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Union Bank of India Car Loan

Union Bank of India Car Loan Key Features – Jul 26 2021

Union Bank of India Car Loan Interest Rate 7.05% per annum
Min Loan Amount ₹ 100,000
Max Loan Amount
(Loan to Value)
Loan up to 85% of On Road Price
or 100% of Ex-showroom Price
Loan Tenure One year to 7 years
Lowest EMI / Lac ₹ 1,614
Minimum Net Monthly Income ₹ 18,000
Minimum ITR for Self Employed ₹ 300,000
Age Criteria Salaried: 21 years to 60 years
Self Employed: 21 years to 65 years
Types of Cars For All New Passenger Cars, Multi Utility Vehicles (MUVs) and Sport Utility Vehicle (SUVs).
Processing Fee 0.40% of the principal amount
Foreclosure Charges Up to 2%
Basic Documentation ID Proof, Address Proof, Salary Slip, Bank Statement and Car Quotation

About Union Bank of India Car Loan

Union Bank of India is one of the largest banks of India directly owned by the Government.
CEO of Union Bank of India is Rajkiran Rai G, holding the position from 2017.
Union Bank of India was founded in 1919 and is headquartered in Mumbai.

Union Bank of India provides a car loan for applicants willing to buy a car but facing issues in allocating funds. You can avail Union Bank of India car loan at average Interest Rates but maintain a suitable CIBIL Score and clearing the eligibility criteria.

Advantages of Union Bank of India Car Loan

Loan Approval in 30 Minutes
Lowest Rate of Interest
Up to 100% on Road Loan
Minimum Documentation
Paperless Process
Flexible Repayment
Zero Foreclosure
24 x 7 Online Payment Facility
No Hidden Charges

Union Bank of India Car Loan

Union Bank of India Car Loan Eligibility

Salaried Individual
  • Age – 21-60 years of age
  • Net Monthly Income – should be minimum ₹ 15000
  • Employment Duration – Minimum 1 year
  • Income Eligibility – Depends on Form 16 and Salary Slip
Self-Employed Individuals
  • Age – 21-65 years of age
  • Minimum ITR  – Rs. 3 Lakhs
  • Employment Duration – Minimum 3 years
  • Income Eligibility – Depends on the latest Income Tax Returns
Self-Employed Non-Individuals (Company/Partnership)
  • Minimum ITR  – Rs. 3 Lakhs
  • Employment Duration – Minimum 3 years
  • The applicant has to present IT returns and audited financials of 2 years with Calculated Income.
Priority Customers
  • Applicant should have a vintage of at least six months
  • Average Quarterly Balance – Minimum Rs.1 lakh for the last two quarters
  • Maximum Loan Amount – 3 X Average Quarterly Balance of Last two quarters

Union Bank of India Car Loan Interest Rate, Fees and Charges

Charges New Car Loan Used Car Loan
Interest Rate 7.05% per annum 14.80% p.a. to 16.80% p.a.
Processing fee 0.40% of the principal amount 0.50% + GST
Issuance of Duplicate Repayment Schedule Charges Rs.500 and onwards Rs.500 and onwards
Foreclosure Charges Around 2% Around 2%
Penal Interest N/a N/a
Part Payment charges 1% – -3% 1% –  3%
Cheque/Instrument Swap Charge Rs.500 and onwards Rs.500 and onwards
Documentation Charge Rs.500 and onwards Rs.500 and onwards
Issuance of Duplicate No Dues Certificate Charges Rs.500 and onwards Rs.500 and onwards
Registration Certification Collection Charge Rs.250 and onwards Rs.250 and onwards
Cheque Bounce/Instrument Return Charges Rs.500 and onwards Rs.500 and onwards
Issuance of Duplicate Statement Charges Rs.500 and onwards Rs.500 and onwards
Loan Cancellation/Re-booking Charges Starting from Rs.1500 Starting from Rs.2000
Issuance of Credit Report Rs.50 per instance Rs.50 per instance

