Union Bank Car Loan – Eligibility, Charges, and How to Apply

Union Bank Car Loan

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Union Bank of India or UBI is an Indian public sector bank. It is one of the leading public sector banks of the country. It provides various banking facilities to the peoples.

Union Bank Car Loan

Union Bank of India is known to be one of the largest government-owned banks in India. Union Bank of India offers a car loan to candidates who are willing to buy a car but facing problem towards finance. You can get a vehicle loan at Union Bank at an average interest rate.

Also Read: Bank of Baroda Car Loan

Features and Benefits of Union Bank Car Loan

• Loans can be availed by individuals for their personal use
• Flexible loan tenure up to 7 years
• No prepayment penalty
• Affordable rate of interest
• Loans for buying old cars also available etc.

Interest Rates, Loan Amount, and Charges of UBI Car Loan

How to Apply for Car Loan at Union Bank of India

You can apply through both online and offline process. To apply through online process visit the official website of the Bank, fill up the application form submit all the required details and complete the process. To apply through offline visit the nearest bank branch and follow all the process directed by the bank officials.

Eligibility Criteria of UBI Car Loan

• Both salaried and self-employed person can avail car loan from PNB
• Resident and Non-Resident Indians
• Minimum 21 years of age
• Maximum 75 years of age at the time maturity
• Companies/Firms for professional use

Documents Required

• Signed application form with photograph
• ID proof
• Age proof
• Income proof
• Bank statement of last 6 months
• Salary slips of last 3 months
• Form 16 or Income Tax Returns
• Sign verification proof
• Additional documents

Factors Affecting Union Bank Car Loan Interest Rates

• Credit Score: Holding a good credit score typically ensures that the bank gives the lowest interest rates. Banks generally increase the interest rate significantly for customers with low credit score.

• Down Payment: The down payment made by the customers also determines your rate of interest that the bank will be offering. The higher the down payment amount, the lower the interest rate and vice versa.

• Loan Tenure: Lenders will offer low interest rates for car loans with shorter loan tenures. If the borrowers make a big down payment, the loan amount will be lower, thereby shortening the loan tenure.

• Income-to-debt-ratio: If the income-to-debt ratio is good for an applicant, then the lender will give better interest rates.

• Market Fluctuations: The interest rate can vary based on market fluctuations. For eg; if the Reserve Bank of India lowers its repo rate, then lending institutions may offer relatively lower interest rates.

FAQs

1. Does car loan comes with both fixed and floating rate of interest?

Ans: Yes, car loans are available with both fixed and floating rate of interest.

2. What are the documents required for applying car loan?

Ans: The documents one required to apply for a car loan are as follows:

• ID proof
• Address proof
• 2 passport size photographs
• Income proof
• Bank statement of last 6 months
• Income Tax Returns for the

3. Can I prepay my car loan?

Ans: Yes, you can prepay your loan amount.

4. How much time it required for disbursement of vehicle loan at UBI?

Ans: It takes 2 working days to get the vehicle loan sanctioned from Union Bank of India.

5. How will Union Bank of India decide the loan amount I am eligible for?

Ans: Union Bank of India will decide the loan amount by your income and repayment capacity. Other important factors include credit score, down payment, loan tenure, income-to-debt-ratio etc.

Dev Kirtonia

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