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United Bank Business Loan Interest Rate Jul 2020

United Bank of India Business Loan Interest Rates India

Last Updated 01st Jul 2020

United Bank of India offers Business Loan starting at interest rate of 13.00%. The rates vary by loan amount, occupation and type of loan availed. Check Best Offers

Interest Rate 13.00%
Processing Fee 1.15%
Tenure From 12 months to 60 months
Lowest EMI per lakh ₹ 2,275
Loan Amount Min ₹ 5 Lakh and Max ₹ 50 Lakh
Part Prepayment, Charges 2% of Outstanding Balance
Early Foreclosure, Charges 2% of Outstanding Balance

United Bank of India has merged into Punjab National Bank on April 1, 2020. The interest rates of Punjab National Bank will now be applicable on United Bank of India Business Loan.

United Bank Business Loan

United Bank of India offers loan to self employed and businessmen for financing the expansion or working capital requirements of their business. There are some benefits of taking loan from United Bank of India:

  • You can prepay part of your loan anytime after paying 1 % prepayment charges
  • You can foreclose your entire Business loan anytime after paying 0 EMI's at foreclosure charges - 2% of Outstanding Balance
  • United Bank of India has over 2,014 branches in India where you can avail service

United Bank of India Business Loan Interest Rate Calculator

There are multiple factors on which basis bank calculates your interest rate. Some of these factors are -

  • Loan amount: Business loan rate in United Bank of India depends upon the loan amount you apply for. Higher the loan amount, lesser will be the interest rate. Bank gives loan of minimum ₹ 5 Lakh to upto ₹ 50 Lakh. Interest rate for high loan amount can be lower resulting in lower EMIs.
  • CIBIL Score: United Bank of India offers loan at higher interest rate if your CIBIL score is low or vice versa. However, to get loan from United Bank of India, your CIBIL score should be atleast 700. Higher the CIBIL Score, higher the chances of getting a loan at lowest business loan interest.
  • Revenue: United Bank of India will offer you loan at lower interest rate if you have higher monthly revenue. Bank gives loan to the borrowers whose annual turnover is at least ₹ 12,00,000.
  • Time in Business: United Bank of India offers loan at lower rates if you have significant business experience. Minimum business existence to get loan from United Bank of India is 24 months.

United Bank of India Business Loan Eligibility Criteria

Bank have a detailed criteria to determine the eligibility of a borrower for business loans. Some of the key criteria are:

Eligibility Criteria Description
Age: 25 to 65 years
Minimum Turnover ₹ 12,00,000
Business Existence (in months) 24 months
ITR (months) 24 months
Loan Amount ₹ 5 Lakh to ₹ 50 Lakh
Loan Tenure 60 months
Owned House or Place of Work Not Required
CIBIL Score 750 and above

United Bank of India Business Loan Eligibility Calculator

Eligibility of Business loan in United Bank of India relies on two important factor:

1.Your ability to repay the loan and
2.Your past track record in repayment of loans.

The main factors on which the eligibility of an applicant depends are

  • Age: Age plays an important role to know your eligibility and repayment capacity. United Bank of India offers loan to those who are at least 25 years old at the time of loan approval and maximum 65 years at the time of loan maturity.
  • Loan Amount: Based on the loan amount eligibility, bank gives you loan ranging from ₹ 5 Lakh to ₹ 50 Lakh. To improve chances of approval, apply for a loan amount that you can comfortably service.
  • Profitability and Revenue: Loan eligibility significantly depends upon profitability on your turnover, revenue and profitability. United Bank of India requires profit for minimum 2 years and minimum business turnover of ₹ 12,00,000.
  • Business Stability: Future business prospects and its stability is important to improve your eligibility for business loan. United Bank of India requires minimum business track record of 24 months. The bank will also look for minimum growth in sales for the last three year. A decline in sales for a certain period or below a certain limit might impact your eligibility to get loan.
  • ITR and Banking: Bank gives loan only after checking your income tax return and bank statements. Your ITR details for minimum 24 months and bank statement for minimum 0 months will be required by United Bank of India.
  • CIBIL Score: When checking loan eligibility, United Bank of India will look at the complete CIBIL report. United Bank of India will check your repayment history for all current and past loans and credit cards. Bank advise you to maintain a score of 750 and above to get loan approval.