Union Bank of India Car Loan Documents Required

Salaried Individual

Category Documents Required
Identity Proof

 

(Any 1)

Aadhaar Card
Passport
PAN
Voter ID
Driving Licence
Address Proof

 

(Any 1)

Driving Licence
Aadhaar Card
Voter ID
Date of Birth Proof

 

(Any 1)

Birth Certificate
Passport
Driving Licence
10th Marksheet
Signature Proof

 

(Any 1)

Passport
Bankers Verification
PAN
Income Proof Latest Form 16 and Salary Slips
Bank Statement Bank statement of the last two months
Employment Continuity Proof Work Experience Certificate
ITR of Form 16
Appointment Letter
Letter of Relieving

Self-Employed Individuals

Category Documents Required
Identity Proof (Any 1) Passport
Driving Licence
PAN
Voter ID
Address Proof (Any 1) Driving Licence
Aadhaar Card
Passport
Electricity Bill
Voter ID
Date of Birth Proof (Any 1) Birth Certificate
Passport
PAN
Signature Proof (Any 1) Passport
Bankers Verification
PAN
Income Proof Latest Form 16 and Salary Slips
Bank Statement Bank statement of the last two months
Employment Continuity Proof Shop & Establishment Act Certificate

 

SSI or MSME Registration Certificate
Current Account Statement
Sales Tax or VAT Certificate

Business Proof Current Account Statement
Telephone Bill
Electricity Bill
Shop & Establishment Act Certificate
SSI or MSME Registration Certificate
Sales Tax or VAT Certificate
Registered Lease Document with other utility bills

Self-Employed Non-Individuals:

1. Partnership Firms/Societies

Category Documents Required
Identity Proof (Any 1) Driving Licence
Aadhaar Card
Passport
PAN
Voter ID
Address Proof (Any 1) Aadhaar Card
Passport
PAN
Driving Licence
Voter ID
Income Proof Audited Balance Sheet
P&L Account and ITR for the previous three years
Bank Statement Bank statement of the last two months
Business Continuity Proof Shop & Establishment Act Certificate
SSI or MSME Registration Certificate
Sales Tax or VAT Certificate
Additional documents Authority Letter

2. Private Limited/Limited Companies

Category Documents Required
Identity Proof Copy of Latest MOA
Copy of Latest AOA
Copy of Incorporation
Address Proof (Any 1)
Current Account Statement
Telephone Bill
SSI or MSME Registration Certificate
Sales Tax or VAT Certificate
Shop & Establishment Act Certificate
Registered Lease Document with other utility bills
Income Proof Audited Balance Sheet
P&L Account and ITR for the previous three years
Bank Statement Bank statement of the last two months
Business Continuity Proof Shop & Establishment Act Certificate
Current Account Statement
SSI or MSME Registration Certificate
Additional documents
List of Directors and Shareholding Partners
Board Resolution
Certificate of Commencement of Business for Ltd. Co.

How to Increase Your Eligibility for Union Bank of India Bank Car Loan

  • Opt for a shorter tenure – When you opt for a shorter tenure to repay the money, the EMI that you will be paying each month will be higher. This will be an indication of your higher repayment capacity which will build a sense of confidence in you. So, if you wish to boost your eligibility for a car loan, you can opt for a shorter repayment tenure.
  • Keep your credit score in check – If you wish to increase your eligibility for a Union Bank of India car loan, ensure that you have a credit score of over 750. You can use the Free Credit Score tool to check and maintain such a healthy credit score. Checking your credit score regularly will allow you to take corrective measures to improve it if your score is low or if it gives you the confidence to approach the bank if it is high.
  • Maintain a low debt-to-income ratio – A low debt-to-income ratio means that you have a good balance between your earnings and your spendings. Before banks decide to lend to you, they will check the percentage of your earnings that goes into paying your debts and a low debt-to-income ratio will indicate your high repayment capacity. To enhance your eligibility for a car loan, you should ensure that you maintain a low debt-to-income ratio.
  • Apply for a loan for a lower amount – By applying for a loan for a lower amount, you can increase your eligibility for a Union Bank of India Bank car loan. A lower loan amount means that the loan will be repaid faster. Therefore, the chances of you being eligible for a loan are higher.

