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Union Bank Personal Loan Interest Rate

Current Union Bank of India Personal Loan Interest Rate

Last Updated 07th Jun 2021

Interest Rate 8.90% - 13.00%
Tenure Upto 60 months
Processing Fee 0.5%, Min Rs. 500
Loan Amount ₹ 50,000 to ₹ 5 Lakh
Minimum Income ₹ 20,000
Eligible Age 21 to 58 years
Part Prepayment Charges Allowed after paying 0 EMIs with charges ranging from, Nil prepayment charges of the outstanding loan amount.
Foreclosure Charges Allowed with charges ranging from, Nil prepayment charges of the outstanding loan amount.
  • Today’s Union Bank of India personal loan interest rate starts at 8.90%.
  • Union Bank of India offers the lowest personal loan rate of 8.90% to borrowers who are existing customers of the bank or are working with top corporations.
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Union Bank of India Personal Loan Rates and Charges

  • Union Bank of India offers personal loans to salaried individuals at a minimum rate of 8.90%.
  • Apart from the interest rate, the bank also charges processing fees and penalty fees for pre-payment, foreclosure, and late payment as Union Bank of India personal loan rates and charges. As listed below:
Union Bank of India Personal Loan Rates and Charges
Interest Rate 8.90% to 13.00%
Part Prepayment Charges Allowed after paying 0 with charges ranging from, Nil prepayment charges of the outstanding loan amount.
Foreclosure Charges Allowed with charges ranging from, Nil prepayment charges of the outstanding loan amount.
Processing Fees 0.5%, Min Rs. 500

Interest rates on Union Bank of India Personal Loans Schemes

As on today, Union Bank of IndiaPersonal loan interest rates are in the range of 8.90% to 13.00%, with lowest rates offered to existing customers of the bank with a strong CIBIL Score and for those working with reputed corporate with a stable employment history. The lowest rate on Union Bank of India personal loan remains unchanged at 8.90% as on 07 Jun, 2021. The last revision on Union Bank of India Personal Loan was announced on 07 Jun, 2021 when the rate was 8.90%. Union Bank of India also runs special schemes in which it offers lower rates for defense, armed forces and government employees.Personal loan interest rate for government employee and defense personnel is different from private salaried employees.

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

Employment TypeLowest Rate Processing FeesPrepayment charges
Salaried Starting from 8.90% 0.5%, Min Rs. 500 Nil prepayment charges
Self-Employed Professional Starting from 13.30% 0.5% of loan amount NIL

Union Bank of India Personal Loan Rate Comparison with Other Banks

Here is a comparison of Union Bank of India Personal Loan with top lenders based on interest rate, loan tenure, amount, processing fee, and other charges. It is always better to compare various personal loan lenders before proceeding with the personal loan process.

Particulars Union Bank of India HDFC Bank SBI
Rate of Interest Starting from 8.90% Starting from 10.25% Starting from 9.60%
Loan Tenure 12 - 60 months 12 - 60 months 6 - 72 months
Minimum Age 21 years 21 years 21 years
Processing Fee 0.5%, Min Rs. 500 Upto 2.50% Min Rs. 999 1.00%
Maximum Loan Amount ₹ 5 Lakh ₹ 75 Lakh ₹ 15 Lakh
Prepayment charges Allowed after 0 EMI's, Nil prepayment charges Allowed after 12 EMI's, 2-4% Not allowed
Pre closure charges Allowed after 0 EMI's, Nil prepayment charges Allowed after 12 EMI's, 2 - 4% Allowed after 6 EMI's, 3%

Union Bank of India Personal Loan Balance Transfer Interest Rates

Union Bank of India personal loan balance transfer facility is ideal for existing personal loan customers, who are paying high interest to their existing lender. Through this facility, you can transfer your existing of personal loan with Union Bank of India at a lower rate of interest, without closing the account. However, you do need to check the foreclosure charges that you have to pay to your existing lender. Currently Union Bank of India offers the lowest personal loan balance transfer rate of Nil.

