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Personal Loan

Personal Loans offered by the Union Bank of India come in three variants which may be availed by individuals fitting any of the available variant. The loans are multi-purpose loans and provide finance for all sorts of personal expenses.

Types of Personal Loan by Union Bank of India

Union Personal
 

  • Features: the first variant of the loan has the following features:
     
  • Any kind of personal expense can be met by these loans
  • Loans up to the value of Rs.5 lakhs are available under this loan variant Max. 10 lakh for previous borrowers subject to applicable terms and conditions.
  • A processing fee equivalent to 0.50% of the value of the loan sanctioned is charged by the bank which is payable by the borrower. The minimum processing fee must be Rs.500 plus the applicable service tax.
  • There is no requirement of any margin money be the bank and there is no moratorium period or repayment holiday applicable in this type of loan
  • The repayment of the loan should be done within a maximum term of 5 years or 60 months
  • No security is required to obtain the loan. However, the employer’s undertaking would be required along with the guarantee of two individuals
     
  • Eligibility – an individual applying for a Union Personal Loan should meet the following eligibility criteria:
     
  • The applicant should be a salaried employee having a regular steady source of income.
  • The applicant must have a salary account with the bank
  • The residual service tenure of the applicant should be sufficient enough to complete the loan repayment with one year to retirement.
     
  • An Identity Proof which can be any one of the documents like Passport, PAN Card, Employee Identity Card or any other valid Identity Proof
  • An address Proof which can be any one document from among the telephone bill, electricity bill, ration card or any other valid proof
  • PAN Card
  • A proof of income which can be the last one year’s Income Tax Return or Form 16 or Letter from the Employer or last 6 months’ salary slip
  • 3 photographs
  • Ay proof of outgoes like loan repayment statement, LIC policy or any other valid outgo proof
  • Any other document if required as per the Application Form
     

Union Personal for Existing Housing Loan Borrowers
 

  • Features – a specific personal loan for the borrowers of home loan from the bank with the following features:
     
  • The loan can be utilized for meeting house related expenses like house warming, decoration of the house, interiors of then house, payment of insurance premium, etc.
  • The amount of loan one can avail in this scheme would be 5% of the housing loan taken subject to a maximum of Rs.5 lakhs
  • There is no requirement of any margin money be the bank and there is no moratorium period or repayment holiday applicable in this type of loan
  • The repayment tenure allowed under the loan would be the lower of 5 years or the residual tenure of repaying the home loan availed
  • No processing charges are levied by the bank for availing a loan under this scheme
  • The loan can be prepaid by the borrower from his own legitimate source of funds. However, if the loan is closed by transferring it to another bank, a charge of 2% of the outstanding balance of the loan over the last 12 months would be charged by the bank
  • The spouse would have to act as a guarantor under the loan. If the applicant is not married or is widowed or divorced, then a suitable third party guarantee would be required.
  • A self-undertaking by the borrower to settle the amount of personal loan before settling the home loan would be required by the bank as security
     
  • Eligibility: the applicant applying to this variant of the loan should meet the following criteria:
     
  • The applicant should have taken a home loan from the bank in a standard category
  • The applicant can be a salaried individual or a non-salaried individual
     

Personal Loan under Tie-ups with Central or State Government and Reputed Organizations
 

  • Features – another variant of personal loan which has the following features:
     
  • The maximum quantum of loan available is Rs.10 lakhs. The bank however, reserves the right to grant loan based on the repayment ability of the borrower
  • Margin requirement and moratorium period are not applicable under the Personal Loan scheme of the bank
  • The repayment time is limited to 5 years
  • The bank charges processing fee of 0.50% of the loan amount granted subject to a minimum of Rs.500 and service tax
  • The loan can be prepaid and the bank would charge no penalty on such prepayment if the prepayment is done from own legitimate source of income. If, however, the loan is prepaid by transferring it to another bank, a penalty of 1% higher rate of interest would be charged ab-initio on the loan
  • Two guarantors are required to provide a guarantee on the loan
  • An undertaking form the employer and the employee and the two guarantees mentioned above are the only security required on the loan
     
  • Eligibility: the applicant have to meet the following eligibility criteria before availing this variant of the loan:
     
  • The applicant should be a confirmed permanent employee of the Central or the State Government, autonomous bodies, PSUs, Joint Sector Undertakings, reputed domestic or Indian subsidiaries of foreign companies, education institutions, etc.
  • The applicant should have a regular source of income
  • The applicant should have sufficient residual years of service so that the loan is repaid with a minimum of 1 year remaining to retirement.

Union Bank of India Personal Loans Interest Rate

All the above variants of personal loan have a certain rate of interest charged by the bank. The total interest is tabulated underneath for a quick reference:
 

Type of loan

Rate of interest

Union Personal – for salaried individuals

A fixed rate of 14.40%

Union Personal – under tie-ups

A fixed rate of 13.40%

Union Personal – for home loan borrowers

MCLR + 2.15% = 11.60%

Union Personal – for KVS/NVS employees/ Home and Defense Ministry employees, officers in all services and top PSU executives, employees working under accredited GOI ministries like Labor & Employment, Environment & Forest, Science & Technology, Statistics & Program Implementation

MCLR + 3.40% = a floating rate of 12.85%

For C-DAC Employees

A fixed rate of 12.40%

Personal Loan EMI Calculator

Use our personal loan EMI calculator to compute the respective Equated Monthly Installments (EMIs) payable on the amount of loan you seek. For instance:
 

  • A loan taken by a salaried employee would charge an interest rate of 14.40%. so, if the individual applies for a loan of Rs.2 lakhs payable in 2 years, the EMI at the applicable interest rate would come to Rs.9640 approximately.
  • A loan of Rs.4 lakhs repayable in 30 months taken under the third tie-up variant of the loan would charge an EMI of Rs.15, 765 every month at an interest rate of 13.40%.
  • A home loan borrower, wanting to get interior designing for his home done, borrows Rs.5 lakhs repayable in 5 years. The bank charges him an interest rate of 11.65% and his EMI comes to Rs.11, 034 approximately.