Description

Union Bank of India offers personal loans of up to Rs. 10 lakh to meet the personal expenses like purchase of consumer durables, travel, holiday, medical emergency, home repair, etc. Both salaried employees and self-employed individuals alike can get a personal loan. Interest rate on Union Bank personal loan varies from loan scheme to scheme, starting from as low as 10.40% p.a.

Union Bank of India Personal Loan Interest Rate 2021

Union Bank of India personal loan interest rates are categorized according to a borrower’s employment type, credit score and security. For example, the interest rate starts from 8.90% p.a. for government employees with a CIBIL score of 700 or above and 12.90% for non-salaried individuals with a credit score equal to or above 700. 

Interest rate on retail lending scheme for Government employee, SRLGE   

Personal loan scheme

CIBIL score

Interest rate (P.a.)

With employer undertaking 

700 & above

8.90%

Below 700

9.00%

Without employer undertaking

700 & above

10.40%

Below 700

10.50%

Interest rate for other applicants  

Personal loan scheme

CIBIL score

Interest rate (P.a.)

Union Personal – Under tie-up  

700 & above

10.90%

Below 700

11.00%

Union Personal – Under non tie-up

700 & above

11.90%

Below 700

12.00%

Union Personal- Non-salaried applicants

700 & above

12.90%

Below 700

13.00%

Union Personal - under SRLGE with employer undertaking

700 & above

8.90%

Below 700

9.00%

Union Personal - under SRLGE without employer undertaking

700 & above

10.40%

Below 700

10.50%

Customers can use Union Bank of India personal loan EMI calculator to know their monthly EMI consisting of principal and interest components. 

Factors that affect Union Bank of India Personal Loan Interest Rates

  • Loan tenure: Union Bank of India personal loan interest rate will depend upon the loan tenure selected by an applicant. Lenders charge a high interest rate for a short-term loan compared to an interest rate for long-term loans. However, longer tenure will increase the total interest payable.
  • Relationship with the Union Bank of India: Existing customers of Union Bank of India who share a good relationship with the bank can possibly get a personal loan at lower interest rate, provided they have a proven track record and fulfil the personal loan eligibility criteria.
  • Employer undertaking: As a personal loan is an unsecured loan, an employer undertaking can help a borrower to get a personal loan at the lower interest rate. Government employees with a good credit score and employer undertaking can get a personal loan at 8.90% p.a. interest from Union Bank of India.
  • CIBIL Score: CIBIL score is one of the most important factors that affect the interest rate applicable on a personal loan. Union Bank charges lower interest rates for applicants with a credit score of 700 and above.   
  • Employment details:  Employment type and stability plays a very important role in interest rates. Salaried employees are charged lower interest than non-salaried employees and government employees are offered the most favorable rates. 

Union Bank of India personal loan vs other personal loans

Lender

Interest rate (p.a.)

Tenure

Loan amount

Processing fee

Union Bank of India

8.90% onwards

12 to 60 months

Up to Rs. 10 lakh

Up to 0.5 of loan disbursed

ICICI Bank

11.25% - 22%

12 to 60 months

Up to Rs. 20 lakh

Up to 2.5% of the sanctioned amount

HDFC Bank

10.75% - 21.30%

12 to 60 months

Up to Rs. 15 lakh

Up to 2.5% of the sanctioned amount

Axis Bank

12% - 24%

12 to 60 months

Rs. 50,000 to Rs. 15 lakh

Up to 2% + GST

Yes Bank

10.99%

12 to 60 months

Rs. 1 lakh to Rs. 40 lakh

Up to 2.5% of the loan + GST

Features of the Union Bank of India personal loan

  • Attractive interest rates
  • Flexible loan amount and tenure
  • Fast processing with minimal documentation
  • Online eligibility checking
  • No prepayment charge
  • No foreclosure charge 
  • Minimal processing fees

 

FAQs

Q1How is interest calculated for a personal loan from Union Bank of India?
You EMI will have two main components i.e. principal and interest. Union Bank of India charges interest on reducing balance, which means the interest charged on principal will be deducted each month. It will help you save a lot of money over the course of the loan tenure.
Q2 How can I repay my personal loan?
You can pay a personal loan from Union Bank in monthly instalment over the course of 60 months. Your EMIs will be paid from your salary account or you can repay the loan through PDC (post-dated cheque) every month. You can also use the Standing Instruction facility for EMI payments or pay your loan EMIs through internet banking.
Q3Can I get a personal loan without offering any collateral or security to Union Bank?
Borrowers don’t need to submit any collateral or security to get a personal loan from Union Bank of India. In some cases, the bank may require an undertaking from the employer to process your loan application. You may be asked to nominate a guarantor. You can contact the Union Bank customer care team or visit the nearest branch of the bank to know more the same.
Q4For how long can I get a personal loan from Union Bank?
Union Bank offers a personal loan for a flexible tenure that ranges from 12 to 60 months. You can choose the loan tenure within this range. There is no prepayment or foreclosure charge on Union Bank personal loans.