Union Bank of India offers a variety of personal loan options, with interest rates ranging from 7.20% to 12.90%. In addition to these lower than average interest rates, the lender also has relatively low processing fees up to 0.50% of the total loan amount. Though Union Bank has generous eligibility criteria, the bank's personal loans are best suited to salaried employees. Self employed borrowers can still avail a cheap personal loan from Union Bank of India, but they should have a good CIBIL score and income.
|Summary of Union Bank Personal Loans|
|Basic personal loan rates starting from 10.90%|
|Loan amounts between Rs. 5 lakhs and Rs. 15 lakhs|
|COVID-19 personal loan available|
|5 year loan tenures|
|Minimum income requirement of Rs. 15,000|
|Low processing fees|
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What Makes Union Bank Personal Loans Stand Out to Borrowers
Union Bank of India offers lower than average personal loan interest rates starting from 10.90%, as well as a COVID-19 personal loan scheme that few banks are offering during the pandemic. Additionally, low income borrowers will find Union Bank's income requirement of Rs. 15,000 per month more suitable compared to other lenders who require a monthly salary of Rs. 25,000.
Below, you can find a list of Union Bank personal loans, as well as the features that make them stand out amongst the rest.
|Union Bank Personal Loan Scheme||Features|
|Covid Personal Loan|
|Union Personal Loan for Salaried|
|Union Personal Loan for Self Employed|
|Union Personal Loan for Government Employees|
|Union Cash for Pensioners||Avail up to Rs. 10 lakhs with 3-5 year tenure.|
Union Bank Personal Loan Interest Rates
The most basic Union Bank of India personal loan has interest rates starting at 10.90%, making it one of the 10 cheapest personal loans amongst the banks that our financial analysts reviewed. However, your final interest rate will be determined by the Union Bank personal loan you qualify for, as well as other factors like your CIBIL score, job position, and income.
Below, you will find Union Bank personal loan interest rates per loan scheme.
|Union Bank Personal Loan Scheme||Minimum Interest Rate|
|Covid Personal Loan||7.20%|
|Union Personal Loan for Salaried|
|Union Personal Loan for Self Employed||12.90%|
|Personal Loan for Government Employees|
|Union Cash for Pensioners||Not advertised.|
Government employees can avail rates as low as 8.90% at Union Bank, though rates begin at 10.40% where employer undertaking is not available. While these are not the absolute lowest rate in the market, Union Bank of India is the only personal loan lender amongst the 35+ banks we analysed that dedicates a loan scheme to government employees. Therefore, if you work for a government organization such as Defence, Armed Personnel, and Ministries, consider Union Bank for your personal financing needs.
Similarly, Union Bank of India is amongst the few personal loan lenders that offers a COVID-19 personal loan. Eligible borrowers under this loan scheme can avail rates as low as 7.20% with monthly resets.
As a final mention, the most common Union of Bank of India personal loan has preferential rates for salaried borrowers, starting from 10.90%. Non-salaried employees will find slightly higher rates at 12.90%. If you are a self-employed borrower, you will find lower personal loan interest rates at UCO Bank or Citibank.
Union Bank Personal Loan Eligibility Criteria
Among the bank's 5 personal loan schemes, Union Bank of India's eligibility criteria is comparably generous compared to other banks.
First, salaried employees as young as 18 and as old as one year prior to the age of retirement are eligible for a Union Bank personal loan. Considering most banks have a minimum age requirement of 21, Union Bank is a good option for younger borrowers, especially students.
Self employed borrowers, on the other hand, have a minimum age requirement of 25 years and maximum age requirement of 75. While Union's minimum age requirement is on the slightly higher side — compared to UCO Bank's minimum age requirement of 21, for instance — its maximum age requirement of 75 is the most generous amongst all of the banks ValueChampion analysed.
Read more: UCO Bank Personal Loan Review
Below, you will find eligibility criteria per personal loan scheme, including income requirements, maximum loan quantum, loan tenures, and whether it is necessary to be a salary account holder before applying for a Union Bank of India personal loan.
|Income Requirement||Loan Amount||Loan Repayment||Relationship With Bank|
|Union Personal Loan for COVID-19||Not advertised.||Rs. 5 lakhs||5 year tenure inclusive of 3 month moratorium||Must be a 12 month salary account holder or existing borrower.|
|Union Personal Loan for Salaried||Rs. 15,000 p.m.||Rs. 15 lakhs||5 years||Salary account not mandatory.|
|Union Personal Loan for Self Employed||Rs. 25,000 quarterly balance in branch salary account.||Rs. 15 lakhs||5 years||Must be a 24 month salary account holder.|
|Union Personal Loan for Government Employees||Not advertised.||Rs. 15 lakhs||5 years||Salary account not mandatory.|
|Union Personal Loan for Pensioners||Not advertised.||Rs. 3 - 10 lakhs||3 - 5 years||Must draw pension from Union Bank salary account.|
It's important to note that pre-existing customers can avail up to Rs. 15 lakhs, while new borrowers can only avail up to Rs. 5 lakhs, regardless of salaried and self-employed eligibility. If you are seeking a large personal loan of more than Rs. 30 lakhs, consider HDFC or Citibank instead.
Union Bank Personal Loan Processing Fee and Other Charges
|Union Bank Personal Loan Scheme||Processing Fee|
|Union Personal Loan for COVID-19||Nil.|
|Union Personal Loan for Salaried||0.50%, minimum of Rs. 500 and maximum of Rs. 7500|
|Union Personal Loan for Self Employed||0.50%, minimum of Rs. 500 and maximum of Rs. 7500|
|Union Personal Loan for Government Employees||Nil.|
|Union Cash for Pensioners||0.10%, minimum of Rs. 100|
Union Bank of India processing fees are lower than most other personal loan lenders who can charge up to 4.00% of the total loan amount. If you are seeking to minimise your total cost of borrowing, Union Bank's personal loan with a 0.50% processing fee is a good place to start.
If you qualify for the Union Bank Pensioner Loan, you will be charged a 0.10% processing fee, subject to a minimum of Rs. 100. Additionally, government employees and borrowers who are eligible for the COVID-19 personal loan will not face any processing charges.
Union Bank Personal Loan: Apply Online
You can apply for a Union Bank personal loan online or in person.
For the sanctioning of your loan, you will need to submit an assortment of documents including proof of address, identity and income. Union Bank of India requires more documents than other banks, including your last 3 years of your income tax return. For self employed borrowers, this may be a drawback, therefore you can consider Yes Bank or Tata Capital for your personal financing needs.
Union Bank of India Required Documents
|Salaried Borrowers||Self Employed Borrowers|
|General||PAN Card, 2 photographs|
|Proof of Identity (any one of the following)||Passport, PAN card, employee ID card, any other valid proof|
|Proof of Address (any one of the following)||Electricity bill, telephone bill, Aadhar card, any other valid proof|
|Proof of Income||Laste 3 years ITR, last 3 years Form-16 or letter from employer, last 6 months salary slip||Last 3 years ITR|
|Proof of Out-Goes||Loan repayment statement, LIC policies, valid proof of any other out-go|
Union Bank Personal Loan Customer Care
If you have any queries regarding the Union Bank personal loan application process, you can reach out to Union Bank of India customer care.
- Union Bank Personal Loan Customer Care Number: 1800 22 22 44 / 1800 208 2244
- Begin your online personal loan application process here.
- Download your Union Bank personal loan application form here.
- Find a Union Bank Loan Point near you.