Union Bank Car Loan Review: How It Can Improve Your Car Financing

If you want to buy a car but don’t have the money for it, Union Bank has a car loan program that could help you. The Union Bank of India Car Loan is designed to meet your needs, from the type of car, to how much money you want to borrow. With this loan, you get benefits like flexible repayment terms and attractive interest rates. This article will cover all the details about the Union Bank of India Car Loan and how it can help you buy your dream car.

Union Bank Car Loan

Union Bank Car Loan Highlights

Interest Rate7.40% p.a. to 10.50% p.a.
Loan amountUp to Rs.20 lakh
Loan tenureUp to 7 years
Processing FeeRs.1,000 + GST
Prepayment ChargesNIL

Union Bank Car Loan Interest Rates

The interest rates for a Union Bank of India car loan are based on the type of car you’re looking to finance. New cars will have a lower interest rate than used cars. The interest rate will also vary based on your credit score. Here are the rates for new and used cars:

  • New cars: 7.40% p.a. onwards
  • Used cars: 10.40% p.a. onwards

These rates are subject to change, so it’s always best to check with the bank before applying for a loan.

Union Bank Car Loan EMI Calculator

If you’re looking to finance a new car, Union Bank’s car loan EMI calculator can be a helpful tool. Simply input the loan amount, interest rate, and loan tenure to see your estimated monthly payments. This can help you budget for your loan and make sure that you can afford the payments. Union Bank also offers competitive interest rates on car loans, so be sure to compare offers before making a decision.

Union Bank of India Car Loan Features

Union Bank car loans come with a host of benefits that make them a great option for financing your next vehicle. Here are some of the key advantages of Union Bank car loans:

  • Competitive interest rates: Union Bank offers some of the most competitive interest rates on car loans in the market. This means you can save money on your loan repayments each month.
  • Flexible repayment options: Union Bank offers flexible repayment options that allow you to tailor your loan repayments to suit your budget. This means you can choose a repayment schedule that works best for you.
  • Quick and easy approval process: Union Bank has a quick and easy approval process for car loans, so you can get the finance you need in no time.

Read Also – Central Bank Of India Home Loan Review

Union Bank Car Loan Eligibility

Union Bank of India offers car loans to individuals who are salaried, self-employed, or professionals. The minimum age for eligibility is 21 years, and the maximum age is 75 years. The applicant must have a minimum annual income of Rs. 2 lakhs. The loan amount can be up to 85% of the on-road price of the car.

Documents Required for Union Bank Car Loan

If you’re planning to apply for a car loan from Union Bank of India, you’ll need to gather some documents first. Here’s a list of what you’ll need:

  • Proof of identity: You’ll need to provide a valid form of identification, such as a passport or driver’s license.
  • Proof of income: lenders will want to see proof that you have a steady income in order to repay the loan. This can be in the form of payslips, tax returns, or bank statements.
  • Proof of address: You’ll need to provide a recent utility bill or other documents that proves your current address.

Once you have all of your documents gathered, you’re ready to apply for a Union Bank of India car loan.

Union Bank Car Loan Fees and Charges

Union Bank of India offers some of the most competitive rates for car loans in the market. However, like all banks, they also have certain fees and charges associated with their car loans. Here is a breakdown of their fees and charges:

  • Application Fee: Union Bank of India charges a non-refundable application fee of Rs. 500.
  • Processing Fee: Union Bank of India charges a processing fee of up to 2% of the loan amount, depending on the tenure of the loan. This fee is also non-refundable.
  • Prepayment Charges: Union Bank of India does not charge any prepayment penalties on their car loans. This means that you can repay your loan in full at any time without incurring any additional charges.

How to Apply for a Union Bank Car Loan?

Applying for a Union Bank car loan is easy. You can apply online, by phone, or in person at any Union Bank branch.

  • First, you’ll need to fill out an application form.
  • You’ll need to provide your personal information, including your name, address, and phone number.
  • You’ll also need to provide financial information, such as your income and debts.
  • You will also need to provide information about the car you wish to finance, including the make, model, and year.
  • Once you’ve submitted your application, a representative from Union Bank of India will get in touch with you to discuss your options. They’ll help you choose the right loan for your needs and guide you through the rest of the application process.

So there you have it! Applying for a loan from Union Bank of India is quick and easy. Just make sure you meet the eligibility criteria and have all the necessary information on hand before starting your application.


Union Bank car loan is a good option for people looking to finance their dream car. The interest rate is competitive and the repayment tenure is flexible. You can also avail of additional features like top-up loans and pre-approved loans. However, make sure you understand the terms and conditions before you apply for the loan.

Read Also – PNB Gold Loan


Q. Is there security required to apply for Union Bank’s car loan?

A. The bank will obtain a lien on the vehicle you purchase with the loan. You’ll need to give that lien and car to the Road Transport authority.

Q. Union Bank car loans have fixed interest rates or floating rates?

A. Union Bank wants to introduce floating interest rates with car loans.

Q. What documents do I need to apply for Union Bank of India Car Loan?

A. – Proof of identity
– Proof of residence
– Proof of income
– Other relevant financial documents

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Hey, I'm Ansar Ansari a professional blogger and web designer. I like to gain every type of knowledge that's why I have done many courses in different fields like banking, finance, and business. I love thrills and travelling to new places and hills.

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