Please Note: Union Bank of India is not a Paisabazaar partner. Offers would be from partner banks/NBFCs only.
With Affect from 1 April 2021, United Bank of India and Oriental Bank of Commerce have been merged with Punjab National Bank.
United Bank of India provides unsecured business loans to micro, small and medium enterprises (MSME) at competitive rate of interest. Loan amount varies depending on the type of loan and business requirements. Generally, the loan tenure is of maximum 5 years. But the same can be extended depending on applicant’s credit score. The bank offers a wide range of loan schemes to suit the requirements of all sections of people. The features of some of these products are described below along with the general documentation list for business loan application.
United Bank of India Business Loan/MSME Schemes – 2022
Some of the secured business loan products offered by United Bank of India has been discussed below.
1) United Trade Credit
- Interest Rate: 12.85% onwards
- Repayment Tenure: Up to 60 months
- Pre-payment Charges: 2.36% of the outstanding balance of the loan amount
- Margin: 40% against value of house property or commercial building proposed to be mortgaged
- Maximum loan amount that one can avail in this loan scheme is Rs. 50 lakh subject to 20% of projected annual sales
- For security, mortgage of free and marketable immovable property and securities like LIC policies, KVPs & NSCs are taken into consideration
- This loan scheme is available as Working Capital or Overdraft
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Eligibility Criteria of United Trade Credit Business Loan:
All retailers and wholesalers engaged in the business of commodity trading including medicines, ready-made garments and other merchandise for a minimum period of 2 years are eligible for this loan. Also, distributors and dealers of consumer goods and automobiles etc. can avail Union Trade Credit Loan.
2) United Doctor Plus
- Interest Rate: 0.25% lesser than MSME loan interest rate
- United Doctor Plus is available as Term Loan or Cash credit to set up Diagnostic centres, pathological laboratories etc., or to purchase new vehicles including ambulance or purchase of new surgical instruments or diagnostic tools
- Loan Amount: From Rs. 1 lakh to Rs. 2 crore
- Repayment Tenure: From 3 years to 5 years, can be extended up to 7 years
- Margin (Term Loan): Loan up to Rs. 5 lakh is 10% and Loan above Rs. 5 lakh is 15% of the cost of equipment
- Security: Hypothecation of equipment, machineries, vehicles, stocks and other moveable assets/mortgage of chambers and other immovable property
- This loan is available for any registered medical practitioner who has minimum 5 years of experience or Partnership firms having at least one of the owners as a registered medical practitioner with minimum 5 years of experience
3) United Mahila Udhyami Yojana
- This loan is especially designed to support women entrepreneurs/ enterprises where women hold at least 50% of financial holdings
- United Mahila Udhyami Yojana loan scheme offers maximum loan amount of Rs.10 lakh
- This loan scheme is offered as Term Loan or Cash Credit
- Loan tenure varies from 3-5 years in case of Term loans. For cash credit, maximum 12 months’ time is given to repay the loan from date of withdrawal
Also Read: How to Register for MSME Certificate
Eligibility Criteria of United Mahila Udhyami Yojana
- Women involved in manufacturing and production activities like artisans, craftsmen, weavers, carpenters etc. are eligible for this loan. Also, women involved in business of Tailoring, beauty parlour, photocopying centres, typing centres, Laundry, dry-cleaning, ISD/STD booths, mobile and TV repairing, Canteen, Restaurant etc. can avail this loan. Retail traders are not covered in this scheme
4) United Shilpi Card
- This loan scheme is designed to provide financial cover to all the artists carrying out the following activities:
- Clay modelling
- Drawing as well as painting
- Running training centres for dance, music and choreography
- Fashion designing
- Computer graphics
- Stone carving
- Metal works
- Applique works
- Dyeing, Printing and Weaving
- Embroidery work and knitting
- Handicrafts like basket or mat making, leaf plate making,
- Papad and jam making, pickles as well as making of potato chips
- Making of dry food items like chira, muri, etc.
- Making of sweet meats
- Toy making and of some other festive items, etc.
- The loan amount in United Shilpi card ranges between Rs.25, 000 to Rs.10 lakh
- Loan repayment to be done within 3 years
- Photo identity cum passbook card issued to the borrower
- No service charges are levied for this loan card
Documents Required for United Shilpi Card
Below are some documents that are required to apply for a United Shilpi Card:
- Letter of continuity of Business
- Proof of Identity (Aadhaar, PAN, Voter ID, Driving License)
- Proof of Address
- Proof of collateral security to the lender, if any
- Demand Promissory note
5) United Udyogshree Yojana
- Interest Rate: Varies from applicant to applicant
- This scheme aims to provide financial cover to everyone in the country. Eligible applicants include all good customers and borrowers under tiny and SSI sector as well as depositors in rural, semi-urban, urban and metro areas who have shown good track record over the past 3 years
- Loan amount can go as high as Rs.5 lakh
- Loan tenure varies between 3-5 years
- Processing Fee: Nil for loan amount up to Rs. 25,000
- Loan is given to establish new villages and cottage industries under tiny sector or setup and expand tiny SSI units or purchase of vehicles to transport raw materials and finished goods etc. or marketing of products etc.
Toll Free Numbers
Customer Care 1800-345-0345
ATM Card Hot Listing / Blocking 1800-1033-470
The following set of documents must be given by the applicant while applying for any business loan:
- Identity proof and Address proof
- Last 3 years records of ITR statements, audited balance sheets and Profit & loss a/c statements
- SSI/ MSME registration if applicable
- Memorandum and articles of association of Company or Partnership deeds of Partners etc.
- Photocopies of lease deeds of all the properties being offered as primary and collateral securities
- Other documents as per the loan type and business type
How to apply for United Bank Business Loan?
If you are looking to apply for a Business Loan from United Bank of India, one can check and compare the different loan schemes at Paisabazaar.com and can see the Interest Rates of all the banks that offer Business Loan. This can help in calculating and analysing the different business loan features and benefits making it easier for everyone to financially prepare for their monthly EMIs.