With low interest rates starting from 7.40% and a loan tenure maximum of 7 years, the Union Miles car loan is perfect for borrowers who are seeking to purchase a new vehicle. Additionally, the Union Bank car loan for used cars allows eligible applicants to minimise their total cost of borrowing with a low starting rate of 10.40%. Therefore, whether you're seeking to purchase a new or secondhand vehicle, Union Bank is the first stop you should make when comparing car loan interest rates, loan tenures, and eligibility criteria.
|Summary of Union Bank of India Car Loan|
|New car loan rates from 7.40%|
|Used car loan rates from 10.40%|
|Low processing fee of Rs. 1000|
|New car loan tenures up to 7 years|
Table of Contents
What Makes Union Bank of India Car Loans Stand Out to Borrowers
Union Bank of India has great car loan deals for borrowers seeking used four-wheelers and new vehicles alike. The lender's interest rates start low at 7.40% and 10.40% for new cars and used cars, respectively. In addition to these cost-saving rates of interest, the lender also has a small processing fee of Rs. 1000, a long new car loan tenure up to 7 years, and a generous age requirement of 18 to 75 years. Our financial analysts recommend Union Bank of India as a top lender to consider for your car loan financing needs, especially if you are seeking a new vehicle.
Union Bank of India Car Loan Interest Rates
With new car loan interest rates starting from 7.40%, Union Bank of India is among the top 3 lowest interest car loans in the market. Similarly, Union Bank's used car loan interest rates of 10.40% onwards places the lender at the #4 lowest interest car loan amongst the 25 banks we analysed.
Union Bank Car Loan Interest Rates by CIBIL score
|CIBIL Score||Used Car Interest Rate||New Car Interest Rate|
Your final car loan rate will be determined by your CIBIL score. Borrowers with a CIBIL score of 700 and above will avail the lowest interest rates at Union Bank of India.
Union Bank of India Car Loan Eligibility Criteria
Union Bank of India's car loan eligibility criteria is more inclusive than other banks that our financial team reviewed. First, you do not need to be a salary account holder with Union Bank to be eligible for a car loan. Second, while most banks have a standard age requirement range of 21 and 65, Union Bank car loans are open to borrowers between the ages of 18 and 75.
Additionally, Union Bank provides new and used auto loans to resident Indians and non-resident Indians (NRIs). Since most banks limit their car loan eligibility to resident Indians, Union Bank is a good car loan dealer to consider if you are an NRI or Person of Indian Origin (PIO). However, it's important to note that NRIs must have a resident Indian to guarantee their auto loan.
You can find more car loan details regarding loan tenure and maximum loan amount below.
|Maximum Loan Amount||Margin||Loan Tenure|
|New Car Loan||Rs. 20 lakhs||60% of car valuation||5 years|
|Used Car Loan||Nil||85% or 90% if you are a salaried borrower||7 years|
If you are a salaried borrower seeking a new car loan, you can avail a 5.00% concession on your margin. This means that Union Bank of India will finance up to 90% of your car valuation, instead of 85%.
Union Bank of India Car Loan Processing Fee and Other Charges
Union Bank of India has a very low processing fee of Rs. 1000, which is good for borrowers who want to avoid extra costs. Additionally, the lender advertises no prepayment penalty charges if the loan is adjusted from a verifiable source. Since most banks charge a prepayment fee up to 3.00% of the outstanding balance, Union Bank is an excellent car loan lender to consider if you wish to pay down your car loan in advance.
Union Bank of India doesn't advertise other fees and charges, therefore you should speak with a Union Bank customer service representative to calculate an estimate of your total cost of borrowing.
Union Bank of India Car Loan: Apply Online
You can begin your car loan application process online, by phone, or in person at a Union Loan Point (ULP). Before you apply, it's important to collect your required documents for proof of address, identity, income and car valuation (if you are seeking a loan for a used vehicle).
Documents Required for Car Loan from Union Bank of India
While Union Bank of India has standard requirements for proof of income, the lender has very flexible requirements for proof of address and income. Below, you can find the required documents for both salaried and self-employed borrowers.
|Salaried Borrowers||Self Employed Borrowers|
|Proof of Identity (any one of the following)|
|Proof of Address (any one of the following)|
|Proof of Income|
|For Used Cars|
Union Bank of India Car Loan Customer Care
If you have any queries about the Union Bank of India car loan application process, you can contact Union Bank Customer Service.
- Union Bank of India Car Loan Customer Care Number: 1800 22 22 44
- Begin your online car loan application process here.
- Click here to find a Union Loan Point.