Bank of India vs Chola vs Union Bank of India at a glance
| Detail | Bank of India | Chola | Union Bank of India |
|---|---|---|---|
| Loan provider type | Public sector bank | NBFC | Public sector bank |
| Legal name | Bank of India | Cholamandalam Investment and Finance Company Ltd (Chola) | Union Bank of India |
| Vehicle loans with a published rate | Not published | Car loan, Two-wheeler loan, Used car loan, Three-wheeler loan, Tractor loan | Car loan, Two-wheeler loan, Used car loan, Electric car loan |
| Official website | bankofindia.bank.in | cholamandalam.com | unionbankofindia.bank.in |
Bank of India vs Chola vs Union Bank of India car loan: rate, fees and tenure
Starting car loan rates as published: Chola from 9% and Union Bank of India from 7.60%. Union Bank of India is lower at the starting rate, but the top of each range and your own credit profile decide what you are actually offered. Bank of India does not publish a car loan rate on its website, so none is shown.
| Detail | Bank of India | Chola | Union Bank of India |
|---|---|---|---|
| Product | Star Vehicle Loan (Individuals) | New Car Loan | Union Miles (Union Vehicle Loan) - new 4-wheeler |
| Published rate | Not published | 9% - 20% p.a.car; MUV 9% - 20% | 7.60% - 10.00% |
| Rate basis | RBLR-linked (unchanged as of 01.09.2026; value not verified) | Fixed | EBLR-linked (EBLR 8.00% = repo 5.25% + 2.75%, w.e.f. 24.07.2026); by CIBIL score |
| Maximum funding | Not published | Up to 100% on-road | Not published |
| Processing fee | Not published | 0.5% - 2.5% + sourcing fee Rs 1,000 - 2,500 | Flat ₹1,000 |
| Pre-closure / prepayment | Not published | Full closure: 5% of principal outstanding (7-12 months from agreement), 4% after 12 months, plus GST | No foreclosure/prepayment penalty on floating-rate individual loans |
| Other terms published | Not published |
|
|
| Official source | bankofindia.bank.in | cholamandalam.com files.cholamandalam.com | unionbankofindia.bank.in unionbankofindia.bank.in unionbankofindia.bank.in |
EMI illustration: ₹10 lakh over 60 months
| Loan provider | Rate used | Monthly EMI | Total interest | Total repayable |
|---|---|---|---|---|
| Chola | 9% | ₹20,758 | ₹2,45,501 | ₹12,45,501 |
| Union Bank of India | 7.60% | ₹20,086 | ₹2,05,130 | ₹12,05,130 |
Illustration only, at each loan provider's lowest published rate. It leaves out processing fees, GST, insurance and any other charges, and it is not an offer. Your approved rate may be higher.
Monthly EMI at other loan amounts (60 months)
| Loan amount | Chola (9%) | Union Bank of India (7.60%) |
|---|---|---|
| ₹5 lakh | ₹10,379 | ₹10,043 |
| ₹10 lakh | ₹20,758 | ₹20,086 |
| ₹15 lakh | ₹31,138 | ₹30,128 |
| ₹20 lakh | ₹41,517 | ₹40,171 |
Read the full guide: Car loan · EMI calculator
Bank of India vs Chola vs Union Bank of India two-wheeler loan: rate, fees and tenure
Starting two-wheeler loan rates as published: Chola from 15% and Union Bank of India from 11.10%. Union Bank of India is lower at the starting rate, but the top of each range and your own credit profile decide what you are actually offered. Bank of India does not publish a two-wheeler loan rate on its website, so none is shown.
