Business Loan Rates 2024
Union Bank Of India Business Loan
Last Updated : Nov. 7, 2016, 10:18 a.m.
The Union Bank Of India eases the functioning of micro, small and middle enterprises by providing them with the business loan under various schemes. The bank sanctions loan up to Rs. 25,00,00,000 and for the maximum period of 10 years. The loan is hypothecated against security. The interested candidates can apply for the loan as per the eligibility.
Union Bank Of India Business Loan Details
| Particulars | Details |
|---|---|
| Interest Rates | 9.50% p.a – 14.80% p.a |
| Loan Amount | Up to Rs. 25,00,00,000 |
| Tenure | Up to 10 years |
| Type Of Loan | Pledged |
How To Apply :
To avail the business loan from Union Bank of India, visit the nearest branch office. Or you can apply from the comfort of your home through the online process.
Union Bank Of India Business Loan EMI Calculator
EMI is the amount the loan user has to pay to the lender each month till the tenor ends to settle off the debt. It is the combination of the principal and the interest charged on the loan. This amount is calculated using a tricky formula. But, you can calculate it in a few seconds using the smart device, the Business Loan EMI Calculator . Put the loan amount, tenure and the rate of interest in the calculator and know your EMI. Still confused. Let’s try it out using an example.
For Example – If an MSME unit wills to take a loan of Rs. 25,00,00,000 for the tenure of 10 years then the EMI will range from Rs. 32,34,939 – Rs. 40,02,809.
Table Showing EMI, Total Interest Amount, Total Repayment Amount
| Loan Amount (in Rs.) | Loan Tenure (in years) | Interest Rate (p.a,) | EMI (in Rs.) | Total Interest Outgo (in Rs.) | Total Amount (EMI+Interest) (in Rs.) |
|---|---|---|---|---|---|
| 25,00,00,000 | 1 | 9.50% – 14.80% | 2,19,20,878 - 2,25,40,991 | 1,30,50,535 - 2,04,91,896 | 26,30,50,535 - 27,04,91,896 |
| 25,00,00,000 | 2 | 9.50% – 14.80% | 1,14,78,623 - 1,20,97,920 | 2,54,86,958 - 4,03,50,074 | 27,54,86,958 -29,03,50,074 |
| 25,00,00,000 | 3 | 9.50% – 14.80% | 80,08,237 - 86,41,867 | 3,82,96,548 - 6,11,07,210 | 28,82,96,548 - 31,11,07,210 |
| 25,00,00,000 | 4 | 9.50% – 14.80% | 62,80,784 - 69,32,368 | 5,14,77,640 - 8,27,53,665 | 30,14,77,640 - 33,27,53,665 |
| 25,00,00,000 | 5 | 9.50% – 14.80% | 52,50,465 - 59,21,269 | 6,50,27,920 - 10,52,76,150 | 31,50,27,920 - 35,52,76,150 |
| 25,00,00,000 | 6 | 9.50% – 14.80% | 45,68,673 - 52,59,138 | 7,89,44,435 - 12,86,57,927 | 32,89,44,435 - 37,86,57,927 |
| 25,00,00,000 | 7 | 9.50% – 14.80% | 40,85,995 - 47,96,179 | 9,32,23,615 - 15,28,79,049 | 34,32,23,615 - 40,28,79,049 |
| 25,00,00,000 | 8 | 9.50% – 14.80% | 37,27,722 - 44,57,465 | 10,78,61,296 - 17,79,16,650 | 35,78,61,296 - 42,79,16,650 |
| 25,00,00,000 | 9 | 9.50% – 14.80% | 34,52,340 - 42,01,345 | 12,28,52,741 - 20,37,45,257 | 37,28,52,741 - 45,37,45,257 |
| 25,00,00,000 | 10 | 9.50% – 14.80% | 32,34,939 - 40,02,809 | 13,81,92,673 - 23,03,37,134 | 38,81,92,673 - 48,03,37,134 |
Amortization Table
| Year | Principal Payment (in Rs.) | Interest Outgo (in Rs.) | Balance Amount (in Rs.) |
|---|---|---|---|
| 1 | 2,376,031 - 2,955,603 | 52,07,841- 71,94,137 | 4,70,44,397- 47,623,969 |
| 2 | 2,749,828 - 3,287,835 | 48,75,609- 68,20,340 | 4,37,56,562- 44,874,141 |
| 3 | 3,182,430 - 3,657,408 | 45,06,036- 6,387,738 | 4,00,99,154- 41,691,711 |
| 4 | 3,683,093 - 4,068,524 | 40,94,920- 5,887,075 | 3,60,30,630- 38,008,618 |
| 5 | 4,262,514 - 4,525,853 | 36,37,591- 53,07,654 | 3,15,04,777- 3,37,46,104 |
| 6 | 4,933,092 - 5,034,589 | 31,28,855- 46,37,076 | 2,64,70,188- 28,813,012 |
| 7 | 56,00,509- 5,709,167 | 25,62,935- 3,861,001 | 2,08,69,679- 2,31,03,845 |
| 8 | 62,30,047- 6,607,331 | 19,33,397- 2,962,837 | 1,46,39,632- 16,496,514 |
| 9 | 69,30,343- 7,646,796 | 12,33,101- 1,923,372 | 77,09,289- 8,849,718 |
| 10 | 77,15,301- 8,859,368 | 4,54,085- 7,20,378 | 0 |
Table Showing Loan Schemes, Eligibility, Amount of Loan and Tenure
| Union Bank Of India Loan Schemes | Eligibility Criteria | Quantum of Loan | Tenure |
|---|---|---|---|
| Union Liqui Property | - All business enterprises irrespective of constitution (Proprietorship/Partnership/Companies/Trust/Association etc) other than individuals and HUF engaged in business activity for minimum last two years - Units should have in place all necessary statutory approvals / NOCs from respective authorities - Credit Rating of the borrower should not be below the standard rating ser by Union Bank Of India - All new as well as existing accounts can be covered under the scheme | Minimum : 1 crore Maximum : 10 crore | Up to 10 years |
| Union High Pride | - Companies / Trading firms / Business Enterprises/ Service units requiring credit facilities above Rs. 5.00cr up to Rs. 25.00cr - Mid Corporate Enterprises with Investment in Plant & Machinery above Rs. 1 crore up to Rs. 10 crores Credit Rating of unit should be as per bank's policy | Above 5 crores to 25 crores | Up to 7 years |
| Union SME Plus | MSME borrowers having satisfactory dealing for minimum 2 years under credit facilities with the bank, compiled with all sanction terms and maintaining regular account no overdue | Up to Rs. 2,50,00,000 | 5 years |
