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From 1st April 2021, the United Bank of India (UBI) and Oriental Bank of Commerce have been merged with Punjab National Bank. United Bank of India gives business loans to micro, small and medium enterprises (MSME) which are provided at affordable interest rates.

The amount of loan provided by UBI is dependent on the type of loan and business needs. The loan is normally sanctioned for a maximum tenure of 5 years which can be extended based on the borrower’s credit score. UBI’s key business loan details are provided below.

United Bank of India Business Loan - Features, Benefits, Highlights

Loan ParticularsUnited Trade CreditUnited Doctor PlusUnited Mahila Udhyami YojanaUnited Shilpi CardUnited Udyogshree Yojana

Maximum Loan Amount

Rs. 50 lakh based on 20% of projected yearly sales

Rs. 1 lakh - Rs. 2 crores

Up to Rs. 10 lakhs

Rs.25, 000 - Rs.10 lakhs

Up to Rs. 5 lakhs

Interest Rate

From 12.85% 

0.25% lesser than MSME loan interest rate

Not fixed

Not fixed

Not fixed


Up to 60 months

3 years - 5 years, with extension up to 7 years

Term loans: 3-5 years 

Cash credit: Maximum 12 months’ time since the date of withdrawal

Within 3 years

3-5 years

Other fees

Pre-payment fee charged at 2.36% of the outstanding loan balance




The processing fee is nil for loan amount up to Rs. 25,000


0% against the value of house property or commercial building proposed to be mortgaged

Up to Rs. 5 lakh - 10% 

A loan above Rs. 5 lakh - 15% of the cost of equipment





Mortgage of free/ marketable immovable property/ securities like LIC policies, KVPs etc.

Hypothecation of equipment, machinery, vehicles, stocks and other moveable assets/mortgage of chambers and other immovable property




Loan Scheme

Working Capital or Overdraft

Term Loan or Cash credit 

Term Loan or Cash credit 

Points to Remember: 

  • Interest on business loans from the United Bank of India starts at the rate of 9.65% p.a.
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