Union Bank Car Loan Interest Rate – Complete Guide & EMI Tips

Key Insights 

1. If your ICI score is above 800, you can get a Union Bank car loan for electric vehicles at rates starting from 7.40%.

2. With a Union Green Vehicle Loan, you pay no processing fees, so your eco-friendly car becomes even more affordable.

3. You can plan your 5-year loan with the Union Bank car loan EMI calculator, then apply online to get quick in-principle approval.

 Are you thinking about buying a new car? Check out Union Bank car loan interest rates for 2025. Union Bank offers options designed for you, including a special Union Bank car loan interest rate for salary account holders, to help make your new car more affordable.

You can compare the Union Bank car loan interest rate for 5 years to your car’s fuel efficiency. A lower rate makes your loan more affordable, but if you fulfil the Union Bank car loan eligibility.

This rate is the percentage charged on your loan, and it can be Union Bank car loan interest rate fixed or floating. The Union Bank car loan EMI calculator lets you see your total costs before you start.

Example:

I used the Union Bank car loan EMI calculator to check if I could get a Union Bank car loan interest rate for 5-year loan. For ₹8,00,000 at a fixed rate of 9.25% per year, my EMI was ₹16,700. Because I have a salary account, I got a better rate and saved a good amount.

Types of Car Loans Offered by Union Bank

Union Bank is here to help you get on the road. Check out our car loan options for new, used, and electric vehicles, all designed to fit your goals and your budget.

Here is the list of types of Union Bank Car Loan, interest rate, and features:
 

Waha, yaar, it has some good features, but your interest isn't that high, is it? 

You don’t worry about the Union Bank Car Loan Interest Rate because here is the list of the Union Bank car Loan Interest Rate:
 

Get rates starting at 7.40% when you have a strong ICI score. Union Bank offers lower interest rates to customers who show good credit habits, but you must fulfil the Union Bank car loan eligibility.

Bonus Tip: Do you know? The fixed interest rate will change after five years. At that time, your new rate will be set at 1% above the current floating interest rate.

Union Bank Car Loan Processing Fees & Charges

Feel confident about your car purchase. Learn about the Union Bank car loan interest rate for 5 years loan and processing fees, so you can plan your budget and avoid any unexpected costs.

Here are the Union Bank Car Loan Processing Fees and Charges:
 

Choose a Union Green Vehicle Loan and pay no processing fees. This way, your eco-friendly decision is also an affordable one.

How to Apply for a Union Bank Car Loan?

You can get behind the wheel of your new car. Union Bank's car loan application is quick, simple, and stress-free.

Online Process:

1. Open your browser and visit the official Union Bank of India website.
2. From the main menu, go to the Products section and choose Retail under the Loans category.
3. Look for the Union Miles or Union Vehicle option and click on it. If you want a loan for an electric vehicle, choose the Union Green Miles option.
4. On the vehicle loan page, click the Apply Online button. You can also reach the application page through the Online Loan Application portal.
5. Choose whether you are a new user or an existing user.
   • If you are a new user, you will go to a new page to enter your personal, employment, financial, and vehicle details.
   • If you are an existing user, you may need to enter your reference number and mobile number to continue your application.
6. Fill out the online form and make sure to include all the required information.
7. Upload scanned copies of the required documents.
8. After you submit your documents and they are verified, you can get instant in-principle approval.
9. When your vehicle is ready for delivery, the loan amount will be disbursed. The whole process from submitting documents to approval usually takes about two business days.

Offline Process:

1. Visit your nearest Union Bank of India branch.
2. Collect the application form at the branch or download it from the Union Bank of India website.
3. Fill out the form with your personal, employment, and vehicle information.
4. Prepare your KYC documents (ID and address proof), income proof (ITR, payslips, or Form 16), 6 to 12 months of bank statements, photographs, and vehicle details.
5. Submit the completed form, required documents, and the processing fee cheque to the bank representative.
6. The bank will verify your documents, check your credit, and send you a sanction letter. The loan will be disbursed once your vehicle is ready.

Union Bank makes it easy to get your new vehicle. Our simple application process helps you get approved and receive your funds quickly.

Conclusion

Union Bank offers car loans with rates starting at 7.40% for electric vehicles, and you can get even better rates if you have a strong credit score. You can apply online or at a branch, and there are no processing fees for green loans. This makes it simple and affordable to finance your next car.

FAQs

Is interest really this high right now for EVs or regular car loans? 

Right now, car loan interest rates are higher than usual because of the economy. Still, loans for Electric Vehicles (EVs) usually have a slightly lower interest rate than loans for traditional gas-powered cars.

Do banks actually offer car loans on floating rates, or are they always fixed? 

Most banks and financial institutions offer fixed-rate car loans, but some lenders also provide floating, or variable, rate car loans. Whether you can get a floating rate loan depends on the lender and where you live.

How can I get the best interest rate on my car loan? 

Look over your credit report and correct any mistakes before you apply for a loan. Improving your credit score can help you qualify for better car loan offers. Try to pay off high-interest debt to lower your debt-to-income ratio. You might also want to choose a shorter loan term to get a lower interest rate.

What things should one be aware of while taking a car loan from banks in India?  

If you plan to take a car loan from a bank in India, make sure you know the full cost, such as the interest rate and any extra fees. Check that you can afford the repayments and read the loan agreement carefully.

Can I prepay my car loan?

Yes, you can pay off your loan early without any penalty, as long as you use your own verified funds.
 

Apply for Loans Fast and Hassle-Free

Apply Now

About the Author

LoansJagat Team

‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.