City Union Bank Car Loan Interest Rate November 2026: 8.70% by Score

City Union Bank car loan interest rate: reading the EBLR grid

Everyone starts from the same EBLR of 8.70%, set on 15 October 2026, days after the RBI raised the repo rate to 5.50%. The spread depends on your bureau score alone.

Above 800 there's no spread, so 8.70% p.a. is the floor. Above 750 to 800 adds 0.30 for 9.00%; above 700 to 750 adds 0.50 for 9.20%; above 650 to 700 adds 1.50 for 10.20%, as does the band printed for scores of 100 to 200.

Among the 30 lenders publishing a new car rate, 8.70% is the 20th lowest floor, above the 8.50% median. Our car loan interest rates page ranks them.

What floating means here

Under the RBI's 2019 external benchmark rules the bank must reset the rate at least once every three months, and at each reset you may raise the EMI, extend the tenure or prepay part. In return, the RBI's 2025 directions on pre-payment charges make a floating personal loan sanctioned from 1 January 2026 free to foreclose or part-pay.

The EMI, worked through

₹10 lakh over 5 years at 8.70% is an EMI of ₹20,613; you repay ₹12,36,784, so ₹2,36,784 is interest. At 10.20% the EMI is ₹21,346, which is ₹733 more a month (21,346 minus 20,613), and total interest climbs to ₹2,80,735. The car loan EMI calculator on this page is preset to this lender.

Fees and charges, in rupees

The processing fee is printed four ways on the bank's site: 1.25% with a ₹1,000 minimum on the service charges page effective 1 April 2026; 1.00% plus tax with a ₹1,000 minimum in the scheme PDF; 1.25% on the rates page, whose ₹750 minimum is printed against another product; and 1% with a ₹250 minimum in the 2020 PDF. We use the service charges page, the newest dated source. Add the application fee of up to ₹750 and GST.

Foreclosure, part-payment and late EMIs

Prepayment charges for individual borrowers are nil on the charges page; the 3% foreclosure line there is for unsecured loans to non-individuals. A late EMI carries no penal charge up to ₹5,000 of default; above that, 2.00% p.a. on the overdue amount for the overdue period only, as a separate fee under the RBI's penal charges rule in force since 1 April 2024. No documentation or valuation charges are printed.

Eligibility and documents

Salaried applicants must be 25 to 60 years old at application and draw ₹50,000 a month or more. Self-employed people, business owners and professionals must be 25 or older with declared income of at least ₹3,00,000 a year. A CIBIL score of 700 and above is "desirable".

Amount, margin and papers

You can borrow ₹3 lakh to ₹25 lakh, capped at 24 months of net take-home pay if salaried or 3 times your latest ITR income if self-employed. Up to ₹10 lakh, the 10% margin is worked on the ex-showroom price plus taxes and registration; above ₹10 lakh it's 10% of the on-road price, insurance included.

The car is hypothecated, and you need comprehensive insurance with the bank's clause plus personal life insurance equal to the loan limit. New borrowers need a guarantor of comparable means. Two years of ITRs or Form 16 are mandatory, plus KYC, bank statements and the dealer quotation. No upper age is printed for the self-employed.

Common mistakes

• Quoting 12.25% or 14.45% from the bank's older pages; the current grid starts at 8.70%.
• Applying before checking your score: the 700 to 750 band pays 9.20% while above 800 it's 8.70%. Our CIBIL score for car loans guide covers what moves it.
• Assuming 100% funding; you bring 10% here.

How to apply for a City Union Bank car loan

The bank publishes no online application, no pre-approved or instant variant and no sanction timeline. The official apply button on this page opens the bank's own car loan page. Expect a branch visit, or ask the showroom's finance desk whether the bank is on its panel. Carry the proforma invoice, KYC, two years of ITRs or Form 16, income proof and bank statements, and get your grid row written into the sanction letter.

Before you sign

Since 1 October 2024 a bank must give you a Key Facts Statement before signing, valid for at least three working days. Check four lines: the rate type (floating, EBLR-linked), the APR, the processing fee (1.25% or 1.00%) and the pre-payment row, which should read nil. Nothing left out of the KFS can be charged later without your consent.

Who it suits and how it compares

This loan suits a borrower with a score above 800 who wants a floating rate they can close early for nothing, and who is fine with 90% funding and five years. Look elsewhere for a used car, an EV rate, more than 60 months, or a loan outside ₹3 lakh to ₹25 lakh.

How to choose the right car loan

Start with your score, because here it is the whole price. Then pick fixed or floating: floating gives free exit under the RBI rules, fixed gives a steady EMI but may carry a foreclosure charge. Add fees and insurance to the interest for the real cost. Our car loan hub walks through each step.

Against J&K Bank, Yes Bank and Axis Bank

J&K Bank starts at the same 8.70% p.a., but as RLLR 8.45% plus 0.25% on a fixed loan, with a 9.20% floating option, up to 84 EMIs, a 0.50% processing fee capped at ₹15,000 and schemes for used and electric cars. Yes Bank prints no offer rate; its RBI disclosure shows 8.65% to 11.80% p.a. charged on new cars in July to September 2026, with 100% on-road funding. Axis Bank is fixed at 8.85% to 11.70% p.a., funds up to 100% of the on-road price over up to 84 months, has a pre-approved 24x7 Car Loan for existing customers, and charges 5% plus GST on foreclosure. City Union Bank wins on exit cost and a clean score grid; it loses on tenure, funding and range.