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

Team AckoApr 30, 2024

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.

Contents

Union Bank of India Car Loan Interest Rates in 2023
- Features of Union Bank of India Car Loan
How to Calculate Union Bank of India Car Loan EMI
Eligibility Criteria: Union Bank of India Car Loan Eligibility
Application Process: How to Apply for a Union Bank of India Car Loan
- Online Process
- Offline Process
Documents Required to Apply for a Car Loan from the Union Bank
- Salaried Applicants
- Self-Employed Applicants
Factors Affecting Union Bank of India Car Loan Interest Rates
Check Out Car Loan Interest Rates from Other Banks in India (2023)
Frequently Asked Questions (FAQs) about Union Bank of India Car Loan

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.

Alternatively, you can use ACKO's car loan emi calculator to calculate the emi instantly.

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