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Union Bank of India Business Loan

Union Bank of India
4.5

Get personal loans with flexible terms and rates upto 9.8 %. for amounts up to Rs. 15 lakhs. Applying for a personal loan is a very easy and hassle-free process that can be done both online and offline.

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Interest Rate

Processing Fee

Rating

Loan Amount/Tenure

Union Bank of India Business Loan Interest Rate

Union Bank of India

18% - 26%

Up to 3%

4.5

Up to ₹50L

Tenure(Up to 4 Years)

Details

Features & Benefits of Union Bank Of India Business loan

There are many companies, or MSMEs, that require capital for business expansion, procurement of machinery, managing human resources, etc. They don't always have equity to rely on. Hence they resort to debt funds instead. This gives banks and lending institutions the ability to deploy their capital towards these enterprises as an investment in return for interest rates. Many banks offer attractive loan schemes for businesses. One of these banks is the Union Bank of India, which has an array of business loans for its customers. The Union Bank of India Business Loan comes with attractive interest rates ranging from 8% to 10%.

Some of the features and benefits of Union Bank of India Business Loan are as follows:

  • Financing for MSMEs is offered to meet the working capital requirement of the applicants and the form of term loans.
  • The MSME loans are offered at reasonable rates.
  • The interest rate for the loan is determined based on the applicant’s credit rating.
  • An internal credit rating will be allotted to the applicant based on the credit history and other features to determine the interest rate applicable.
  • The interest rates differ based on the loan amount.
  • Various loan schemes are offered based on the occupation and nature of the applicant's business.
  • Short to long-term loans are offered under different schemes.
  • Insurance becomes mandatory for term loans with a tenure of one year or more.
  • The loan amount can go beyond Rs.25 crore, subject to certain conditions.
  • Minimal fees and charges are levied on the loan transactions.
  • The margins for different loan schemes are set based on the applicable circumstances.
  • Women entrepreneurs are encouraged through dedicated loan schemes.

Eligibility Criteria for Union Bank Of India Business loan Eligibility

There are various parameters that a customer has to adhere to if they are interested in availing the benefits of a Union Bank of India business loan. Although the eligibility criteria depend on the business loan type one is opting for it, they still would be required to meet the general standard set forth by the bank. Below are the major eligibility criteria for the Union Bank of India Business Loan.

  • The applicants can be any person, entrepreneurs, partnership firms, proprietors, self-employed professionals, or individuals involved in trading and wholesale business, etc. 
  • Applicants should be able to prove their identity and residential address by providing the necessary documents for the same. 
  • For availing of the Gold Loan Plus, the applicants can bring gold coins which should not weigh more than 50 grams per customer.

Union Bank Of India Business Loan Interest Rates

Union Bank of India offers its business loan customers a starting rate of 9.40%, which is revised every once in a while. Customers who are business entities will benefit from maintaining a good credit rating which can make them eligible for higher rates with lower interest. Businesses are also assigned additional interest rate charges per their credit rating.

Credit Rating Interest Rate Addition
CR1 Additional 2.75%
CR2 Additional 3.00%
CR3 Additional 3.25%
CR4 Additional 3.75%
CR5 Additional 4.25%
CR6 Additional 4.50%
CR7 Additional 4.75%
CR8-CR10 Additional 4.75%

Factors affecting Union Bank Of India Business Loan Interest Rates

Many factors determine business loan interest rates. In the case of the Union Bank of India Business Loan case, the following factors play an important role in determining interest rates.

  • The business sector - This is instrumental in determining how the business might scale up. Businesses set up in depressed sectors might take their due course at a slow rate. This can hamper the creditworthiness of the business. The interest rate might increase in such scenarios. 
  • Location of the business - For businesses set up in cities, the profit rate increases compared to businesses set up in remote locations. 
  • Infrastructure and amenities - Whether the business location has ample infrastructure and amenities to support its operations is another factor that affects the Union Bank of India business loan interest rates. 
  • Profit earning of the business - Lending institutions are particularly interested in a business's cash flow and profit earning before it can deploy its loan capital to reduce credit risk. 
  • Income of the owner - The business owner's net worth also affects the business loan's interest rate.

Union Bank Of India Business Loan Fees and Charges

To avail of the Union Bank of India Business Loan, customers have to incur certain fees and charges as part of the loan processing service. Other than that, other types of charges are included in the additional charges. The Union Bank of India Business Loan Fees and Charges are listed below:

Up to Rs.25,000 Nil
Rs.25,000-Rs.2 lakh Rs.400 per proposal
Rs.2 lakh-Rs.10 lakh Rs.300 per lakh (minimum of Rs.1,000)
Above Rs.10 lakh Rs.350 per lakh Priority Sector: Maximum of Rs.30 lakh Other advances: No limit

Documents Required for Union Bank Of India Business Loan

Customers seeking to get a Union Bank of India Business Loan will be required to produce certain documents to authenticate the individual or the business unit. These documents are mandatory to complete the application process and proceed further with the loan sanction. Here is a list of documents required for the Union Bank of India Business Loan.

