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A personal loan is a fund that helps you meet all your financial needs. You can use the loan to travel around the world or can plan a big fat Indian wedding. And to get a personal loan, you can contact Union Bank of India. It is one of the largest government-owned banks in India. The bank has recently consolidated with Corporation Bank and Andhra Bank, which came into effect on 1st April 2020. With this, it has become the 5th largest public sector bank in India.
Union Bank of India Personal Loan Interest Rate March 2023
|Minimum Loan Amount||Customized|
|Maximum Loan Amount||INR 15 lakh for Existing Borrowers|
INR 5 lakh for New Borrowers
|Interest Rate||11.80% - 15.50%|
|Tenure||5 Years or 60 Months|
|Processing Fees||0.50% of the Loan Amount|
|Repayment Method||Equated Monthly Installment (EMI)|
Union Bank of India Personal Loan for Salaried other than Govt. Employees
To avail a loan from Union Bank of India for your financial needs, you need to meet its eligibility criteria. Union Bank of India has divided its personal loan into two categories one is Type A under which the applicants can borrow up to INR 15 lakh with no minimum limit. And the other is Type B where you can borrow from INR 5-15 lakh from the bank. Your repayment period for the borrowed loan can be for a maximum 60 months. The eligibility criteria for Union Bank of India personal loan is divided into two categories, see the table to know about it.
Eligibility Criteria for Salaried Employees
|Type A (Tie-up)||Type B (Non tie-up)|
|Minimum age should be 18 years and maximum age is 1 year prior to the retirement age.||Minimum age should be 18 years and maximum age is 1 year prior to the retirement age.|
|Employees of MNC, corporates, PSUs and public or private sector companies can apply||Employees of MNC, corporates, PSUs and public or private sector companies can apply|
|The applicant may or may not have a salary account in Union Bank of India||It's necessary to have a salary account in Union Bank of India with a relationship spanning for at least 6 months|
|A minimum salary of INR 15,000 per month is required to apply for the loan. If you are a resident of Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Ahmedabad & Pune, the required monthly income would rise to INR 20,000.||A minimum salary of INR 15,000 per month is required to apply for the loan. If you are a resident of Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Ahmedabad & Pune, the required monthly income would rise to INR 20,000.|
Union Bank Personal Loan for Government Employees
To meet financial needs or for loan transfer, you can apply for this scheme. Union Bank of India provides government employees a personal loan via a term loan or overdraft facility. Customers who don’t have a salary account can get the term loan only. There is no minimum limit for your borrowed loan, and you can get up to INR 15 lakh from Union Bank of India for a maximum of 5 years. Look at the eligibility criteria the government employees need to meet while applying for Union Bank of India Personal Loan.
Eligibility Criteria for Government Employees
- The applicant should be a permanent employee of Central or State government organizations, PSUs, Central or State Government undertakings employees, Defence, armed personnel, Ministries or the Departments under the Ministries, officers of the All India Services, Teaching and non-teaching staff of Government Schools or Colleges.
- The minimum age of the applicant should be 18 years
- And it is not necessary to have a salary account at Union Bank of India
Union Bank of India Personal Loan for Non-salaried
Non-salaried applicants wanting to meet personal expenses like marriage, purchase of consumer durables, travel or holiday can apply for Union Bank of India Personal Loan too. You can borrow up to INR 15 lakh from Union Bank of India if you have a minimum credit history of 2 years. The minimum age of the applicant should be 25 years, while the maximum age allowed at the proposed completion of loan is 75 years. Whereas a new customer who doesn’t have any credit record can borrow a maximum loan up to INR 5 lakh with a maximum tenure of 5 years. To apply for a personal loan at Union Bank of India, you need to meet some other criteria too.
- Applicants need to have a minimum of 24 months banking relationship with Union Bank of India before applying for the loan.
- You should maintain a savings or current account with a quarterly balance of INR 25000 & above
Union Bank of India Personal Loan EMI Calculator
After the loan approval, you can compute your EMI amount. EMI is the amount you pay to the bank against the borrowed loan. It is important to know the EMI amount so that you can make a repayment plan as per your convenience and repayment capacity. To use the personal loan EMI calculator tool, you just need to insert 3 details of your loan which are –
- Loan amount
- Interest Rate
For example – You apply for a personal loan of INR 6 lakh for 5 years at a personal loan interest rate of 12.50% p.a. But you are not sure of the EMI amount you will pay to the lender. So, you can look at the table below to check the EMI amount and total interest payable towards the borrowed loan.
Table Showing EMI, Interest Outgo, and Total Repayment Amount
|Loan Amount||Interest Rate||Tenure||Monthly Instalment||Total Interest Amount||Total Amount|
|₹ 6,00,000||12.50%||1||₹ 53,450||₹ 41,397||₹ 6,41,397|
|₹ 6,00,000||12.50%||2||₹ 28,384||₹ 81,225||₹ 6,81,225|
|₹ 6,00,000||12.50%||3||₹ 20,072||₹ 1,22,598||₹ 7,22,598|
|₹ 6,00,000||12.50%||4||₹ 15,948||₹ 1,65,504||₹ 7,65,504|
|₹ 6,00,000||12.50%||5||₹ 13,499||₹ 2,09,926||₹ 8,09,926|
EMI, Total Interest Outgo, Total Repayment (Interest + Principal)
|1||₹ 92,145||₹ 69,839||₹ 5,07,854|
|2||₹ 1,04,347||₹ 57,638||₹ 4,03,506|
|3||₹ 1,18,164||₹ 43,820||₹ 2,85,342|
|4||₹ 1,33,811||₹ 28,174||₹ 1,51,530|
|5||₹ 1,51,669||₹ 10,455||₹ 0|
- PAN Card
- Voter ID card
- Proof of address such as Electricity bill, Telephone bill and Aadhar(any one of them)
- Last 3-year ITR
- Last 3-year Form-16 or letter from Employer
- Last 6 months salary slip
- 2 photographs
- Loan repayment statement, if have an existing loan
- LIC Policies, if you pay a premium for it
- And any other document required as per the application form.
Features and Benefits
- Low Interest Rates: Union Bank of India provides you a personal loan at an effective rate of interest of 11.80% - 15.50% per annum. And it is comparatively lower compared to several other lenders.
- Simple Documentation: You need to submit the ID, income and address proof to the bank along with your loan application form.
- Quick Processing & Disbursal: The loan is processed quickly and disbursed to your bank account is less than 48 hours of its approval.
- Affordable Financing: You can borrow an affordable amount from the bank and pay for the loan in equated monthly installments.
- Easy Monthly Repayment Options: To pay the EMI, you can use the ECS, PDCs or standing instruction service.
- High Loan Amounts: You can borrow a maximum loan amount of INR 15 lakh from the bank.
Apply for Union Bank of India Personal Loan
To get the loan, visit the bank branch and follow the steps.
- Ask for a personal loan application form
- Fill the form and submit the same with 2 passport size photographs and a few documents as mentioned above.
- After that, wait for the bank approval
You can also apply online by filling and submitting the loan request form on the official website of Union Bank of India. The bank representative will get in touch with you and pick the documents from you. After receiving the documents, the lender will check the details thoroughly and approve a loan only when they are verified successfully.