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Home / Car Insurance / Articles / Lowest Union Bank of India Car Loan Interest Rates | Instant EMI Calculator, Apply Now!

Lowest Union Bank of India Car Loan Interest Rates | Instant EMI Calculator, Apply Now!

Team AckoJul 18, 2023

When it comes to purchasing a car, financing options play a crucial role. Union Bank of India is a renowned financial institution that offers car loans to help individuals achieve their dream of owning a vehicle.

In this article, we will explore Union Bank of India's car loan interest rates, providing you with valuable insights and information to make an informed decision.

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Contents

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Union Bank of India Car Loan Interest Rates in 2023

The following table provides more details about the Union Bank of India car loan interest rates as of July 2023.

Union Bank of India Car Loan Scheme

Interest Rate

New Car Loan

8.85% to 10.50%

Used Car Loan

12.90% to 13%

New Electric Car Loan

8.80% to 10.40%

Features of Union Bank of India Car Loan

Here are the key features of the Union Bank of India car loan schemes.

  • The bank offers financing options for individuals looking to buy either a brand-new or used car.

  • Applicants with a CIBIL score of 700 or above do not need to provide a guarantee.

  • Up to 85% of the on-road price of a new car can be financed by the bank.

  • Obtain a car loan with a repayment period of up to seven years (84 months).

  • Car loans are provided at attractive interest rates.

  • Salaried applicants who hold a salary account with Union Bank of India can benefit from a 5% margin discount.

How to Calculate Union Bank of India Car Loan EMI

To calculate the EMI (Equated Monthly Installment) for a Union Bank of India car loan, you can follow these steps.

Step 1: Gather the Required Information: Before you begin calculating the EMI, make sure you have the following information handy.

  • Loan Amount: The total amount you intend to borrow from Union Bank of India for purchasing your car.

  • Interest Rate: The annual interest rate offered by Union Bank of India for your car loan.

  • Loan Tenure: The duration, in months, for which you will be repaying the loan.

Step 2: Use the EMI Formula: The EMI calculation can be done using the following mathematical formula.

EMI = [P x R x (1+R)^N] / [(1+R)^N-1]

P = Loan Amount

R = Monthly Interest Rate

N = Loan Tenure in Months

Step 3: Convert Annual Interest Rate to Monthly Interest Rate: Since the interest rate is usually provided on an annual basis, you need to convert it to a monthly rate. Divide the annual interest rate by 12 to obtain the monthly interest rate.

Step 4: Calculate the Monthly Interest Rate: Divide the monthly interest rate by 100 to convert it from a percentage to a decimal.

Step 5: Plug in the Values and Calculate the EMI: Using the formula mentioned in Step 2, substitute the loan amount, monthly interest rate, and loan tenure in months to calculate the EMI.

Step 6: Round off the EMI: After calculating the EMI, it is advisable to round it off to the nearest whole number for ease of understanding and practicality.

Eligibility Criteria: Union Bank of India Car Loan Eligibility

To get a Union Bank of India car loan to buy a new or second-hand car, the applicant must fulfil the following eligibility criteria.

  • Both resident Indian citizens and Non-Resident Indians (NRIs) are eligible.

  • The minimum age requirement is 18 years, while the maximum age limit is 75 years.

  • Individuals can apply for a car loan either individually or jointly with their family members.

  • Companies and firms can also apply for loans to purchase vehicles for their directors or employees.

Application Process: How to Apply for a Union Bank of India Car Loan

There are two methods to apply for a Union Bank of India car loan. The following sections explain the same.

Online Process

  • Visit the official website of the Union Bank of India.

  • Navigate to the "Products" section.

  • Select "Retail" under the "Loans" category.

  • Choose "Union Miles" from the options.

  • You will be directed to the car loan page, where you need to click on the "Online Application" button.

  • Click on "Apply Online".

  • On the subsequent page, you will be presented with the choice to select either "New User" or "Existing User".

  • If you opt for "New User", you will be redirected to another page where you must provide the necessary details, including the type of loan you are interested in.

  • After filling in the required information, click on "Apply" to finalise the process.

  • For existing users, enter your reference and mobile number to complete the application.

Offline Process

Walk into your nearest Union Bank of India branch and enquire about the car loan. The bank official will guide you through the application process. 

Documents Required to Apply for a Car Loan from the Union Bank

Here is the list of documents you need to apply for a Union Bank of India car loan.

Salaried Applicants

  • Identity proof (Passport, Aadhaar card, Driving Licence etc.)

  • Address Proof (Driving Licence, Voter ID card, Aadhaar card, etc.)

  • Income proof (Salary Slips for the last 6 months)

  • Form 16

  • Income Tax Returns for the last 1 year

Self-Employed Applicants

  • Identity proof (Driving Licence, Voter ID card, Passport etc.)

  • Address Proof (Driving Licence, Voter ID card, Passport, etc.)

  • A balance sheet with a profit and loss account statement

  • Income Tax Returns for the last 3 years

Factors Affecting Union Bank of India Car Loan Interest Rates

Several factors can influence the Union Bank of India car loan interest rates. These factors include the following.

  • Credit Score: A borrower's credit score plays a significant role in determining the interest rate. A higher credit score indicates good creditworthiness and financial discipline, which may result in lower interest rates. Conversely, a lower credit score can lead to higher interest rates or even loan rejection.

  • Loan Amount: The loan amount can impact the interest rate. In general, higher loan amounts may attract lower interest rates as banks perceive them as less risky due to higher customer commitment.

  • Loan Tenure: The loan tenure, or the duration of the loan, can affect the interest rate. Typically, shorter loan tenures tend to have lower interest rates compared to longer tenures. Shorter tenures are considered less risky for banks, which can result in lower interest rates.

  • Type of Car: The type of car you intend to purchase can influence the interest rate. New cars and used cars may have different interest rates. Used cars generally come with slightly higher interest rates due to the increased risk associated with older vehicles.

  • Income and Employment Stability: Your income level and employment stability are important factors considered by the Union Bank of India. Borrowers with higher incomes and stable employment histories are generally viewed as less risky, which can lead to lower interest rates.

Check Out Car Loan Interest Rates from Other Banks in India (2023)

The following table lists the car loan interest rates (as of July 2023) of various banks in India.

Bank Name

Car Loan Interest Rate (Per Annum)

State Bank of India

8.60% onwards

Bank of Baroda

8.70% onwards

Union Bank of India

8.80% onwards

HDFC Bank

8.85% onwards (Rack Interest)

Federal Bank

11% onwards

Axis Bank

8.75% onwards

Canara Bank

8.80% onwards

Punjab National Bank

8.75% onwards

ICICI Bank

8.85% onwards

Kotak Mahindra Bank

7.70% onwards

Bank of India

8.85% onwards

IndusInd Bank

7% onwards

Yes Bank

9.7% onwards

UCO Bank

8.70 onwards

Frequently Asked Questions (FAQs) about Union Bank of India Car Loan

Here are some of the most common questions and their answers related to Union Bank of India car loans.

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What is the car loan interest rate in the Union Bank of India?

The Union Bank of India car loan interest rates start at 8.80%.

Is the Union Bank of India car loan interest rates fixed or floating?

The Union Bank of India offers fixed car loan interest rates.

What is the maximum tenure for a used car loan in the Union Bank of India?

The maximum repayment tenure for the Union Bank of India used car loan stands at 5 years.

Can I get a loan for 100% of the on-road price of the car from the Union Bank of India?

No, the Union Bank of India offers car loans up to 85% of the on-road price of the car.

Disclaimer: The above content is for informational purposes only. It is recommended to take the help of an expert before making a decision.

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