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Union Bank Personal Loan Eligibility

Union Bank of India Personal Loan Eligibility Calculator India

Last Updated 24th Feb 2021

Eligibility CriteriaSalaried Self Employed Professionals
ProfessionSalaried persons working in government, private or MNCs companies Professionals like Doctors, CA, CS, Architects
Applicant Age21 - 58 years25 - 65 years
Minimum Eligible Income ₹ 20,000 per month ₹ 5 Lakh gross annual receipts
Maximum Eligible Loan10x of monthly income  -
Maximum Loan Amount Eligibility ₹ 5 Lakh ₹ 8 Cr
Minimum Work Experience0 months 36 months
Interest Rate 11.00% - 12.40% 13.30% - 13.40%
Personal Loan Eligibility Calculator
*Insurance Details
Union Bank of India Personal Loan Eligibility based on Age
  • Age: There is an age criteria for the approval of personal loan. The minimum age requirement for availing a personal loan is 21 years and maximum age is 58 years. Union Bank of India offers personal loans for a maximum period of 60 months.
Union Bank of India Personal Loan Eligibility based on Income and FOIR
  • Net Income : Your net income required to avail a personal loan is ₹ 20,000 per month. Your eligibility is determined by your income (Net take home salary). Your capability of paying EMI’s is judged on the basis of income earned as your loan EMI’s are not affecting your living standards.
  • FOIR : FOIR (Fixed Obligation to Income Ratio) is an important parameter that Union Bank of India uses to find out your Union Bank of India personal loan eligibility. Union Bank of India takes all your fixed obligations (like rent or current EMIs) into account while estimating your eligibility. Minimum FOIR required to be eligible for personal loan from Union Bank of India is 0.45. Calculate and compare your eligibility with Union Bank of India personal loan calculator and apply online for the eligible loan amount hassle free.
  • Co-applicant : Adding a co-applicant increases your eligibility for a personal loan as it increases your repayment capacity. Ensure that you add a co-borrower who has good income flow, limited fixed obligations and a strong credit score.

Illustration- Mr. A who is 25 years old has a net income of ₹ 20,000. He wants to take a personal loan of ₹ 1 Lakh for 60 months. Union Bank of India allows a maximum FOIR of 0.45.

Based on the information provided by the applicant, bank will calculate his eligibility using eligibility calculator. With a salary of ₹ 20,000, the maximum amount for which he is eligible is ₹ 4.14 Lakh. The interest he has to pay for this amount for 60 months is 11.00%.

Union Bank of India Personal Loan Eligibility based on CIBIL Score

  • CIBIL Score: Your credit behaviour and track record from your past lenders and credit card providers get captured in your CIBIL score. CIBIL score is the most important factor to define your eligibility to get a personal loan. When checking eligibility for a personal loan, Union Bank of India will check the complete Credit report, which also includes all past running loans and your payment track record on loans and credit cards. Higher credit score increases your chances that your loan application from Union Bank of India will get approved. However, low CIBIL score decreases your eligibility to get a personal loan. Union Bank of India requires a minimum credit score of 650 to be eligible for a personal loan.

There are a few factors which affect your credit score -

  • Late payments on past loans – Any delay in payments on your existing or past loans can negatively affect your CIBIL score and it may also reduce your chances of getting a personal loan from Union Bank of India.
  • High number of unsecured loans – Always maintain a balance between secured and unsecured loans. Higher proportion of unsecured loans in your total borrowings can negatively impact your credit score.
  • Usage of credit limit – Your credit card bills and usage of credit limit determine your credit behaviour. Frequent withdrawals and spending more than your credit card limit can be seen as a sign of potential financial stress, credit indiscipline and hence, may pull down your credit score.
  • Multiple loan applications – If you apply for a personal loan in multiple banks at one time, it can affect your score negatively and reduce your CIBIL score. In case of application rejection from Union Bank of India, improve your credit worthiness to get a good score and your loan application to get approved.