United Bank of India Business Loan EMI Calculator

United Bank of India Business Loan EMI is a fixed amount that you pay each month towards the repayment of your loan till the end of tenure. Lowest EMI offered by United Bank of India is ₹ 0.01 Lakh per lakh loan amount. EMI of United Bank of India depends on factors like:

  • Interest Rate: Higher the interest rate, higher will be the EMI. For a 60 months loan from United Bank of India at an interest rate of 13.00% per annum, EMI will be ₹ 0.01 Lakh per Rs. one lakh loan amount. At an interest rate of 13.00% for the same loan, the EMI will be ₹ 0.01 Lakh.
  • Loan tenure: Longer the loan tenure, lesser your smonthly EMI. At interest rate of 13.00% per annum, the EMI on United Bank of India business loan would range from ₹ 0.01 Lakh to ₹ 0.01 Lakh for loan tenure ranging from 12 to 60 months.
  • Amount Borrowed: United Bank of India Loan EMI will be high if you apply for a high loan amount. For amount borrowed ₹ 5 Lakh, the EMI at 13.00% for 60 months would be ₹ 0.05 Lakh. Similarly for amount borrowed ₹ 50 Lakh, the EMI at 13.00% for 60 months would be ₹ 0.01 Cr.

What are the benefits of calculating business loan EMI?

  • Business loan EMI calculator of United Bank of India helps you to calculate your monthly EMI at different rate of interest
  • United Bank of India EMI calculator helps you to know your capacity to repay the loan after meeting your regular monthly expenses
  • You get a rough idea about your monthly EMI and can plan your monthly budget accordingly

Business Loan Products

United Bank of India offers customized products for specific customer segments designed to meet their loan requirements. Some of the popular products with their basic features are as follows:

United Trade Credit

Description

  • United trade credit offers working capital to the business enterprise in the form of overdraft or term loan.
  • The loan is taken for the purpose of business expansion and to fulfil the working capital needs of a business.

Who is eligible?

  • The maximum loan amount that can be availed under United trade credit is Rs 50 lakhs.
  • The projected sales of the business enterprise should not exceed 120% of the actual sales.
  • Debt service coverage ratio (DSCR) shall not be less than 1.75 in case of term loan for fixed assets.
  • The loan is taken by traders, including retailers and wholesalers of different commodities such as readymade garments and medicine, among others. Further distributors and dealers of automobiles, consumer goods etc. can also avail this credit line.

Other Charges

In addition to interest rates, business loan also carry some other charges which include:

  • Foreclosure Charges- These charges are to be paid in case you want to repay your entire loan amount before the end of tenure period. United Bank of India allows prepayment of loan after paying 0 EMI’s with prepayment charges - 2% of Outstanding Balance
  • Processing Fee- United Bank of India asks for a processing fee of 1.15% with applicable service tax

Documents required

  • Address proof of individual: Aadhaar Card, Voter’s ID Card, Bank statement, registry copy, rent agreement , utility bills
  • Identity proof of individual: Passport, Driving License, PAN Card, Aadhaar Card, Voter’s ID Card
  • Business existence proof: PAN, sales tax/ excise/ VAT/ service tax registration, copy of partnership deed, trade license, certificate of practice, registration certificate issued by RBI, SEBI
  • Copy of Income Tax PAN for 24 months
  • Bank statement of last 6 months

FAQs

Why to take business loan from United Bank of India?

Bank offers loan at 13.00% rate with the lowest EMI of ₹ 1,084 per lakh. If you are paying EMI more than this then you can opt for balance transfer and relocate your loan to United Bank of India.

What is the interest charged on United Bank of India business loan?

Interest rates on Business loan in United Bank of India are very attractive starting from 13.00% to 13.00%. Bank offer various offer for self employed professionals to get loan at very low rate of interest.

What is the lowest EMI per lakh on business loan from United Bank of India?

If you apply for loan from United Bank of India, your lowest EMI per lakh will be ₹ 1,084.

What is the minimum and maximum tenure of business loan in United Bank of India?

These loans are shorter tenure loans. You can repay your loan in a flexible period of minimum 12 months to maximum echo 60 months.

How much business loan amount I can borrow from United Bank of India?

United Bank of India offers you loan if you need a minimum amount of ₹ 5 Lakh to a maximum amount of ₹ 50 Lakh.

What is the processing fee charged by United Bank of India on business loan?

United Bank of India charges a processing fee of 1.15% with applicable tax.

Is age an eligibility factor to get loan for business from United Bank of India?

Yes, age is an important eligibility factor to get loan as you should be at least 25 years old at loan approval time and 65 years old at loan maturity time.

What are the prepayment charges on business loan from United Bank of India?

Bank charges a fee in case you want to repay your entire loan amount before the end of tenure period. The fee charged by United Bank of India is 2% of Outstanding Balance.

