Union Bank of India Personal Loan

Union Bank of India offers personal loans of up to Rs. 15 lakh that individuals can use to meet various personal financial needs -both planned ones and in case of an emergency. Common uses of an Union Bank of India personal loan include purchase of consumer durables, meeting emergency medical expenses, paying for a home renovation, etc. This unsecured loan from the bank is disbursed quickly and can be availed with minimal documentation making it a popular borrowing option. The interest rate for this loan starts at as low as 8.90% p.a. and the repayment tenure can extend up to 60 months.

Features of Union Bank of India Personal Loan

• Loan amount: The highest loan amount for first time personal loan borrowers with Union Bank of India is Rs. 5 lakh while the amount is much higher at Rs. 15 lakh in case of existing personal loan borrowers of Union Bank with good track record
• Flexible tenure: The tenure to repay Union Bank of India Personal Loan can be as long as 60 months and offers flexibility to the borrower
• Fast processing: Union Bank of India ensures that your personal loan application is processed quickly (if you meet the eligibility criteria) so that you can avail funds as soon as possible
• Minimum documentation: Union Bank of India Personal Loan can be availed with minimum documentation such as basic KYC and income proof documents 

Union Bank Personal Loan Interest Rates

Union Bank of India Personal Loan interest rate starts at 8.90% p.a. but can be higher depending on the type of applicant and the personal loan variant opted for. Specific interest rates on personal loan are available to an applicant depending upon the individual’s applicant profile. Interest rate charged on Union Bank personal loans under specific schemes is given below:

*These rates apply to applicants with a CIBIL score of 700 or higher. Subject to periodic change:

The rates for these loans that are applicable to applicants with CIBIL score lower than 700 are as follows:

Types of Union Bank of India Personal Loans

Depending upon the type of employment/applicant, Union Bank of India offers 3 types of personal loans:

1. Union Personal Scheme for Salaried Individual other than Government Employees: Salaried individuals other than government employees can avail this type of loan to meet various financial needs including the purchase of consumer durables. Some features of this loan are given below:

• One can avail a loan amount up to Rs. 15 lakh. Max. Rs. 10 lakh in case of tie-up, Rs. 5 lakh (for First Time borrowers) and Rs. 15 lakh (for existing borrowers with a satisfactory repayment record of 2 years) even in case of no salary tie-up
• Comes with a repayment period of up to 60 months (5 years) or one year prior to age of retirement for applicant (whichever is earlier)
• No collateral/security is required

2. Union Personal Loan – Non Salaried: Self-employed individuals/professionals can avail this type of loan to finance various financial needs including travel, marriage, purchase of consumer durables, etc. Some features of this type of loan are mentioned below:

• First time/new borrowers can avail a loan amount up to Rs. 5 lakh, whereas existing borrowers with satisfactory repayment record of 2 years or more can avail a loan amount up to Rs. 15 lakh
• Comes with a repayment period not exceeding 60 months (5 years)) or up to the age of 75 years (whichever is earlier)
• Unsecured loan that requires no security or collateral except for personal guarantee

3. Personal Loan Under Special Retail Lending Scheme for Government Employees: Government employees can avail this type of loan to meet various financial requirements including the purchase of consumer durables. Some features of this type of loan are given below:

• One can avail a loan up to Rs. 15 lakh (subject to repayment capacity)
• Requires no security/collateral except for guarantees
• Maximum repayment period is lower among one year prior to retirement of applicant or 60 months

Eligibility Criteria

To avail Union Bank personal loan, the following eligibility criteria needs to be considered:

• In case of Union Personal Scheme for Salaried Individual other than Government Employees:

– You should be at least 18 years old

– You must have a reasonable residual service to ensure that the complete loan amount is repaid one year before retirement

– Must not be staff member of the Union Bank of India or a government employee

Few other eligibility criteria for Union Bank of India Personal loan are as follows:

• In case of Union Personal Loan – Non Salaried:

-You must have a regular source of income

-You should be at least 25 years old at the time of application

-Your age at the end of repayment has to be maximum 75 years

-You should be a customer of Union Bank for at least 24 months prior to submitting your personal loan application

