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    City Union Bank Personal Loan Reviews

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    City Union Bank Personal Loan

    Personal Loan BYTES FROM OUR KITCHEN

    City Union Bank is an Indian bank. The Kumbakonam Bank Limited, as it was at first called, was incorporated as a limited company on 31 October 1904. The bank initially preferred the role of a regional bank in the Thanjavur District Tamil Nadu. The main purpose of the loan is helping the deposit holders to get financial help against their deposit at the time of need, and the advance is for immediate family or business expenses. CUB provides personal loans to help the deposit holders to get financial help against their deposit at the time of need, and the advance is for immediate family or business expenses. Continue reading to view more details about this loan.


    You’re probably eligible for an City Union Bank Personal Loan if you are

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    City Union Bank Personal Loan Minimum Age

    At least 21 years old

    City Union Bank Personal Loan Maximum Age

    Less than 58 years old

    City Union Bank Personal Loan Eligible Employment Type

    Salaried with regular income

    City Union Bank Personal Loan Minimum Income

    Earn more than the minimum
    income required


    Your City Union Bank Personal Loan amount eligibility is based on these factors

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    City Union Bank Personal Loan Minimum Salary

    Minimum income required Rs.5,000 per month

    City Union Bank Personal Loan Maximum Loan Funded

    Maximum allowed personal loan is Five times of the net salary subject to a maximum of Rs. 25000/-

    City Union Bank Personal Loan EMI

    EMIs of other loans lower
    your eligibility


    Increase your eligible City Union Bank Personal Loan amount by these steps

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    02
    City Union Bank Personal Loan Payoff Outstanding Credit Card Bills

    Pay off your credit card bills

    “City

    Choose longer tenure loan up to 36 months


    Documentation needed to apply for an City Union Bank Personal Loan

    • 1. Signed application form with photograph
    • 2. Copy of passport/voter ID card/driving license
    • 3. Processing fee cheque
    • 4. Last 3 months bank statement/6 months bank passbook
    • 5. Documentation for salaried applicants:
      • Latest salary slip
      • Current dated salary certificate with the latest Form 16
    • 6. Documentation for self-employed applicants:

      • Latest Bank statement
      • Latest ITR or Form 16

    City Union Bank Personal Loan Interest RatesUpdated on 10 Dec 2016

    City Union Bank Personal Loan Details
    Interest Rate (Floating) 16.25%
    Base Rate - 10.50%
    Loan Tenure 36 months
    Pre-closure Charges 2% of pre-closed amount
    Guarantor Requirement Guarantor required

    About City Union Bank Personal Loan

    City Union Bank was previously called, ‘The Kumbakonam Bank Limited’ and it was incorporated in the year 1904. The bank is headquartered in Kumbakonam, India. It offers various special services in products such as investment banking, commercial banking, retail banking, private banking, asset management, mortgages and Forexs. In December 2006, Larsen & Toubro bought 10% of the bank.

    City Union Bank offers consumer loans, Dharani loan and Bazaar for a competitive interest rate.

    Why choose City Union Bank Personal loan?

    There might be a time when you maybe in a financial distress and have no means to meet the expenses. City Union Bank comes to you rescue as they offer a variety of Personal Loans for various purposes.

    City Union Bank Consumer loan is given to individuals and business concerns whose net salary is not less than Rs.5,000 per month and professionals who earn not less than Rs.75,000 per annum. The loan is granted to buy durables such as television, refrigerator, wet grinders, furniture’s etc. The consumer loan is not provided for the purchase of second hand consumer products.

    City Union Bank Dharani Loan is given to provide working capital assistance to business or units.

    City Union Bank Bazaar is given to those earning daily income. The loan is available for fruit and vegetable vendors, barber shops, ice cream parlours, tailors, etc.

    • City Union Bank Consumer Loan:

      Loan amount10 months net salary or income subject to a maximum of Rs.50,000.
      Salary of spouse may be added subject to a condition that the spouse becomes obligated to the loan.
      Margin10% is the margin.
      SecurityThe articles that are to be purchased using the loan amount is held as security in itself.
      Third party guaranteeThe spouse or one other person has to stand as a co-obligant.
      RepaymentMaximum period allowed for repayment is 36 months.
      InsuranceThe borrower can get the article insured at his cost.
      Processing fee1% of the loan amount. Minimum of Rs.600.
      DisbursementThe loan is disbursed directly to the seller or supplier.
    • City Union Bank Dharani Loan:

      Loan amountMaximum loan amount permissible is Rs.20 lakhs or 40% of the realisable value of the immovable property, whichever is less.
      Margin60% is the margin.
      Processing fee1% of the loan amount or a minimum of Rs.600.
      SecurityThe immovable property that is owned by the borrower.
      The borrower must process a clear title over the property that is offered as a security.
      RepaymentLoan is to be repaid in 60 EMIs.
      InsuranceThe insurance is the held at the cost of the borrower.
      DisbursementThe loan is disbursed after ensuring proper end use of the loan.
      Conditions
      • The property will be valued by the bank’s approved valuer to know the correct market value.
      • The non-encumbrance certificate for the movable property is to be offered as security.
      • The bank’s advocate must approve of the clear marketable title of the property given as security.
      • Third parties property cannot be used as security.
      • Post-dated cheques must be given for repayment of the loan’s instalment.
    • City Union Bank Bazaar:

      Minimum loan amountRs.5,000
      Maximum loan amountRs.50,000
      Repayment300 days monthly EMI.
      SecurityNo security is needed.
      Conditions
      • Vendor must be identified.
      • KYC rules must be followed.
      • The borrower must have a savings bank account.

    Personal loans offered by City Union Bank will accumulate interest on the MCLR based system of interest rates. All existing personal loans provided by the bank will continue to accumulate interest on the Base Rate system.

    City Union Bank MCLR (Marginal Cost of funds based Lending Rate) (For new borrowers)

    Following the RBI instructions, all loans (including personal loans) offered by City Union Bank will be linked to MCLR (Marginal Cost of Funds based Lending Rate). MCLR rates are dependent on various factors like cost of funds, cost of maintaining cash reserve ratio (CRR), minimum rate of return (margin / profit) and bank’s operating expenses. Following is the schedule of MCLR rates applicable on loans provided by City Union Bank. These rates are applicable till the date of the next review.

    Tenor MCLR
    Overnight MCLR (without tenor premium) 9.70%
    1 month MCLR 9.80%
    3 month MCLR 9.85%
    6 month MCLR 9.90%
    1 year MCLR 10.00%

    City Union Bank Personal Loan Interest Rates (MCLR)

    For all new consumer loans, City Union Bank will charge interest based on the MCLR system. An additional rate of interest is chargeable by the bank over and above the applicable MCLR rate. For personal loans, following is the schedule of MCLR based interest rates applicable.

    Loan Tenure MCLR based Interest Rate
    Loan up to 3 years 3 year MCLR + 7.20%
    Loan above 3 years & up to 5 years 5 year MCLR + 6.90%
    Loan above 5 years 5 year MCLR + 7.00%

    City Union Bank Base Rate & Prime Lending Rates (For existing borrowers)

    Existing personal loans sanctioned by city Union Bank will continue to accrue interest on the Base Rate system. With effect from 1/11/2015, the bank revised its Base Rate which is set by the RBI as the minimum rate below which bank cannot charge its customers. Additionally, the bank also revised its Prime Lending Rate (BPLR) with effect from 1/11/2015. BPLR is the average interest rate which is charged by banks on loan products. Following is the base rate (BR) and the Benchmark Prime Lending Rate (BPLR) for City Union Bank. Please note, both these rates are subject to change.

    Base Rate (w.e.f 1/11/2015) BPLR (w.e.f 1/11/2015)
    10.50% 16.25%

    City Union Bank Personal Loan Interest Rate (Base Rate)

    Existing loans will accumulate interest on the Base Rate system. This rate was recently revised by the bank in 2015. Similar to MCLR, an additional rate of interest will be charged over and above the Base Rate applicable on loans. For personal loans, the applicable rate of interest is currently set at BR + 5.50% i.e. 16.00%. However, existing loan borrowers have the option of migrating to the MCLR based interest rate system as well.

    Note: The MCLR rates given above are effective as of April 1, 2016. To know the currently applicable interest rates for personal loans, please contact the bank at the time of applying for the same. Also, interest rates for personal loans are subject to change with change in MCLR / Base Rate.

    Eligibility criteria for City Union Bank Consumer loan:

    Individual or business concerns whose net salary is not less than Rs.5,000 per months and professionals whose annual income is not less than Rs.75,000. The computation of the net salary of your spouse can also be added provided they wish to be co-obligant to the loan.

    Eligibility criteria for City Union Bank Dharani Loan:

    The Dharani loan is available to business or units as cash credit to provide working capital assistance.

    Eligibility criteria for City Union Bank Bazaar:

    To avail the City Union Bank Bazaar loan, you need to be a small vendor having regular daily income. The borrower can be fruit and vegetable vendor, barber shop owner, ice-cream parlour owner, tailor, etc.