Factors Affecting Union Bank of India Bank Car Loan Eligibility

The eligibility criteria for a car loan will depend on the below-given factors:

  • Income – If your income is on the higher side, there is a good chance that your eligibility for a Union Bank of India car loan will be higher. This is because a higher income indicates a higher repayment capacity. To be eligible for a Union Bank of India car loan, your yearly income should be at least Rs.3 lakh.
  • Loan amount – Your eligibility for a car loan from Union Bank of India will be higher if you apply for a lower loan amount as if the loan amount is lower, the bank knows that the loan will be paid off quicker. Hence, they will be more confident to give you the loan.
  • Repayment tenure – Choosing a longer repayment tenure can decrease your eligibility for a car loan. It might give an impression to the bank that you do not possess the ability to pay the loan. This is because longer repayment tenure results in lower EMIs and the lender will think that you cannot afford to pay higher EMIs. Therefore, the bank may be reluctant to lend to you.
  • Credit score – This is an important factor that every bank, including Union Bank of India Bank, considers when finding out your eligibility for a car loan. A credit score of 750 and above is considered to be a healthy credit score by most lenders. If you have a healthy credit score, banks will be happy to offer you a car loan and your eligibility will be much higher.
  • Relationship with the bank – As stated earlier, Union Bank of India offers instant car loans to their existing customers which allows Union Bank of India customers to can avail themselves of loans instantly, at their convenience, with very few documents required for a car loan. This indicates that your relationship with the bank is an important factor while determining your eligibility.

Union Bank of India Car Loan Customer Care – Toll-Free Number

Union Bank of India 24*7 customer care toll-free number all your general enquiries is For Ahmedabad / Bangalore / Chennai / Delhi & NCR / Hyderabad / Kolkata / Mumbai / Pune dial 1800 22 2244. For Chandigarh / Cochin / Indore / Jaipur / Lucknow dial 1800 22 2244.

Union Bank of India Car Loan EMI Calculator

Individuals can calculate their EMIs before applying for Union Bank of India Car Loan by the mentioned calculator:

Car Loan EMI Calculator

Union Bank of India Car Loan Types

Based on the customers need, Union Bank of India comes in 3 different types:

  1. New Car Loan –  For buying a new car and availing loan tenure for up to 7 years.
  2. Used Car Loan – For buying a used car and getting loan tenure up to 5 years.
  3. Loan Against Car – For needs of funds by keeping your car as collateral.

Union Bank of India Car Loan Pre Calculated EMI

Loan Amount 2 Years 3 Years 5 Years 7 Years
1 Lakh ₹  4,480 ₹  3,090 ₹  1,982 ₹  1,512
3 Lakh ₹  13,439 ₹  9,270 ₹  5,947 ₹  4,535
5 Lakh ₹ 22,398 ₹ 15,450 ₹  9,912 ₹ 7,559
10 Lakh ₹ 44,795 ₹ 30,900 ₹ 19,825 ₹ 15,117

How to Apply for Union Bank of India Car Loan?

  1. Fill the information required on Dialabank’s Website.
  2. Get in touch with our Relationship Manager for further process.
  3. Analyze and compare different options available and select the best for you.
  4. Applying through Dialabank can help you in availing more benefits on your car loan.

