Union Bank of India Personal Loan Interest Rates
The personal loan scheme of Union Bank of India, with interest rates starting as low as 11.35%, allows for credit up to a maximum of ₹15 lakh over a 5-year repayment period. It also offers Union Women Professional Personal Loan Scheme, which is available exclusively for women- professionals.
Union Bank of India Personal Loan Interest Rates 2024
For individuals seeking financial support, Union Bank of India provides general personal loans with amounts up to ₹15 lakh. The interest rates for these loans start at 11.35% per annum. Borrowers benefit from flexible repayment tenures, which can extend up to 5 years. This allows for manageable monthly payments tailored to individual financial situations.
Union Bank of India also offers a specialized personal loan scheme for women professionals. This scheme is designed to support career-focused women with loan amounts up to ₹50 lakh, also starting at an interest rate of 11.35% per annum. The repayment period for this scheme is notably longer, extending up to 7 years, giving women professionals more time to manage their repayments comfortably.
Union Bank of India Personal Loan Fees and Charges
Union Bank of India offers a variety of personal loan options, each with its own set of processing fees and charges. Here's a concise overview of the costs associated with their different loan products:
Union Personal Loan
For individuals, including salaried employees, non-salaried individuals, and government employees, the processing fee is set at 1% of the loan amount. There is a minimum fee of ₹500 and a maximum fee of ₹7,500. However, if you fall into the Special Category (SRLG), you won’t have to pay any processing charges.
Union Cash Loan for Pensioners
Pensioners applying for this loan will face a processing fee of 0.10% of the loan amount, with a minimum fee of ₹100.
Special Union Cash Scheme
This scheme is tailored for BSNL/MTNL VRS optants and retired employees. For loan amounts up to ₹4 lakh, the processing fee is ₹500. For amounts above ₹4 lakh and up to ₹6 lakh, the fee increases to ₹1,000.
Union Women Professional Personal Loan Scheme (UWPPL)
This loan scheme is designed specifically for women professionals and does not incur any processing fees. However, if there is a delay in payment or a default occurs, a penal interest rate of 2% per annum will be added to the overdue amount, on top of the standard interest rate. Additionally, there is no prepayment penalty if the loan is repaid using the borrower’s own legitimate sources.
Union Bank of India Personal Loan Schemes
Union Bank of India provides a variety of personal loan schemes designed to meet the diverse financial needs of its customers. Here's a breakdown of the available options:
Union Personal Loan for Salaried Individuals
This loan is geared towards private sector employees looking to address personal expenses such as weddings, vacations, or the purchase of durable goods. For employees of partner companies, the loan amount can go up to ₹15 lakh. Non-partner company employees can borrow up to ₹5 lakh as first-time borrowers, and up to ₹15 lakh if they are existing borrowers.
Union Personal Loan for Non-Salaried Individuals
Targeted at non-salaried individuals with a steady income, this loan supports personal needs like marriage, travel, and purchases. Existing borrowers can access up to ₹15 lakh, while first-time borrowers can receive up to ₹5 lakh. The loan tenure extends up to 5 years, aligning with the borrower’s retirement age.
Union Personal Loan - Special Retail Lending Scheme for Government Employees
This scheme is specifically for government employees, including those in central/state government roles, defense, and PSUs. It covers personal expenses and offers the option to transfer existing loans from other banks at reduced interest rates. The maximum loan amount is ₹15 lakh with a tenure of up to 5 years, co-terminus with the employee's retirement age.
Union Professional Personal Loan Scheme
Designed for professionals such as Chartered Accountants, Doctors, Engineers, Company Secretaries, and Cost Accountants, this scheme offers financial support for personal needs. Loan amounts can go up to ₹20 lakh, with tenures extending up to 5 years for salaried individuals and up to 65 years for non-salaried individuals.
Union Women Professional Personal Loan Scheme (UWPPL)
This loan is tailored for women professionals in various fields including healthcare, education, and law. It supports personal expenses such as travel and marriage with loan amounts reaching up to ₹50 lakh. The tenure for this scheme is up to 7 years.
Union Ashiyana Personal Loan Scheme
Available to both new and existing home loan borrowers, this scheme can be used for personal expenses and incidental costs related to property purchases. Loan amounts up to ₹15 lakh are available, with a repayment tenure extending up to 7 years.
Union Ashiyana Overdraft Scheme
This overdraft facility is for both new and existing home loan borrowers, including those transferring their loans from other institutions. It assists with personal or business needs and can also help repay high-interest loans. The loan amount can go up to ₹20 lakh, with the tenure limited to the remaining period of the home loan.
Union Bank of India Personal Loan EMI Calculator
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Union Bank of India Personal Loan Interest Rates vs Other Lenders
The table below highlights the interest rates provided by different banks, helping you compare and select the most suitable option for your needs. However, the interest rate you receive will be influenced by the bank's policies and your unique credit profile. Union Bank of India offers personal loans with rates starting at 11.35% per annum, depending on your profile.
Note: All the interest rates are as of January 2025. For latest interest rates, please refer to the bank’s website.
| Banks | Interest rates |
|---|---|
| HDFC Bank | 10.85% onwards |
| State Bank of India | 11.45% onwards |
| Axis Bank | 11.25% onwards |
| Kotak Mahindra Bank | 10.99% onwards |
| IndusInd Bank | 10.49% onwards |
| Bandhan Bank | 9.47% onwards |
| ICICI Bank | 10.85% onwards |
| IDFC Bank | 10.99% onwards |
| Canara Bank | 10.95% onwards |
| Federal Bank | 12% onwards |
| Punjab National Bank | 10.40% onwards |
| Indian Bank | 10% onwards |
| Yes Bank | 11.25% onwards |
| Bank of India | 10.85% onwards |
| Bank of Baroda | 11.05% onwards |
| IDBI Bank | 11% onwards |
| AU Bank | Up to 30% |
Source: paisabazaar
Union Bank of India Personal Loan Eligibility Criteria
Union Bank of India’s personal loan eligibility varies by scheme:
Salaried Employees: Permanent employees with a minimum gross monthly salary of ₹15,000 ( ₹20,000 in major cities) can apply. For employees of partner companies, a salary account with UBI may not be required, but non-partner employees must maintain one.
Non-Salaried Individuals: Those with a steady income and a Union Bank account for at least 2 years can apply. They must maintain an average quarterly balance of ₹25,000.
Government Employees: Employees of government and related sectors are eligible, with no specific salary or account requirements.
Professionals: Salaried and non-salaried professionals with an annual income of ₹12 lakh or more are eligible. For women professionals, an annual income of ₹5 lakh or more is required.
Ashiyana Schemes: New and existing home loan borrowers can apply, with eligibility based on their age and repayment track record.
Factors Affecting Union Bank of India Personal Loan Interest Rate
There are several factors which influence the Union bank of India personal loan interest rate, some of which are explained below:
Credit Score: The interest rate one pays with a personal loan is mainly governed by the credit score of the person. He or she will usually receive a low-interest rate if his credit score is greater.
Income: Your income will also determine your interest rate on a personal loan. If you have a steady income and your debt-to-income ratio is relatively low, you will likely be charged a lower interest rate.
Loan Amount: The amount you borrow may also affect your interest rate. Generally, the interest rate increases with the loan amount.
Loan Term: This may also vary the interest of the loan period. Normally, longer loans obtain higher interest compared to a smaller loan.