Union Bank of India Car Loan Interest Rates

Union Bank of India has acquired Andhra Bank and Corporation Bank under its brand name. The bank offers a vehicle loan scheme that finances used/new cars and new two-wheeler vehicles. Individuals and non-individuals can avail the benefits of this scheme.

Here is everything you might want to know about the Union Bank of India car loan.

Types of car loan schemes of Union Bank of India

Vehicle Loan

Individuals can avail of financing for the purchase of new/used cars. Non-individuals can purchase a car for the use of their directors or employees under this scheme. A balance transfer facility is also available.

Interest rates of Union Bank of India car loans

The interest rate for car loans is dependent on EBLR, which is 6.80%, with effect from 11 February 2021.

New Car

Used Car

Features and benefits of Union Bank of India car loans

• The bank offers financing to purchase a new or used car.
• You can get financing assistance up to 85% on-road price from the bank to purchase a new car.
• Get a repayment tenure as long as seven years (84 months) for the car loan.
• No guarantee required for those applicants with a CIBIL score of 700 and above.
• Competitive interest rates offered on car loans.
• Salaried applicants holding a salary account with Union Bank of India can get a 5% concession on margin.

Eligibility for Union Bank of India car loans

• Nationality
  • Resident Indian citizen 
  • Non-Resident Indians (NRIs)
• Age
  • Minimum age – 18 years
  • Maximum age – 75 years
• Individuals, either singly or jointly with family members viz. father, mother, son, spouse or daughter (unmarried) as co-applicants
• Companies and firms for the purchase of vehicles for usage by their Directors or employees

Documents required for HDFC Bank car loans

• Duly filled application form
• 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
  • Aadhaar
  • Any other valid proof
• Proforma/Invoice
• Valuation report from approved automobile engineer for the old vehicle
• Proof of income
  • For salaried class 
    • Last year ITR
    • Form16/letter from employer
    • Last 6 months salary slip
  • For business class 
    • Last three years ITR
    • P & L, balance sheet
• 3 photographs
• Any other document which may be required from case to case

Union Bank of India car loan fees and charges

How to calculate EMI on HDFC Bank car loans

Our car loan calculator helps you figure out the monthly instalments you must pay for a specific loan amount to finance your dream car.

Frequently Asked Questions

Can I get a margin of 15% on used car loans as well?

No. When it comes to used cars, the margin will be 40% of the used car’s valuation cost. Further, keep in mind that the used car you are willing to purchase should not be older than three years.

Can I get a moratorium facility on this loan scheme?

No. The bank does not allow a moratorium facility on this loan scheme.

Should I pay a prepayment penalty if I choose to close the loan account before the tenure expires?

There is no prepayment penalty if you happen to close the loan account from your verifiable sources.

What security/guarantee should I provide for the loan?

The bank will hypothecate the car purchased out of the bank loan. No other guarantee is required if the applicant’s CIBIL score is 700 and above. In NRIs, a resident Indian has to provide a guarantee equivalent to the loan amount. 

In the case of companies, the promoter/director must provide a guarantee. When it comes to partnership firms, all the partners must provide guarantees.

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