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Union Bank Personal Loan

Loan Name Interest Rate Processing Fee Loan Amount Tenure
Union Bank of India Personal Loan 12.70%, Fixed 0.5% of loan amount (minimum of Rs 500 + GST rates) 10,00,000 maximum 60 months
Documents Required

  • Proof of Identity: PAN Card, Passport, Employee Identity Card, Any other valid proof (any one of the following)
  • Proof of Address: Aadhaar Card, Utility Bills like electricity bill, water bill, telephone bill, any other valid proof (any one of the following)
  • Bank statement for the last 12 months
  • Duly filled in application form along with 3 passport sized photographs (recent one)
  • Proforma/ Invoice
  • Any other documents which may be required and differs from case to case

For Salaried Individuals

  • Proof of Income: Last one-year Income Tax Return, recent salary slips for the last 6 months, Form 16, letter from employer

For Business Class

  • Proof of Income: Profit and Loss account, Balance Sheet, last three years Income Tax Return
  • Proof of out-goes: LIC Policies, Loan repayment statement, valid proof of any other out-go

  • No security is required to avail the personal loan
  • Minimum processing charges will be levied
  • The tenure of the loan is spread over a long period of time

  • Minimum age of the applicant should be 18 years
  • The applicant should have a reasonable residual service for repayment of loan one year before the retirement

For Tie-up (A1)

  • Permanent or Confirmed employees of a reputed private organization/institution in India.
  • The organization/institutes should be operating within the jurisdiction of respective ZLCC
  • The applicant may or may not maintain a salary account with Union Bank

For Tie-up (A2)

  • Permanent or Confirmed employees of reputed private organization/institutes in India
  • The applicant should be a customer of the bank for a minimum period of 6 months prior to considering the loan proposal.
  • The applicant should compulsorily maintain a salary account with Union Bank at any of its branches.
Other Details

  • Processing Fees is 0.5% of loan amount (minimum of Rs 500 + GST rates)
  • The maximum repayment is spread over 60 months.
  • Apart from a guarantee, no security is required.


Q: How much interest is charged by Union Bank of India for a personal loan?

A: Union Bank of India charges interest rates starting from 12.60%, while the interest rates applicable to self-employed applicants start from 14.60%.

Union Bank of India personal loan interest rate for salary account holders are comparatively lower than that for other customers.

Q: What is the difference between foreclosure and pre-payment?

A: Foreclosure means that you are paying off the entire outstanding loan amount before the completion of the tenure and Pre-payment means that you are paying off a certain amount of the outstanding loan amount before the expiry of the tenure.

Q: Are there any prepayment charges on a personal loan from Union Bank of India?

A: You can avail a personal loan from Union Bank of India without any prepayment charges.

Q: What are the major factors that determine the interest rate applicable to my personal loan?

A: The major factors taken into consideration by banks and financial institutions when determining your interest rate include your credit score, your current liabilities, and your income.

Q: What is the difference between flat and reducing interest rates?

A: The Reducing interest rates involve the borrower to pay only interest amount on the outstanding loan balance (the balance that remains outstanding after getting reduced by the repayment of principal amount). In case of Flat interest rates, the borrower needs to pay the interest amount on the entire loan balance throughout the tenure of the loan. Thus interest payable does not decrease even if the borrower makes periodic payments.

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