Union Bank Personal Loan Interest Rates

What is the Union Bank Personal Loan Interest Rate?

The Union Bank of India personal loan interest rate is the interest charged by the bank on the personal loan amount you take. It is the extra amount you pay to the bank, in addition to your loan repayment. This interest is included in your EMI, so it directly affects how much you pay every month and the total cost of the loan.

At present, the UBI personal loan interest rate generally ranges from 8.85% to 14.45%. The final rate you receive depends on factors such as your credit score, income, employment type, and overall repayment capacity. So even if two people apply for the same amount, their interest rates can still be different.

Key Takeaways:

• The interest rate is the main factor that decides your total loan cost.
• A lower rate means a lower EMI and less total repayment.
• The personal loan interest rate at UBI may vary across different schemes and customer profiles.
• Always check the UBI Bank personal loan interest rate before applying, so you know your EMI and repayment burden clearly.
• Processing fees and other charges also matter, not just the interest rate.

Comparison of Union Bank Personal Loan Interest Rates with Other Banks and NBFCs

The UBI personal loan interest rate ranges from 8.85% to 14.45%, depending on the scheme and the borrower’s profile. Below are the interest rates of different banks and NBFCs:

Banks/NBFCs	Interest Rates (P.A.)
HDFC Bank	10.9% – 24%
SBI	10.05% – 15.05%
ICICI Bank	10.45% – 16.5%
Axis Bank	9.5% – 21.55%
Kotak Mahindra Bank	10.99%
IndusInd Bank	10.49%
IDFC First Bank	9.99%
Bajaj Finserv	10% – 31%
Tata Capital	10.99% – 29.99%

Disclaimer: Interest rates are subject to change and may vary depending on the bank’s policy.

What are the Interest Rates and Processing Fees for a Union Bank Personal Loan According to Schemes?

The interest rates and processing fees depend on the scheme you choose. Below are the interest rates and processing fees applicable to Union Bank personal loans according to the schemes:

Personal Loan Schemes	Interest Rates (P.A.)	Charges
For Salaried Individuals (excluding Govt. employees)	8.90%-12.20%	1% of the loan amount (Min. ₹500 – Max. ₹7,500)
Non-Salaried Individuals	9.00%-12.55%	1% of the loan amount (Min. ₹500 – Max. ₹7,500)
Professional Personal Loan For salaried Non-salaried	8.85%-12.40%	Nil
	9.00%-12.55%	Nil
Ashiyana Personal Loan	8.80%-12.10%	Nil
Women’s Professional Personal Loan Salaried/ Non-Salaried	8.75%-12.30%	Nil
	8.90%-12.45%	Nil

Disclaimer: Interest rates and charges are subject to change and may vary depending on the bank’s policy.

What is the EMI Breakdown of Union Bank Personal Loan on Different Interest Rates?

To calculate the personal loan EMI, use the Urban Money personal loan EMI calculator. The EMI breakdown for a 5 Lakh loan on different interest rates is given below:

5 Lakh Loan on 8.95% interest rate for 5 years

EMI breakdown is given below in the table:

Year	Principal	Interest	Total Payment	Balance
1	₹6,638	₹3,729	₹10,367	₹4,93,362
2	₹7,257	₹3,110	₹10,367	₹4,09,741
3	₹7,934	₹2,433	₹10,367	₹3,18,318
4	₹8,674	₹1,693	₹10,367	₹2,18,370
5	₹9,483	₹884	₹10,367	₹1,09,100

5 Lakh Loan on 10.95% interest rate for 5 years

Breakdown for EMI is mentioned in the table below:

Year	Principal	Interest	Total Payment	Balance
1	₹6,296	₹4,563	₹10,859	₹4,93,704
2	₹7,022	₹3,837	₹10,859	₹4,13,512
3	₹7,830	₹3,029	₹10,859	₹3,24,084
4	₹8,732	₹2,127	₹10,859	₹2,24,357
5	₹9,738	₹1,121	₹10,859	₹1,13,145

5 Lakh Loan on 11.95% interest rate for 5 years

The table below shows the EMI breakdown for the Union Bank Personal Loan:

Year	Principal	Interest	Total Payment	Balance
1	₹6,131	₹4,979	₹11,110	₹4,93,869
2	₹6,905	₹4,205	₹11,110	₹4,15,358
3	₹7,777	₹3,333	₹11,110	₹3,26,934
4	₹8,759	₹2,351	₹11,110	₹2,27,348
5	₹9,865	₹1,245	₹11,110	₹1,15,185

What are the Factors Affecting Union Bank Personal Loan Interest Rates?

The Union Bank of India personal loan interest rate can differ from person to person. Even though the UBI personal loan interest rate usually falls between 8.85% and 14.45%, the final rate depends on your profile and loan details. Below are the factors affecting personal loan interest rates:

• Your credit score: It tells the bank how you have handled past loans and credit cards. If you have paid EMIs on time and kept your dues under control, you may qualify for a lower personal loan interest rate with UBI.
• Your monthly income: Union Bank checks your income to determine whether you can comfortably afford the EMI.
• Your job type and work stability: People with a steady job and regular salary are often seen as safer borrowers. If you are self-employed, you may need to provide strong proof of income.
• Your current EMI load: If you already have many EMIs running, your monthly budget becomes tighter. In that case, the bank may offer a higher rate or approve a lower loan amount.
• Loan amount and tenure chosen: A bigger loan amount means the bank is taking a bigger risk on you. Also, a longer tenure increases the total interest you pay, even when the rate looks small.
• Your relationship with Union Bank: If you already have an account with Union Bank and use it regularly, it creates a clean record. This can support your loan application and may help you secure a lower personal loan interest rate.
• The scheme you apply for: Union Bank has different personal loan options for different needs. Because of that, the personal loan interest rate can change based on the scheme you select.

How to Get Low-Interest Rates on a Union Bank Personal Loan?

Here are some ways to improve your chances of getting a better UBI personal loan interest rate:

1. Keep your credit score strong

Try to pay your credit card bills and EMIs on time every month. A clean repayment record builds trust and can help you get a lower personal loan interest rate.

2. Do not apply to too many lenders at once

When you apply for many loans at the same time, it can reduce your credit score for a while. It is better to apply only when you are prepared, so you can aim for better interest rates.

3. Choose an EMI that fits your income

If you keep your EMI payments for your monthly spends in check, the bank sees you as a safer borrower. This can increase your chances of getting a better UBI Bank personal loan interest rate.

4. Reduce your existing EMIs before applying

If you already have loans running, try to close the smaller ones first, if possible. A lighter EMI burden can improve your eligibility and may help you get a lower personal loan interest rate.

5. Keep a healthy bank statement

Avoid frequent cheque bounces, low balance issues, or too many cash withdrawals. A clean banking record can support your chances of a better personal loan interest rate.

6. Apply for the right scheme as per your need

Different personal loan options can come with different pricing. Choosing the correct scheme can help you get a better personal loan interest rate from Union Bank of India based on your eligibility.