Tips to Decide the Right Amount of EMI in Car Loan

  • Ascertain the amount you need to borrow: It is important that before approaching a bank for a loan, you inform them about the amount of loan you need to borrow. Limit your loan amount after accounting for your own available funds. Furthermore, based on the EMI you can service, try to opt for the lowest tenure of loans as long tenure loans can result in huge interest outgo.
  • Review your current obligations: Before taking a loan, it is advisable to check your expenses, including any EMI obligations that you have on your current loans. This assessment will help you to estimate the amount of EMI which you will be able to pay comfortably after taking into account other obligations. Once you arrive at the EMI, you can also decide on the right loan tenure.
  • Calculate your Union Bank of India car loan eligibility: Your eligibility is an assessment of your repayment capacity based on your monthly income. Union Bank of India provides an LTV up to 100 % of the ex-showroom price and expects the borrower to fund the remaining value of the property with their own money.
  • Multiplier-based loan amount eligibility – Union Bank of India also calculates your eligibility by applying a multiplier to your net take-home salary. This is the simplest method for calculating a loan eligibility used by banks. Usually, it is 2.5 to 3 times the annual salary for salaried individuals and 6 times the annual income for self-employed professionals. The multiplier depends on the bank’s internal categorization of your company that is based on its reputation, stability, size, and growth in turnover.
  • FOIR based loan amount eligibility – Union Bank of India will also estimate your Fixed Income to Obligations Ratio (FOIR) to find out the maximum EMI you can service based on your current income and other monthly expenses. The bank applies a certain ratio to your income to estimate your monthly expenses and then adds your other EMI obligations to calculate your fixed obligations. The proportion of fixed income to your calculated fixed obligations gives your FOIR. Generally, banks lend up to a maximum FOIR of 0.50. Based on the FOIR, the bank will also estimate the maximum amount of EMI you can service as a borrower. Union Bank of India assessment may be different from your own assessment. Any differences in assessment may require you to readjust your loan amount requirement. You may also consider paying back other running short-term loans to improve your eligibility.

Car Loan EMI Changes in Case of Pre-payment

In case you prepay your vehicle loan, a small penalty is issued. Prepayment in Union Bank of India is 5% from 13-24 months, 3% after 24 months. When you prepay, the outstanding balance on your vehicle loan reduces. Union Bank of India gives you two options:

  • Reduce your loan tenure and keep EMI on your car loan unchanged
  • Reduce the amount of EMI and keep your loan tenure the same

How to Calculate Union Bank of India Car Loan EMI

Before you avail of a car loan from Union Bank of India, you may want to know how much amount you will be paying every month. This is simply known as EMIs or equated monthly installments and it offers an easy way to repay your car loan. By calculating the EMI, you will be able to budget your monthly expenses better.

You can calculate the EMI for your car loan by using the below-given formula:

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

In the above formula, E is the EMI, P the principal amount, r the interest rate, and n the number of years or tenure of the loan.

You can also calculate the EMI by using the EMI Calculator tool wherein you just need to enter the loan amount, interest rate, repayment tenure, processing fee, etc. The tool will calculate the EMI and display it to you.

Union Bank of India Car Loan for Top Selling Cars

Other Available Products from Union Bank of India

Union Bank of India Gold Loan Union Bank of India TWL Union Bank of India LAP
Union Bank of India Personal Loan Union Bank of India Education Loan Union Bank of India Loan

Compare Union Bank Of India Car Loan With Other Banks In India

Car loan Banks Interest Rates EMI per Rs 1 lakh for 7 Years
Bank Of Baroda Car Loan 8.80% – 10.55% Rs. 1,599 – Rs. 1,689
Canara Bank Car Loan 8.70% – 9.35% Rs. 1,594 – Rs. 1,627
Corporation Bank Car Loan 8.75% – 9.50% Rs. 1,596 – Rs. 1,634
HDFC Bank Car Loan 7.05% – 11.25% Rs. 1,512 – Rs. 1,725
ICICI Bank Car Loan 8.82% – 12.75% Rs. 1,600 – Rs. 1,806
Union Bank Car Loan 8.85% – 11.85% Rs. 1,601 – Rs. 1,757
SBI Car Loan 8.65% – 9.70% Rs. 1,609 – Rs. 1,645

FAQs for Union Bank of India Car Loan

✅ What is Union Bank of India Car Loan?

