United Bank of India Personal Loan Interest Rates

*Note: For the EMI calculation, it is assumed that a loan amount of Rs.1 lakh has been borrowed for a tenure of 48 months at an interest rate of 13.45% p.a., with a processing fee of 1.18%.

Personal Loan Schemes from United Bank of India

1. United Personal Loan Scheme - For Salaried Persons: This is a personal loan scheme that is especially designed for the benefit of salaried individuals who have earned a regular income for a minimum of 2 years. Through this loan, you can avail funds to meet your credit needs.

United Personal Loan Scheme - For Pensioners: Pensioners who draw their pension from a United Bank of India branch can avail a personal loan from the lender under this scheme if they require funds to meet personal expenditures. Keep in mind that to avail this loan, your age at the time of borrowing the loan should be such that the loan amount is repaid in its entirety before you attain the age of 75 years.

Factors Affecting United Bank of India Personal Loan Interest Rates

1. Loan tenure - The tenure of a personal loan has an impact on interest rates, with loans for short tenures attracting higher interest rates compared to loans for longer tenures.
2. Relationship with United Bank of India - Individuals having a good relationship with United Bank of India might be in a position to negotiate their interest rates, due to their past banking history. It is possible for banks to reduce interest rates for valued customers and for those who have displayed commitment towards their loan repayments in the past.
3. Employment details - The profession of an individual has a bearing on interest rates, as is visible in the rates charged by United Bank of India for different people. Pensioners are charged a lower interest rate as they are not actively employed and depend on their pension to make ends meet. Interest rates for salaried borrowers are kept steady as they have a regular source of income to repay their loans.
4. Age - Age can have a bearing on interest rates as youngsters (under 25 years) could be charged a higher interest rate compared to others due to multiple reasons.
5. Gender - United Bank of India charges a lower rate of interest to salaried women borrowers compared to their male counterparts.
6. CIBIL Score - United Bank of India checks the CIBIL score of an applicant before sanctioning or rejecting a loan. Applicants with a good CIBIL score could negotiate their interest rates on the back of this score, and it is possible for them to get a loan at better rates. Individuals with a poor CIBIL score will not be in a position to negotiate interest rates and could end up paying a higher interest rate compared to others.

EMI Examples for United Bank Personal Loans

Example 1: Mr. Raj is an executive at an ad agency. He earns a salary of Rs.25,000. He has applied for a loan of Rs.1 lakh from United Bank of India to purchase new appliances for his house. He chooses a loan tenure of 1 year. The bank charges him an interest rate of 14.20% p.a. The lender also levies a processing fee of 1% of the loan amount. His repayment details will be as follows:

Thus, Mr. Raj will have to pay a monthly EMI Rs.8,988. He will be paying a total interest of Rs.7,857 during the loan tenure and a one-time processing fee of Rs.1,000. His total repayment amount will come up to Rs.1,08,857.

Example 2: Ms. Pratima works at an insurance company and earns a monthly income of Rs.50,000. She takes a personal loan for Rs.2 lakh from United Bank of India for a loan tenure of 1 year. She is charged an interest rate of 13.95% p.a. and a processing fee of 1%. Her repayment details will be as follows:

Thus, Ms. Pratima will have to pay a monthly EMI of Rs.17,953. She will have to pay an interest of Rs.15,433 over the course of the 1-year loan repayment term and a processing fee of Rs.2,000. The total repayment amount, in her case, will be Rs.2,17,433.

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