Apply for Business Loan from Union Bank of India

Posted by Amir Azam on February 3rd, 2021

As we know that Union Bank of India is one of the leading government-owned banks in India that provides various types of MSME loans at an interest rate starting from 6.80%. MSME loans are one provided to the broad business categories like trading, manufacturing, and service sector. When it is about the MSME sector, the Union Bank of India offers various MSME loans under various schemes like Union Mudra, Union Trade Plus, Union Start-up, Union Liqui Pro, and Union SME plus. Multiple lenders are offering Union Bank of India business loans at a low-interest rate and flexible tenure period.

MSME Loan schemes offered by Union Bank of India

Name of Loan	Eligibility	Loan amount	Rate of Interest	Repayment
Union MUDRA	Offered to Micro Business enterprises in the manufacture, trade, and for the service sector such as professionals such as CAs, ICWA, architects, or doctors.	Shishu – Maximum loan up to Rs. 50,000 Kishore – From Rs. 50,000 up to Rs. 5,00,000 Tarun – Loans from Rs. 5,00,000 up to Rs. 10,00,000	7.60% p.a.	For working capital: 12 months. Term loans must berepaid within 84 months
Union LIQUI Property	1. Offered to all business enterprises. 2. Offered to the units with statutory requirements. 3. Credit rating should be more than UBI-5 and UBI-4. 4. It must be new and old accounts. 5. Business should be in speculative activities.	Loan amounts are starting from a minimum of Rs. 10 lakh up to Rs. 10 crores.	From 9.05% onwards	If you are applying for term loans, it can be repaid within 120 months with a moratorium period of 6 months, for the overdraft facility it is available for 1 year.
Union Trade Plus	1. Units engaged in trade. 2. Business units with good market standing engaged in business activity for at least 1 year with income tax returns filed.	Loans of up to INR 10 crores. Margin – 20% for working capital or term loans.	For amounts of up to INR 5 crores, more than 5 crores, and rates of interest in all categories from CR-1 to CR-5	Repayments on working capital are to be done on-demand, while repayments on term-based loans can be up to 7 years with a moratorium period of a maximum of 6 months.
Union Start-up	Unit needs to be certified as a start-up as per the Start-up India Scheme launched by the Government of India. Collaterals are not mandatory, but a guarantee of promoter directors and partners of firm/company.	Loans from a minimum of INR 10 lakh up to INR 5 crore.	Above 6.80% p.a.	For working capital: repayment period up to 12 months. For term loans: repayment period of 10 years.
Union SME Plus	1. For MSME units in manufacturing and service activities. 2. Credit rating must be between CR-1/UBI-1 to CR-4/UBI-4 3. There should bea minimumof 2 years 4. There will be no overdue on the account. 5. All borrowers with a minimum of 0.25 of existing working capital. 6. Borrowers should be excludedfrom UBI customers.	For both Standby Ad-hoc and term loans:Up to 2.5 crores.	Rates of Interest are: Standby ad-hoc working capital FB– 1% above rate applicable to credit rating Standby ad-hoc working capital NFB- Rates as applicable Standby term-based loans- Rates applicable as per the credit rating.	Repayments on working capital should be at least 3 months. Repayments for term-based loans should be at least 60 months including the moratorium period that is not more than 6 months

Types of the Business Loan offered by Union Bank of India

There are a large variety of business loans offered to the Union Bank of India users. Some popular loan schemes are listed below:

Union Start-up

This scheme is offered for the ‘Startups’ for innovating, producing, and commercializing new products or services.
The loan amount is starting from Rs. 10 lakh up to Rs. 5 crores.
No collateral is required.
No processing charge is offered.
The loan can be offered as working capital or a term loan.
The repayment time of working capital is 12 months.

Union High Pride

This loan scheme is offered to all MSMEs that are involved in manufacturing or service operations for at least 1 financial yearand who has submitted their income tax.
The credit rating of the account must be as per the mentioned guidelines.
The loan amount is starting from Rs. 1 croreup to Rs. 25 crores.
The interest rate is applicable up to:
1% less than the applicable interest rate for MSME.
25% less than the applicable interest rate for MSME.

Union Liqui property

The interest rate is starting from 9.50% p.a.
This loan scheme appliedto the business firm carrying outbusiness operations for at least 2 years.
The loan amount is starting from Rs. 10 lakh up to Rs. 10 crores.
The loan can be offered to the term loan and overdraft facility.

Union Nari Shakti

This loan is offered to women entrepreneurs who own and manage small firms as well as micro-enterprises.
Loan amount: From Rs. 2 lakh up to Rs. 1 crore
Interest rate is offered at 6.80%
The repayment period is 7 years.

Conclusion:

Hope, the above information will guide you to get a business loan from the Union Bank of India. The above-mentioned interest rate, loan amount, processing fee, and other details will guide you for processing loan approval. You can also choose the loan scheme and different types of loansoffered by the bank.

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About the Author

Amir Azam
Joined: December 28th, 2020
Articles Posted: 6