Union Bank of India Personal Loan Eligibility based on other factors

There are other factors also which are responsible for the approval of the loan by Union Bank of India. Check to understand the importance of the following factors -

  • Job stability and profession - Job stability is important to improve your eligibility to get a personal loan from Union Bank of India. Your total work experience and current work experience are assessed to evaluate your job stability and profession. Union Bank of India looks for a minimum total experience of 0 months and also looks for applicants who have been employed in the current job for a minimum of 0 months.
  • Residence place and stability – Banks are very particular about the residence of the borrower. There are few areas which are considered negative by the bank. Union Bank of India has a pre decided list of area where the bank will lend the loan. The bank also has a negative list area of locations in which it will not lend depending on the past credit behavior of borrowers from such localities. Union Bank of India also gauges your residential stability by checking on the number of years since when you have been staying in your current residence. If you are staying in your own residence, it improves your chance of getting a loan from Union Bank of India. Minimum residence stability to be considered by the bank is 12 months.
  • Industry Type – Union Bank of India has a negative list of professions and type of industry, defined as customer or industry segments to which they will not give the loan. So, your chances of getting a loan approval also depends on your profession and industry you are employed in.
  • Salary Mode – Most of the banks consider salary transferred to the bank account as a secure and stable income with adequate income proofs. If you are earning well but getting salary through cash or cheque then bank will not give you the loan because bank needs concrete evidence of your salary to support your loan amount. So, salary transfer mode of payment is preferred by Union Bank of India if you apply for a personal loan.

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FAQs

What are the eligibility criteria to avail Union Bank of Indialoan?

The minimum age of the applicant required to get a personal loan from Union Bank of India is 21 years. The maximum age for salaried employees can go up to 58 years.

What should be my income to secure a personal loan from Union Bank of India?

The minimum income for a salaried employee should be at least ₹ 20,000 per month to secure a personal loan from Union Bank of India.

How much work experience is required for personal loan from Union Bank of India?

The applicant must have at least work experience of 0 months in avail the benefit of Union Bank of India personal loan.

What is the maximum loan amount an applicant can get?

The maximum loan amount an applicant can get under a personal loan from Union Bank of India is up to ₹ 5 Lakh.

Will CIBIL Score affect my personal loan from Union Bank of India?

Yes, CIBIL Score does have an impact on your personal loan. A good score indicates a good repayment record and hence most banks avoid giving loans if you have a low credit score. The minimum CIBIL score for personal loan is 650 and above.

Do I need to have a guarantor to apply for Personal Loan from Union Bank of India?

Personal loan is an unsecured loan, so a bank may ask for a guarantor. However, if your credit score is good and there is no default in your past repayment history, then you do not need a guarantor to get a loan from Union Bank of India .

What is the minimum loan amount from Union Bank of India for pensioners?

Pensioners can apply for a minimum loan amount of ₹ 25,000 from Union Bank of India.


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Union Bank Personal Loan News - Mar 2021
  • 2020-12-03 : Union Bank completes integration of all branches of Corporation Bank
    Union Bank of India has completed the IT integration after which all the branches of former Corporation Bank have come fully under its fold as part of the amalgamation exercise. Union Bank offers retail loans like home, personal, car, two-wheeler, gold loan along with business and mudra loans.
  • 2020-11-10 : Union Bank of India net profit ₹517 cr in Q2
    Union Bank of India reported a net profit of Rs 517 crore in the September quarter as against a loss of Rs 994 crore in the same period last year. The net interest income (NII) rose 6.05% to Rs 6,293 crore on the back of retail loans like home, personal, gold, two-wheeler and car loan along with business and mudra loans. Further, the net interest margin (NIM) dipped to 2.51% in Q2FY21 from 2.68% in the year-ago quarter.
  • 2020-08-24 : Union Bank of India posted Rs. 340.95 crore net profit in Q1FY21
    Union Bank of India posted a net profit of Rs.340.95 crores for the period ended June 30, 2020, as against a net loss of Rs.2713.03 crores for the period ended March 31, 2020. Further, the Bank reported total income of Rs.20487.01 crores bolstered by retail loans like home, personal, car, two-wheeler and gold loan along with business and mudra loans.
  • 2020-02-12 : Union Bank posted a Q3 profit of Rs. 575 Crores
    Union Bank reported an increase in Q3 profit to Rs. 575 crores on the back of higher recoveries. Net interest income grew by 23% year-on-year basis at Rs. 3,134 crores against Rs. 2,493 crores in the year-ago period driven by an increase in Home Loan and Personal Loan.
  • 2019-09-20 : Union Bank of India co-originates with Capital India Finance to grant loans
    Union Bank of India signed a Memorandum of association with Capital India Finance Limited to grant retail loans and MSME loans. The collaboration might enable easy accessibility of credit at affordable rates to borrowers. The merger is done, keeping in mind RBI’s instruction to co-originate funds and provide loans.
*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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