| Detail | Bank of India | Chola | Union Bank of India |
|---|---|---|---|
| Product | Not published | Two Wheeler Loan (new only) | Union Miles - new 2-wheeler |
| Published rate | Not published | 15% - 28% p.a. | 11.10% - 11.20% |
| Rate basis | Not published | Fixed | EBLR-linked (EBLR 8.00%); by CIBIL score |
| Maximum funding | Not published | Up to 100% of bike value | Not published |
| Processing fee | Not published | 0.75% - 5% + sourcing fee Rs 500 - 2,500 | Flat ₹500 |
| Pre-closure / prepayment | Not published | Full closure: 5% of principal outstanding (7-12 months from agreement), 4% after 12 months, plus GST | No foreclosure/prepayment penalty on floating-rate individual loans |
| Other terms published | Not published |
|
|
| Official source | Not published | cholamandalam.com files.cholamandalam.com | unionbankofindia.bank.in unionbankofindia.bank.in unionbankofindia.bank.in |
EMI illustration: ₹1 lakh over 36 months
| Loan provider | Rate used | Monthly EMI | Total interest | Total repayable |
|---|---|---|---|---|
| Chola | 15% | ₹3,467 | ₹24,795 | ₹1,24,795 |
| Union Bank of India | 11.10% | ₹3,279 | ₹18,030 | ₹1,18,030 |
Illustration only, at each loan provider's lowest published rate. It leaves out processing fees, GST, insurance and any other charges, and it is not an offer. Your approved rate may be higher.
Monthly EMI at other loan amounts (36 months)
| Loan amount | Chola (15%) | Union Bank of India (11.10%) |
|---|---|---|
| ₹0.5 lakh | ₹1,733 | ₹1,639 |
| ₹1 lakh | ₹3,467 | ₹3,279 |
| ₹1.5 lakh | ₹5,200 | ₹4,918 |
Read the full guide: Two-wheeler loan · EMI calculator
Bank of India vs Chola vs Union Bank of India used car loan: rate, fees and tenure
Starting used car loan rates as published: Chola from 15% and Union Bank of India from 11.60%. Union Bank of India is lower at the starting rate, but the top of each range and your own credit profile decide what you are actually offered. Bank of India does not publish a used car loan rate on its website, so none is shown.
| Detail | Bank of India | Chola | Union Bank of India |
|---|---|---|---|
| Product | Not published | Used Car Loan | Union Miles - old 4-wheeler |
| Published rate | Not published | 15% - 28% p.a.MUV 14% - 28% | 11.60% - 11.70% |
| Rate basis | Not published | Fixed | EBLR-linked (EBLR 8.00%); by CIBIL score |
| Maximum tenure | Not published | 5 years | Not published |
| Maximum funding | Not published | Up to 100%* | Not published |
| Processing fee | Not published | 0.5% - 3.25% + sourcing fee Rs 1,000 - 2,500 | Flat ₹1,000 |
| Pre-closure / prepayment | Not published | Full closure: 5% of principal outstanding (7-12 months from agreement), 4% after 12 months, plus GST | No foreclosure/prepayment penalty on floating-rate individual loans |
| Other terms published | Not published |
|
|
| Official source | Not published | cholamandalam.com files.cholamandalam.com | unionbankofindia.bank.in unionbankofindia.bank.in unionbankofindia.bank.in |
EMI illustration: ₹5 lakh over 48 months
| Loan provider | Rate used | Monthly EMI | Total interest | Total repayable |
|---|---|---|---|---|
| Chola | 15% | ₹13,915 | ₹1,67,938 | ₹6,67,938 |
| Union Bank of India | 11.60% | ₹13,069 | ₹1,27,309 | ₹6,27,309 |
Illustration only, at each loan provider's lowest published rate. It leaves out processing fees, GST, insurance and any other charges, and it is not an offer. Your approved rate may be higher.
Monthly EMI at other loan amounts (48 months)
| Loan amount | Chola (15%) | Union Bank of India (11.60%) |
|---|---|---|
| ₹3 lakh | ₹8,349 | ₹7,841 |
| ₹5 lakh | ₹13,915 | ₹13,069 |
| ₹8 lakh | ₹22,265 | ₹20,910 |
Read the full guide: Used car loan · EMI calculator
Bank of India vs Chola vs Union Bank of India electric car loan: rate, fees and tenure
Only Union Bank of India publishes a rate for this product with a stated starting figure, so a like-for-like ranking is not possible. Bank of India and Chola do not publish an electric car loan rate on their website, so none is shown.
| Detail | Bank of India | Chola | Union Bank of India |
|---|---|---|---|
| Product | Not published | Not published | Union Green Miles - new 4-wheeler |
| Published rate | Not published | Not published | 7.50% - 9.90% |
| Rate basis | Not published | Not published | EBLR-linked (EBLR 8.00%); by CIBIL score |
| Other terms published | Not published | Not published |
|
| Official source | Not published | Not published | unionbankofindia.bank.in unionbankofindia.bank.in |
Read the full guide: Electric car loan
Bank of India vs Chola vs Union Bank of India three-wheeler loan: rate, fees and tenure
Only Chola publishes a rate for this product with a stated starting figure, so a like-for-like ranking is not possible. Bank of India and Union Bank of India do not publish a three-wheeler loan rate on their website, so none is shown.
