Union Bank Personal Loan Interest Rates

Union Bank of India is one of India’s leading public sector banks that offers a wide range of financial products and services. One of the most popular products offered by the bank is a personal loan. Union Bank personal loan is designed to help individuals meet their financial needs, including medical expenses, home renovation, travel expenses, education expenses, etc.

The bank provides personal loans to both salaried and self-employed individuals at competitive interest rates. In this blog, we will discuss the Union Bank personal loan interest rates in detail, including the schemes, charges, factors affecting the rates, and how to calculate the interest/EMI.

Union Bank Personal Loan Interest Rate 2023

Union Bank of India offers personal loans at competitive interest rates ranging from 11.8.% to 13.5% per annum. Union Bank Personal Loan Interest Rate 2023 may vary based on various factors, including the borrower’s credit score, loan amount, repayment tenure, and type of employment.

Union Bank Personal Loan Interest Rate by Schemes

The bank offers personal loans under various schemes. The interest rates for each of these schemes may differ.

Name of the Personal Loan Scheme	Offered Interest Rate
Personal Loan	12.60% per annum onwards
Union Personal – Non-Salaried	14.60% per annum onwards
Personal Loan Under Special Retail Lending Scheme for Government Employees	10.60% per annum onwards

1. Personal Loan: Union Bank of India offers a personal loan for salaried employees who require financial assistance without the need for any collateral. However, the applicant must have two guarantors to qualify for the loan.

Interest Rate	Processing Charges	Loan Amount
12.60% per annum onwards	0.50% of the approved loan amount, INR 500 + GST	Up to INR10 lakh

2. Union Personal – Non-Salaried: The Union Personal – Non-Salaried Loan is intended for self-employed individuals with a steady income source. This loan is helpful for those who need to acquire consumer durables or pay for unforeseen hospitalisation expenses, among other things.

Personal Loan Interest Rate	Processing Charges	Loan Amount
14.60% per annum onwards	0.50% of the approved loan amount, INR 500 + GST	Up to INR 10 lakh

3. Personal Loan Under Special Retail Lending Scheme For Government Employees: The loan program is specifically created for government employees with permanent or confirmed positions.

The lender offers a reduced interest rate and processing fee for this program.

Personal Loan Interest Rate	Processing Charges	Loan Amount
10.60 % per annum onwards	Not Applicable	Up to INR 15 lakh

Union Bank Personal Loan Interest Rates for Salaried and Self-Employed

The interest rates for personal loans offered to salaried and self-employed individuals may differ. Typically, the interest rates for salaried individuals are lower compared to self-employed individuals.

Category	Personal Loan Interest Rates
Salaried Applicants 9	From 12.60% onwards
Self-Employed Applicants	From 14.60% onwards

Union Bank Personal Loan Interest Rate for Salary Account Holders

If you have a salary account with Union Bank of India, you may be eligible for a lower interest rate on your personal loan. The bank is well-versed in your financial habits, loan history and other relevant information.

Additionally, individuals get quick approval by providing minimal required documents. 

Union Bank Pre-Approved Personal Loan Interest Rate

If you are a pre-approved customer of Union Bank of India, you may be eligible for a lower interest rate on your personal loan starting from 11.8%.

Additionally, you just need to pay 1% of the loan amount as a processing fee, and the sanctioned amount comes with flexible end-use. However, these pre-approved offers come with a limited time frame. Thus, an individual should grab the opportunity as soon as possible, only if required.

Union Bank Personal Loan Interest Rate for Salary Account Holders

If you have a salary account with Union Bank of India, you may be eligible for a lower interest rate on your personal loan. The bank is well-versed in your financial habits, loan history and other relevant information.

Additionally, individuals get quick approval by providing minimal required documents. 

Union Bank Pre-Approved Personal Loan Interest Rate

If you are a pre-approved customer of Union Bank of India, you may be eligible for a lower interest rate on your personal loan starting from 11.8%.

Additionally, you just need to pay 1% of the loan amount as a processing fee, and the sanctioned amount comes with flexible end-use. However, these pre-approved offers come with a limited time frame. Thus, an individual should grab the opportunity as soon as possible, only if required. 

Union Bank Personal Loan Rate Comparison with Other Banks

Before applying for a personal loan, it is advisable to compare the interest rates offered by various banks. Union Bank personal loan interest rates are competitive compared to other leading banks in India. The following table compares Union Bank’s personal loan interest rate with other lenders: 

Union Bank Personal Loan Balance Transfer Interest Rates

Union Bank offers borrowers a balance transfer facility to enjoy lower interest rates benefits. If you have an existing personal loan with another bank, you can transfer your outstanding loan amount to Union Bank of India and enjoy lower interest rates. Balance transfer interest rates start from 11.8% onwards. However, the offered interest rate depends on your financial and loan repayment history. 