-You need to maintain a savings/ current account in good standing with Union Bank of India featuring an AQB (average quarterly balance) of Rs. 25,000 and above for at least the last 4 quarters

• In case of Personal Loan Under Special Retail Lending Scheme for Government Employees:

-You should be at least 18 years old at the time of applying for the Union Bank of India personal loan

-You should be a permanent employee of Government organizations (Central / State), PSUs, Central / State Government undertakings, Defence, armed personnel, Ministries / Departments under the Ministries, officers in All India Services, Teaching & non-teaching staff at Government Schools & Colleges

-The employee should be the main applicant to avail this loan

-The employee may or may not have a salary account with the bank. However, employees who do not have a salary account with the bank will be eligible only for Term Loan facility

Documents Required for Loan Application

The following documents are needed to apply for a personal loan with Union Bank:

• Duly filled application form
• PAN card
• Proof of identity: Passport/ Aadhaar/Driving Licence/Employee ID Card (Any One)
• Proof of address: Telephone Bill/Electricity Bill/Aadhaar Card (Any One)
• Proof of income: Last three year ITR, last three year Form-16/letter from the employer and last 6 months’ salary slip
• Proof of out-goes: LIC Policies (if any), loan repayment statement (if any), any other valid proof of any out- go
• 2 photographs

Note: Additional documents may be required depending on the applicant’s profile.

How to Apply for Union Personal Loan with Paisabazaar?

You can apply for a Union Bank Personal Loan with Paisabazaar by simply following the steps given below:

Step 1: Visit Paisabazaar.com and fill out the online personal loan application form to check offers.

Step 2: You will get offers from various banks listed as per the chances of approval.

Step 3: Contact Paisabazaar for assistance or select a prospective lender from the list.

Step 4: Complete and submit your loan application online.

Personal Loan Verification Process

Once your personal loan application is submitted online on Paisabazaar, the verification process that follows generally involves the following steps:

1. Paisabazaar forwards your loan application to the chosen lender and you will receive a call from the lender’s representative usually within 48 hours.
2. The prospective lender schedules a pickup of your income, KYC, etc. documents or provides the option to upload them online. Your application will be considered by the lender based on these documents.
3. Upon successful verification and approval of the loan by the bank, you will receive another call to verify the loan offer and get your consent for disbursal.
4. Once the loan is approved and successfully verified, it is typically disbursed within 2 working days. Actual timelines for disbursal can however vary based on the applicant’s profile, loan amount, loan tenure and other lender-specific factors.

Check Union Personal Loan Application Status

To check the status of your Union Bank personal loan application simply follow the steps given below:

1. Go to the official website of Union Bank. On the right hand side of the homepage, click on ‘Apply Online’ and select ‘Many more’.

2. On the page that opens next, click on ‘Loan Application Status’.

3. Next, enter the ‘Acknowledgement No’ and click on ‘Search’ to check the status of your personal loan application.

Fees and other Charges

The following are some of the key fees and charges other than interest charges associated with Union Bank of India personal loan:

How to Login on Union Bank of India Portal

You can login to the Union Bank portal by following the steps given below:

Step1: Visit the official website of Union Bank. On the homepage, click on ‘Online Banking’ and select ‘Union Bank Net Banking’.

Step2: On the page that opens next, click on ‘Retail User Login’. Click on ‘Continue to Login’.

Step3: Enter your User id and verification code and click on ‘Login’

Union Bank of India Personal Loan Statement

Customers can avail the statement of their Union Bank personal loan via any of the following means:

• Online Method: Customers can avail their personal loan statement by logging into the bank’s net banking portal using their login credentials.
• Offline Method: In case you wish to avail a physical copy of your personal loan statement, you can visit the nearest branch office or call up the customer care

EMI Calculation

The rate of interest for Union Bank of India personal loan starts at 8.90% p.a. The table below shows monthly EMI payout examples for different loan principals, interest rates and tenures:

Comparison of Union Bank Personal Loan vs. Other Lenders

The following is a comparison of Union Bank of India personal loan versus personal loan offers from other leading lenders in India:

Union Bank of India Customer Care

Customers can contact the bank’s customer care via any of the following ways:

• Call: You can get in touch with the bank’s customer care department by calling on the numbers given below:

• Online Chatbot: You can also get your queries resolved via the online chatbot ‘Ask UVA’ available on the bank’s website.
• Branch Visit: You can visit the nearest Union Bank branch/Union Loan Point to get your queries answered

Benefits of Applying for a Personal Loan at Paisabazaar.com

Some benefits of applying for a personal loan on Paisabazaar.com are given below:

• You can compare important personal loan features like interest rate, foreclosure charges, processing fees, etc. of several personal loan providers on a single platform using Paisabazaar.com
• The completely online platform eliminates the need to physically visit the prospective lender’s branch office
• You can access the Paisabazaar website anytime and anywhere at your own convenience
• The platform helps you choose the most appropriate option by allowing you to automatically compare the EMI of different personal loan options
• Once you have applied for a personal loan using the company’s website you can track the status of your personal loan online using the application number provided

Important Aspects

• To avail the best deal, different interest rates and charges should be compared prior to applying for a personal loan
• Avoid applying for a personal loan with several lenders at the same time. It may result in an increase in the number of hard inquiries for your credit report and may adversely affect the chances of approval
• Consider the complete cost of the loan. Interest is not the only cost that you need to pay. While deciding upon a particular personal loan, you must also consider other charges like prepayment fee, processing fee, late payment fee, etc.
• Borrow only according to your need. Don’t borrow simply because you are eligible for a personal loan.
• It is advisable that you check your credit score before applying for a personal loan. It is one of the first things that lenders look at when evaluating a loan application. Low credit score may lead to an increase in the interest rate charged by the bank or rejection of your loan application.

FAQs

Q1. What is the maximum personal loan amount that can be sanctioned by Union Bank of India?

Union Bank offers personal loans up to Rs. 15 lakh that individuals can use to meet various financial requirements.

Q2. What is the loan repayment tenure?

You can repay a Union Bank personal loan within 12 to 60 months. You can choose any repayment tenure as long as it is within this range subject to eligibility criteria specified by the bank.

Q3. How can I repay the personal loan?

You can repay the personal loan in EMIs (Equated Monthly Installments). Customers can either use the Standing Instruction facility for EMI payments or pay their loan EMIs through internet banking.

Q4. Am I eligible for a personal loan from Union Bank, in case I already have a home loan from them?

Yes, you are eligible for a personal loan from the bank even if you already have another loan from them. However, this is subject to your repayment record on the present loan. The bank might also need to make an assessment of your repayment capacity (putting all the loans together), to check if you meet the norms, and whether additional security/guarantee will be required.

Q5. Do I have to pay any additional charges for a Union Bank personal loan?

Yes, customers are required to pay processing fees along with interest rate charges when they avail a personal loan from Union Bank. However, personal loan under the Special Retail Lending Scheme for Government Employees by Union Bank of India does not currently have any processing charges.

Q6. How do I contact Union Bank in case I wish to apply for a personal loan from them?

Customers can apply for a personal loan from Union Bank via any of the following ways mentioned below:

• Branch Visit: You can apply for a personal loan from the bank by visiting the nearest branch office or through special retail lending outlets known as Union Loan Points.
• Call up the Union Bank Customer Care: You can also get in touch with the bank’s representatives by calling up the customer care on 1800 22 22 44 / 1800 208 2244 (all India toll-free number).

Q7. Do I need to provide a collateral/security to avail a personal loan from Union Bank?

No, customers need not provide any collateral/security to avail a personal loan from the bank. However, the bank does require you to provide the guarantee of one co-employee and spouse (or the guarantee of a third party having equivalent means and having TransUnion CIBIL score of 700 or above in case of the absence of the spouse) to avail the loan.

Q8. Can a government employee who does not have a salary account with Union Bank of India avail a personal loan from them?

Union bank’s Special Retail Lending Scheme for Government Employees requires you to have a salary account with the bank to avail a personal loan. However, in case you do not have one, you can still be eligible for the term loan facility.