Union Bank of India Personal Loan Interest Rates

Last Updated : Aug. 27, 2024, 3:34 p.m.

After the merger of Andhra Bank and Corporation Bank, Union Bank of India has become one of India's leading public sector banks. Its personal loans are popular due to competitive interest rates starting at 11.75% p.a., making repayment affordable for customers. This page provides more details on Union Bank of India's personal loan interest rates.

Union Bank of India Personal Loan Interest Rates August 2024

In the case of any loan, the interest rate is the most important thing that an individual has to take care of. And while availing of a personal loan , the importance of it becomes much higher. Thinking about the reason behind it? Well, the first thing is a personal loan is an unsecured loan and its interest rates directly affect the repayment amount (EMI amount) with which you repay your loan. The higher the personal loan interest rates, the higher your EMI amount, and vice versa. There is another thing that you should know Union Bank of India Personal Loan Interest Rates depends on several factors. Some of the important details related to the Union Bank of India Personal Loan Interest Rates are given below. Let’s have a look!

UNION PROFESSIONAL PERSONAL LOAN SCHEME:

UNION ASHIYANA PERSONAL LOAN SCHEME:

UNION WOMEN PROFESSIONAL PERSONAL LOAN SCHEMES

Advantages of Union Bank Personal Loan

Union Bank provides various benefits along with affordable interest rates for personal loans . The following are some main advantages:

• Attractive Interest Rates: Union Bank has competitive rates starting at 11.75% p.a., which makes repayments affordable for people applying for personal loans.

• Flexible Loan Amount: The Union Bank offers loan amounts up to ₹10 lakh based on the eligibility and repayment capacity of every individual who applies for a personal loan.

• Minimal Documentation: The procedure of availing personal loan from Union Bank, does not require much documentation. It is a simple and hassle-free process that can be done with minimal assistance and documentation.

• Flexible Tenure: For a less burden on the borrower, the Union Bank has a Loan tenure of up to 60 months, which allows borrowers to choose a comfortable repayment period.

• No Collateral Required: Union Bank's personal loans are unsecured, which means you do not have to keep any security or assets as collateral.

Factors Affecting Union Bank Personal Loan Interest Rate

Numerous factors could impact the approval process and interest rates, such as -

• Credit Score: A higher credit score reflects good creditworthiness and responsible repayment behavior. Borrowers with a strong credit score (usually above 750) are more likely to receive lower interest rates. Conversely, a lower credit score increases the risk for the lender, leading to higher interest rates.

• Loan Amount: The loan amount you apply for can influence the interest rate. A larger loan amount might carry a slightly higher interest rate due to the increased risk for the bank. Conversely, smaller loan amounts could attract lower rates, depending on the borrower’s creditworthiness.

• Salary: Borrowers with a higher and stable income are considered less risky by lenders, which often results in lower interest rates. The salary directly impacts the borrower’s repayment capacity, and Union Bank may offer better rates to individuals with higher incomes.

• Nature of Employment: The type of employment (salaried, self-employed, government employee, etc.) affects the interest rate. Salaried employees, especially those working for government institutions or large, stable companies, often receive better interest rates due to job security. Self-employed individuals or those in less stable industries may face higher rates due to unstable income which is perceived as a higher risk.

Calculating EMIs on Union Bank Personal Loans at Different Interest Rates

To quickly and simply calculate your EMIs for a personal loan from the Union Bank, use the Wishfin Union bank Personal Loan EMI online calculator .

You can simply put the following details -

1. Loan Amount
2. Tenure
3. Interest Rate

The equal monthly payments (EMIs) for a ₹5,00,000 personal loan with interest rates ranging from 11.75% to 15.55% per annum depending upon your category and application eligibility for terms of one to five years are shown in the table below. To better meet your needs, you can modify the loan amount and other information.

What Should You Do in Order to Fetch the Lowest Interest Rate from Union Bank?

You can get a low-interest deal from Union Bank if you bear the following points in mind:

1. Maintain a High Credit Score : Always try to aim for a credit score of 750 or above by paying bills and existing loan EMIs on time. A higher score indicates a lower risk for the bank and can help you qualify for better rates on personal loans.
   