| Union Progress | All business units regardless of categorization under Micro & Small Enterprises | Up to Rs. 1,00,00,000 | 7 years |
| Union Nari Shakti | - Micro & Small Enterprises owned and managed by Women Entrepreneurs. In case of a partnership concern or company, majority of partners should be women and in case of company, majority of directors should be women - Proprietorship, partnership concerns (including LLP), Limited Companies etc belonging to Micro and Small Enterprises - Units should have in place all necessary statutory approvals / NOCs from respective authorities - All new, as well as existing accounts, can be covered under this scheme - The credit rating should be as per bank's norm | Minimum: Rs. 2,00,000 Maximum: Rs. 1,00,00,000 | Up to 7 years |
| Union Trade | - All Retail Traders, Wholesale Traders including Supermarkets, Malls, Departmental Stores dealers in Groceries ,Consumer durables, Co-operative stores etc. - Existing as well as new proprietorship, partnership concerns (including Limited Liability Partnership),limited Companies engaged in the trading activity are eligible - The firm should be registered under VAT/Sales Tax/Shop & Establishment Act | Up to Rs. 5,00,00,000 | 7 years |
Union Bank Of India Business Loan Application Form
- Name and Address of the enterprise
- Contact number
- Whether belong to SC/ ST/ OBC/ Minority
- E-mail address
- PAN Card Number
- Constitution ( Individual/Joint/Prop. Concern/Partnership/Pvt. Ltd. Co./Limited Co. /Trust)
- Date of establishment
- Name, address and other details of proprietors/ partners/ directors of company
- Banking and existing credit details
- Proposed credit details
- Collateral details
- Past performance and future profit estimation of the company
Documents Required :
- Proof of identity- Voter’s ID card/ Passport/ driving licence/ PAN card/ signature identification from present bankers of proprietor, partner or Director (if a company)
- Proof of residence – Recent telephone bills, electricity bill, property tax receipt/ passport/ voter’s ID card of proprietor, partner or Director (if a company)
- Proof of business property
- Proof of Minority
- Last three years balance sheets of the units along with income tax/ sales tax returns etc. (Applicable for all cases from Rs. 2 lacs and above). However, for cases below fund based limit of Rs. 25 lacs if audited balance sheets are not available, then unaudited balance sheets are also acceptable as per extant instructions of the bank. For cases of Rs. 25 Lacs and above, the audited balance sheets are necessary
- Memorandum and articles of association of the Company/ Partnership Deed of partners etc
- Assets and liabilities statement of promoters and guarantors along with latest income tax returns
- Rent Agreement (if business on rent) and clearance from pollution control board if applicable
- MSE registration if applicable
- Projected balance sheets for the next two years in case of working capital limits and for the period of the loan in case of term loan (for all cases of Rs. 2 lacs and above)
- In case of takeover of advances, sanction letters of facilities being availed from existing bankers/ Financial Institutions along with detailed terms and conditions
- Profile of the unit (including name of promoters, other directors in the company, the activity being undertaken, addresses of all offices and plants, shareholding pattern etc. (Applicable for cases with exposure above Rs. 25 lacs)
- Last three years balance sheets of the Associate/ Group Companies (if any) (Applicable for cases with exposure above Rs. 25 lacs)
- Project Report (for the proposed project if term funding is required) containing details of the machinery to be acquired, from whom to be acquired, price, names of suppliers, financial details like capacity of machines, capacity utilization assumed, production, sales, projected profit and loss and balance sheets for the next 7 to 8 years till the proposed loan is to be paid, the details of labour, staff to be hired, basis of assumption of such financial details etc (Applicable for cases with exposure above Rs. 25 lacs)
- Review of account containing month wise sales (quantity and value both), production (quantity and value), indigenous raw material (quantity and value), value of stocks in progress, finished goods (quantity and value), debtors, creditors, bank’s outstandings for working capital limits, term loan limits, bills discounted. (Applicable for cases with exposure above Rs. 25 Lacs)
- Photocopies of lease deeds/ title deeds of all properties being offered as primary and collateral securities
- Position of accounts from the existing bankers
Features & Benefits
- Various schemes to meet your diverse business needs
- Availability of funds for the maximum value of Rs. 25,00,00,000
- Longest tenure up to 10 years
- Loans available against
Union Bank Of India Business Loan Interest Rate
The loans are available against the hypothecation of assets and interest is charged at reasonable rates. The rate of interest is linked to the MCLR which is 9.40% .