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  • Union Bank Personal Loan Eligibility

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  • The eligibility to avail a personal loan from the Union Bank of India depends on the income category and the occupation of the borrower. The bank offers personal loans under 4 categories - salaried individuals except for government employees, government employees, non-salaried, and top employees of the government of India ministries. The maximum amount that can be availed under the personal loan is Rs.15 lakh while the repayment tenure can be extended up to 5 years.

    Eligibility Criteria for Union Personal Loan Scheme for Salaried Applicants (except for Government Employees)

    Particulars Tie-Up (A1) Non Tie-Up (A2)
    Who can avail Confirmed or permanent employees of reputed private firms and institutions in India Confirmed or permanent employees of reputed private firms and institutions in India
    Salary Account Applicants need not maintain salary account with Union Bank of India Applicants should hold a salary account with Union Bank of India
    Nature of service Should have sufficient years of service left to repay the entire loan
    Minimum age 18 years

    Eligibility Criteria for Union Personal Loan Scheme for Non-Salaried Applicants

    Who can avail Self-employed and non-salaried applicants with a regular source of income
    Minimum age 25 years
    Maximum age 60 years during loan maturity
    Relationship with the bank Should be a customer of the Union Bank of India for a minimum of 2 years before applying for a loan
    Savings account requirement Should maintain current or savings account with Union Bank of India with AQB of more than Rs.25,000 for the previous 4 quarters with good account history

    Eligibility Criteria for Union Personal Loan Scheme for Top Executives of Government Ministries

    • Permanent employees of GoI ministries having a salary account with Union Bank of India including top executives (CEO/MD/COO/GM) in the departments of Labour & Employment, Science & Technology, Environment & Forest, and Statistics & Programme Implementation
    • Permanent employees of Home Ministry – Navy, Army, Air Force, and para-millitary forces controlled by Home Ministry such as BSF, CRPF, ITBP, etc.
    • Permanent employees of Defense Ministry – Defense production/research/manufacturing units such as RCI, DRDO, HAL, NCC, Navodaya Vidyalaya Sangathan (NVS), Kendriya Vidyalaya Sangathan (KVS), etc.

    All the above-mentioned employees should hold an account with the Union Bank of India to avail this loan.

    Eligibility Criteria for Union Personal Loan Scheme for Government Employees

    Who can avail Permanent/confirmed employees of central and state governments, officers in All India Services, teaching and non-teaching staff at government colleges and schools
    Minimum age 18 years
    Salary Account Need not have a salary account with Union Bank of India
    Other The government employee should be the main applicant

    Factors Affecting Eligibility of Union Bank of India Personal Loans

    • Stable employment: Banks are wary of customers who change their jobs frequently- do not strive to consolidate their position in one company. Frequent change of jobs makes employees more vulnerable to layoffs in addition to weakening their prospects of getting promotions and increments. Customers who have been with a company for a longer period of time will have little trouble acquiring personal loans.
    • Number of loans: Loan eligibility of a customer will take a beating if he or she has taken several loans at a given point of time. CIBIL report will reflect the credit behaviour of the loan applicant. If a customer is too credit hungry, his or her CIBIL report will reflect his lack of fiscal prudence. Consequently, most banks will not entertain customers who are not aware of the perils of excessive credit which may eventually lead to a debt trap and defaults.
    • Relationship with Union Bank: Many customers usually tend to be loyal to one bank or another over a period of time. Loyalty to a bank leads to an easy rapport with a bank which may result in attractive interest rates on personal loans for the benefit of customers. More often than not, customers who have been associated with a bank can avail of personal loans without any hassles.
    • Income: Banks have to ascertain the ability of a customer to repay the loan. Union Bank has set a minimum monthly net salary as one of the eligibility criteria to ensure that customers have a sound financial strength or base in terms of income.

    How to Increase Union Bank Personal Loan Eligibility?

    • Creditworthiness: Timely payment is an important determinant of the creditworthiness of a customer. CIBIL score of 750 and above shows creditworthiness of a customer. In most cases, banks easily approve loans for customers who have a CIBIL score of over 700. Customers should ensure that they have a robust track record in terms of repayments to increase their eligibility to avail of personal loans.
    • Clean record: Customers must ensure that they have a clean repayment history. CIBIL score is adversely affected if a customer defaults or makes late payments. Banks will take serious note of any defaults by the customer in the recent past.

    FAQs

    1. Will my credit score affect my eligibility for Union bank of India personal loan?
    2. Though Union Bank of India does not stress on the minimum credit score for a personal loan, having a credit score of over 750 is recommended. So, even if your score may not affect your eligibility for a personal loan, it may help you get lower interest rates if your credit score is high.

    3. I do not hold a salary account with Union Bank of India. Will I be eligible to get a personal loan?
    4. As stated in the above sections, Union Bank of India offers personal loans under different categories which means that though some categories may require you to hold a salary account with the bank, others do not. For instance, the personal loan scheme for salaried applicants other than government employees can be availed irrespective of whether you hold a salary account with Union Bank of India or not.

    5. I am a government employee but I do not hold a salary account with Union Bank of India. Will I still be eligible for a personal loan?
    6. Under the personal loan scheme for government employees, you must have a salary account with the Union Bank of India to avail a personal loan. If you do not, you will still be eligible for the term loan facility.

    7. Do I need to provide security for availing personal loans from Union Bank of India?
    8. No, you do not need to provide security for availing personal loans from Union Bank of India. However, you will have to provide the guarantee of one co-employee and spouse to avail the loans.

    9. Will my eligibility be affected by the repayment tenure I choose?
    10. The repayment tenure that you choose will not affect your eligibility for a personal loan from Union Bank of India. However, if you choose a shorter repayment tenure, you may end up with a lower interest rate, the discretion of which, will lie with the bank.

        

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