, it is the long term sustenance of our financial situation that will help us continue enjoy the fruits of our labour, that is, the hard earned money. So, what does it take to own that house or car or latest gadget or that international trip? Simply put, calculating the total outflow over a period of time that is comfortable to your lifestyle so that you have enough disposable income to enjoy. This sounds complicated but it is not.

For instance, you have dreamed of buying that premium sedan car or a sporty hatchback. But you have been waiting for that promotion or bonus saving for 3 years to even consider going to the car dealer! This need not be the case as today, it is easier than ever to own a car without creating a dent in your account. All that you need is a car loan to support to your financial condition and a smart monthly monetary plan by using a car loan calculator to assess the outflow.

What is a car loan?

It is a type of secured loan wherein you can borrow money to purchase a car. The car that you would be purchasing will act as the security for the loan. An initial down payment will need to be made by you to the car dealer and the remaining value of the car will be financed by a bank or another lending institution. The loan would need to be paid back in the form of monthly instalments or EMIs.

The loan is offered on the basis of your application and creditworthiness. If you are already repaying any debt, it reduces your credit score. In case, you are not able to payback the loan amount, the lender can take your car and sell it to settle the pending dues. This is because the car becomes entirely in your name only after all EMIs are paid.

The EMIs are decided on the basis of the principal amount, interest rate and the tenure of the loan. This can also be calculated by you through a car loan calculator.

Union Bank Car Loan

Inaugurated by Mahatma Gandhi in 1919, the bank has served our nation for close to 100 years now. While the bank started with only 4 branches in the country, today it is one of the largest Government owned banks with 4200+ branches and international presence too! The bank is also a member of the World Economic Forum community and has won many accolades in risk management in the IT sector. Union Bank is quite competitive in its products and services. It operates in Personal Banking areas like savings, deposits, retail loans, credit cards, insurance and investments. NRI banking is also a big part of their offering. Under the corporate banking umbrella, it offers CMS, e-tax, trade finance and loans.

Union Bank offers very competitive car loan options and one can apply online too. Union Miles is their car brand loan and with minimal documentation, one can avail this facility.

Union Bank Car Loan Eligibility

With the most friendly terms & conditions in the market, the Union Bank car loan can be availed with much ease. The eligibility details of this car loan can be noted below:

AGEMinimum – 18 years
Maximum – 70 years
RESIDENTIAL STATUSResident Indian Citizen
Non-Resident Indians with valid driving license
EMPLOYMENT TYPEIndividuals/Self Employed/Reputed Firms/Govt.
Employee/Professionals/Corporates/
MINIMUM INCOMERegular Monthly Income
MAXIMUM LOAN AMOUNTINR 125 lakhs
TENUREMaximum 84 months for a new car
Maximum 60 months for a used car

Documents Required

What documents are required to successfully apply for a car loan with Union Bank? Read on for information:

  • Residence of Proof
  • Photo ID and Age Proof
  • Signed application form with photograph
  • Bank statement of last 6 months
  • Salaried Applicants need to submit salary slips of last 3 months and Form 16
  • Self Employed Applicants need to submit Income Tax Returns of last 3 years and Audited Balance Sheet + P&L Account

Union Bank Car Loan Interest Rate

The Union Bank car loan interest rate are offered on a very competitive basis. It varies from 9.05% to 12.05% on a floating basis. The bank also follows the MCLR method to determine the effective rate for car loans. While these lending rates have been mentioned, it is advisable that you check with the bank directly at the time of the application as these rates are subject to revision as per the bank’s credit policy and/or RBI’s quarterly reviews. Currently, the bank is offering special interest rates for BSNL employees. Such offers are available from time to time.

While these lending rates are offered, you can utilize the car loan calculator to arrive at a comfortable EMI on the basis of these interest rates. This will help you gauge the outflow during the tenure of the loan.

