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United Bank of India Car Loan

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United Bank of India Car Loan

Owning a car is a dream of many in our country and many youngsters set it as a goal for themselves. There are some who are lucky enough to save money to fulfil their dream and for those who cannot; car loan is a breath of fresh air. Today, banks offer a number of schemes to fulfil the goal of many to have their own car. United Bank of India is one such bank that provides car loans in India.

United Bank of India is one of the well-known banks in India. Nationalised in 1969, United Bank of India boasts of having more than 2000 branches across the nation. The bank works actively for the rural development sector and offers a wide gamut of services for its patrons.

Eligibility for United Bank of India Car Loan

United Bank of India Car Loan Scheme- The objective of the car loan is to purchase a car for use of an individual, family or private use of a partnership firm, corporate office etc.

Any individual drawing minimum salary of Rs. 25000 net after all the deductions including the EMI of the proposed loan is eligible for United Bank Car loan. The maximum entry age for an individual (salaried, self-employed or businessman) should be 65 years, subject to loan repayment by 70 years of age. For individuals drawing salary with pensionary income, the repayment age may be extended to 70 years; for them the minimum post-tax income on an average should be Rs. 4 Lakh for past two years.

United Bank of India Car Loan Scheme (Pensioners)- This scheme is devised especially for senior citizens who are drawing pensions and wish to purchase a car on loan. The age limit for individuals for this scheme is up to 75 years i.e. the loan must be re-payed before the individual reaches the age of 75 years.

The eligible individuals for these schemes are pensioners of central or state government undertakings, central or state government, public sector undertakings, educational institutions, defence personnel, and workers of United Bank of India. All individuals drawing pension from UBI are eligible for applying for this loan.

Net Income required: The applicant must be earning a net monthly pension of Rs. 20000. If the spouse or the children of the applicant are drawing salary, they can co-apply with the applicant. In this case, the income of the spouse or children can be considered for determining the total net income and calculating EMIs. The criterion of co-applicant is computed on the basis of income via IT Returns.

Interest Rates for United Bank of India Car Loan

According to the RBI guidelines, the United Bank of India follows MCLR (Marginal Cost Based Lending Rate) for calculation of the interest rate applicable for car loans.

Also, United Bank of India offers reduced Interest rate on new car loans for women. Mentioned below are the interest rates for new/old car loans offered by United Bank:

Interest RateNew Car loan
For men- 1 year MCLR-Y+0.30 % i.e. 9.10%p.a.
For women- MCLR-Y +0.25% i.e. 9.05% p.a.
Used Car loan
MCLR-Y+1.05% i.e. 9.85% p.a.
Processing Fees0.59% of the loan amount sanctioned subject to minimum of Rs.600/- and maximum of Rs.11,800/-.
Processing charges are waived up to 31.03.2018.
Pre-Closure ChargesNil
Loan TenureNew Car loan
Upto 84 months (For pensioners Max 72 months)
Used Car loan
Max 60 months (For pensioners Max 48 months)
ConcessionCollateral of 50% of loan value will entail 0.25% concession in interest rate from card rate. Collateral must be in the form of liquid or other tangible security.

Note- As per Bank’s credit policy and RBI’s timely review, MCLR is subject to periodic change. Please ensure that you confirm the same from the bank before applying for car loan so that you can select the terms and conditions accordingly.

Features United Bank of India Car Loan

Quantum of Loan -

United Bank of India Car Loan: For salaried or self-employed individuals, the quantum of loan is Rs.40 Lakh (maximum).

United Bank of India Car Loan for Pensioners: The pension amount of 48 months of the individual can be obtained as car loan amount. The amount should not be more than 4 lakhs.

Repayment-

New and Old Car loan schemes allow the borrower to pay the loan with interest in a max of 84 EMIs (7 years). Even if the borrower wishes to pay the loan earlier than the pre-decided EMI period, the bank doesn’t charge any fee.

Margin-

New Car - 15% of on road price of the vehicle for both Individuals and corporate.

Old Car - 25% of the valuation of the old Car as certified by the valuer

Concessions-

For those who maintain good credibility with the bank, enjoy huge concessions from the bank. Collateral of 50% of the loan value will entail 0.25% concession in interest rate from card rate. The collateral must be in terms of either liquid assets or any other tangible security.

These concessions are enjoyed by mortgagors who have been making routine payments 2 years. Credit card holders with timely payments for past 2 years and have a credit risk rating of UBICR – 3 get the benefits for the concession.

This benefit is available for corporate offices, institutions, companies and firms who promise to repay the loan amount through a single cheque or direct credit to the loan account.

Documentation required

List of Documentation required for applying for a United Bank Car Loan:

  • Proof of Residence (Voter ID card, Driving License, Passport etc)
  • Photo ID and proof of age (Pan Card, DL, Voter ID card etc)
  • Application form from Bank duly signed along with two photographs
  • Bank statement for past 6 months
  • Documentation for Salaried applicants-
    • Salary slips for past 3 months
    • Form 16 and Income Tax returns for past 2 years
  • Documentation for self-employed applicants-
    • Income Tax returns with computation of Income for past 3 years
    • CA Certified/Audited Balance Sheet and Profit & Loss Account for past 3 years

United Bank of India Car Loan FAQs

1. What categories of cars are financed by United Bank of India?

An individual can avail finance to purchase all kinds of cars for personal use.

2. How do I apply for the car loan from United Bank of India? Where can I get the application form for car loan?

In order to apply for a car loan from United Bank of India, you can either visit the nearest bank branch or apply online on bank’s website. United bank of India offers the application form hard copies at its branches.

3. Who are eligible to apply for car loan from United Bank?

The eligibility criteria for applying for a car loan are given below:

  • Self-employed individuals
  • Salaried professionals
  • Businessmen and P&SE
  • Individual earning monthly income of Rs.25000 net after all deductions including the applicable car loan EMI.

4. What is the credit score required by United Bank of India for applying for a car loan?

The credit score required by the bank is not specified anywhere. Although, the bank has the right to ask you about your credit score if you apply for car loan. Usually, the credit score to get a car loan sanctioned are 750 or above. Banks might relax the score to 550 under certain circumstances.

5. What is the maximum tenure offered by the bank against car loan?

The bank offers a maximum tenure of 84 months i.e. 7 years for a new car loan whereas for used cars, the maximum tenure is 60 months i.e. 5 years. For applying for a loan for used cars, the car should not be older than 36 months.

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