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Official Rates • Updated Sep 2026

City Union Bank Car Loan Calculator 2026

Verified City Union new car loan rates starting from 14.45% – 14.95% p.a. — calculate your exact EMI, down payment, total interest & loan amortization.

Interest Rate
14.45% - 14.95%
EBLR (9.70%) + 4.75% to + 5.25%
Processing Fee
1.25% minimum Rs. 750
≈ ₹12,000 for current loan
Max Funding (LTV)
Up to 100%
On on-road price
Loan Tenure
5 Years
60 flexible monthly EMIs
₹12,00,000

Twelve Lakhs rupees

₹2 Lakhs₹50 Lakhs

Two Lakhs Forty Thousand rupees

₹0 (100% Loan)Max: ₹9,60,000 (80%)
Net Loan Financed
Car Price – Down Payment
₹9,60,000
80% LTV
Official City Union range
14.45% per annumCity Union card
14.45%14.95%
years
1 year7 years
Monthly EMI14.45% p.a.
₹18,230
For 84 monthly instalments
Total Loan Repayment7 yrs
₹15,31,311
Prin: ₹9,60,000 | Int: ₹5,71,311
ParticularsAmount
On-Road Car Price₹12,00,000
Down Payment Paid₹2,40,000
Loan Principal₹9,60,000
Total Interest Cost₹5,71,311
Total Cost of Ownership₹17,71,311
Loan Repayment Breakdown84 months
84mo
Principal Loan
62.7%
Total Interest
37.3%
Interest Ratio:0.60 per ₹1 borrowed

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City Union Car Loan Rates & Charges (2026)

Comprehensive schedule of interest rate range, processing fees, tenure, and prepayment terms

Official City Union Schedule

Every figure below is taken directly from City Union Bank's officially published rate card and is periodically verified by our automated rate tracker.

City Union Bank Car Loan Rates, Fees, and Loan Terms 2026
ParticularsCity Union Car Loan Terms
Interest Rate14.45% - 14.95% p.a.
Rate BenchmarkEBLR (9.70%) + 4.75% to + 5.25%
Processing Fee1.25% minimum Rs. 750
Maximum Tenure5 years (60 months)
Effective DateEBLR 9.70%, live rate card
Important Notes & Conditions
  • CUB publishes ONE generic tenure-tiered "Three/Four Wheeler Loans" table with no explicit new-vs-used bifurcation; treated as the new-car rate per standard convention, since the product is not scoped to used vehicles either
Rates last verified against the official City Union website on Sep 2026.

City Union Car Loan Scheme-wise Rates

City Union prices new car loan variants separately based on the specific loan program and applicant credit tier.

City Union Bank Car Loan Scheme-wise Interest Rates
Loan Scheme / SegmentInterest Rate (p.a.)
Three/Four Wheeler Loan, below 3 yearsfrom 14.45%
Above 3 years and upto 4 yearsfrom 14.70%
Above 4 years and upto 5 yearsfrom 14.95%

Compare City Union with Other Car Loan Providers (2026)

New car loan interest rates across banks and NBFCs, from each lender's official rate card, sorted by lowest starting rate.

Comparing for₹9,60,000 (84 mo)
Sort by:
LenderInterest Rate (p.a.)Est. Monthly EMICalculated Processing Fee
Total Payable
(incl. fees & interest)
7.45% - 11.75%₹14,701
No processing fee
₹12,34,884
7.45% - 10.00%₹14,701Not published₹12,34,884
7.55% - 8.85%₹14,748Not published₹12,38,832
7.60% - 14.00%₹14,772
Up to ₹4,800
₹12,45,648
7.60% - 10.70%₹14,772Not published₹12,40,848
7.60% - 11.30%₹14,772
Up to ₹1,770
₹12,42,618
7.60% - 8.60%₹14,772
Full waiver of processing charges on vehicle loans
₹12,40,848
7.60% - 10.00%₹14,772Not published₹12,40,848
7.60% - 14.05%₹14,772Not published₹12,40,848
7.65% - 9.30%₹14,796
₹5,664
₹12,48,528
7.75% - 9.30%₹14,843Not published₹12,46,812
7.90% - 11.20%₹14,915
Up to ₹10,030
₹12,62,890
7.90% - 9.00%₹14,915
₹9,600
₹12,62,460
from 8.00%₹14,963Not published₹12,56,892
8.00% - 9.25%₹14,963Not published₹12,56,892

Live figures calculated for ₹9,60,000 over 84 months. Rates and fee formulas sourced directly from each lender's official website (last verified 10 Sept 2026) and auto-refreshed. GST at 18% is added where charged by the lender.

City Union Car Loan Calculation Walkthrough

Illustrative breakdown for ₹9,60,000 @ 14.45% p.a. over 84 months (7 yrs)

Live Calculation
Loan Principal
₹9,60,000
Interest Rate
14.45% p.a.
Monthly EMI
₹18,230
Total Payable
₹15,43,320

Itemized Cost & Disbursal Breakdown:

Vehicle Valuation / On-Road:₹12,00,000
Down Payment Paid:₹2,40,000
Total Interest Payable:₹5,71,320
Estimated Processing Fee:₹12,000
Total Cost (Principal + Interest + Fee):₹15,43,320

City Union Car Loan Eligibility Criteria

Key qualification parameters for salaried & self-employed buyers

Age Requirement21 – 65 / 70 years at loan maturity

Applicant must meet the minimum age at loan origination.

Minimum Monthly Net Income₹25,000 – ₹30,000/mo

Higher thresholds may apply for luxury vehicle segments or co-borrower loans.