Union Bank Car Loan Calculator

To make your life easy, it is recommended to use a car loan calculator to wisely plan your money outflow during the tenure of the loan. Union Bank Car Loan Calculator offers this facility on their website, however, www.creditmantri.com offers an easy and quick car loan calculator which allows you to key in the loan amount, interest rate and loan period to understand the EMIs that you will have to pay. In fact, you can work around many permutations and combinations of the above inputs to arrive at a comfortable EMI. Then you can apply for the car loan with the banks that are offering favourable terms & conditions.

Fees and Charges

As is the case with all banks, there are some processing fees and charge that are applicable when you apply for a car loan and are currently taking a car loan.

LOAN PROCESSING CHARGES0.5% on the loan amount with a maximum of INR 15000/- +GST
DOCUMENTATION CHARGESNIL
PRECLOSURE CHARGESNIL if it is adjusted from verifiable sources
PRE PAYMENT PENALTY2% on average balance of preceding 12 months

Key Points of Union Bank Car Loan

  • 18 years of minimum age as against 21 years offered by other banks The only condition being possessing a valid driver’s license
  • One can avail upto INR 125 lakhs of loan for a new car and INR 20 lakhs for used cars
  • Your share of car loan is 15% of the on-road price of a new car and 40% of the valuation of a used car
  • With zero pre-payment fee towards pre-closure of the loan account, this make it a very attractive car loan to be considered
  • Repayment period of 7 years for new cars and 5 years for used cars, there is sufficient time to pay back the loan amount. This really helps in case you are wading in limited financial resources

How to Apply

There are many ways to apply for a Union Bank Car Loan.

Download the application form from the website and submit the duly filled forms online itself or at the nearest bank branch

You can visit the nearest bank branch and enquire about the car loan details. Thereafter, you can fill up the application form and submit it directly to the bank representative. The car loan status can be tracked online with the help of the reference number given

You can also visit the nearest special retail lending branches called as Union Loan Points (ULPs) to apply for car loans

The bank also provides 24x7 Customer Care service through which you can get the required information on car loans

Union Bank Car Eligibility Check

Checking your eligibility for a car loan is the first step to avoid rejection of your application. It is very critical to understand your credit score before you apply for a car loan. This can be easily done on www.creditmantri.com. If your credit score is on the lower side, it is advisable to pay off your pending dues before applying for a car loan.

Choosing a car loan

When you start looking out for car loan options in the market, you will realise that the number of options available are huge! And why not? India is the 5th biggest market for passenger cars and this number is only increasing by the year. Hence, the average price of a car has been on the rise. This means car financing has many opportunities here and are able to offer competitive deals on account of rising demand.

However, you can take assistance from leading financial services like www.creditmantri.com to make an informed choice on right car loan for yourself. The first step is to assess your current finances and get it sorted before taking a loan. This is very important as any existing debts will reflect on your credit score. The second step is to evaluate your credit score. This can be done through Credit Mantri website and leading bank websites. The credit score determines the health condition of your financial system and makes the case for banks to offer an attractive car loan. If your credit score is less, it is suggested that you pay off pending debts to avoid loan rejection.

Once your finances are planned out, compare two or three car models of your choice and calculate the expected outflow after buying the car. This can be easily done with the help of a car loan calculator and an extremely critical step in choosing a favourable car loan with your preferred bank. Loan details like the principal amount available, tenure, EMIs, on-road price or ex-showroom price of the car needs to be worked out with the bank.

You can also work out these options with two or three banks and eventually choose the option that best suits your financial situation.

Union Bank Car Loan FAQs

1. What is the eligibility criteria to apply for Union Bank Car Loan?

Indian citizens above the age of 18 years can apply. A Valid Driving License needs to be possessed by the applicant.

2. What type of vehicles does the loan cover?

You can buy a new 4-weeler and the ones not more than 3 years old

3. What type of interest is charged?

Floating rate interest is followed and is calculated on a monthly reducing basis

4. What is the security accepted by the bank?

The car to be purchased is hypothecated to the bank and this acts as a security for your loan

5. Is there a gurantee required for the loan?

Yes, the spouse can be guarantor in case of married applicants. In case of unmarried applicants, a third party can be the guarantor.

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