Union Bank Personal Loan Interest Rates and Charges

Apart from the interest rates, Union Bank of India also charges various fees and charges, including processing fees, prepayment charges, late payment fees, and more. Understanding all these charges before applying for a personal loan is essential.

Apart from interest rates, Union Bank also charges some fees and charges related to personal loans, which are as follows:

1. Processing fee: A one-time processing fee is charged by Union Bank for processing the personal loan application. The processing charges currently clock at 1% of the loan amount.
2. Prepayment charges: If you decide to prepay or foreclose your personal loan before the end of the repayment tenure, Union Bank may charge a prepayment penalty of up to 5.00% of the outstanding loan amount.
3. Late payment charges: In case of delayed payment or default, Union Bank may charge a late payment penalty of 2.00% per month on the overdue amount.
4. Loan cancellation charges: If you cancel your personal loan after the loan is disbursed, Union Bank may charge a loan cancellation fee of up to 2.00% of the loan amount.

Factors Affecting Union Bank Personal Loan Interest Rates

Several factors can affect your Union Bank personal loan interest rates, including your credit score, loan amount, repayment tenure, type of employment, and more.

Some of the most significant factors include

1. Credit Score: Your credit score plays a significant role in determining the interest rate you’ll receive on a personal loan. The higher your credit score, the lower the interest rate you’ll likely receive.
2. Income: Your income also plays a role in determining the interest rate on a personal loan. You’ll likely receive a lower interest rate if you have a stable income and a low debt-to-income ratio.
3. Loan Amount: The amount you borrow can also affect the interest rate you’ll receive. Generally, the higher the loan amount, the higher the interest rate.
4. Loan Term: The length of the loan term can also impact the interest rate. Longer loan terms often come with higher interest rates than shorter terms.
5. Collateral: Secured personal loans that require collateral may come with lower interest rates compared to unsecured loans since the collateral provides a form of security to the lender.
6. Market Conditions: Interest rates can fluctuate based on market conditions, such as the current state of the economy and inflation rates.

How to Calculate Union Bank Personal Loan Interest/EMI? 

You can easily calculate your Union Bank personal loan interest and EMI using the bank’s online EMI calculator. The calculator takes into account the loan amount, repayment tenure, and interest rate to give you an estimated EMI amount.

Union bank of India employs the below-depicted formulae to calculate the EMI on the Personal Loan. 

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

Where 

‘P’ denotes the Principal amount,

‘R’ represents the interest rate, 

And 

‘N’ is the repayment tenure.

How to Get Low-Interest Rates on Union Bank Personal Loan?

Suppose you’re interested in getting a low-interest rate on a personal loan from Union Bank. In that case, there are several steps you can take:

1. Check your CIBIL Score: It plays a significant role in determining your interest rate. Check your credit score and work on improving it if it’s low.
2. Improve your credit history: Make sure you’re paying all your bills on time and reducing your debt as much as possible. This can help to improve your credit history and increase your chances of getting a lower interest rate.
3. Choose a shorter repayment tenure: Shorter loan terms often have lower interest rates than longer terms. Consider choosing a shorter loan term if you can afford the higher monthly payments.
4. Consider secured loans: Secured personal loans require collateral, such as a home or car. Since these loans are less risky for the lender, they may come with lower interest rates than unsecured loans.
5. Compare interest rates: Compare the interest rates offered by Union Bank to those offered by other lenders. You can get a better deal elsewhere.
6. Negotiate: If you have a good credit score and a solid financial history, you can negotiate a lower interest rate with Union Bank.

Remember that Union Bank has its own criteria for determining interest rates, so there’s no guarantee that you’ll be able to get a low-interest rate. However, by taking these steps, you can increase your chances of securing a more favourable interest rate.

Keynotes on Union Bank Personal Loan Interest Rates

• Union Bank of India offers personal loans at competitive interest rates.
• The interest rates may vary based on various factors, including the borrower’s credit score, loan amount, repayment tenure, and type of employment.
• The bank offers personal loans under various schemes, including Union Personal Scheme, Union Personal Loan for Pensioners, and Union Personal Loan for Term Deposit.
• If you have a salary account with Union Bank of India or are a pre-approved customer, you may be eligible for a lower interest rate on your personal.