To support micro, small and medium enterprises (MSMEs), Union Bank of India has designed a wide array of business loan schemes. Key schemes include Union Start-up Loan, Union Liqui Property, Union High Pride, Union Nari Shakti, Union Trade, and Union Mudra Loan. Union Bank business loan interest rates vary from scheme to scheme, depending on the credit profile of the applicant, nature of business and loan amount, among others.
What you can get Union Bank of India Business Loans for
Micro, small and medium business owners can get a business loan for a variety of needs as under:
- To upgrade or expand the business: Borrowers can get a business loan from Union Bank of India for expansion of their business. You may need funds for the purchase of new land, renovation and expansion of existing workspace, etc.
- Working capital needs: Small businesses may lack the working capital to continue daily operational activities. A business loan from Union Bank of India can prove to be a great help in such times.
- For the purchase of machinery and raw material: To meet the growing market demands, your business will need to get more raw materials or equipment. A business loan can come across as a big help for such business requirements when you don’t have sufficient funds at hand.
- To improve credit history: To get a business loan at any point of time, a business is required to have a good credit record. If you get a small business loan from Union Bank and pay EMIs on time, it will help you improve your credit score.
Union Bank of India Business Loan types
Union Bank offers a business loan to cater to several financial needs of businesses. Here are the most popular business loans offered by Union Bank:
Union Bank of India Mudra Loan
Startups and micro enterprises can get loans under Pradhan Mantri Mudra Yojana by Union Bank of India. Union Bank of India offers Mudra loans for the business involved in the trading, manufacturing and service sector in rural, urban and metro areas.
Key features of Union start-up
- Startup aspirants and small businesses can get funding under this scheme for production, innovation and commercial of products and services driven by technology in compliance with the start-up India scheme.
- Union startup loan amount ranges from Rs. 10 lakhs to Rs. 5 crore.
- Processing charges are not applicable.
- No collateral required.
- Business loan in the form of working capital or term loan.
- Union startup working capital loan is available for up to 12 months.
Union Liqui property
Key features of Liqui property
- All business firms running business operations for at least a period of 2 years can avail of loans under this scheme. However, individuals, HUF and firms involved in real estate and associated activities are not eligible for a business loan under this scheme.
- Loan offered ranges from Rs. 10 lakh to Rs. 10 crore for the purchase of equipment, machinery and for daily working capital needs. In addition, the loan can be availed for clearing high debts.
- Borrowers can get a business loan under this scheme at an interest rate starting from 9.50% p.a.
- Business loan applicants must have a required credit score.
- Statutory approvals or NOCs are required from respective authorities to get loans under this scheme.
- The loan is available for up to 10 years with up to 6-month moratorium period. The interest needs to be paid as and when due.
- It is a collateral-based loan with a mandatory guarantee.
- The loan is available in the form of the term loan as well as overdraft facility.
Union High Pride
Key features of Union High Pride
- Under this scheme, all MSME units, other than trading units, involved in manufacturing or service operations for at least 1 financial year can get a loan.
- Business loan applicants must have a required credit score.
- Borrowers can get a business loan between Rs. 1 crore to Rs. 25 crore.
- The loan repayment tenure will be as per the terms and condition in the loan policy of the bank.
- Rate of interest is 1% less than the rates applicable for MSME and subject to minimum applicable MCLR.
- Borrowers can get the loan at 25% less interest rates than the rate applicable for MSME subject to minimum applicable MCLR on compliance of any of the following conditions:
- External credit rating of BBB and above.
- 100% collateral coverage
Union Nari Shakti
Key features of Nari Shakti
- Women entrepreneurs and startups who own small businesses or micro enterprises can get a loan under Union Nari Shakti. Proprietorship, limited companies etc. can apply for Union Nari Shakti loan.
- In case of a partnership, women should have a major stake in the firm. Majority of directors must be women in case of the company.
- Interest rate on loans under Nari Shakti starts from 8.75% onwards.
- The loan amount ranges from as low as Rs. 2 lakh up to Rs. 1 crore for repayment tenure of 7 years. No collateral is required for a loan up to Rs. 10 lakh.
Key features of Union trade
- Retailers and wholesale traders including departmental store dealers in groceries, malls and supermarkets, etc. can apply for this loan.
- Limited companies, proprietorship, partnership concerns (including LLPs) engaged in the trading activities can also get a business loan under this scheme.
- Your company must be registered under sales tax/ VAT/ Shop & Establishment Act.
- The working capital loan can be up to Rs. 2.5 crore and term loan is available up to Rs. 5 crore, up to 75% of the cost of the project or asset.
- The loan can be availed for up to 7 years with a moratorium period.
Union Bank offers many more business loan schemes apart from these loans to suit the specific needs of different business categories.
Documents Required for Loan Application
While documentation may slightly vary from scheme to scheme, here is the list of basic documents that you will have to submit while applying for a business loan from Union Bank.
- Filled loan application form with passport size photographs.
- A copy of one of the following Identity proofs:
- Voter ID card
- Driving License
- Aadhaar Card
- PAN Card, etc.
- Address proof: A copy of one of the following documents:
- Aadhaar card
- Driving license
Union Bank might require borrowers to furnish additional information and documents. You can get in touch with Union Bank customer care team or visit the nearest branch of the bank to get detailed information. One can apply for the loan online on the bank’s website or by visiting the nearest branch of the bank.