United Bank of India Business Loan Customer Care Number, Email, Application Status, Branches
City Customer Care Number
Agra 1800-345-0345
Ahmedabad 1800-345-0345
Ambala 1800-345-0345
Anand 1800-345-0345
Aurangabad Bihar 1800-345-0345
Bangalore 1800-345-0345
Bhilai 1800-345-0345
Bhilwara 1800-345-0345
Bhiwadi 1800-345-0345
Bhopal 1800-345-0345
Bhubaneswar Cuttack 1800-345-0345
Bikaner 1800-345-0345
Chandigarh 1800-345-0345
Chennai 1800-345-0345
Cochin 1800-345-0345
Coimbatore 1800-345-0345
Dehradun 1800-345-0345
Delhi 1800-345-0345
Durg 1800-345-0345
Faridabad 1800-345-0345
Gandhinagar 1800-345-0345
Ghaziabad 1800-345-0345
Goa 1800-345-0345
Greater Noida 1800-345-0345
Gurgaon 1800-345-0345
Guwahati 1800-345-0345
Gwalior 1800-345-0345
Hyderabad 1800-345-0345
Indore 1800-345-0345
Jabalpur 1800-345-0345
Jaipur 1800-345-0345
Jalandhar 1800-345-0345
Jodhpur 1800-345-0345
Kanpur 1800-345-0345
Karnal 1800-345-0345
Kolhapur 1800-345-0345
Kolkata 1800-345-0345
Kota 1800-345-0345
Kozhikode 1800-345-0345
Lucknow 1800-345-0345
Ludhiana 1800-345-0345
Madurai 1800-345-0345
Meerut 1800-345-0345
Mehsana 1800-345-0345
Mohali Sas Nagar 1800-345-0345
Mumbai 1800-345-0345
Mussoorie 1800-345-0345
Nagpur 1800-345-0345
Nashik 1800-345-0345
Noida 1800-345-0345
Noida Extn 1800-345-0345
Panipat 1800-345-0345
Patna 1800-345-0345
Pondicherry 1800-345-0345
Pune 1800-345-0345
Raipur 1800-345-0345
Rajkot 1800-345-0345
Ranchi 1800-345-0345
Rohtak 1800-345-0345
Roorkee 1800-345-0345
Salem 1800-345-0345
Shimla 1800-345-0345
Sonipat 1800-345-0345
Surat 1800-345-0345
Trichy 1800-345-0345
Udaipur 1800-345-0345
Vadodara 1800-345-0345
Varanasi 1800-345-0345
Vijaywada 1800-345-0345
Vizag 1800-345-0345

United Bank Business Loan News - Jul 2020
  • 2019-11-01 : United Bank of India and Srei Equipment to co-lend loans
    The United Bank of India, collaborated with Srei Equipment Finance Ltd to form a co-lending arrangement that could provide loans to the MSME sector. The partners organized loan Utsav in around 20 cities in the country. Loans were provided for the purchase of construction equipment of up to 90 percent of its total value, for a tenure of up to 5 years with EMI facility.
  • 2019-10-31 : United Bank of India reports net profit at Rs 124 crores in Q2
    United Bank of India reported a net profit of Rs 124 crores in the second quarter of the present fiscal year, with its total income rising to Rs 3,013.74 crores. Further, the bank reported a decline in the non-performing assets like bad loans such as personal and business loans to 15.51 percent from 22.69 percent.
  • 2019-07-31 : United Bank of India posted Rs. 105 crore profit in the first quarter
    United Bank of India (UBI) has reported a profit of Rs. 105 crore during the first quarter of FY19-20 as against Rs. 389 crore loss a year ago. The total banking business grew by around 3% during this period. Following the footsteps of other lenders, UBI is also planning to bring down the fixed deposit rates after some time. Moreover, it is planning to achieve growth across retail loans and MSME loans to 60% by 2020.
  • 2017-12-22 : online classifieds player Quikr
    After the mounting pressure from Reserve Bank of India, the  United Bank of India has started to step up efforts towards financial improvement, planning a turnaround by March 2018. The central bank has imposed additional restrictions on United Bank of India under the Prompt Corrective Action (PCA) framework. The bank will close 8 to 10 branches and many of its ATMs. It is also considering selling Rs 1,500 crore worth loan to ARCs in this quarter.
  • 2017-05-19 : United Bank of India to raise funds up to Rs. 1,000 crore
    United Bank of India is looking to raise funds up to Rs. 1,000 crore through various options. In its regulatory filing, the bank has reported that its board of directors has approved rising of equity capital via Qualified Institutions Placement, Public Issue and Right Issue. However, the bank has not disclosed the purpose of raising the capital.
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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