CIBIL / Credit Score750+ (775+ for best rates)

Credit score decides your starting rate in City Union's 14.45% – 14.95% bracket.

Employment StabilityMin. 1–2 years total experience

At least 6–12 months in current employment or 2+ years of business continuity.

FOIR (Fixed Obligation to Income)Under 45% – 50% of monthly income

All existing monthly loan installments plus the new car EMI should not exceed 50% of take-home pay.

Documents Required for City Union Car Loan

Checklist for paperless verification & fast disbursal

Proof of Identity & Signature (Any one)

PAN Card (Mandatory), Aadhaar Card, Passport, Voter ID, or Driving License.

Proof of Residence (Any one)

Aadhaar Card, Utility Bill (Electricity / Water / Piped Gas < 3 months), Registered Rent Agreement, or Passport.

Income Proof

Salaried: Latest 3 months salary slips, Form 16 / ITR for the previous financial year.
Self-Employed: Last 2 years ITR with computation of income, audited balance sheet & P&L.

Vehicle Documentation

Proforma invoice / quotation from authorized automobile dealer and booking receipt.

How to Get the Lowest City Union Car Loan Interest Rate

1. Keep CIBIL Above 750

Auto loan interest rate cards are tiered heavily by credit scores. Maintaining 750+ unlocks City Union's lowest rack rate starting at 14.45% p.a.

2. Make a Higher Down Payment

Paying 20%–30% upfront lowers your Loan-to-Value (LTV) ratio, reduces interest outgo, and decreases the lender's risk margin.

3. Check Existing Relationship

If you hold a salary, savings, or wealth account with City Union, look for pre-approved car loan offers with zero processing fees and instant sanction.

Car Loan Hypothecation (HP): Process, Fees & Removal Guide

Understanding the legal lender endorsement on your vehicle Registration Certificate (RC)

When you purchase a vehicle using a car loan from City Union, the car acts as primary collateral. Under the Motor Vehicles Act, a legal lien called Hypothecation (HP) is endorsed on your vehicle's Registration Certificate (RC) and registered with the Regional Transport Office (RTO) via Form 34. This gives City Union legal ownership rights until the loan is paid off in full.

1. HP Addition (At Loan Disbursal)

  • RTO Endorsement Fee: Standard RTO charge of ₹500 – ₹1,500 (varies by state and Parivahan portal fees).
  • Stamp Duty / Documentation: Approx. ₹200 – ₹500 for state-level agreement stamp paper.
  • Process: The dealer/bank files Form 34 so your Smart Card RC prints: “Hypothecated to City Union Bank.

2. HP Termination (After Loan Closure)

  • Bank NOC: City Union issues a No Objection Certificate (NOC) + 2 signed copies of Form 35 upon final EMI clearance.
  • RTO Cancellation Fee: ₹100 – ₹500 for smart card reissue without the lender lien.
  • Important: You must submit the NOC to your RTO within 90 days to obtain a clean RC for hassle-free resale or insurance claims.

City Union Bank Car Loan FAQs

Frequently asked questions about City Union new car loan interest rates, EMI calculation, hypothecation, charges, and loan terms in 2026.

What is the current City Union new car loan interest rate in 2026?

City Union new car loan interest rates start from 14.45% p.a. and go up to 14.95% p.a. depending on your CIBIL credit score, vehicle model/segment, loan tenure, and applicant category. Rates are linked to EBLR (9.70%) + 4.75% to + 5.25%.

How is City Union new car loan EMI calculated?

City Union new car loan EMI is calculated using the reducing balance method formula: EMI = [P × r × (1 + r)^n] / [(1 + r)^n – 1], where P is Principal Loan Amount, r is Monthly Interest Rate (Annual Rate ÷ 12 ÷ 100), and n is Loan Tenure in months. You can adjust the car price, down payment, and tenure in the calculator above to view your exact monthly installment.

What is the maximum loan amount / funding offered by City Union for new cars?

City Union finances up to 90%–100% of on-road vehicle price for eligible applicants with high credit profiles.

What are the processing charges on City Union Car Loan?

City Union charges a processing fee of 1.25% minimum Rs. 750. For an illustrative loan of ₹9,60,000, the estimated processing charge is approx. ₹12,000 (+ applicable GST).

Can I prepay or foreclose my City Union new car loan early?

Most banks permit partial prepayment and full foreclosure of car loans after payment of initial EMIs (typically 6–12 months). Check with City Union for any applicable foreclosure charges.

What is the maximum repayment tenure for City Union Car Loan?

The maximum tenure offered for City Union Car Loan is 60 months (5 years).

What CIBIL score is required to get the lowest City Union car loan rate?

A CIBIL credit score of 750 and above (preferably 775+) qualifies you for City Union's lowest car loan tier starting at 14.45% p.a. Borrowers with scores between 700–749 may be sanctioned at slightly higher interest rate spreads.

How do I remove City Union hypothecation from my RC after paying off the car loan?

Once your final car loan EMI is paid, City Union will issue a No Objection Certificate (NOC) along with two copies of Form 35. Submit these documents along with your original RC, valid insurance, pollution certificate (PUC), and RTO cancellation fee (approx. ₹100–₹500) at your local RTO or online via the Parivahan portal (under *Hypothecation Termination*). The RTO will issue a fresh RC with City Union's lien removed.

Disclaimer: Results are estimates for financial planning purposes only and do not constitute financial, tax, investment, or legal advice. Actual values may vary based on your lender, market conditions, and individual circumstances. Consult a qualified CA, CFP, or financial advisor before making any financial decisions.