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## United Bank of India Car Loan EMI Calculator

Owning a car in today’s time has become a necessity rather than a luxury. But every time you dream of owning a car, you worry about the costly EMIs or the down payment that you think you will never be able to pay. Now, it’s time to stop worrying – you can apply for a loan in a bank and get your dream car home. United Bank of India offers car loans an attractive interests starting from 9.05% (the rates keep changing as per the market prices).

The car loan EMI of the United Bank of India depends on factors like:

• Rate of interest is an important factor which affects your EMI. Higher the interest rate, higher will be the EMI.
• Loan tenure matters equally as longer tenure reduces your monthly EMI per lakh.
• Your EMI depends upon the amount of loan you are going to borrow. Loan EMI will be high if you apply for a high loan amount.

## United Bank of India Car Loan EMI Calculator

Car loan EMI calculation varies from bank to bank depending upon the method of calculation. The standard convention should be to use the EMI in arrears method on reducing balance basis – whereby you pay interest on the loan amount outstanding on a reducing basis at or after the end of the month.

You can check the EMI amount by using the car loan EMI calculator. You just need to update the loan amount, rate of interest and vehicle loan tenure. The calculation is based on the below formula:

E= P x r x (1+r) n/ [(1+r) n -1]

Where,

P represents the principal amount that you want to apply for.

r is the rate of interest per month which is calculated as rate of annual income/ (12*100)

n is the tenure of loan in months

E represents the monthly payment or EMI

Let’s say you take out a vehicle loan for Rs. 700,000 to be paid back over 5 years at an interest rate of 8.70%. Your monthly payments for this loan after applying the above formula would be Rs. 14,429 for 5 years.

These are floating rate loans and are one of the best car loan rates in India. Rate of interest vary by borrower occupation, loan amount and loan tenure.

Car Loan EMI of United Bank of India is a fixed amount that you pay each month towards the repayment of your car loan till the end of tenure. Lowest EMI offered by United Bank of India is Rs. 1,611 per lakh loan amount at lowest car loan interest rate of 8.70%.

## United Bank of India Car Loan Fee and Charges

Foreclosure Charges

These charges are to be paid in case you want to repay your entire loan amount before the end of tenure period. United Bank of India allows prepayment of vehicle loan after paying one EMI. There are no additional charges applicable in case the loan borrower wants to avail the pre-payment option.

Processing Fee

The United Bank of India asks for a processing fee of 0.59% of loan amount. The minimum amount is Rs. 500 and the maximum amount is Rs.10,000 with applicable service tax.

Top up, Balance Transfer

United Bank of India offers car loan balance transfer from another bank. This is subject to the loan borrower meeting other eligibility criteria. Additional top-up car loan from United Bank of India is subject to availability.

## Applying for United Bank of India Car Loan from Credit Mantri

You can apply for a loan through CreditMantri by signing up with them. CreditMantri will check for your eligibility and apply for the car loan. You can check if your credit profile matches with all the criteria given by the United Bank of India and then apply for a loan. The process of application and the chances of the car loan getting approved are much higher when you apply through CreditMantri.

## Why does a credit score matter?

While the price of the car or the interest rate of the car loan are definitely the important factors that determine which loan you must opt for, there are other factors at play as well. You must have a look at your income levels and ensure that your debt-to-income ratio doesn’t exceed 30%-50%. This ratio will enable you to repay your loan with ease.

Another very important factor is your credit score. This is a score given by the credit bureau based on three main parameters:

• The way you have handled your previous loans
• Other loans that you have applied for

A good credit score can help you to negotiate better car loan terms with a lender. If you have a credit score above 700, you can avail a loan with lower interest rate and save a lot of money every month.

Also Read: What is a good CIBIL™ Score for Car Loan in India.

## FAQ – United Bank Car Loan

1. If I am planning to purchase an old car, how old can it be?

United Bank of India gives car loans to loan borrowers for cars that are not older than 36 months.

2. What is the margin that United Bank of India offers for new and old cars?

The margin provided by United Bank of India on:

• New car is 15% of on road price of the vehicle (Individuals and corporate).
• Old car is 25% of the valuation of the old car, as certified by the person who values the car.

3. What are the loan processing charges for United Bank of India?

The processing charges are 0.59% of the loan amount sanctioned subject to minimum of Rs.600 and maximum of Rs.11,800.

4. Do I need to pay any documentation charges for United Bank of India car loan?

The documentation charges for United Bank of India are nil.

5. What is the security that United Bank of India requires for a car loan?

United Bank of India seeks for hypothecation of the vehicle to be purchased out of the car loan.

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