Union Bank Of India Business Loan Interest Rate at 8.20% to 12.30%

INTEREST RATE8.20% to 12.30%
LOAN TENUREMaximum 5 years
PROCESSING FEEAs decided by the bank from time to time
GUARANTOR REQUIREDPlease Contact Bank Branch
PRE PAYMENT CHARGESAs decided by the bank from time to time
Note: Updated on 10 Feb 2023, for latest interest rates, please visit bank website.

About Union Bank Of India

Union Bank Of India is a public sector bank in india established on Nov. 11, 1919. It has headquarter in Mumbai and address is Union Bank Bhavan, 239, Vidhan Bhavan Marg, Nariman Point, Mumbai – 400 021, Maharashtra, India. It has 4078 branches across the state 7020 and ATMs across India.

It provides all the financial services to its customers like saving deposit, fixed deposit, recurring deposit, loans, personal loans, netbanking, RTGS, NEFT, IMPS, Atal Pension Yojana, Pradhan Mantri Jandhan Yojana, Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana and many more.

Union Bank Of India Business Loan Interest Rates, Business Loan at 8.20% to 12.30% Updated on 02 Jun 2023. Apply for Business Loans Online. Find purpos, Eligibility, Margin, Repayment of Business Loan ,Security, Documents Required for Business Loan below.

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Union Bank Of India Business Loan Purpose

UNION SME PLUS is given for

Standby Ad-hoc Working Capital:
  1. To meet genuine and immediate urgent credit need
  2. To tide over the liquidity crunch
  3. Bunching of orders/unforeseen seasonal demand
  4. Delay in shipment of receivables
  5. Sudden increase in cost of raw materials,
  6. Mismatch in cash flows
Standby Term Loan:
  1. Pre-approved stand-by Loan to fund periodic capital expenditure for existing business
  2. Purchase of tangible fixed assets like Machinery/equipments/ Tools/ Fixtures/ Consumables etc.
  3. Improvement in Factory layout & design
  4. Expansion and Modernization of Unit
  5. Investment in intangibles like software, acquisition of ISO & other similar certification, visiting abroad for acquiring technology, finalizing business deals, participation in exhibition / fairs for market promotions and R&D activities of the units with overall business development objective.
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Union Bank Of India Business Loan Eligibility

  1. All MSME Units engaged in manufacturing activity or service activity other than trading units not covered under Union Trade Scheme irrespective of constitution will be eligible under the scheme for working capital, term loans.
  2. Credit rating of the borrower should be CR-1/UBI-1 to CR-4/UBI-4 to be considered.
  3. Satisfactory dealing of minimum two years under credit facilities availed from our Bank.
  4. All sanction terms complied with and account should be regular with no overdues in the account
  5. Borrower with Existing Working Capital limit of Rs.0.25Crore and above.
  6. The borrower should be exclusively banking with our bank (except retail loans).
  7. The borrower having existing units only to be financed and new projects to be excluded.

Union Bank Of India Business Loan Document Required

  1. Completely Filled Business Loan Application Form
  2. PAN Card - For Individual / Partnership Firm / Company
  3. Identity Proof - Any one (e.g. Voter ID / Driving License / Passport / Aadhar Card)
  4. Address Proof - Any one (e.g. Voter ID / Driving License / Passport / Telephone Bill / Electricity Bill / Registered Lease Deed or Sale Agreement / Bank Statement)
  5. Ownership proof of either residence or office either in the name of applicant or jointly with family members
  6. Business Continuity Proof - Any one document dated 5 years old (Bank Statement / Sales Tax Challans / IT Returns / Shops & Est. Certificate / Certificate of Incorporation / Partnership Deed)
  7. Proof of Vintage eg. Shops & Establishment certificate/VAT/Sales Tax Registration Certificate, etc
  8. KYC documents of Applicant/ Co-Applicant/ Promoters/ Guarantor
  9. Passport Size Photographs of all applicants and co-applicants
  10. Financial Projection for 2 years
  11. Last 3 year Financial Statement including latest 2 years Audited Statements along with all schedules
  12. Bank statements from the borrower's main account/s for last 6 months and 3 months of all other bank accounts mentioned in the Balance Sheet
  13. Any other document as required by the bank based on the status of the applicant.

