Urban Money

Union Bank Business Loan Calculator

  • 50 K
  • 1 Cr
Years
  • 1
  • 5
%
  • 8
  • 25

Monthly Loan EMI

Payment Breakdown:

Principal Amount

₹15,00,000

Interest Payable

Total Amount Payable

Union Bank Business Loan Calculator

The automated Union Bank of India business loan EMI calculator was created to make calculating EMI amounts for all borrowers simple and quick. You can use an EMI calculator available online for free and for as many tries as required, inputting different amounts and tenures. You can analyse the EMI amount, total interest paid, and the amount due upon maturity to determine which EMI best suits your financial obligations.

Features of Union Bank Business EMI Loans Calculator

There are a lot of features of the Union Bank Business EMI Loan calculator, and some of them are listed below:

  • Accuracy in determining the EMI amount.
  • Determines the exact value of the Loan amount
  • Assists in getting the correct figure for your payments

What are the Benefits of Calculating a Union Bank Business Loan EMI Online? 

Calculating Union Business Loan Online can benefit anyone who wants a Business Loan. Enlisted below are some of the notable benefits:

  • Displays the exact amount of the EMI for the business loan that is being used
  • Assists with time savings and effective loan planning
  • Uses an amortisation schedule to show a thorough overview of the loan taken out.
  • Aids in better financial planning for the future
  • Option to select different schedules and EMI instalment lengths following your needs
  • Term loans and financing for MSMEs are available to meet the applicants' needs for working capital.
  • The interest rates on MSME loans are fair.

Union Bank Business Loan EMI Calculator Formula and how Does it Work?

A basic mathematical formula is used to calculate the Business Loan EMI. The EMI formula is straightforward, which makes it easier to determine the exact amount. The three factors used to calculate the EMI are the loan amount, interest rate, and tenure.

E = P x R x (1 + R) ^ n / ((1 + R) ^ n-1)

  • P = Principal Amount
  • R = Interest Rate
  • N = Total number of months during the loan tenure.

Things to Consider While Calculating a Union Bank Business Loan

There are majorly three things to consider while calculating the Union Business Loan EMI:

Loan Amount  

The amount you plan to borrow will determine your EMI. The EMI is high when the amount is higher and low when the amount is lower. But it also depends on how long an individual will take to repay the loan. Usually, financial institutions cater to requests for smaller loan amounts at attractive interest rates compared to higher loan amounts, as they bring a higher risk factor. Therefore, applying for a loan amount that complies with your financial situation and goals without adding undue stress is important. 

Interest Rate 

This factor is crucial in determining loan EMIs. It should only be selected after carefully weighing the loan possibilities provided by various lenders. The interest rate in a business loan is the cost that the Union Bank will levy from a customer against the sanctioned loan. A strong credit score will allow you to avail of a business loan at a lower interest rate, whereas a low credit score will lead to higher interest rates. If you can secure a business loan at a lower interest rate, your repayment will be low. On the flip side, if you secure a loan with a higher interest rate, your repayment will increase. 

Loan Tenor 

The loan tenor, also known as the repayment period, is crucial in determining the EMI. While a shorter tenure ensures a higher EMI, a longer-term ensures a lower EMI. Keeping this in mind, it is vital to plan a manageable term to prevent paying more interest.

Quickest Way to Get a Business loan from Union Bank? 

One can easily apply for a Union Bank Business Loan through Urban Money. It is straightforward for anyone to use. However, some mandatory documents are required to submit the loan application successfully. Those essential documents are listed below.

  • Identity proof

PAN card, Passport, Voter Identification card, MAPIN card, or Driver's License.

  • Proof of Residence

PAN card, Passport, Voter Identification card, MAPIN card, or Driver's Licence.

  • Proof of Age

A Passport, An Aadhaar card, A PAN card, or A voter ID card.

  • Documents of Financial Proof

Two years worth of income tax returns, a balance sheet that has been examined by a certified Chartered Accountant (CA), two years' worth of profit and loss statements, and a statement outlining the business transaction

  • Income Proof

Bank statement of business account and personal account for the last two years.

  • Business Ownership Proof

Bank statement of business account and personal account for the last two years.

An application with the correct details and passport-sized photographs is required to complete the process.

Frequently Asked Questions (FAQs)

What is the rate of interest on a business loan in union bank?

Union Bank’s business loan’s rate of interest is 9.50% p.a – 14.80% p.a.

Can I get a business loan of 10 lakhs from union bank?

One can get a business loan from 10 lakh to 10 crores for procuring machinery and equipment and ongoing working capital requirements from Union Bank. The loan can also be used to pay off large debts. Under this program, borrowers can obtain a business loan with interest rates starting at 9.50% p.a.

What is the EMI calculation formula for a business loan from Union Bank?

One can easily calculate the business loan of Union Bank from the Urban Money Business Loan EMI calculator.

Will a business loan’s EMI change in case of prepayment in union bank?

If the loan is repaid using verified internal funds, there is no penalty for the prepayment in Union Bank.

Why should I calculate union bank business loan EMI before taking a loan?

One should calculate Union Bank Loan EMI before taking a loan to get a good idea of your monthly financial commitment and the approximate loan term.

What is the Union Bank business loan processing fee?

Union Bank’s loan processing fee depends on the loan amount. For the amount of Rs.2 lacs, Rs. 1000/- per loan is charged, loans ranging from 2 lacs – 5 crores, 1.30 % of limit subject to a minimum of Rs. 3000, and loans ranging from 5 crores – 25 crores 1.10 % of limit subject to a minimum of amount.