img here

New Two Wheeler Loan Starting
From 9.90% * pa onwards

  • *terms and conditions apply
  • Loan can be availed by individuals for personal use:
    • Purchase of a New two-Wheeler
  • Loan can also be availed by Companies / Firms for professional use i.e. purchase of vehicle for usage by their Directors / employees.
  • Takeover of two-Wheeler loan from other Bank/FI for existing Corporate / Retail Borrower.**
  • Resident Indian citizen and Non-Resident Indians (NRIs).
  • Minimum age - 18 years and maximum age - 75 years.
  • Individual, either singly or jointly with family members viz. father, mother, son, spouse or daughter (unmarried) as co-applicants.
  • Companies / Firms for purchase of vehicle for usage by their Directors/employees**
  • Minimum – No ceiling
  • Maximum - as under:
    • New 2-wheeler - Rs.10 Lakh
  • 25% of on road price of 2 wheeler

Note: 5% concession in margin (for purchase of new vehicle only) applicable for salaried individuals having salary account with us.

  • New 2 Wheeler - 36 months
  • No moratorium permitted under the scheme.
  • There is NO prepayment penalty if loan adjusted from own verifiable source.
  • Hypothecation of vehicle purchased out of Bank's finance
  • Bank's lien to be noted with the Road Transport authorities
  • No guarantee required for individual borrowers with CIBIL score of 700 and above.
  • Guarantee of a local resident Indian having means equivalent to loan amount, is to be provided by the NRI applicant.
  • In case of companies guarantee of the promoter/director is required.
  • In case of partnership firm, guarantee of all the partners is required.

**Conditions apply.

The interest rates for Union bank of India vehicle loan is the sum of RBI repo rate, Spread and premium.

At present (wef 01 November 2020) .RBI repo rate is 4.00%. Union bank of India spread is 2.80%

The current interest rate for vehicle loans in Union bank of India is given below.

Interest Rates For Two Wheeler Loan

Type of vehicle

CIBIL score

Interest Rate


New 2 Wheeler

700 & Above



below 700




  • Proof of identity (any of the following)
    • Passport
    • PAN Card
    • Employee identity card
    • Any other valid proof
  • Proof of address (any of the following)
    • Electricity bill
    • Telephone bill
    • Aadhar
    • Any other valid proof
  • Proforma / Invoice
  • Valuation report from approved automobile engineer for old vehicle
  • Proof of income
    • For salaried class
      • Last one year ITR
      • Form-16/ letter from Employer
      • Last 6 months salary slip
    • For business class
      • Last three years ITR
      • P and L Balance sheet
  • 3 photographs
  • Any other document which may be required from case to case

What is the maximum loan amount?
Minimum – No ceiling
Maximum - as under :

  • New 2-wheeler - Rs.10 Lakh

Note: The maximum loan amount would be decided by the repayment capacity of the borrower, which is determined mainly with reference to the present income. However, it should be borne in mind that besides present income, several factors like age, qualifications, spouse's income, present outgoing towards rent, future potential for earning higher income, present level of assets and liabilities of the borrowers, etc. will have a bearing on the repayment capacity of the borrower. In case the net take home income after all deductions (such as proposed EMI, taxes, Insurance premium and other out go) is not sufficient, the eligible amount of loan would then be reduced. The income of co-applicant can be added to that of the applicant to improve the repayment capacity.

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

  • 25% of on road price of 2 wheeler

Note: 5% concession in margin (for purchase of new vehicle only) applicable for salaried individuals having salary account with us

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

What are the loan tenure options?
The repayment period is maximum of 3 years (36 EMIs) for a 2-wheeler loan.

What are the processing charges?
Flat processing charge of Rs.500 plus GST for two wheelers and Rs.1000 plus GST for four wheeler.

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 Instalment (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 instalments (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.

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?

  • No guarantee required for individual borrowers with CIBIL score of 700 and above.
  • In case of NRIs guarantee of one local resident Indian is required.
  • In case of companies guarantee of one promoter/director is required.?
  • In case of partnership firm, guarantee of all the partners 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
New Car Loan

Make your dream come true with no finance burden.

Steps for Applying Two Wheeler Loan

  • Step1 Select type of loan and fill up contact details

    Contact information
  • Step2 Our team member will contact you for getting the complete details of your requirement

  • Step3 Based on your requirement & location suitable Relationship executive will be assigned to you.

  • Step4 Our Relationship executive will contact you for submitting the application & documents as required by Union bank of India

    Document submission
  • Step5 Union bank of India will process the application and sanction the loan

  • Step6 Our Relationship executive will co ordinate with UBI branch officials for disbursement of the loan.