| Detail | Bank of India | Chola | Union Bank of India |
|---|---|---|---|
| Product | Not published | Three Wheeler Loans | Not published |
| Published rate | Not published | New non-EV 21% - 28%; used non-EV 25% - 28% p.a. | Not published |
| Rate basis | Not published | Fixed | Not published |
| Processing fee | Not published | New 1.5% - 3.5%; used 1% - 2.5% + sourcing fee | Not published |
| Pre-closure / prepayment | Not published | Full closure: 5% of principal outstanding (7-12 months from agreement), 4% after 12 months, plus GST | Not published |
| Other terms published | Not published |
| Not published |
| Official source | Not published | cholamandalam.com files.cholamandalam.com | Not published |
Read the full guide: Three-wheeler loan
Bank of India vs Chola vs Union Bank of India tractor loan: rate, fees and tenure
Only Chola publishes a rate for this product with a stated starting figure, so a like-for-like ranking is not possible. Bank of India and Union Bank of India do not publish a tractor loan rate on their website, so none is shown.
| Detail | Bank of India | Chola | Union Bank of India |
|---|---|---|---|
| Product | Tractor & Farm Mechanization Loan | Tractor & Farm Equipment Loans | Farm Mechanization Scheme |
| Published rate | Not published | New 12% - 28%; used 17% - 28% p.a. | Not published |
| Rate basis | Not published | Fixed | Not published |
| Maximum funding | Not published | Not published | 85% of unit cost (15% margin) |
| Processing fee | Not published | New 0.25% - 2%; used 0.75% - 3.25% + sourcing fee | Not published |
| Pre-closure / prepayment | Not published | Full closure: 5% of principal outstanding (7-12 months from agreement), 4% after 12 months, plus GST | Not published |
| Other terms published |
|
|
|
| Official source | bankofindia.bank.in | cholamandalam.com files.cholamandalam.com | unionbankofindia.bank.in |
Read the full guide: Tractor loan
Which is better: Bank of India, Chola or Union Bank of India?
No loan provider is best for everyone. This is how the published figures split, product by product.
Pick on total cost, not the headline rate: ask each loan provider for the Key Fact Statement and compare the APR and total repayable amount. A low rate with a high processing fee can cost more than a slightly higher rate with no fee.
Bank type and how each loan provider sets its rate
Bank of India and Union Bank of India are public sector banks and Chola is a nbfc.
What the loan providers' own pages say about how their rates are set:
- Bank of India car loan: RBLR-linked (unchanged as of 01.09.2026; value not verified).
- Chola car loan: Fixed.
- Chola two-wheeler loan: Fixed.
- Chola used car loan: Fixed.
- Chola electric two- and three-wheeler loan: Fixed.
- Chola three-wheeler loan: Fixed.
- Chola tractor loan: Fixed.
- Chola commercial vehicle loan: Fixed.
Banks and non-banking finance companies (NBFCs) publish rates in different ways: some give a range, some only a starting rate and some only a maximum. That is why this page compares like with like and marks every gap as not published instead of guessing.
About Bank of India, Chola and Union Bank of India
Bank of India
Public sector bank
PSU loan provider offering vehicle finance under its Star Vehicle Loan scheme for individuals and other entities, plus tractor and farm-vehicle loans for agriculturists.
Chola
NBFC · Cholamandalam Investment and Finance Company Ltd (Chola)
Murugappa Group's vehicle-finance-led NBFC with a large rural and semi-urban branch network
Lowest published starting rate: 9% (Car loan)
Union Bank of India
Public sector bank
PSU loan provider whose Union Miles scheme covers new cars, cars up to 3 years old and new two-wheelers, priced off its repo-linked EBLR by CIBIL score, with a cheaper Green Miles variant for EVs.
Lowest published starting rate: 7.50% (Electric car loan)
What to check before you choose a vehicle loan
- Ask for the Key Fact Statement (KFS). RBI requires loan providers to give you one before you sign, showing the interest rate, all fees, the APR and the total amount you will repay.