Union Bank Of India Business Loan Amount

Standby Ad-hoc WC / Standby Term Loan: For both facilities put together maximum quantum of finance is Rs. 2.50 crores with a cap of 25% of regular WC (FB & NFB) sanctioned limits.
Further, the Term Loan for intangible assets shall not exceed 20% of eligible limit under the scheme subject to maximum Rs.0.50 Crores.

Union Bank Of India Business Loan Margin

margins

Union Bank Of India Business Loan Repayment

Working Capital: Limit outstanding / disbursed should be an adhoc facility and adjusted within a maximum period of three months. (A running account facility)
Term Loan: TL repayment to be maximum 60 months inclusive of moratorium period not exceeding 6 months in monthly / quarterly installments as per assessment. Interest is to be paid as and when due

How to Manage your Business Loan Properly?

  1. Follow a financially disciplined attitude. You also need to manage your income and expenses well.
  2. Switch to loan having Lower Rate of Interest. Always be watchful about what rate of interest other lenders are charging. If you find considerable difference in the interest charge, you must think of switching you existing loan to the lender who is offering the loan at lower interest rate.
  3. Pay Higher EMI in case you are able to do so with ease and currently having no monetary issue. It will lower down you Business Loan amount and also lower your interest outgo.
  4. Opt for Partial Pre-payment. Whenever you receive extra funds by any means, you must try to make partial pre-payment of loan. It will reduce your debt marginally.
  5. Do not Avail Unnecessary Loan. If you can manage some small expenses out of the funds in your hand then you must not opt for any kind of loan.
  6. Pay your EMIs on Time. Do not make any delay in payment of your loan EMI and never ever miss your EMI. Delay in payment may attract penalty or extra charges. Also it will impact your credit score negatively.
  7. Make higher down payment. In that case, you will need lower loan which you can manager efficiently by repaying it on time and with ease.
  8. Try to repay other small loans, if possible. It will reduce your debt burden and so as your interest cost.

Tax Benefits Available in Business Loan

Interest paid on a business loan is tax deductible expense which means interest paid is an expense for the business and is deducted from gross income. However, the principal amount is not tax deductible because repayment of principal means paying back the money borrowed, hence cannot be considered an expense.

As the tax is paid on the net income earned by a businessman in a financial year. So the interest can be subtracted from the gross income in order to compute the net income. After deducting the interest expenses from the gross income, net income is arrived at, on which the income tax is paid.

As after deduction of interest from the gross income of the business, the net taxable income, on which tax is to be paid, reduces and hence the businessman needs to pay less income tax.

Contact details of Union Bank Of India, Union Bank Of India SMS balance check number, Union Bank Of India SMS banking, Union Bank Of India mobile banking, Union Bank Of India toll free number,Union Bank Of India toll free number 24*7, Union Bank Of India miss call number.

  • MISSED CALL NUMBERS - 9223008586
  • CUSTOMER CARE NUMBERS - 1800222244, 1800222243, 18002082244, 18004251515
  • CONTACT NUMBERS - 1800222244, 1800222243, 18002082244, 18004251515, 080-61817110

Union Bank Of India Contact Details

  • BANK OFFICIAL WEBSITE - https://www.unionbankofindia.co.in, www.unionbankonline.co.in
  • CONTACT NUMBERS - 1800222244, 1800222243, 18002082244, 18004251515, 080-61817110
  • EMAIL ID - custcomercare@unionbankofindia.com
  • MISSED CALL NO. - 9223008586
  • CUSTOMER CARE NO. - 1800222244, 1800222243, 18002082244, 18004251515
  • TOTAL BRANCHES - 4078
  • TOTAL ATMS - 7020
  • HEADQUARTER - Mumbai
  • BANK ADDRESS - Union Bank Bhavan, 239, Vidhan Bhavan Marg, Nariman Point, Mumbai – 400 021, Maharashtra, India
Union Bank Of India EMI Calculator  Union Bank Of India Branches  
Union Bank Of India Business Loan FAQs  Business Loan Document Required

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