Union Bank of India Personal Loan

Features and Benefits of Union Bank Personal Loan 

Union Bank offers personal loans that come with various features and benefits to meet the financial needs of its customers. Some of the key features and benefits of personal loans are:

• Union Bank offers up to Rs. 15 lakhs, making it easier for customers to finance their personal expenses.
• The repayment tenure for Union Bank personal loans ranges from 12 months to 60 months, which gives borrowers the flexibility to choose a repayment schedule that suits their financial situation.
• Union Bank offers personal loans at competitive interest rates, making it available an affordable option for customers.
• These loans are unsecured, and you don’t need to provide any collateral or security to get approval.
• Union Bank processes personal loan applications quickly, and if approved, the loan amount is disbursed within a few days.
• Union Bank offers a hassle-free application process for personal loans, which can be done online or offline.
• Customers can make prepayments or foreclose their personal loans without charges or penalties.
• Customers can use Union Bank Personal Loans for debt consolidation, which helps them to manage their debt effectively.
• Union Bank Personal Loans do not have any hidden charges, which ensures transparency in the loan process.

Union Bank Personal Loan Eligibility Criteria

To avail of the loan without any hassle, you must get familiar with the Union Bank Personal Loan eligibility criteria. It will help you to get clarity on whether your loan application will be approved or not. Union Bank’s Personal Loan scheme has different eligibility criteria for salaried and non-salaried applicants.

Union Bank Personal Loan Eligibility Criteria for Salaried Individuals

For salaried individuals who are not government employees, the loans are categorised into Tie-up and Non-Tie-up.

Tie-Up

Under the Tie-up category, permanent employees of reputed private organisations or institutes in India may or may not be salary account holders. To be eligible for this category, the individual must have a minimum monthly gross salary of Rs 15,000 (Rs 20,000 for those residing in Delhi, Mumbai, Bangalore, Kolkata, Pune, Chennai, and Ahmedabad).

Non-Tie-up

For the Non-Tie-up category confirmed employees of reputed private institutes or organisations in India must be bank customers for at least six months before applying for the loan. They must also maintain a salary account with the bank and earn a gross monthly salary of at least Rs 15,000 (Rs 20,000 for those residing in Ahmedabad, Pune, Bangalore, Delhi, Kolkata, Mumbai, and Chennai).

Union Bank Personal Loan Eligibility Criteria for Non-Salaried Individuals

For non-salaried applicants with a regular source of income, the minimum age requirement is 25 years, and the maximum age is 75 years (by the time of loan repayment). The borrower must also be a bank customer for at least two years prior to applying for the loan and maintain a current or savings account with an average quarterly balance of Rs 25,000 for the last four quarters. Additionally, there should be no reporting of cheque returns or any other adverse features.

Union Bank Personal Loan Fees and Charges

When you apply for Union Bank Personal Loan, familiarity with the associated fees and charges becomes equally important. These charges help to determine the overall loan cost.

• Processing Fees: 1% of the sanctioned loan amount
• Overdue Charges: 2% per annum
• Prepayment Penalty: NIL

Documents Required for Union Bank Personal Loan

You must submit the documents required for the Union Bank personal loan to get easy approval. These documents help the bank to determine your credibility for the applied loan product:

• Filled loan application form along with the credit details
• Latest passport-size photos (two)
• Income proof, i.e. bank statement for the past six to twelve months
• In the case of a salaried employee, the bank asks for salary slips (three months) and the last two years’ ITR
• Form 16

How Does the EMI Calculation Work for Union Bank Personal Loans?

EMI stands for Equated Monthly Instalment, the money a borrower must pay monthly to repay their Union Bank Personal Loan. The EMI consists of the principal amount and the interest charged on it.

The EMI calculation for Union Bank Personal Loans is done using a mathematical formula that takes into account the loan amount, the interest rate, and the loan tenure. The formula used to calculate EMI is as follows:

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

Where,

• P = Loan amount
• R = Interest rate per month (converted from annual rate)
• N = Loan tenure in months

Additionally, you can utilise Union Bank Personal Loan Calculator to easily calculate EMI based on your loan amount, interest rate, and term.

Don’t miss to Check: Union Bank Personal Loan Calculator