What is the maximum loan amount?
The maximum amount of loan sanctioned would be minimum of A, B or C

1. Total cost of the vehicle minus the margin requirement
2. Loan amount as per our eligibility calculations based on repayment capacity of the borrowers
3. New four wheeler - Rs. 125 Lakh, Old four wheeler Rs. 20 Lakh, New two wheeler - Rs. 10 Lakh

What are the margin requirements?
The margin requirements i.e. the borrower’s contribution should be as follow –

• 15% of the on-road price of the new vehicle
• 40% in case of old 4-wheelers

Who can be the co-applicants for the loan?
You can avail loan either singly or jointly with father, mother, son, daughter or spouse as co-applicants.

What are the loan tenure options?
The repayment period is maximum of 7 years (84 EMIs) for a new 4-wheeler loan, 3 years (36 EMIs) for a 2-wheeler loan and 5 years (60 EMIs) in case of old 4-wheeler.

What are the applicable rates of interest?
Please click here for information on rate of interest.

What are the processing charges?
The applicable processing charges are 

• 0.50% of the loan amount, subject to maximum of Rs. 15,000 plus service tax as applicable
• In case applicant/co-applicant is our SB account holder in silver/gold/platinum category or has availed any credit facility with our Bank, processing charges is 0.25% of the loan amount, subject to maximum of Rs. 7,500 plus service tax as applicable.

How is the interest charged/calculated?
Interest will be applied in the account on the basis of reducing balance method at monthly rests.

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.

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)

Can I prepay my Union Miles 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).

What security/ collateral do I have to provide?
Hypothecation of the vehicle proposed to be purchased from Bank's finance, is required.

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.
• In case of NRIs guarantee of one/two local resident Indian is required.
• In case of companies guarantee of one promoter/director is required.

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.

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.

How much time will it take for my loan to be approved?
It takes 2 days for your loan to be sanctioned, after you have submitted all the required documents.

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

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