It is a secured type of loan provided to applicants for buying new/used cars. 

✅ How can I get Car Loan from Union Bank of India?

Car Loan from Union Bank of India is easy to avail through Dialabank.

✅ How does Union Bank of India Car Loan work?

Union Bank of India provides funds to the applicant for buying the vehicle and charge interest against it.

✅ What is the Car Loan Interest Rate in Union Bank of India?

7.05% per annum is the primary Car Loan Rate of Interest charged by the Union Bank of India.

✅ How to Check Car Loan status in Union Bank of India?

Check your car Loan Status online by using Union Bank of India official website.

✅ How to Calculate Car Loan Interest in Union Bank of India?

Use Dialabank EMI calculator to calculate your interest and EMI.

✅ What is the maximum loan amount I can avail on Car Loan from Union Bank of India?

You can get up to 100% of the ex-showroom price. There’s no specific price cap.

✅ What is the loan tenure of Union Bank of India Car Loan?

Loan Tenure of India’s Union Bank is up to 7 years for the new cars and five years for the used ones.

✅ Can I get 100% Car Loan from Union Bank of India?

Yes, you can get 100% Car Loan Best Offers from Union Bank of India.

✅ How much Processing Fee is applicable on Union Bank of India Car Loan?

0.40% of the principal amount is charged as the processing fee on Union Bank of India Car Loan.

✅ What are the EMI options available on Union bank of India car loan?

Balloon EMI and Step-up EMI are the two options available with Union Bank of India Car Loan.

✅ What are the charges for Prepayment in Union Bank of India Car Loan?

Union Bank of India can charge up to 2% as the prepayment charges.

✅ Can I get a top-up loan on my existing Union Bank of India car loan?

Top-up on Existing Loan with Union Bank of India depends on some specific criteria. Contact the nearest branch to know in detail.

✅ Do I need to provide a guarantor to avail a car loan from Union Bank of India?

No, Guarantor is not required to avail a car loan.

✅ How to get Union Bank of India Car Loan Statement?

Get your car Loan statement directly through the ATM or Branch of Union Bank of India. You can get it quickly from the bank’s website too.

✅ How to Pay Union Bank of India Car Loan Interest Online?

Pay interest online using net banking on the Union Bank of India payment gateway.

✅ What if I can’t pay the interest on Union Bank of India Car Loan for three months?

Bank has the right to take your vehicle back and impose hefty fines on you if you fail to pay interest for three months without any prior information.

✅ How can I apply for EMI Moratorium on Union Bank of India Car Loan?

You can apply for EMI Moratorium on Union bank of India by writing an application to branch manager directly stating the same reason.

✅ What is the number for Union Bank of India Car Loan agent?

Best car Loan agent of Union Bank of India is Dialabank. Dialabank’s contact number: 9878981166.

✅ Can I close Union Bank of India Car Loan online?

Union Bank of India requires you to reach the nearest branch to completely close the loan, whereas you can surely start closing your loan online.

✅ What is Union Bank of India Car Loan Customer Care Number?

9878981166 is the number you need for all your queries related to Union Bank of India Car loan.

✅ How can I get NOC from Union bank of India for a car loan?

By Paying all the outstanding dues against your loan, you can reach the bank and take your NOC of the Car Loan.

✅ What is the Union Bank of India Car Loan closure procedure?

  • Just go to the bank with the documents required.
  • Write a letter for pre-closure of the Union Bank of India Car Loan account.
  • Pay the pre-closure charges as per Union Bank of India Car Loan.

✅ What is the Union Bank of India Car Loan preclosure charges?

Union Bank of India Car Loan preclosure charges are 2% of the principal outstanding.

✅ What is the Union Bank of India Car Loan maximum tenure?

The Union Bank of India Car Loan maximum tenure is 7 years.

✅ What is the Union Bank of India Car Loan minimum tenure?

The Union Bank of India Car Loan minimum tenure is 1 year.

 

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