Union Bank of India (UBI) is one of the largest government-owned banks of India (the government owns 60.13% of its share capital) founded in Mumbai . It is listed on the Forbes 2000, and has net income of 4,75,673 crores. All the bank's branches have been networked with its 4129 ATM's. UBI offer loans with different product like Home Loan, Personal Loan, Education Loan, Loans for Pensioners, Loan for Senior Citizen. The Union Personal loan plays an important role in helping you avail loans to meet personal expenses such as purchase of consumer durable, etc. All you have to do is to follow some simple steps to get attractive deals.
|Processing Fees||0.50% of the loan amount or Min Rs.500|
|Loan Tenure||5 years|
|Guarantor Requirement||Guarantor required|
Union Bank of India was established in the year 1919, in the city of Mumbai. Union Bank personal loans are a much sought-after financial product. The father of the nation, Mahatma Gandhi inaugurated the head office of Union bank in the year 1921. It is one of the largest nationalized banks of the country. With over 4000 branches across the length and breadth of the nation, Union Bank has been able to meet the vision of comprehensive growth and uninterrupted profit.
The bank has a large customer base of over 49 million customers and has a diversified circle of expertise that includes private banking, corporate banking, risk management, rural and agriculture banking and NRI banking. Union Bank has also been a pioneer in the inclusion of technology in banking operations. The bank has a network of core-banking branches and has been a leader in developing innovative financial products and services. Such technically advanced services have ensured cost optimization, profit maximization along with substantial speed in transactions and convenience for customers.
The bank not only has a massive customer base but also a highly dedicated team of bankers who are spread throughout the nation and show an exceptional willingness to learn and adhere to values that the bank stands for.
Whether it is a wedding in the family or an exotic vacation or house renovation, Union Bank Personal Loans make sure you never have to think twice before spending on your loved ones or on their dreams. Any major spending needs to be planned in advance but not now; with Union Bank Personal Loans you can fulfill your wishes instantly and can then pay in a relaxed way via monthly EMIs.
Union Bank offers various types of personal loans. Some of the major categories of personal loans by Union Bank are “
As the name of the loan indicates, these are meant for customers who already have an ongoing Home Loan with the Union Bank. These personal loans are specially sanctioned for house related expenses like house warming party, house interiors, insurance premium payment etc. The maximum loan amount that can be availed is 5% of the housing loan amount up to a maximum of Rs.5 lakhs
This personal loan scheme is meant for employees who have been employed for 3 or more years with either Kendriya Vidyalaya Sangathan or with Navodalaya Vidayalaya Sangathan. The applicant is required to have a regular income along with a bank account with the Union Bank. Also, it is required that the applicant has a substantial period of service remaining in order to pay off the whole loan. The maximum loan amount offered under this personal finance scheme is Rs.10 lakhs.
State Government and Central Government employees can now easily avail cash for miscellaneous expenses by applying for a personal loan scheme designed especially for them. The maximum loan amount under this personal finance scheme is Rs.10 lakhs. The applicant needs to have a regular salary and a substantial period of employment remaining so that the loan amount is paid off one year before the applicant retires.
Low Rate of Interest: The applicable rate of interest on Union Bank personal finance products is considerably competitive with respect to personal loans from other banks. The rate varies form 12.75% per annum to 14.75% per annum.
No Securities or Collaterals required: Union Bank does not require applicants to submit any kind of security or collaterals for availing the personal finance scheme by Union Bank. The documentation is minimum with just some basic documents required for age, income and employment proof.
Union Bank Personal Loans come with assurance of the state-owned institutions. The rates of interest are attractive as well as lower as compared to other competitor banks. Personal loans from Union Bank are available in different categories to suit best the employment type and loan needs of different personal loan applicants.
Flexible Tenure: The loan repayment tenure is flexible and can be repaid in a maximum of 5 years. The loan tenure can range between 12 months and 60 months. The EMI date is directly dependent on the date when your personal loan disbursement happened.
Eligibility for Union Bank Personal Loan: Eligibility criteria for Union Bank Personal Loans is as listed below.
Documents required for Union Bank Personal Loan: Here is a list of documents that you need to be ready with if you are planning to avail a personal loan from Union Bank“
œUnion Personal, the personal loan product offered by UBI comes at extremely competitive interest rates, offering ease of repayment to borrowers. The date on which a loan was sanctioned determines the benchmark which a borrower falls under, with the two popular benchmarks used by the bank being MCLR and Base Rate.
MCLR based benchmarks were introduced to account for changing economic conditions, factoring the operation costs of UBI before computing the final interest. These rates are subject to change, with the current rates highlighted below.
|MCLR Benchmark Tenure (Period)||Benchmark Rates (MCLR)|
Interest charged by the bank depends on the borrower profile, with differential rates applicable, as shown in the table below.
|Salaried borrowers||14.40% per annum|
|Loan availed through a tie-up||13.40% per annum|
|Borrowers who have an existing home loan with the bank||MCLR + 2.15% = 11.60% per annum|
|Employees working in government sector||MCLR + 3.40% = 12.85%|
|C-DAC employees||12.40% per annum|
The base and prime lending rates at UBI are highlighted below.
|Base Rate||9.65% per annum (effective October 5, 2015)|
|Prime Lending Rate||14.25% per annum (effective March 1, 2016)|
The base rate is used as a benchmark to determine interest rates for borrowers who availed loans before MCLR was introduced. Individuals who do not wish to move to the new system can continue paying rates according to the base rate, with the final interest computed after taking a number of factors into consideration. UBI typically charges an interest ranging between 12% per annum and 16% per annum, depending on the borrower profile.
Note: Union Bank of India reserves the right to modify/alter the interest rates at its sole discretion, with all rates subject to change without prior intimation. Rates mentioned above are effective as of June 17, 2016. Eligible borrowers are advised to check prevailing rates at the time of application.
Personal Loan EMIs can be calculated via Online EMI Calculator tool which is hosted on BankBazaar.com. The tool aims to give the applicant a tentative idea of the monthly repayment that he/she would be making if Union Bank personal finance scheme is availed. This online calculator is free of cost and can be used successfully in planning the monthly expenses so as to get a fair idea of how to fit in the personal loan EMI among other monthly expenditure.
A customer can avail of any one of the following ways to apply for Union Bank Personal Loan “
Generally, any personal loan is sanctioned within 3 days of applying in case all the required documents have been submitted.
A processing fee of 0.5% of the disbursed loan amount is charged and is subject to a minimum of Rs.500.
The maximum loan amount depends upon your job category. Here are the few important job categories and their respective loan amounts “
|Job Type||Maximum Loan Amount|
|Personal Loan for Salaried Employees||Up to 5 Lakhs|
|Personal Loan for KVS and NVS Employees||Up to 10 Lakhs|
|Personal Loan for Govt./PSU Employees||Up to 10 Lakhs|
The personal loan amount eligibility for existing Home Loan customers of Union Bank is 5% of the home loan amount disbursed, subject to a maximum loan amount of Rs.5 Lakhs.
Yes. Two guarantors are required to sign your personal loan application with Union Bank.
Moratorium period is the period for which you might not be required to pay any loan repayments. The Moratorium period on Union Bank Personal Loans is nil.
No. You need not submit absolutely any form of security for availing Union Bank personal loan.
No. Partial disbursement of personal loans is currently not available with Union Bank personal loans.
Yes. The bank will issue a œNo Due Certificate when you have fully paid off your personal loan.
Your personal loan will be repaid via 60 EMIs which will be deducted through standing instruction on your salary account.
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