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United Bank of India Two-Wheeler Loan
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The United Bank of India is one of the significant nationalized banks of the nation and provides its clients and customers varied banking services, solutions, and products. Among the other financial products, the two-wheeler loans have been beneficial to the individuals looking to buy a brand new vehicle for transportation. These loans are available at lucrative and competitive rates of interest to customers and can be paid in easy installments in a significant amount of repayment period.

Features of Bike Loan

Two-wheeler loans provided by the UBI to its customers consist of many impressive features such as:

  1. The loans can be utilized for the purchase of any two-wheeled vehicle such as a scooter, moped, motorcycle or a battery operated moped. This loan can only be used to purchase a brand new vehicle and it can only be availed for personal use of a two-wheeler.

  2. The maximum amount which can be availed by an individual is Rs. 1 lakh.

  3. The loans also offer lucrative margins to customers.

  4. For Bank Mitra customers, who are associated with the United Bank for a period of more than two years, the margin on loan is 10% of the on-road cost of the two-wheeler which is to be paid by the applicant and the rest will be paid by the bank..

  5. For a salaried customer, who either may be a primary applicant or the co-applicant, the margin on offer is 15% of the on-road cost of the two-wheeled vehicle.

  6. For any applicant who is neither a salaried customer nor Bank Mitra, the margin on offer is 25% of the road price cost of the two-wheeler, which is to be paid by the customer.

  7. The borrower can avail a loan repayment period of maximum 60 months.

  8. The two-wheeler loans have attractive rates of interest, which are competitive with industry standards

  9. Customers can foreclose the credit at no extra charge.

  10. The loan approval process is simple and hassle-free.

  11. Minimal documentation with zero costs is involved.

Eligibility Criteria for United Bank of India Bike Loan

The applicants looking for availing a two-wheeler loan from United Bank of India are required to fulfill the below mentioned eligibility criteria:

  1. In the case of salaried employees, the applicant must be a permanent employee with the sturdy source of income, where the salary of an employee is disbursed towards loan payments through any branch of United Bank of India. The salaried employee may belong to any of the following sections:

  • Central Government

  • State Government

  • Public Sector Units

  • Corporations

  • Private Companies of Repute

  • Municipalities

  • Schools, Universities, and Colleges

  • Alternatively, any other reputable organization

2. In the case of students, the applicant must be

  • Minimum 18 years old

  • The applicant must have a parent or guardian who can become a co-applicant, with the condition that they must be credited salary via a United Bank of India account.

3. In the case of self-employed individuals and any person conducting a business, the borrower must be an Income Tax assessee and must have been in the market for a minimum of two years.

4. Any person carrying on the agricultural activity must be:

  • A customer of UBI

  • Has an excellent transactional record regarding loan repayments of previous two years.

  • Has a deposit of minimum Rs 1 lakh over the past two years, either solely in the applicant's name or with any member of the family

5. The Bank Mitra or the Business Correspondent Agents who are associated with UBI, and have been employed as Bank Mitra from last two years.

6. The maximum age allowed to apply for this loan is 65 years.

Income Criteria for Two-Wheeler Loan

  1. Different applicants required to fulfill the following income criteria accordingly while applying for a two wheeler loan from UBI:

  2. The salaried applicants are required to earn a minimum salary of Rs 15,000 on a monthly basis. After the loan approval, the net take-home salary of the applicant must be at least 40% of the total payroll, which should not be below Rs 10,000 per month.

  3. The self-employed applicants should earn a minimum average earning of Rs. 2 lakhs on a yearly basis, as shown in the applicant's income tax return reports.

  4. The applicants working on any agricultural activity should attract an annual income of at least Rs. 2 lakhs

  5. The Bank Mitra applicants should earn at least a salary of Rs 15,000/month. After the approval of the loan, the take-home pay of the borrower must not be below Rs 10,000 per month.

Documentation Required

Customers looking to apply for a two wheeler loan from United Bank of India are required to submit the following set of documents:

  • Filled application form duly signed by the applicant

  • Identity Proof - Any of the following:

  • Valid Driving License

  • Most recent Form 16 and ITRs

  • Bank statement of last three months

  • Valid Passport Copy

  • PAN Card

  • Voter ID Card

Loan Interest Rates

Normal Rates:

Loan Repayment Period Floating Interest Rate/Annum
Up To 36 Months 11.00%
Over 36 Months 11.50%

For Women Bank Mitras:

Loan Repayment Period Floating Interest Rate/Annum
Up To 36 Months 10.75%
Over 36 Months 11.25%

MCLR Rates:

Tenor of Loan MCLR
Overnight 9.25%
1 Month 9.30%
3 Months 9.35%
6 Months 9.40%
1 Year 9.45%


Q1. What form of security does the bank require while applying for a two-wheeler loan?

The bank requires the kind of the two-wheeler the applicant has purchased with the loan amount as security.

Q2.What is the processing fee while applying for a United Bank of India two-wheeler loan?

The bank imposes a processing fee of 1% of the loan amount approved and sanctioned to the applicant.

Q3. Do non-salaried applicants need to provide any collateral for two-wheeler loan?

In the case of an applicant who is not a salaried individual, a personal guarantee from any individual who possesses the ability to be liable for the amount of loan sanctioned, or who can cover at least  30% of the loan amount is required. Alternatively, the applicant needs to be covered by securities such as a 50% of the loan amount deposited in the bank, a National Savings Certificate (NSC), Kisan Vikas Patra (KVP certificate) or the surrender value of a life insurance policy acquired from LIC.