Union Bank Of India Car Loan Eligibility

• Any individual who is a resident Indian or an NRI holding a valid driving license can apply for a car loan
• The minimum age to apply is 18 years and the maximum age limit is 70
• A good credit score is recommended for an easy approval
• Individuals can apply for a loan solely or jointly with any other earning member of the family
• Corporate companies and firms can also apply for a loan to purchase cars for their Directors or employees
• The quantum of loan amount is Rs. 125 lakhs for new cars and Rs. 20 lakhs for used cars
85% of the car’s on-road price can be availed as loan for new cars. For uses cars 60% of the vehicle’s valuation cost can be availed.
• The loan can be repaid in tenures of up to 84 months for new cars and up to 60 months for used cars
• Security – Hypothecation of the vehicle purchased is mandatory
• Guarantee – Union Bank of India requires a guarantee of the spouse for car loans. In case of unmarried persons, the guarantee of a person with sufficient income is required. For NRIs, the guarantee of one or two local resident Indians is required. For companies/firms, the guarantee of the Director/Promoter is sufficient.

Union Miles Car Loan for BSNL Employees:

Union Bank of India Car Loan Interest Rates & Other Charges

Union Bank of India offers very competitive rates for its car loan customers. The below table provides an overview on the interest rates and other charges associated with the car loan:

^50% concession on processing charges based on credit score *current MCLR rate is 8.70% as on 01.12.18

Documents Required for A Car Loan with Union Bank of India

• Proof of identity
• Proof of address
• Proforma / Invoice for the cost of the car
• Valuation certification for used cars
• Proof of income
• Duly filled application form
• Photographs as mentioned in the application form

Frequently asked Questions

(1) How is the maximum loan amount determined for Union Bank of India Car Loan?

Union Bank of India offers a maximum loan amount of Rs. 125 lakhs for new cars and Rs. 20 lakhs for used cars. However, the loan amount is calculated based on two factors:

• Total cost of the car minus the margin requirement – 15% for new cars and 40% for used cars
• Loan amount as per the eligibility calculations based on the repayment capability of the borrower

Interest rates are based on 1-year MCLR fixed by the bank from time to time. Union Bank of India offers floating rate of interest. The current MCLR rate is 8.70%. Hence, the lowest interest rate one could be offered is 9.20% for purchase of new cars.

Yes, any earning member of the family can be added as a co-applicant on your loan application. It can be either your spouse, father, mother or siblings. Adding an earning member as a co-applicant increases the income level on your application. Thus, you have the chance of obtaining a higher loan amount.

Union Bank of India charges a processing fee of 0.50% of the loan amount, subject to a maximum of Rs. 15000 + service taxes. Union Miles scheme for BSNL employees does not have any processing charges. If you have a pre-existing loan account with Union Bank of India, or a savings account in the silver/gold/platinum category, then the processing charges will be 0.25% of the loan amount, subject to a maximum of Rs. 7500 + service taxes.