  • Application form filled correctly with all the particulars and passport-size photographs. 
  • Document proving the registration of the business
  • Identification and residence proof of the applicant 
  • Balance Sheet and P&L Statement from the previous two years
  • Partnership deed in case of partnership companies 
  • A copy of the certificates of Incorporation and Commencement of business and Memorandum and Articles of Association, both duly attested.
  • Hypothecation Agreement
  • Deed of Guarantee
  • Blank transfer certificate signed and attested by the borrower
  • A letter signed by the borrower and addressed to the insurance company, authorising them to pay the claims to the bank directly

How Does the EMI Calculation Work for Union Bank Of India Business Loans?

Calculating the Union Bank of India Business Loan can be crucial before considering applying for the loan. This is because a business loan calculator can be instrumental in assisting one with making pre-anticipated financial decisions. The calculation of Union Bank of India Business Loan EMI essentially uses a mathematical formula as laid below:

EMI = [Principal amount x tenor x (1 + tenor)] / [(1 + interest rate) ^ tenor – 1]

For example, we can assume that a Loan amount of INR 50 Lakhs is taken for an interest rate of 9.70% per annum for a loan tenure of7 Years. By applying the formula given above, EMI to be paid will be INR 82,233, the total interest payable will be INR 19,07,567, and the total repayment amount will be INR 69,07,567. 

Union Bank Of India Business Loan Interest Rates Comparison with Other lenders?

With various lenders in the market to choose from, customers looking for a lucrative business loan can start by exploring various lenders in terms of the rates offered. This can help users land a feasible business loan with attractive interest rates and good customer service. Here is a table showing the prevailing business loan interest rates across top banks in India. The Union Bank of India Business Loan interest rate ranges between 8% to 10% per annum.

Bank/NBFCs Interest Rate
HDFC Business Loan 10.00% – 22.50% p.a.
FlexiLoans 1% per month onwards
ZipLoan 1% – 1.5% per month (Flat ROI)
Axis Bank Business Loan 14.25% – 18.50% p.a.
IDFC First Bank Business Loan 14.50% onwards
Kotak Mahindra Bank Business Loan 16% – 19.99%
Fullerton Finance 17% – 21%
Bajaj Finserv 17% p.a. onwards
RBL Bank Business Loan 17.50% – 25% p.a.
ICICI Bank Business Loan 17% onwards
Indifi Finance 1.5% per month onwards
Lendingkart Finance 1.5% – 2% per month
Tata Capital Finance 19% p.a. onwards
NeoGrowth Finance 19% – 24% p.a.
Hero FinCorp Up to 26% p.a.

Union Bank Of India Business Loan Customer Care Number

Anybody availing of the Union Bank of India Business Loan can contact the Union Bank of India’s customer service representative in case of any queries. Below are the particulars that one can use for contacting the bank.

  • All India Toll-Free Number:1800 22 22 44 / 1800 22 22 43 / 1800 208 2244 / 1800 425 1515
  • Dedicated number for NRI: +91 8061 817 110

FAQs

From refinancing to reducing your interest, we have the answers right here.

What is the interest rate of business loans in Union Bank Of India?

The interest rate for Union Bank of India business loans starts from 9.40% per annum. Further, as per credit rating, customers are quoted an interest rate that suits their profile and reduces the bank’s credit risk.

What are the benefits Union Bank Of India Provides on a business loan?

Opting to choose the Union Bank of India Business Loan has many benefits, including attractive interest rates, minimal processing fees and charges, availability of short to long-term loans, fast sanctioning, and so on.

Does Union Bank Of India have a fixed interest rate on a business loan?

Union Bank of India’s interest rate for a business loan not only comes with a fixed interest rate option but also with floating interest rates where customers have the provision to pay interest as and when they have enough cash flow and pay less when tight.

How to check the business loan Status in Union Bank Of India?

Customers can check their business loan status by contacting the customer service representative directly. They may call 1800 22 22 44 / 1800 208 2244.

Does Union Bank Of India Checks for CIBIL Scores for business loans?

Union Bank of India considers credit ratings for discounting interest rates. Customers with good credit ratings can get higher loan amounts with lower interest rates.

What is the maximum and minimum business loan amount I can get from Union Bank Of India?

Customers interested in applying for a Union bank of India business loan can get up to INR 25,00,00,000 depending on their profile and eligibility.

What are the KYC documents I must submit to apply for a business loan from Union Bank Of India?

Customer availing of the Union Bank of India Business Loan has to obtain KYC documents, including Aadhaar Card, Permanent Account Number, financial documents showing business particulars, and passport-size photographs.

What is the processing fee for the Union Bank Of India business loan?

To avail of the Union Bank of India Business Loan, customers will have to pay a certain nominal amount as a processing fee. For an amount up to INR 25,000, there is no fee charged. For an amount ranging from INR 2 Lakhs to INR 10 Lakhs, customers have to pay INR 400 per proposal. For any amount more than INR 10 Lakhs, a fee of INR 350 per lakh will be applied.

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