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.
|Loan Tenure||36 months|
|Pre-closure Charges||2% of pre-closed amount|
|Guarantor Requirement||Guarantor required|
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.
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.
|Loan amount||10 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.
|Margin||10% is the margin.|
|Security||The articles that are to be purchased using the loan amount is held as security in itself.|
|Third party guarantee||The spouse or one other person has to stand as a co-obligant.|
|Repayment||Maximum period allowed for repayment is 36 months.|
|Insurance||The borrower can get the article insured at his cost.|
|Processing fee||1% of the loan amount. Minimum of Rs.600.|
|Disbursement||The loan is disbursed directly to the seller or supplier.|
|Loan amount||Maximum loan amount permissible is Rs.20 lakhs or 40% of the realisable value of the immovable property, whichever is less.|
|Margin||60% is the margin.|
|Processing fee||1% of the loan amount or a minimum of Rs.600.|
|Security||The immovable property that is owned by the borrower.
The borrower must process a clear title over the property that is offered as a security.
|Repayment||Loan is to be repaid in 60 EMIs.|
|Insurance||The insurance is the held at the cost of the borrower.|
|Disbursement||The loan is disbursed after ensuring proper end use of the loan.|
|Minimum loan amount||Rs.5,000|
|Maximum loan amount||Rs.50,000|
|Repayment||300 days monthly EMI.|
|Security||No security is needed.|
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.
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.
|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%|
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%|
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)|
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.
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.
The Dharani loan is available to business or units as cash credit to provide working capital assistance.
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.
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.
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.
You can repay the loan in Equated Monthly Installments (EMI's) using the ECS facility or through post-dated cheques.
City Union Bank offers personal loans as high as Rs. 3 Lakhs for successful applicants depending on their financial record and repayment history.
City Union Bank offers personal loan with a tenure period ranging from 12 months to 36 months making it suitable for all loan seekers.
Yes, City Union Bank will charge the applicant a processing fee of 1% on the loan amount that has been provided.
To be eligible for the personal loan from City Union Bank, the applicant must be:
The duly filled application form along with a copy of the below mentioned documents will need to be submitted.
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 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.
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.
Yes, you will need to have a third party guarantor at the time of application for a personal loan with City Union Bank.
The rates of interest for the loans depends on the kind of loan you have applied for
*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.