- Compare APR, not the headline rate. Processing fee, documentation charges and insurance change the real cost.
- Ask about pre-closure charges. Fixed-rate vehicle loans often carry charges for paying early; floating-rate loans to individuals cannot.
- Check what is bundled. Insurance, extended warranty or accessories added to the loan raise the amount you pay interest on. You are free to buy insurance elsewhere.
- Confirm the hypothecation. The loan provider's name is noted on the registration certificate. After the last EMI, collect the NOC and have it removed at the RTO.
Terms used on this page
Plain meanings of the terms this comparison uses.
Starting rate: The lowest rate a loan provider advertises for a product. Most borrowers are offered a higher rate, because the final rate depends on credit score, income, employer and loan amount.
APR: Annual percentage rate. It adds the processing fee and other charges to the interest rate, so it shows the yearly cost of the loan better than the interest rate alone.
Key Fact Statement: A short summary the loan provider gives you before you sign. It lists the interest rate, every fee, the APR and the total amount you will repay. RBI requires it for retail loans.
Floating rate and repo rate: A floating rate moves with a benchmark, and for banks that is usually the RBI repo rate, the rate at which RBI lends to banks. A fixed rate stays the same for the period you agree.
Processing fee: A one-time charge for handling the application. It is usually a percentage of the loan amount plus GST, and it is often deducted before the money reaches you.
Credit score: A number from 300 to 900 that shows how you have repaid past loans and cards. A higher score usually gets you a lower rate.
Sources, method and last check
Every figure above comes from the loan provider's own website. We checked them on 4 October 2026 and list the pages used.
- Bank of India: bankofindia.bank.in/vehicle-loan/star-vehicle-loan-individual · bankofindia.bank.in/en/farm-mechanization-loans
- Chola: cholamandalam.com/get-new-car-loans · files.cholamandalam.com/files/Interest+Rate+Policy+-+Mar2026.pdf · cholamandalam.com/get-two-wheeler-loans · cholamandalam.com/get-used-car-loans · cholamandalam.com/get-three-wheeler-loans · cholamandalam.com/get-tractor-loans
- Union Bank of India: unionbankofindia.bank.in/pdf/retail_roi.pdf · unionbankofindia.bank.in/en/details/union-vehicle · unionbankofindia.bank.in/pdf/Service Charges-Domestic Rupee Advances-Corp Website.pdf · unionbankofindia.bank.in/en/Details/farm-mechanization-scheme · unionbankofindia.bank.in/en/details/union-parivahan
Method: we list only figures we could find on the loan provider's official pages. A blank means the loan provider does not publish that figure, and we never estimate one. Rankings use the published starting rate and published maximum tenure only. Read our editorial policy, how we make money and tell us about an error.
More loan provider comparisons
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Union Bank of India compared with other loan providers
Head-to-head pages for these three loan providers
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Frequently asked questions
Which is better for a vehicle loan: Bank of India, Chola or Union Bank of India?
These loan providers do not all publish a rate for the same vehicle loan, so they cannot be ranked on rate alone here. Compare the fees, tenure and pre-closure terms in the tables above and ask each loan provider for its Key Fact Statement.
Which vehicle loans do Bank of India, Chola and Union Bank of India publish rates for?
Bank of India: no published rate found. Chola: car loan, two-wheeler loan, used car loan, three-wheeler loan, tractor loan. Union Bank of India: car loan, two-wheeler loan, used car loan, electric car loan. Based on each loan provider's own website, checked 4 October 2026.
Are the rates on this page the rate I will get?
No. They are the rates the loan providers publish, usually a range or a starting rate. Your approved rate depends on your credit score, income, loan amount, tenure and vehicle. Always read the Key Fact Statement before you sign.
Does KhatuLoans lend money or charge for this comparison?
KhatuLoans is not a loan provider. The loan provider decides approval, rate and terms. Our comparisons are free to read, and we are not paid by the loan providers named here to rank them. See how we make money on our advertiser disclosure page.
KhatuLoans is not a loan provider and is not paid by the loan providers named here to rank them. Rates, fees and prices change; always confirm with the loan provider and dealer. Read our editorial policy and how we make money.