    You will need the following documents while applying for the loan:

    • Signed application along with your photograph.
    • Copy of passport, voter ID or driving license.
    • Processing fee cheque.
    • If you are a salaried applicant, you will have to submit your latest salary slip or current dated salary certificate with the latest Form 16.
    • If you are self-employed, you will have to submit the latest bank statement or Form 16.

    Before taking a loan it is important to know how much EMI you will be paying each month and how long it is going to take for you to clear out the loan.BankBazaar offers you EMI Calculators, where all you need to do is fill in details of how much loan amount that you are taking and for what period and at what interest rate.

    Based on your capacity to pay off the loan EMI, you can choose the tenure that you see fit. The higher the tenure, lower will be the EMI amount. Keep in mind that you have to meet other financial needs and do not opt for a lower tenure and a higher EMI amount. BankBazaar gives you a breakup of the loan, amortization, repayment details, interest and principal components etc.

    • Am I eligible for City Union Bank personal loan?

      City Union Bank offers personal loans only for salaried individuals earning more than the minimum stipulated amount per month depending on the city of their residence. The minimum monthly income required for City Union Bank personal loan is Rs. 10,000 per month. If you fall into this group, you can definitely apply for a City Union Bank personal loan.

    • How do I repay City Union Bank Personal loan?

      You can repay the loan in Equated Monthly Installments (EMI's) using the ECS facility or through post-dated cheques.

    • What is the maximum loan one can get from City Union Bank ?

      City Union Bank offers personal loans as high as Rs. 3 Lakhs for successful applicants depending on their financial record and repayment history.

    • What is the tenure for City Union Bank personal loan?

      City Union Bank offers personal loan with a tenure period ranging from 12 months to 36 months making it suitable for all loan seekers.

    • Does City Union Bank charge any processing fee?

      Yes, City Union Bank will charge the applicant a processing fee of 1% on the loan amount that has been provided.

    • What is the eligibility criteria for City Union Bank Personal loan?

      To be eligible for the personal loan from City Union Bank, the applicant must be:

      • The applicant must be above the age of 21 years, and not more than 58 years of age.
      • They must hold an account and must be deposit holder as well, in the City Union Bank.
      • The applicant must have a relatively good credit score. City Union Bank will need to have the confidence that the applicant will repay the loan in a timely manner.
    • What is the documentation required for this City Union Personal loan?

      The duly filled application form along with a copy of the below mentioned documents will need to be submitted.

      • Copy of Identity proof such as driver’s license, voter’s ID, passport.
      • Passport photograph
      • Cheque written for the amount of the processing fee.
      • Last 3 months bank statement/ 6 months passbook.
      • Documents for salaried applicants: Latest salary slip, current salary certificate with Form 16
      • Documents for self - employed applicants: Latest bank statement, latest ITR and Form 16.
    • What is age limits for me to apply for a personal loan with City Union Bank?

      The applicant can be a minimum age of 21 years and maximum of 58 years. A guardian can apply for a loan in case the borrower is a minor.

    • If I have deposit in City Union Bank, what is the maximum amount of loan I can apply for?

      If you are applying for a loan against deposit then the amount would be 80% of the actual deposit balance. If the deposit is under the name of a minor, then the legal guardian can apply for the loan on behalf of the minor.

    • What is the maximum tenure for the personal loan?

      The tenure of the loan will depend on the type of personal loan, it can range from 36 months or 3 years to 60 months or 5 years.

    • Do I need to provide the bank with collateral or security of any kinds?

      Yes, you will need to have a third party guarantor at the time of application for a personal loan with City Union Bank.

    • What are the rates of interest for the personal loan from City Union bank?

      The rates of interest for the loans depends on the kind of loan you have applied for

      • For the City Union Bank Consumer loan: The rate of interest for this loan is 15%, which is a base rate that is 9.25% + 5.75%. The processing fee for this loan is a charge of 1% of the loan amount or a minimum of Rs. 600.
      • City Union Bank Dharani Loan: The rate of interest for this loan if the amount is above Rs. 50,000 and up to Rs. 10 lakhs the rate will be 12.50%, which is a base rate 9.75% + 3.25%. If the loan amount is above Rs.10 lakhs and up to Rs.20 lakhs the interest rate is 13%, which is base rate 9.75% + 3.75%.

    *This article is provided only for consumer information on an as is where is basis and BankBazaar does not claim or represent to be connected with City Union Bank Limited. For further information about any of the products mentioned above please contact City Union Bank.

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