| What is the maximum loan amount? |
| The maximum amount of loan sanctioned would be minimum of A, B or C |
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- 80% of the total cost of the vehicle
- 4 times annual net income
- Rs. 40 Lakhs
Subject to 40% of gross as take-home pay |
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| Who can be the co-applicants for the loan? |
| You can avail loan either singly or jointly with your spouse, who has regular source of income, as co-applicants. This will help in enhancing your loan amount and repayment capacity. |
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| What are the loan tenure options? |
| The repayment period is maximum of 5 years (60 EMIs) for a 4-wheeler loan and 3 years (36 EMIs) for a 2-wheeler loan. |
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| What are the applicable rates of interest? |
| Please click here for information on rate of interest. |
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| What are the processing charges? |
The applicable processing charges are
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Loan amount
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Processing fees
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Upto Rs. 2 Lakhs
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Rs. 500 per vehicle plus service tax
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Above Rs. 2 Lakhs
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Rs. 1000 per vehicle plus service tax
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2-wheelers
- Rs. 250 per vehicle plus service tax
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| How is the interest charged/calculated? |
| Interest will be applied in the account on the basis of reducing balance method at monthly rests. |
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| What is a Monthly Reducing balance? |
| An Equated Monthly Installment (EMI) has 2 components, interest and principal. When the interest is calculated on monthly rests, the principal on which the interest is charged goes down every month. This results in a significant saving for the customer over the tenure of the loan. |
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| How do I repay the Union Miles loan? |
The loan shall be repaid in equated monthly installments (EMIs).
You can pay the EMI in any of the following ways �
- Through standing instruction to your Union Bank of India savings account to directly remit the EMI amount to your loan account
- Through internet banking facility available on your Union Bank of India savings account
- ECS (Debit) facility
- Post Dated Cheques (PDCs)
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| Can I prepay my UnionMiles loan? |
| Yes, you can make your prepayment. There is no charge on pre payment if the loan is adjusted by the borrower from his own verifiable legitimate sources. However, a charge of 2% on the average balance of the preceding 12 months if the loan is taken over by any other Bank/ FI or adjusted by the borrower in lumpsum from any third source/party (except genuine sale). |
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| What security/ collateral do I have to provide? |
| Hypothecation of the vehicle proposed to be purchased from Bank�s finance, is required. |
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| Is a guarantor a must? |
| The spouse has to join-in as the guarantor. If the borrower is unmarried then suitable third party guarantee of sufficient means is required. |
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| Do I need to open an account with Union Bank of India for availing and/ or servicing the loan? |
| Although opening of account is not mandatory for availing a loan, we would recommend to bank with us in order to benefit from other value added services. |
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| What documents do I need to submit to avail a Union Miles loan? |
| Please see the Forms & Documents Tab above for information on the list of documents required. |
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| How much time will it take for my loan to be approved? |
| It takes 5 days for your loan to be sanctioned, after you have submitted all the required documents. |
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| What are the stages involved in taking a loan? |
There are three main stages -
- Application - Whereby you submit a completely filled in application with all necessary documents
- Sanction - Whereby you get an approval for a specific loan amount based on the value of your property and repayment capabilities
- Disbursement - Whereby the loan amount is disbursed
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| How do I approach Union Bank of India for a Union Miles loan? |
You can approach us in any of the following ways
- You can visit any of our special retail lending branches called Union Loan Points (ULPs). To locate a ULP, click here
- You can visit any of our branches. To locate a branch, click here
- Request for a contact online
- You can also contact our 24 x 7 Call Centre
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