2. Apply for a Suitable Loan Amount : Unnecessary loan amounts could become a burden on you. Try to borrow only what you need. Avoid applying for unnecessarily large loan amounts, as higher amounts may attract higher rates due to the increased risk.
   
3. Show Proof of Stable Income : Whenever you are planning to avail of a personal loan from a bank, always demonstrate a stable and sufficient income to assure the bank of your repayment capacity. If you have a higher income, you are likely to be offered lower interest rates and vice-versa.
   
4. Maintain a Low Debt-to-Income Ratio : Keep your existing debt low relative to your income. A lower debt-to-income ratio indicates good financial health and lowers the lender's risk, which eventually improves your chances of receiving lower interest rates.
   
5. Look for Offers and Deals: Try to find and keep an eye on seasonal offers or promotions from Union Bank, as they may provide discounted interest rates during special periods, which helps lower your interest rate.

Other Charges of Union Bank Personal Loan

These are the additional Fees and charges of Union Bank Personal Loan that can apply to your personal loan application -

Documents Required for a Personal Loan from Union Bank

These are the documents required for the personal loan application from Union Bank -

• Fill out the application form and provide credit information. Which includes KYC documents for the applicant and co-applicant/guarantor (if applicable).
• Identity evidence (PAN card, voter ID, passport, Aadhaar, etc.)
• Proof of Address (driver's license, passport, Aadhaar, etc.)
• Proof of Office or business address - Two recent passport-sized pictures

For Salaried Employees

• Provide income proof such as the last two years' ITR/Form 16, as well as the most recent three months' salary slip.

Non-Salaried Individuals

• Proof of income, including the last three years ITR and any additional income not included in ITR or Form 16.
• Bank statements from the last 12 months

Union Bank of India Personal Loan Balance Transfer Rates

If you want to transfer your outstanding principal amount to Union Bank of India to get lower interest rates compared to your current one, you can opt for its Balance Transfer facility. This facility would help you in reducing your EMI amount and also the interest amount you are paying. It may be possible that your current lender has been charging you higher interest rates and you want to switch to lower rates.

To opt for this facility, you only need to pay a nominal processing fee, which will ultimately depend on your principal outstanding amount. There is one other thing that you should know that you can opt for the Personal Loan Balance Transfer Facility only if you have been paying all your EMIs on time and your credit score is good, which is considered to be a minimum of 700. Union Bank of India will check both of these things, and then you could get this facility.

How Much Money Can You Save with the Union Bank of India Personal Loan Balance Transfer Facility?

Let’s understand this through an example. Suppose an applicant already has a 5-year personal loan of INR 8 lakh at 13.50% per annum. With this loan amount, the applicant must be paying an EMI of INR 18,408. Let’s say that after paying EMIs for 2 years without any delay, the applicant wants to opt for a Personal Loan Balance Transfer facility at an interest rate of 9.95% per annum and get the same at Union Bank of India. How much will the individual save on the said transaction? Let’s find out in the table below.

So, you can see that by opting for a Balance Transfer facility, an applicant can save around INR 900 per month on the EMI amount and INR 33,033 on the interest amount paid over the loan tenure. This is all possible because of the affordable Union Bank of India Personal Loan Interest Rates. We have used the Personal Loan EMI Calculator tool to calculate savings. The calculator is available online, so you can go and use it numerous times.

How to Apply for Union Bank of India Personal Loan?

If you want to enjoy the benefits of lower personal loan interest rates and want to apply for Union Bank of India personal loan, you need to follow a simple process. First of all, you will need to go to the official website of Union Bank of India where you will see the ‘Personal Loan’ section. Here, you will need to fill in the application form where you will have to provide a few personal loan details such as your date of birth, mobile number, city, email id and details related to your loan such as required loan amount, tenure, etc. You will need to submit the form after filling all these details. Soon the representatives of Union Bank of India will get in touch regarding your personal loan application.

How to get in touch with Union Bank of India Personal Loan Customer Care?

If you face any problem or query related to your Union Bank of India Personal Loan Interest Rates, you can call 1800-208-2244 which is the customer care number of Union Bank of India. Their representatives will solve all your problems in the shortest time possible.

Compare Personal Loan Interest Rates from Different Banks

Below is a table showing the personal loan interest rates from various banks for 2024 to help you make the best choice.