|Union Bank Personal Loan Interest Rates 2019|
|Interest rate||14.40% p.a.||14.40% p.a.|
|Loan Amount||Up to Rs.5 lakhs||Up to Rs.10 lakhs|
|Loan Tenure||Up to 5 years||Up to 5 years|
|Lowest EMI||Rs.2347.61 (for Rs.1 lakh loan amount with maximum loan tenure at the lowest interest rate).||Rs.2347.61 (for Rs.1 lakh loan amount with maximum loan tenure at the lowest interest rate).|
|Processing Fee||0.50% of the loan amount, with a minimum of Rs.500 + GST||0.50% of the loan amount, with a minimum of Rs.500 + GST|
|Age||21 to 58 years||21 to 58 years|
By taking a personal loan from Union Bank, you can easily fulfill your genuine personal needs. You can use the loan amount received from Union Bank for achieving various personal goals such as renovating your house, paying for your children’s education, planning a pleasure trip etc. A Union Bank Personal Loan can be your real savior during your financial crisis. The bank offers personal loans for KVS and NVS employees, government and PSU employees and existing home loan borrowers etc.
Union Bank Personal Loan Interest Rates
Union Bank charges different interest rates on personal loans taken for different tenures and borrowed by different borrowing classes. The Union Bank Personal Loan interest rates start from 14.40% p.a. There are certain factors such as your income, relationship with Union Bank and CIBIL score may affect your Union Bank Personal Loan interest rate in 2019.
How to calculate interest/ EMIs on Union Bank Personal Loan Interest Rate
Calculating the EMIs on your Union Bank Personal Loan is very simple. You can do so by using a Personal Loan EMI Calculator offered by the bank or other financial websites. In the EMI Calculator, you need to insert the principal loan amount, interest rate, processing fees and the tenure of your Union Bank Personal Loan. Straightaway, the calculator will reveal your monthly EMIs and total payable interest and the loan amortization table. The amortization table will provide you with a detailed break-up of your personal loan repayment.
Example: Mr. X has taken a personal loan of Rs. 1 lakh from Union Bank at 12.00% for 5 years by paying a processing fees of Rs. 0.50%. Now, as per the calculation, Mr. X will be paying Rs. 33,467 as total interest payment on the principal. Going forward, Mr. X would be paying the below mentioned amounts towards his Union Bank personal loan repayment.
|Year||Principal paid (Rs.)||Interest paid (Rs.)||Balance amount (Rs.)|
|Year 1||6, 246||4, 876||93, 754|
|Year 2||16, 323||10,374||77, 433|
|Year 3||18, 391||8, 301||59, 042|
|Year 4||20,723||5, 969||38, 318|
|Year 5||23, 352||3, 341||14, 966|
Factors affecting Union Bank Personal Loan Interest Rate
Mentioned below are the major factors that may influence your personal loan interest rate of Union Bank:
- Job details and asset information: If you have a considerable amount of assets and you are a permanent employee of a reputed organization, Union Bank may offer lower rates of interest on your personal loan.
- Relationship with Union Bank: Union Bank may consider your relationship with the bank as one of the key decisive factors while deciding its personal loan interest for you. A long and steady relationship with any bank always helps in building a good relationship with the bank. Banks may offer you reduced rate, if you are valued and reliable customer.
- Tenure of your personal loan: A personal loan opted for a longer tenure can help you get cheaper rate of interest than a one taken for a short tenure.
- Capacity for repayment: If Union Bank is convinced of your ability to repay the amount taken as personal on time, you may receive lower rate of interest on it.
- Age: Your age could also be one of the factors that may affect your Union Bank Personal Loan interest rate in 2015. Normally, banks offer lower rate of interest to senior citizens and those applicants who have their own established business, than salaried youngsters.
How CIBIL Score affects your Union Bank Personal Loan Interest Rates
Apart from the above discussed factors, another important factor that may affect your Union Bank Personal Loan interest rate in 2015 is your CIBIL score. With a good CIBIL score, you can win the trust of the bank and it may offer you preferential rate on personal loan. Normally, a CIBIL score of 750 is considered as satisfactory CIBIL score. You can regularly maintain a good CIBIL score by paying your previous debts on time without any deferral.
Key things you should know about Union Bank Personal Loan Interest Rates
It is important you know the following key things related to personal loan interest rates before you actually apply for a personal loan with Union Bank:
- You may either choose fixed or floating rate of interest on your personal loan. If you choose fixed rate, you will be paying the same amount of interest till the end of your loan tenure. But, if you choose floating rate, your interest payment will vary.
- If the repo rate of the bank goes up, your interest amount on the principal will also rise. This is applicable for floating rate personal loans.
- Union Bank does not take security against personal loans. But it does ask for an undertaking from your employer and 2 guarantees.
- Your current CIBIL score may have a great impact on your Union Bank Personal Loan interest rate in 2015.
- You should also know how to calculate your personal loan interest rates by using an online calculator.
Union Bank Personal Loan FAQs
Are there any processing fees applicable to a personal loan from Union Bank?
Yes, customers will have to pay a fee equivalent to 0.50% of the amount they wish to borrow. However, the fee must be a minimum of Rs.500 plus GST.
How is interest calculated for a personal loan?
The interest on personal loans from Union Bank of India is charged on reducing balance method. An EMI or Equated Monthly Instalment as it is called in its extended form, has two main components, viz. principal and interest. The interest on personal loans from Union Bank is computed at monthly rests, which means that the interest charged on the principal will be deducted every month, thus allowing you to save more money over the course of the loan tenure.
How can I make repayments towards my personal loan?
Customers who avail a personal loan from Union Bank must make repayments within 60 months as the maximum tenure of the loan is five years. In this case, 60 EMIs must be paid, and the principal plus interest will be deducted from your salaried account every month.
Should I provide any collateral or security to avail a personal loan from Union Bank?
Customers need not provide any collateral or security when availing a personal loan from Union Bank. An undertaking from the employee is all the bank will require to process your application for a personal loan. However, the bank will require you to nominate a guarantor, so you will have to visit the nearest branch of the bank to know more about it.
What are the documents that must be furnished to avail a personal loan?
After you have filled in the loan application form, you will have to submit it along with a few documents in order for the bank to ascertain your eligibility for a personal loan. The documents required include proof of identity, which may be presented in the form of your passport, employee ID card, or PAN card. For proof of address, the documents accepted by the bank include ration card, telephone bill, or electricity bill. For proof of income, the documents accepted by the bank include salary slips of the past six months, a letter from the employer / Form 16, and income tax returns for the past year. In addition, customers will also have to provide three photographs along with proof of out-goes such as LIC policies or loan repayment statements, if any.
How long does it take for the bank to approve my application for a personal loan?
The first step to availing a personal loan from Union Bank is submitting a duly filled in application form along with the required documents. If the bank is satisfied with all the documents you have submitted and considers you an eligible candidate for a personal loan, it will sanction you an amount depending on your repayment abilities and your credit history. The final step in availing a personal loan from Union Bank is disbursement wherein the bank will disburse the amount of money it reckons you can repay within the predetermined loan term. It generally takes the bank around three days after you have furnished all the necessary documents to sanction your loan.
How do I avail a personal loan from Union Bank?
Customers can avail for a personal loan from Union Bank by visiting any of the branches or special retail lending outlets known as Union Loan Points. Alternately, you can also apply for a personal online by downloading the loan application form through the official website of the bank. Another way to apply for a loan is to contact the 24x7 call centre of the bank and requesting a representative to help you with the same.