Union Bank of India Car Loan at a glance
| Feature | Union Bank of India Car Loan |
|---|---|
| Product name | Union Miles (Union Vehicle Loan) - new 4-wheeler |
| Interest rate | 7.60% - 10.00% |
| Rate type | EBLR-linked (EBLR 8.00% = repo 5.25% + 2.75%, w.e.f. 24.07.2026); by CIBIL score |
| Maximum tenure | Not published on the loan provider's website. Ask for it in the Key Fact Statement. |
| How much it funds | Not published on the loan provider's website. Ask for it in the Key Fact Statement. |
| Processing fee | Flat ₹1,000 |
| Pre-closure / prepayment | No foreclosure/prepayment penalty on floating-rate individual loans |
Source: unionbankofindia.bank.in, checked 4 October 2026.
What the EMI looks like
For a car loan of ₹8 lakh over 5 years, here is what Union Bank of India's published rates mean in rupees:
| Rate a year | Monthly EMI | Total interest |
|---|---|---|
| 7.6% (lowest published) | ₹16,068 | ₹1,64,104 |
| 10% (highest published) | ₹16,998 | ₹2,19,858 |
The gap between the two ends of the range is ₹55,754 over the loan, which is why your credit score and the loan provider's assessment of you matter so much.
Try your own amount and tenure in the Car Loan EMI calculator.
Union Bank of India Car Loan EMI for ₹5, ₹10, ₹15 and ₹20 lakh
The table shows the monthly EMI at 7.6% a year, the lowest rate published for this loan on the table above. Most borrowers are offered a rate somewhere in the published range, so treat these as the best case and check your own rate in the sanction letter.
| Loan amount | 3 years | 5 years |
|---|---|---|
| ₹5 lakh | ₹15,576 | ₹10,043 |
| ₹10 lakh | ₹31,152 | ₹20,086 |
| ₹15 lakh | ₹46,728 | ₹30,128 |
| ₹20 lakh | ₹62,304 | ₹40,171 |
Reducing-balance method. Processing fees, GST and insurance are extra. Use the EMI calculator to try your own amount, rate and tenure.
Union Bank of India vs other loan providers for car loans
Published figures from each loan provider's own website. Some loan providers publish a starting rate, some a range actually given to customers, and some only a maximum, so read the column with care and compare final offers on the APR in the Key Fact Statement.
| Loan provider | Published rate | Max tenure | Type |
|---|---|---|---|
| Canara Bank | 7.50% - 10.70% | 84 months | public sector bank |
| HDFC Bank | 7.60% - 14.00% | Up to 7 years | private sector bank |
| Punjab National Bank | From 7.60% | 84 months | public sector bank |
| Bank of Baroda | Floating 7.60% - 11.30%; fixed 8.50% - 11.20% | 84 months | public sector bank |
| Union Bank of India | 7.60% - 10.00% | — | public sector bank |
| Federal Bank | 7.90% - 9.00% | 84 months | private sector bank |
| Mahindra Finance | 8% - 25% p.a. | 5 years | NBFC |
| SBI | 8.40% - 9.35% | 7 years | public sector bank |
| ICICI Bank | From 8.40% | Up to 84 months | private sector bank |
| Axis Bank | 8.90% - 11.70% | Up to 8 years | private sector bank |
| IDFC FIRST Bank | From 8.99% | 10 years | private sector bank |
| Hero FinCorp | 9% - 18% p.a. | 120 months | NBFC |
| Chola | 9% - 20% p.a. | — | NBFC |
| Tata Capital | From 9.49% p.a. | 84 months | NBFC |
| Kotak Mahindra Bank | — | 12 - 84 months | private sector bank |
| IndusInd Bank | — | 60 months | private sector bank |
| Yes Bank | — | 96* months | private sector bank |
| Bajaj Finance | Up to 12.25% p.a. | 12-96 months | NBFC |
What kind of loan provider Union Bank of India is
Union Bank of India is a public sector bank. Public sector banks usually publish some of the lowest starting rates and modest fees, often link rates to the RBI repo rate or MCLR, and may ask for more paperwork or a branch visit. The best rates generally go to customers with strong credit scores and steady income, and many give a small concession to existing account holders.
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.
Features Union Bank of India lists for this loan
- No ceiling on loan amount
- Minimum CIBIL 700 indicated
- Sanction in about 2 business days
Documents you will usually need
Most loan providers ask for a similar set. Union Bank of India may ask for more depending on your profile.
- Identity proof such as Aadhaar, PAN, passport or voter ID
- Address proof such as Aadhaar, utility bill, rent agreement or passport
- PAN card (mandatory)
- Last 3 to 6 months of salary slips and bank statements for salaried applicants
- Last 2 years of ITR with computation, and 6 to 12 months of bank statements for self-employed applicants
- Proforma invoice or quotation from the dealer for a new car, or seller details for a used car
- Passport-size photographs and a signed application form
Before you sign with Union Bank of India
- Get the Key Fact Statement (KFS). RBI requires loan providers to give you a KFS before you sign, showing the interest rate, all fees, the annual percentage rate (APR) and the total amount you will repay.
- Compare the APR, not the headline rate. A low rate with a high processing fee can cost more than a slightly higher rate with no fee.
- 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.
- Make sure the hypothecation is recorded and later removed. The loan provider's name is noted on the registration certificate; after the last EMI, collect the NOC and get it removed at the RTO.
Apply on unionbankofindia.bank.in or at a branch. Never pay anyone an upfront fee to "get a loan approved"; genuine loan providers deduct fees only from the loan itself.
More from Union Bank of India and similar loans
Other vehicle loans from Union Bank of India:
Buying a used car? Read the used car loan guides
A second-hand car changes the rate, the tenure and the paperwork. These guides cover rates by loan provider, car age limits, valuation, down payment and RC transfer.
Compare Union Bank of India with other loan providers
See Union Bank of India's published vehicle loan rates, fees and tenure next to another bank or NBFC.
Frequently asked questions
What is the Union Bank of India car loan interest rate?
Union Bank of India publishes 7.60% - 10.00% (checked 4 October 2026). Your own rate depends on your credit score, income, loan amount and the vehicle.
What is the maximum tenure for a Union Bank of India car loan?
The tenure is not published on the website; ask the loan provider. Most car loans run between one and seven years.
How much of the vehicle cost does Union Bank of India fund?
Union Bank of India does not publish a funding limit for this loan; it depends on your profile and the vehicle.
What processing fee does Union Bank of India charge?
Flat ₹1,000. GST is usually added on top unless stated.
Can I close a Union Bank of India car loan early?
No foreclosure/prepayment penalty on floating-rate individual loans.
Is Union Bank of India regulated?
Yes. Union Bank of India is regulated by the Reserve Bank of India as a public sector bank. If a complaint is not resolved by the loan provider within 30 days, you can approach the RBI Integrated Ombudsman.
What is the EMI on a ₹10 lakh Union Bank of India Car Loan?
At 7.6% a year, the EMI on a ₹10 lakh loan is about ₹20,086 over 5 years and about ₹31,152 over 3 years. This uses the lowest published rate, so your own EMI may be higher. Processing fees, GST and insurance are extra.
KhatuLoans is not a loan provider and is not paid by the loan providers or brands 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.