Car financing is one of the leading offerings from Union Bank under retail loans. With Union Miles(The car loan brand of Union Bank), your dream of owning a car is steps away. Union Bank car loans offer financing towards purchase of both new and used cars(up to 3 years).
The elementary terms and conditions makes Union Bank Car Loans, one of the most gettable car loan products in the market . Also, zero prepayment penalty and processing fees clauses make it pocket friendly scheme helping you save thousands of rupees in costs.
The documentation is minimal and high on transparency. At Rs.125 lakh, the quantum of financing is one of the highest compared to other bank car loans. If you’re someone aiming at a luxury car, Union Miles can fulfill your dream of owning one. The fixed interest rates, based on monthly reducing balance is one of the lowest in the car loan segment. For new 4-wheelers, the current rate of interest is 1-year MCLR + 0.50% = 8.70% p.a. and for old 4-wheelers (not older than 3 years), the interest rate is 1-year MCLR + 3.50% = 11.70% p.a.
Why choose Union Bank Car Loan?
For its pro consumer policies and terms. With such low interest rates and fast track processing (applications with proper paperwork are approved in just under 2 business days), you can bank on Union miles to own your dream car. Go for it , if you’re looking for a friendly bank and great post sales service.
As detailed earlier, the interest rates are really low. Very few banks are capable of offering such competitive rates in the market. As a customer, you have sufficient bandwidth to repay the car loan. Up to 84 EMI’s(7 years) and and 60 EMI’s(5 years) is the loan repayment period. If you’re someone with a limited monthly budget and dreams of buying a car, Union miles fits the bill.
Union Bank of India has dedicated loan processing centers known as Union Loan Points(ULP’s) across key cities and towns which makes car loans, easily accessible. Customer service call centers operate 24/7 giving you that extra edge in loan servicing when compared to other banks in this category which are open for stipulated hours during the day.
Features of Union Bank Car Loan
Low age qualification
Generally, with most banks, the minimum age of an applicant should atleast be 21. With Union Bank, any Indian citizen above the age of 18 can apply for a car loan under the Union Miles scheme. The applicant should hold a valid drivers license.
High Quantum of loan
Up to Rs.125 lakh loan is covered for new cars and Rs.20 lakh for used cars not more than 3 years old.
Margin of Financing
The margin or your share of the car loan is 15% of the on-road price of the new car and 40% of the used car’s valuation cost. Union Miles finances up to 85% of of the ex-showroom price(Vehicle Cost + Registration Charges + Insurance + Road Tax) of the car which implies only 15% burden for the customer. For used cars, the margin is lowered to 40% of the vehicle cost.
Flat rate of interest
The current rate of interest for –
- New 4-wheelers – 1-year MCLR + 0.50% = 8.70% p.a.
- Old 4-wheelers (not older than 3 years) – 1-year MCLR + 3.50% = 11.70% p.a.
Decent repayment period
With a repayment period of up to 7 years for new cars and 5 years for used ones, you get ample time to repay the loan is easy EMI’s. If you’re under limited financial resources, picking a longer repayment period helps maintain household budget.
Zero prepayment and processing fee
At present, Union Bank does not charge a processing fee towards handling your application and paperwork. This is a limited scheme offer valid for a certain period. Plus, no prepayment penalty is levied by the bank on outstanding balance if you decide to pre close the account. With such luring terms, you will save money.Processing fee on Union Miles has been waived till 31 March 2018.
Car loan security
: Hypothecation of vehicle purchased out of Union Bank’s finance and the Bank’s lien to be noted with the Road Transport authorities.
Car loan guarantee
For Union Bank car loans, guarantee of the spouse is required. If you are unmarried, a third-party guarantee with sufficient income. For NRIs, guarantee of 1 or 2 local resident Indians with sufficient income is required. For companies, guarantee of 1 promoter or director is required.
Union Bank Car Loan Interest Rates
As per RBI guidelines, the bank has mandated MCLR (Marginal Cost Based Lending Rate) to determine the effective rate for car loans. The table below provides further details.
Union Bank Marginal Cost Based Lending Rate (MCLR) for New Borrowers
| New 4-wheelers – 1-year MCLR + 0.50% | 8.70% p.a |
| Old 4-wheelers (not older than 3 years) – 1-year MCLR + 3.50% | 11.70% p.a |
Note: The interest rate is subject to periodic revision as per bank’s credit policy and RBI’s quarterly reviews. Make sure to confirm with the bank on prevailing rates at the time of applying and choose the terms accordingly. The above mentioned interest rates are subject to change as per the revised GST rates.
Special retail lending scheme for the employees of Bharat Sanchar Nigam Limited, BSNL, valid from 1 January 2018 to 31 December 2018.
- New 4-wheelers – 1-year MCLR + 0.10% = 8.30% p.a. (up to 3 years) and 1-year MCLR + 0.35% = 8.55% p.a. (for 3 to 5 years)
- Old 4-wheelers – 1-year MCLR + 2.60% = 10.80% p.a.
Union Bank Car Loan Eligibility
Union Miles is one of the most customer friendly car loan offerings in the market. Compared to other large public sector banks, the eligibility criteria is simpler with Union bank. They have a process that is streamlined and hassle free for the applicants. To ensure fast track processing of car loan applications, UBI has dedicated loan servicing centers known as Union Loan Points or ULP’s. The applicant must be aged between 18 and 70 years. Indian citizens and NRIs with a valid licence can apply for an auto loan at UBI. The applicant can apply for the loan individually or jointly with his or her parent, spouse, child or sibling as a co-applicant. Even companies and business concerns can apply for an auto loan at the bank for the purchase of new/used vehicles for their employees or directors. To be eligible to get a car loan from Union bank, you need to be
- At least 18 years in age.
- Salaried, self employed individual or Business concern.
- Sound credit score and no default history.
- Able to provide guarantor.(Spouse can be the guarantor in case of married applicants)
- No Minimum income requirement.
