The Union Bank of India offers Vehicle Loan to purchase car, bike etc.

Here I am giving complete information related to this Loan:

Eligibility to apply for Vehicle Loan
Resident Indian citizen and Non-Resident Indians (NRIs) holding valid license.

Minimum age - 18 years and maximum age - 70 years.

Individual, either singly or jointly with other family members viz. father, mother, son, spouse or daughter as co-applicants.

Companies / Firms for purchase of vehicle for usage by their Directors / employees

QUANTUM OF LOAN
Maximum quantum of loan
New 4-wheeler Rs. 125 Lakh
Old 4-wheelers (not older than 3 years) Rs. 20 Lakh
New 2-wheeler Rs. 10 Lakh

MARGIN, I.E. YOUR SHARE
15 % of on-road price (Vehicle Cost + Registration Charges + Insurance + Road Tax)
40 % of old vehicle's valuation cost

REPAYMENT
Repayment period Maximum repayment tenure
New 4-wheeler 7 years
Old 4-wheelers (not older than 3 years) 5 years
New 2-wheeler 3 years

SECURITY
Hypothecation of vehicle purchased out of Bank's finance
Bank's lien to be noted with the Raod Transport authorities

GUARANTEE
Guarantee of the spouse is required.
In case borrower is unmarried, 3rd party guarantee of sufficient means
In case of NRIs guarantee of one/two local resident Indian of sufficient means is required
In case of companies guarantee of one promoter/director is required.

Rate of Interest
New 4-wheeler (1Y-MCLR + 0.50) % = 9.00%
New 2-wheeler 14.40% (fixed)
Old 4-wheeler (not older than 3 years) (1Y-MCLR + 3.50) % = 12.00%