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  • United Bank of India Personal Loan Interest Rates

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  • United Bank of India charges a competitive interest rate starting at 13.45% p.a. onwards on its personal loans. Borrowers will also have to pay a one-time processing fee of 1% - 1.18% of the loan amount. The lender offers personal loans for salaried employees and pensioners. Salaried employees can borrow a maximum of Rs.2 lakh or up to 10 months’ gross salary and pensioners can borrow a maximum of Rs.2 lakh or up to 12 months’ gross pension. The maximum loan tenure that can be selected is 36 months. You can borrow personal loans from the lender if you require credit to meet any personal need such as hospitalization/medical expenses, wedding costs, travel expenses, etc.

    Particulars Details
    Interest Rate 13.45% p.a. (pensioners)
    13.95% p.a. (working women)
    14.20% p.a. (other salaried individuals)
    Processing Fee 1% of the loan amount (salaried individuals)
    1.18% of the loan amount (pensioners)
    Loan Tenure Up to 36 months (salaried)
    Up to 48 months (pensioners)
    Loan Amount
    • Salaried employees: Up to Rs.2 lakh or 10 months gross salary
    • Pensioners: Up to Rs.10 lakh
    Employment Status Salaried employees and pensioners
    Credit Score Ideal score – Over 700
    Lowest EMI per Lakh Rs.2,705*
    Pre-Payment/Foreclosure Charges Nil for salaried employees

    *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

    Personal Loan Scheme Best For Interest Rate
    For Salaried Persons Salaried individuals who have credit requirements 13.95% p.a. onwards
    For Pensioners Pensioners who require funds to meet financial emergencies 13.45% p.a.

    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.

    Interest Rate Processing Charges Repayment Tenure Pre-Payment Charges Loan Amount
    13.95% p.a. for working women
    14.20% p.a. for salaried individuals
    1% of the loan amount Up to 36 months Nil Up to Rs.2 lakh or 10 months gross salary

    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.

    Interest Rate Processing Charges Repayment Tenure Margin Loan Amount
    13.45% 1.18% of the loan amount Up to 48 months Nil Up to Rs.10 lakh

    Factors Affecting United Bank of India Personal Loan Interest Rates

    • 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.
    • 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.
    • 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.
    • 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.
    • Gender – United Bank of India charges a lower rate of interest to salaried women borrowers compared to their male counterparts.
    • 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.

    Illustration

    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:

    Loan Amount Rs.1 lakh
    Processing Fee 1% of the borrowed loan amount
    Loan Tenure 1 year
    Interest Rate 14.20% p.a.
    Month Principal Paid (A) Interest Paid (B) Total Payment (A+B) Outstanding Loan Balance
    1 Rs.7,805 Rs.1,183 Rs.8,988 Rs.92,195
    2 Rs.7,897 Rs.1,091 Rs.8,988 Rs.84,298
    3 Rs.7,991 Rs.998 Rs.8,989 Rs.76,307
    4 Rs.8,085 Rs.903 Rs.8,988 Rs.68,222
    5 Rs.8,181 Rs.807 Rs.8,988 Rs.60,041
    6 Rs.8,278 Rs.710 Rs.8,988 Rs.51,764
    7 Rs.8,376 Rs.613 Rs.8,989 Rs.43,388
    8 Rs.8,475 Rs.513 Rs.8,988 Rs.34,914
    9 Rs.8,575 Rs.413 Rs.8,988 Rs.26,339
    10 Rs.8,676 Rs.312 Rs.8,988 Rs.17,662
    11 Rs.8,779 Rs.209 Rs.8,988 Rs.8,883
    12 Rs.8,883 Rs.105 Rs.8,988 Rs.0

    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:

    Loan Amount Rs.2 lakh
    Processing Fee 1% of the borrowed loan amount
    Loan Tenure 1 year
    Interest Rate 13.95% p.a.
    Month Principal Paid (A) Interest Paid (B) Total Payment (A+B) Outstanding Loan Balance
    1 Rs.15,628 Rs.2,325 Rs.17,953 Rs.1,84,372
    2 Rs.15,809 Rs.2,143 Rs.17,952 Rs.1,68,563
    3 Rs.15,993 Rs.1,960 Rs.17,953 Rs.1,52,570
    4 Rs.16,179 Rs.1,774 Rs.17,953 Rs.1,36,391
    5 Rs.16,367 Rs.1,586 Rs.17,953 Rs.1,20,023
    6 Rs.16,557 Rs.1,395 Rs.17,952 Rs.1,03,466
    7 Rs.16,750 Rs.1,203 Rs.17,953 Rs.86,716
    8 Rs.16,945 Rs.1,008 Rs.17,953 Rs.69,771
    9 Rs.17,142 Rs.811 Rs.17,953 Rs.52,630
    10 Rs.17,341 Rs.612 Rs.17,953 Rs.35,289
    11 Rs.17,542 Rs.410 Rs.17,952 Rs.17,746
    12 Rs.17,746 Rs.206 Rs.17,952 Rs.0

    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.

    FAQs

    1. I am a self-employed individual. Can I borrow a personal loan from United Bank of India?
    2. No, the lender currently offers loans to only salaried individuals and pensioners.

    3. How can I calculate the payable EMI for the loan amount that I wish to borrow?
    4. You can use a personal loan EMI calculator to check your payable EMI.

    5. How long does United Bank of India take to process personal loan applications?
    6. United Bank of India processes personal loan applications in a timely manner. To ensure that your application is processed quickly, ensure that you fill up the application form correctly and submit the required documents. Also, make sure to check the lender’s eligibility criteria before you apply for the loan.

    7. What is the processing fee? Do I have to pay it every month as part of my EMI?
    8. No, the processing fee is a one-time charge that is deducted by the lender from your loan amount before it is disbursed to your account. You do not have to pay it on a monthly basis.

    9. I have a credit score of 600. Will I be able to negotiate a lower interest rate?
    10. Ideally, if you wish to negotiate for a lower rate of interest, you should have a credit score over 700. However, if you have a good relationship with your lender or if your repayment capacity has significantly increased, you can try to negotiate for a lower rate of interest.

        

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