Effective 1 April 2020, United Bank of India has merged with Punjab National Bank.
United Bank of India offer personal loan with interest rate starting at 13.95% p.a. This is meant specifically for salaried individuals. In order to apply for the loan, you need to prove that you’ve been earning a salary for at least 2 years.
Personal Loans offered by United Bank of India come with a host of features, some of which are mentioned below.
| Interest Rate |
|
| Loan Amount | Up to Rs. 2 lakh |
| Processing Fee | 1.18% of loan amount |
At the time of loan application, banks will request a set of documents to process and keep records of. Here are a few of the documents that could be asked for by United Bank of India:
Any salaried person who is a permanent employee can apply for the personal loan by United Bank of India. The person, however, should have had a regular source of income for at least 2 years.
A personal loan is unique in the fact that the bank does not ask the loan applicant to mortgage property in return for the loan amount. The loan is provided solely based on credit history and credibility. Personal loan borrowers can repay the amount borrowed in equated monthly installments (EMIs). An example will make it easier to understand how the EMI is calculated.
Ms. Swathi needed Rs.2 lakh immediately for her father’s medical treatment expenses. She decided to take a personal loan from United Bank of India that offers a discounted interest rate for working women. The EMI schedule for Rs.2 lakh loan at 13.9% interest, 1.18% processing fee, for a 1 year tenure is as follows:
| Month | Principal Paid(A) | Interest Paid(B) | Total Payment (A+B) | Outstanding Loan Balance |
| 1 | 15,631 | 2,317 | 17,948 | 1,84,369 |
| 2 | 15,812 | 2,136 | 17,948 | 1,68,556 |
| 3 | 15,996 | 1,952 | 17,948 | 1,52,561 |
| 4 | 16,181 | 1,767 | 17,948 | 1,36,380 |
| 5 | 16,368 | 1,580 | 17,948 | 1,20,012 |
| 6 | 16,558 | 1,390 | 17,948 | 1,03,454 |
| 7 | 16,750 | 1,198 | 17,948 | 86,704 |
| 8 | 16,944 | 1,004 | 17,948 | 69,760 |
| 9 | 17,140 | 808 | 17,948 | 52,620 |
| 10 | 17,338 | 610 | 17,948 | 35,282 |
| 11 | 17,539 | 409 | 17,948 | 17,742 |
| 12 | 17,742 | 206 | 17,948 | 0 |
To know the EMI you have to pay towards the loan amount you are planning to take, use our personal loan calculator
| Parameters | United Bank of India Personal Loan | Kotak Mahindra Bank | The Kalyan Janata Sahakari Bank | Citibank Personal Loan |
| Interest rate | 13.9% onwards | 10.99% onwards | 13.10% onwards | 10.99% onwards |
| Processing fee | 1.18% of the loan amount | Up to 2.5% of the loan amount | 0.75% of the loan amount | 0.25% onwards + GST |
| Maximum loan quantum | Rs.2 lakh | Rs.15 lakh | Rs.5 lakh | Rs.30 lakh |
| Foreclosure charges | As per the loan document | 5% + Taxes | Nil | Nil |
Though the bank has mentioned the maximum loan amount offered to be Rs.2 lakh, the bank may allow the borrower to avail a larger amount. This decision is at the discretion of the bank.
No, United Bank of India does not levy prepayment charges.
The bank has authority over the interest rate and may choose to change it from time to time. The MCLR, based on which the personal loan interest rate is calculated, in turn, depends on the repo rate fixed by the RBI. On the revision of the repo rate, the bank will revise its MCLR accordingly.
Since the bank doesn’t require an individual to pledge any document or property, it is of utmost importance that the person is reliable. In order to verify the same, the bank will look into the credit history and other patterns to estimate if he/she will diligently repay the loan or not.
You can repay the loan in the form of EMIs that have to be paid out on a monthly basis. You may be asked for a post-dated cheque to make the payments.
A GST rate of 18% will be applicable on banking services and products from 01 July, 2017.
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