Union Bank Of India Used Car Loan

Eligibility Criteria for Union Miles (Used Car Loans)

Union Miles is the vehicle loan scheme of the Bank that has a wide and inclusive eligibility requirement for the used car loans. The main criteria for eligibility under this scheme are,

• Minimum age – 18 years
• Maximum age – 70 years
• Resident Indian Citizen / Non-resident Indians (NRIs) that have a valid license
• Joint application is allowed by the Bank (provided such co-applicant is either or both the parents of the applicant or spouse or children of the applicant)

The eligible applicants for used car loans of the bank are listed below.

• Individuals
• Partnership firms/Companies provided such vehicle is used by their employees or Directors

Documents Required for Union Miles (Used Car Loans)

Union Bank of India has a comprehensive list of documents that are required in applying for the used car loans under the Union Miles Scheme of the Bank. The detailed list of the same is provided here.

• Identity Proof (Passport/ PAN Card/ Employee Identification card/ Any other valid Identity proof)
• Address Proof (electricity Bill/ telephone Bill/ Aadhaar Card/ Any other valid proof)
• Proforma Invoice from the authorized dealer or seller of the vehicle
• Valuation report from approved automobile engineer
• Income Proof

For salaried persons

• Last year’s ITR
• Form 16/Letter from Employer
• Last 6 month’s salary slips

For business concerns

• Last 3 years ITR
• P & L Statement
• Balance Sheet

• Recent 3 passport size photographs
• Any other document as required by the Bank depending on any particular case

Features and benefits of Union Miles (Used Car Loans)

Union Miles provides very appealing loans for the purchase of used cars with attractive rates of interest and repayment options. The various features of the Bank’s used car loans are detailed here.

Amount of loan to be sanctioned – 

The maximum amount of loan that can be sanctioned under the Union Miles Scheme for used/ pre-owned car loans is restricted to Rs. 10,00,000.

The amount of loan that can be sanctioned to a borrower is calculated to be the lower of the following,

• Rs. 10,00,000
• 60% of the value of the vehicle

Rate of interest – 

The rate of interest of Union Miles used car loans depends on the credit score of the applicant. The current rate of interest offered by the Bank for its used car loans effective from 1st April 2020 is tabled below.

Margin – 

Union Bank of India requires the borrowers to provide 40% of the value of the vehicle as margin requirement under the Union Miles Scheme for Used Car Loans. This margin requirement is a bit steeper as compared to the requirements of many other banks in this category.

Tenure – 

Union bank of India provides 5 years or 60 months as repayment schedule/tenure for the used car loans under the Union Miles Scheme.

Prepayment penalty – 

The Bank does not charge any prepayment fees or charges if such prepayment has been made from the borrower’s own verifiable source of income. In other cases, the bank charges a penalty of 2% on the average balance of the preceding 12 months. Such other cases include,

• Loan being taken over by any other Bank or Financial Institution
• Amount adjusted by the borrower in a lump sum payment from a third party source (except in case of a genuine sale).

Security – 

Hypothecation of the vehicle purchased out of the loan is the primary security of the Bank against such loan given. Bank also requires the hypothecation charge to be registered with the Road transport Authority.

Guarantee – 

The guarantee requirement of the Bank for used car loans is mandatory and is highlighted under each category of applicant

• Spousal guarantee for individual borrowers
• Third party guarantee of sufficient means for unmarried individual borrowers
• Guarantee of one/two Local resident Indians of sufficient means for NRIs
• Guarantee of one promoter or director is required for companies seeking a loan for purchasing used cars.

These were some of the salient features of the Union Miles used Car Loans. Customers can contact the Bank’s branch or their customer care service to get further details on Union Miles Used Car Loans.

United Bank of India Loan Application Process

Customers can apply for the used car loans of the Bank via online application or by physically visiting the nearest branch of the Bank and directly applying for the loan there.

Online application mode

Applicants can apply for the Bank’s used car loans by clicking on the link provided for the same at the Bank’s website. Customers can find the link at the following path

Home - Products - Personal - Car loans/ Vehicle Loans - Online Loan Application

Customers can also download the application form for used car loans from the following link

Home - Products - Personal - Car loans/ Vehicle Loans - Forms and Documents - click here to download Application Form

The above link will take the user to a new page where he/she will get the application form under the following link

Retail Loan - Union Miles

Customers can download the Word Document available, fill the same, and duly submit it along with the necessary documents to complete the application process for used car loans.

Physical Application Mode

Under the physical application mode, customers will have to physically visit the branch of the bank to get the application form or submit the downloaded and filled application form along with the required documents to complete the application process. The customers will also have to pay the applicable fees (if any) at the time of submitting the application.

United Bank of India EMI Calculator

Union Bank of India enables the customers to estimate the proposed EMI on the used car loans by calculating the same on the Bank’s EMI Calculator. This EMI calculator is available at the Bank’s Website under the following link

Home - EMI Calculator

Customers will have to input the following details to get the EMI, Average interest as well as net monthly interest to be paid on the loan amount.

• Loan amount in Rs.
• Interest Rate in % per annul
• Period (in months)

United Bank of India Customer Care

The bank has a dedicated customer care service that is available 24x7 all year along and caters to all the needs of the customers. The bank has various channels for the customer to get in touch with the bank. The details of the same are mentioned here.

• Toll free numbers - 1800 22 22 44 / 1800 208 2244
• Toll number - 080-61817110/ 25300175

The customers can, alternatively, get in touch with the customer care executives or avail the IVR (Interactive Voice Response) facility of the Bank. This feature enables the customers to get routine information or perform standard transactions that can be done without the assistance of the well trained and expert customer care executives (e.g. last 5 transactions, hotlisting debit/credit cards, current balance, account information, etc.). The IVR feature of the Bank can respond to the customer in 7 regional languages (Malayalam, Marathi, Gujarati, Bengali, Kannada, Tamil, Telugu) besides Hindi and English depending up on the customer’s choice/ease.

The Bank also hosts a separate customer care channel dedicated solely for its NRI/international customers. Customers can contact the bank at the following number +918061817110/ +918025302510 at the call centre of the Bank. Union Bank of India also has several overseas branches, the contact details for the same are available at the Bank’s website under the following link

General General Contacts Business Banking Branches Foreign Branches (available at the left corner of the page.

The customers can also connect with the Department Heads for specific queries or to address their issues or concerns to the heads of the respective departments as well as to the Central office of the Bank in Mumbai. The contact details of the Department Head for Retail Loans (home loan, car loan, personal loan) and the Central Office are,

Department  - Retail Banking Department

Point of Contact – General Manager

Telephone - 022-22896309

Email Id – gm[dot]rbmd[at]unionbankofindia[dot]com

Central Office

Union Bank Bhavan,

239, Vidhan Bhavan Marg,

Nariman Point,

Mumbai - 400 021,

Maharashtra, India

Telephone (Board) – 022-22892000

FAQs – Union Miles Used Car Loans