Public sector bank · Car Loan
Union Bank of India Car Loan 2026
Union Bank of India prices its repo-linked car loans strictly by credit score, from EBLR − 0.40% for the best borrowers. Interest rate 7.60% – 10.00%, loan No ceiling on loan amount, tenure Up to 84 months (7 years).
Rates as of 24 Jul 2026 · Checked 27 September 2026Interest rate
7.60%
up to 10.00%EMI on ₹8,00,000 (5 yrs)
₹16,068
Union Bank of India Car Loan at a glance
Interest rate7.60% – 10.00%
Processing fee₹1,000 + GST (aggregator); often waived for electric vehicles
Loan amountNo ceiling on loan amount
TenureUp to 84 months (7 years)
BenchmarkEBLR 8.00% (repo-linked)
Best rateCIBIL 825+
Lender typePublic sector bank
Rank on this site#4 of 8 by starting rate
Strengths
- Among the lowest rates for high credit scores
- No loan ceiling
- Low flat processing fee
Watch out for
- Rate rises to 10% for scores below 650
Union Bank car loan interest rate & charges
| Feature | Union Bank |
|---|---|
| Interest rate | 7.60% – 10.00% |
| Rate details | EBLR-linked (EBLR 8.00%) and tiered by CIBIL: 825+ gets EBLR − 0.40% = 7.60%; below 650 pays EBLR + 2.00% = 10.00% (retail rate sheet, 24 Jul 2026). Union Green Miles (EV) 7.50% – 9.90%. |
| Processing fee | ₹1,000 + GST (aggregator); often waived for electric vehicles |
| Loan amount | No ceiling on loan amount |
| Tenure | Up to 84 months (7 years) |
| Prepayment / foreclosure | Nil (floating rate); the bank also states nil when closed from own verifiable sources |
| Benchmark | EBLR 8.00% (repo-linked) |
| Best rate | CIBIL 825+ |
Special schemes & features
Union Green Miles (EV)
7.50% – 9.90% for electric cars
Source: www.unionbankofindia.bank.in, 24 Jul 2026. Rates are indicative; your rate depends on your profile. Always check the Key Facts Statement (KFS) for the APR before signing.
EMI at Union Bank’s rates
| Loan amount | EMI @ 7.60% | EMI @ 8.80% | EMI @ 10.00% |
|---|---|---|---|
| ₹5,00,000 | ₹10,043 | ₹10,331 | ₹10,624 |
| ₹8,00,000 | ₹16,068 | ₹16,529 | ₹16,998 |
| ₹12,00,000 | ₹24,103 | ₹24,794 | ₹25,496 |
Tenure 5 years, reducing-balance method. Total interest on ₹8,00,000 at 7.60%: ₹1,64,104.
Union Bank car loan EMI calculator
Eligibility
- Indian residents (and NRIs at some banks, e.g. SBI NRI Car Loan); minimum age usually 18 – 21, with an upper age limit at loan maturity set by each bank
- Salaried, self-employed professionals, business owners and (at PSU banks) agriculturists
- Minimum income typically ₹3 lakh a year (SBI, HDFC Bank, Canara) or ₹25,000 net a month (PNB)
- Credit score: the lowest rates need 750–800+; Bank of Baroda needs at least 701
- Total EMIs (including the new car loan) usually within about 50% of net income
- Car must be registered in the borrower’s name with the bank’s hypothecation noted on the RC
Documents required
- Application form with photographs
- KYC: PAN (mandatory) and Aadhaar / passport / voter ID / driving licence
- Income proof — salaried: last 3 salary slips and Form 16; self-employed: 2 years’ ITR with computation, P&L and balance sheet
- Bank statements for the last 6 months
- Proforma invoice / quotation from the dealer showing on-road price
- Employment or business continuity proof
- After purchase: RC copy with hypothecation, insurance policy naming the bank, and final invoice
How to apply for Union Bank of India Car Loan
- Pick the car and get a quoteAsk the dealer for an itemised on-road quotation — ex-showroom, road tax, registration, insurance, TCS and accessories.
- Compare offersCheck rate, rate type (fixed / floating), processing fee, foreclosure charges and the APR in each lender’s Key Facts Statement.
- ApplyOnline, through the bank app, at a branch or at the dealership; many banks give pre-approved offers to existing customers.
- SanctionThe bank checks your credit report, income and the car’s price, then issues a sanction letter and KFS.
- Sign and pay marginSign the loan agreement, set up NACH/e-mandate for EMIs and pay your down payment to the dealer.
- Disbursal and registrationThe bank pays the dealer directly; the RTO registers the car with the bank’s hypothecation on the RC. Submit the RC and insurance copies to the bank.
Union Bank vs other lenders
| Lender | Rate | Processing fee | Tenure | EMI on ₹8,00,000 |
|---|---|---|---|---|
| Canara Bank Car Loan | 7.45% – 15.00% | 0.25% of loan (min ₹1,000, max ₹5,000) + GST; 50% waiver from 1 Jul to 30 Sep 2026 | Up to 84 months (7 years) | ₹16,011 |
| Bank of Baroda Car Loan | 7.60% – 11.30% | Up to ₹10 lakh: ₹1,500 + GST; above ₹10 lakh: ₹2,000 + GST; ₹500 + GST for government / PSU employees | Up to 84 months (7 years) | ₹16,068 |
| PNB Car Loan | 7.60% – 9.70% | 0.25% of loan (min ₹1,000, max ₹1,500) + GST | Up to 84 EMIs (7 years) | ₹16,068 |
| Union Bank of India Car Loan | 7.60% – 10.00% | ₹1,000 + GST (aggregator); often waived for electric vehicles | Up to 84 months (7 years) | ₹16,068 |
| HDFC Bank Car Loan | 8.15% onwards | Up to 0.5% of loan (min ₹3,500, max ₹8,000) per BankBazaar; ClearTax shows 1% (min ₹3,500, max ₹9,000) — plus GST | 12 – 84 months | ₹16,279 |
| ICICI Bank Car Loan | 8.40% onwards | Up to ₹8,500 + GST | 12 – 84 months | ₹16,375 |
| SBI Car Loan | 8.40% – 9.35% | Up to ₹5 lakh: ₹500 (salaried) / ₹750 (others); ₹5 – 10 lakh: ₹1,000 / ₹1,250; above ₹10 lakh: ₹1,500 / ₹2,000 — all + GST | Up to 7 years (Green Car Loan up to 8 years) | ₹16,375 |
| Axis Bank Car Loan | 8.95% – 11.75% | ₹3,500 – ₹5,500 + GST | 12 – 96 months (up to 8 years) | ₹16,587 |
Frequently asked questions
What is the Union Bank of India Car Loan car loan interest rate?
Union Bank car loan rates start at 7.60% and go up to 10.00% p.a. (as of 24 Jul 2026). The rate you get depends on your credit score, income and loan details.
What is the EMI for ₹8,00,000 from Union Bank?
At 7.60% for 5 years the EMI is about ₹16,068, with total interest of ₹1,64,104.
What is the processing fee?
Union Bank: ₹1,000 + GST (aggregator); often waived for electric vehicles. GST at 18% applies on fees.
What is the maximum tenure?
Union Bank: Up to 84 months (7 years).
Can I prepay or foreclose the loan?
Union Bank: Nil (floating rate); the bank also states nil when closed from own verifiable sources.
Information compiled from the lender’s published rates and reputable aggregators for comparison only. FinancePortal is not affiliated with Union Bank of India Car Loan. Terms change — confirm with the lender.