Union Bank of India Personal Loan – Eligibility & Interest Rate

Personal Loan Rates EMI 2017 213 views

Being one of the largest government-owned banks of India, founded in Mumbai, Union Bank of India is a name to reckon with.  The Head Office building of the Bank in Mumbai was inaugurated by Mahatma Gandhi, and his prescient words on that occasion anticipated the tremendous progress of the Bank that it enjoys throughout the following decades.With a huge network of 4,129 ATMs spread across every nook and corner of the country, this bank with its various products caters the needs of all. Amidst its list of products, Union Bank Personal Loan plays a vital role in fulfilling the personal needs of all. To get more information about Union Bank of India Personal Loan, let's go deep inside into this article.

Union Bank of India Personal Loan Details- One stop guide to know it all !

ParticularsDetails
Interest Rates11.55%-14.40% p.a.
Loan AmountUp to 10 Lakhs
Tenure5 Years
Processing Fees0.50% of the loan amount

Eligibility Criteria for Union Bank of India Personal Loan – How Can You Be Eligible for the loan?

  • The minimum age limit should be 21 years and maximum should be below 58 years.
  • Applicant should be an existing customer of Union Bank
  • Applicant should be a resident of India
  • Customer should have a regular income and should be a salaried employee (Government service or a regular corporate job)
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Union Bank of India Personal Loan Eligibility- Deduce your credit viability ?

Now let's understand how your eligibility gets calculated by using an eligibility calculator:
Let's say you have saved Rs. 45000 per month from your monthly income of Rs. 90,000. Once you have assessed your eligibility by taking into account the loan amount, tenure and rate of interest, you will be able to know the EMIs that you have to incur every month as a repayment towards the personal loan you are eligible for.

Amount- Rs 1 Lakh
Loan Tenure- 5 years
Rate of Interest- 11.55%-14.40% per annum
Your monthly EMI will be Rs.2,202- Rs.2,348

The Calculated Eligibility is as follows:

Rs.1 Lakh x 45000/2202=Rs.20.43 and Rs.1 Lakhx45000/2348=Rs.19.16 Lakhs

The loan amount you are eligible for lies between Rs.19.16 Lakhs – Rs.20.43 Lakhs.

Union Bank of India Personal Loan EMI Calculator- How much EMI are you going to pay ?

Calculating EMI is quick and simple by using EMI calculator. The calculator gives you an accurate result within minutes once you enter the details such as the loan amount, tenure, and rate of interest in order to know your EMI. The calculation method is user-friendly and hence, saves the manual effort. The user simply has to put the values in the relevant fields and click on the calculate button.  Let's understand how the calculator works with a suitable example:


For Example: Nikita Patel has applied for a loan of Rs.10,00,000 from Union Bank of India for 5 years. The bank is ready to avail her a loan at an interest rate falling between 11.55%-14.40% per annum. In such case, the value of EMI, total interest outgo and total repayment amount each year will be Rs.22,018-23,476, Rs.3,21,063-4,08,569 and Rs.13,21,063-14,08,569 respectively.

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The EMI, total interest outgo and total repayment amount on loan of the same amount at various tenure will be as follows:

Table showing EMI, interest outgo and total amount payable on your personal loan

Loan AmountLoan TenureInterest RateEMITotal Interest OutgoTotal Amount (EMI+Interest)
Rs.10,00,000111.55%-14.40% p.a.Rs.88,638-89,975Rs. 63,661-79,705

Rs.10,63,661-10,79,705
Rs.10,00,000211.55%-14.40% p.a.Rs.46,864-48,202Rs. 1,24,726-1,56,850Rs.11,24,726-11,56,850
Rs.10,00,000311.55%-14.40% p.a.Rs.33,000-34,372Rs. 1,87,992-2,37,400Rs.11,87,992-12,37,400
Rs.10,00,000411.55%-14.40% p.a.Rs.26,113-27,528Rs. 2,53,445-3,21,322Rs.12,53,445-13,21,322
Rs.10,00,000511.55%-14.40% p.a.Rs.22,018-23,476Rs.3,21,063-4,08,569Rs.13,21,063-14,08,569

Amortization Table

YearPrincipal PaymentInterest OutgoBalance Amount
1Rs. 156,846-Rs. 147,174Rs. 107,370-Rs. 134,538
Rs. 843,154-Rs. 852,826
2Rs. 175,954-Rs. 169,825Rs. 88,262-Rs. 111,887Rs. 667,200-Rs. 683,001
3Rs. 197,385-Rs. 195,960Rs. 66,831-Rs. 85,752Rs. 469,815-Rs. 487,041
4Rs. 221,428-Rs. 226,117Rs. 42,788-Rs. 55,595Rs. 248,387-Rs. 260,924
5Rs. 248,597-Rs. 261,202Rs. 15,815-Rs. 20,798Rs. 0

Documentation Required- Key Essentials to Keep in Mind

SalariedSelf-employed
Signed application form with photographSigned application form with photograph
Copy of passport/voter ID card/driving licenseCopy of passport/voter ID card/driving license
Processing fee chequeProcessing fee cheque
Last 3 months bank statement/6 months bank passbookLast 3 months bank statement/6 months bank passbook
Latest salary slipLatest Bank statement
Current dated salary certificate with the latest Form 16Latest ITR or Form 16

So, these were the various aspects you have to almost drill it in your head when you are looking forward to avail personal loan from UBI.

Features & Benefits of Union Bank of India Personal Loan- Why to Avail the Loan ?

  • Loan available up to Rs. 10 lakhs
  • Easy repayment options
  • Both Residential and Commercial Property Accepted as Collateral
  • Quick disbursal
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