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Union Bank Of India

A personal loan is one of the most convenient forms of obtaining immediate cash during times of emergency. Anybody can be faced with the need for money at an unexpected time. Personal loan provides liquidity within a short period of time, though the interest rates are comparatively higher. However, for a customer with good credit standing, a lower interest rate might be offered.

Currently, the interest rate for personal loans can range anywhere between 11.50% to 24% per annum, depending on various factors like your credit standing with the bank, your repayment history, your salary, your occupation, etc.

Union Bank of India offers personal loans to its customers to fulfil various needs like marriage, higher education, purchase of consumer durables, etc. They offer an attractive interest rate starting from 10.70%.

SchemesCurrent Rate of Interest (Floating)
Union Personal - Under Tie-up1yr MCLR + 4.00% = 12.70%
Union Personal - Under Non Tie-up1yr MCLR + 5.00% = 13.70%
Union Personal - For Non-Salaried individuals1yr MCLR + 6.00% = 14.70%
Government employees - with employer undertaking1yr MCLR + 2.00% = 10.70%
Government employees - without employer undertaking1yr MCLR + 3.50% = 12.20%

Factors that impact your Personal Loan interest rate

There are various factors affecting one’s personal loan eligibility. As mentioned earlier, banks look at your credit relationship with them to determine your loan repayment capacity. Apart from a good credit standing with the bank, there are other points one should remember while applying for a personal loan

Credit score: A healthy credit score means a healthy repayment capability. Banks offer attractive offers and benefits on interest rates when the credit score is high.

Loan amount: A higher loan amount poses a risk to the bank. Hence, they prefer lower loan amounts which assures them of repayment. A higher loan amount is bound to come with a higher rate of interest.

Salary: Income of the borrower plays an important role in determining the interest rate. Higher income ensures the bank of a comfortable EMI payments. Hence, they offer lower interest rates to individuals with higher income.

Nature of employment: Job type and the employer are important factors affecting your personal loan interest rate. Reputed employer means job stability and a steady income flow. This ensures a better interest rate on your personal loan.

Union Personal Loan for salaried individuals other than Government employees

  • Specially designed for the salaried class, with Tie-up and Non Tie-up options
  • Minimum eligible age is 18 years and above
  • Permanent employees of reputed private institutions/organisations in India are eligible to apply for this loan
  • If the loan is applied under the non-tie-up program, the applicant needs to maintain the salary account with the bank. For tie-up program, this is not necessary
  • Applicant should have been a customer of the bank for a minimum of 6 months at the time of loan application
  • The applicant needs to have a reasonable tenure left in service, with the loan mandated to be repaid before one year of retirement
  • Quantum of loan amount
    • maximum of Rs.10 lakhs for tie-up applicants
    • for non-tie-up applicants – Rs.5 lakhs for new customers/first time borrowers. Rs.10 lakhs for existing customers with good credit standing

Union Personal Loan – for self-employed individuals

  • Non-salaried individuals with a regular source of income
  • Minimum age for eligibility is 25 years
  • Applicant should have been a customer of the bank for at least 24 months on the date of loan application
  • Loan amount of up to Rs.5 lakhs to new borrowers/first time borrowers
  • Loan amount of up to Rs.10 lakhs to existing borrowers subject to satisfactory repayment record of past 2 years
  • Maximum repayment tenure offered is 5 years or up to the age of 60 years, whichever is earlier
  • Guarantee of a person with sufficient means is required along with guarantee from spouse (in case of unmarried/widow/widower/divorcee, guarantee from a 3rd party with sufficient means is mandated)

Union Personal Loan – Special Retail Lending Scheme for Government Employees

  • Confirmed/permanent employees of Government organisations
  • Minimum age for eligibility is 18 years
  • The employee should be the primary applicant for the loan
  • Loan amount of up to Rs. 15 lakh, subject to repayment capability
  • Repayment tenure of 5 years or up to 1 year prior to retirement, whichever is earlier
  • Guarantee of one co-employee is mandated along with guarantee from spouse (in case of unmarried/widow/widower/divorcee, guarantee from a 3rd party with sufficient means is mandated)

Union Bank of India Personal Loan EMI Calculator

Union Bank of India has an EMI calculator on its website that allows you to easily calculate the monthly EMI on your personal loan. It just requires you to input the loan amount, tenure and the rate of interest, and it will automatically generate the monthly EMI amount, average interest and the monthly interest. It is a very useful little feature on the bank’s website. It helps you to determine your repayment capability before applying for the loan.

How to apply for a Union Bank of India Personal loan

You can visit the nearest branch of the bank to apply for a personal loan. One can also download the loan application form from their website, duly fill the form, attach all the necessary documents and submit it at the nearest branch.

Some of the documents required by Union Bank of India for personal loan application are

  • Proof of Identity (any one of the following)
    • Passport
    • PAN Card
    • Driving License
    • Govt. employee identity card
    • Other accepted identity proofs
  • Proof of Address (any one of the following)
    • Electricity bill
    • Telephone bill
    • Aadhaar card
    • Voter ID card
  • PAN Card
  • Proof of Income
    • Last 3 years IT returns
    • Last 3 years Form16
    • Last 6 months salary slip
  • Proof of out-goes
    • Loan repayment statement, if any
    • LIC Policies, if any
    • Valid proof of any other out-go
  • 2 passport size photographs
  • Any other documents as required by the bank

FAQs

1. How much time does it take for my personal loan to be sanctioned?

Provided all the necessary documents have been submitted satisfactorily, the bank would take 4-5 business days to process and approve a personal loan.

2. Is there any processing free for Union Bank of India personal loan?

Yes, Union Bank of India charges a processing fee of 0.50% of the loan amount or Rs.500, whichever is higher, along with applicable GST.

3. What is the maximum repayment tenure one can obtain on Union Bank of India personal loans?

The maximum repayment tenure allowed is 5 years or up till 1 year prior to retirement, whichever is earlier.

4. Does Union Bank of India mandate guarantee or security to sanction a personal loan?

Yes, Union Bank of India requires two guarantors in order to sanction your personal loan. One guarantee from a co-employee(for salaried individuals) or a person with sufficient means(for self-employed individuals) is required. Second guarantee from spouse, or, in case of unmarried/widow/widower/divorcee, a third-party guarantee from a person with sufficient means is mandated.

5. What is the maximum personal loan amount one can avail from Union Bank of India?

Salaried and self-employed individuals can avail a loan of up to Rs.10 lakhs. Government/PSU employees can avail a personal loan of up to Rs.15 lakhs. One should keep in mind that the loan amount is based on their repayment capacity.

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