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

You can get the lowest Union Bank of India personal loan rate, by ensuring the below-mentioned things:

  • Ensure that you are aware of the Union Bank of India personal loan eligibility and documentation requirements beforehand so that you do not end up paying a higher rate as compensation for lack of any document.
  • Ensure that you maintain a good credit score of 650. The higher the credit score, the higher is your chance of getting a low-interest rate.
  • Always check if you are eligible for a pre-approved offer from Union Bank of India as that allows you to get instant loans at the best rates.
  • Compare lenders to get competitive interest rates. Further keep tracking the loan rates trends, Union Bank of India may offer lower interest rates in the festive season.
  • If you are a high salary earning employee and work in a reputed firm, then leverage it. Union Bank of India offers lower rates to employees working in top firms drawing high salaries.

FAQs

What is Union Bank of India personal Loan interest rate?

Today, the lowest interest rate on Union Bank of India Personal Loan is 8.90%. Borrowers with high income and CIBIL score are eligible for the lowest interest rate.

How can I reduce my interest in Union Bank of India personal loan?

You can reduce the interest to be paid on Union Bank of India personal loan by any of the below-mentioned ways:

  • By maintaining a good CIBIL score
  • By showing all proofs of income
  • By maintaining a good debt to credit ratio
  • By applying at peak time when Union Bank of India provides discounted personal loan offers

Is Union Bank of India personal a floating rate loan or fixed-rate loan?

Union Bank of Indiais offered at both fixed and floating rate. In the case of the fixed rate, the interest remains the same whereas in the case of the floating rate the personal loan rates keep varying according to the market.

Did Union Bank of India personal loan rate drop in 2021?

Presently, Union Bank of India offers personal loans at an interest rate starting at 8.90%. There has been no change in personal loan rates of Union Bank of India for a long time and continue to stand at 8.90%.

How do I check my eligibility to get a personal loan at a low rate from Union Bank of India?

The lowest rate on Union Bank of India is mostly offered to individuals with high CIBIL and high income. You can check the eligibility for the personal loan at Union Bank of India official website. Apart from that you can also use MyLoanCare Personal Loan Eligibility Calculator.

What is the lowest personal loan rate in Union Bank of India?

The lowest personal rate offered by Union Bank of India on a personal loan is 8.90%.

What is the interest rate charged by Union Bank of India on personal loan?

Personal loan interest rates in Union Bank of India are 8.90% to 13.00%. Union Bank of India personal loan interest rate for salary account holders are comparatively lower than that for other customers.

Can I ask for a reduction in the Union Bank of India personal loan interest rate?

You can ask for a reduction in your Union Bank of India personal loan interest rate. However, it depends upon the policy of the bank, whether it allows negotiation or not. Good credit score, high income, and existing relationship with the bank are some of the points which can contribute to the talks going your way.

Is there any need for security or collateral while availing Personal loan from Union Bank of India?

No, there is no need for any collateral or security while availing a personal loan from Union Bank of India. Union Bank of India personal loan is an unsecured loan; thus, it does not require pledging of any asset as security to avail the loan.

How can I close my Personal Loan from Union Bank of India early?

If you want to prepay your entire personal loan from Union Bank of India, then you can do so by making a lump sum payment. However, you should also inquire about the prepayment and foreclosure charges based on the Union Bank of India personal loan scheme availed by you, before making any decision.

How does Union Bank of India calculate the interest on a personal loan?

The interest for Union Bank of India personal loan is calculated based on the following methods:

  • Flat rate method:   Under this method, Union Bank of India personal loan rate is estimated on the original loan amount throughout the original loan tenure. Thereby, the principal amount for calculation remains the same. This method is also called the fixed method of Union Bank of India personal loan interest calculation.
  • Reducing rate method:  As per the Union Bank of India personal loan reducing balance method the interest rate is calculated on the outstanding loan amount. Therefore, the principal component that is paid during the monthly EMI is not chargeable for interest calculation. In this case, the outstanding balance and the interest reduces with time, and the interest is charged only on the remaining principal amount.

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Union Bank Personal Loan News - Jun 2021
  • 2021-01-03 : 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, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
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