City Union Bank (CUB) is a leading private-sector bank in India that offers a range of financial products and services. The bank has recently introduced an attractive car loan offering that is designed to help individuals buy their dream car.
The CUB car loan comes with competitive interest rates and flexible repayment options, making it a preferred choice among car buyers. Whether you're buying a new car or a used one, the CUB car loan is an excellent option to finance your purchase.
Buying a car is a significant financial decision, and it may require availing of a car loan. City Union Bank "Yoha Vahana" Car Loan Scheme is the best option for you to consider. Here are the features of the New Car loan Scheme Offered by the bank:
City Union Bank offers car loans to individuals aged 25-60 years, with a minimum monthly salary of Rs. 50,000 for salaried employees and an income of Rs. 3,00,000 p.a. for self-employed individuals.
The loan amount ranges from Rs. 3,00,000 to Rs. 25,00,000, and the repayment period ranges from 36 to 60 months. The interest rate is competitive and depends on the loan amount and repayment period.
The City Union Bank requires a minimum margin of 10% of the total cost of the vehicle. They apply a processing fee of 1% of the loan amount, with a minimum of Rs. 1000 plus taxes.
It is mandatory to hypothecate the vehicle purchased from bank finance and obtain comprehensive insurance coverage with the bank clause.
To apply for the loan, you must provide the last two years' ITR/Form 16 from the employer, set up standing instructions for loan repayment, and register the bank's charge with the RTO.
Looking for an affordable car loan scheme to make your dreams of owning a car come true? City Union Bank has got you covered. Here are the details:
The interest rates start at EBLR + 4.25% for loans with a tenure of up to 3 years, resulting in a final interest rate of 12.25%.
Loans with a tenure of above 3 years and up to 4 years have an interest rate of EBLR + 4.50%, resulting in a final interest rate of 12.50%.
For loans with a tenure of above 4 years and up to 5 years, the interest rate is EBLR + 4.75%, resulting in a final interest rate of 12.75%.
The processing fee for the CUB Yoha Vahana car loan scheme is 1% of the loan amount, with a minimum of Rs. 250.
Other charges like foreclosure charges and late payment fees may also apply.
If you're planning to buy a new car and looking for a loan, having a good CIBIL score is crucial. City Union Bank offers car loans with competitive interest rates based on the borrower's CIC/CIBIL score. Generally, banks consider a CIBIL score of 750 or higher creditworthy, making it easier for you to obtain a loan.
To qualify for a City Union Bank car loan, the minimum CIBIL score required is 700. However, having a score of 800 or higher can get you an even lower interest rate.
The minimum loan tenure for a City Union Bank car loan is one year, and the interest rate ranges from 12.25% to 12.75% based on your CIC/CIBIL score. Borrowers with a higher CIC/CIBIL score can expect to receive a lower interest rate than those with a lower score.
Several factors can influence the interest rates of car loans provided by banks. These include credit score, loan amount and term, type of car, down payment, market conditions, and lender policies. Higher credit scores typically result in lower interest rates, while shorter loan terms and smaller loan amounts may also lead to lower rates.
The type of car being purchased and the amount of down payment can also affect the interest rate. Additionally, market conditions such as inflation and the economy and individual lender policies can impact interest rates. It is important to consider how these factors interact with each other and your personal financial situation when determining your car loan interest rate.
To be eligible for the City Union Bank's new car loan, you must fulfil the following criteria:
Individuals who are salaried must be at least 25 years of age and earn a monthly salary of not less than Rs. 50,000. The maximum age at the time of application is 60.
Self-employed individuals, business owners, and professionals must be at least 25 years old and declare an income of not less than Rs. 3,00,000 p.a.
Individuals or corporate entities with a good CIBIL score of 700 and above are desirable. This indicates a good credit repayment track record and increases the chances of loan approval.
It is important to note that all KYC norms must be complied with while forwarding the application. This includes providing proof of identity, address, and income.
To apply for a City Union Bank car loan, you can follow these steps:
Visit the official website of City Union Bank at www.cityunionbank.com.
Click on the "Personal" tab and select "Loans" from the dropdown menu.
Click on "CUB Car Loan Four Wheeler Loan - CUB Yoha Vahana"
You will be directed to the Car Loan page, where you can find all the information regarding the loan, including the eligibility criteria, documentation required, interest rates, and fees and charges.
Scroll down to the bottom of the page and click on "Apply Now" to start the application process.
Fill in the required details, such as your name, contact information, income details, and other relevant information.
Submit the application form along with the required documents, which may include your identity proof, address proof, income proof, and vehicle-related documents.
After verifying your details and documents, the bank will process your application and inform you of the loan status.
Alternatively, you can also visit your nearest City Union Bank branch and speak to a loan officer who will guide you through the application process and help you with any queries you may have.
Research current market rates and compare them with City Union Bank's rates.
Improve your credit score by paying off debts and correcting errors in credit reports.
Make a down payment to reduce risk and negotiate a better interest rate.
Consider a co-signer if you have a poor credit score.
Negotiate for a shorter loan term to get a lower interest rate.
Ask for discounts that City Union Bank may offer for certain customers.
Be willing to walk away and consider other lenders if the bank is not willing to negotiate.
The interest rate for City Union Bank car loans starts from 12.25% per annum.
Yes, you can apply for a City Union Bank car loan online through the banks website.
The maximum loan amount for a City Union Bank car loan is Rs. 25,00,000.
The processing fee for a City Union Bank car loan is up to 1% of the loan amount.
Yes, you can prepay your City Union Bank car loan without any prepayment charges.
The maximum loan tenure for a City Union Bank car loan is 5 years.
City Union Bank may not approve a car loan if you have a bad credit score.
The minimum age requirement to apply for a City Union Bank car loan is 21 years.
Yes, self-employed individuals can apply for a City Union Bank car loan.
City Union Bank usually takes 2-3 working days to approve a car loan, subject to the submission of all required documents.