Union Bank Personal Loan Interest Rate: Everything You Should Know

Key Insights:
 

• The bank offers special loan schemes for women, government employees, and home loan customers.
   
• You can apply online easily with minimal documents, making the loan process quick and simple.
   
• Early loan repayment is allowed with low prepayment charges, helping you save on interest
   
• Union Bank Personal Loan Interest Rate starts from 10.35% to 14.45% depending on credit score and job profile.
   
• A better credit score, steady income, and employer tie-up help you get a lower Union Bank Personal Loan Interest Rate.
   
• Understanding factors and improving finances can reduce your Union Bank Personal Loan Interest Rate and overall cost.

 

Bonus Point: In 2024–25, Union Bank made a big profit. It earned ₹4,984 crore in just one quarter, which is 51% more than last year. The bank also lowered its bad loans, which means it manages money well. Its strong capital shows it is safe and growing. This helps customers trust the bank more.

Union Bank follows its latest loan policy to set interest rates for personal loans. Right now, the rate starts at 10.35% per year and goes up to 14.45% per year. These rates follow the bank’s rules and market trends as of June 2025. The final rate depends on things like your salary, credit score, and loan type.

In this blog, you will learn about the types of personal loans, and their main features. You will also find what affects Union Bank personal loan interest rates, and some easy tips to help you make a smart choice.

Union Bank Personal Loan Interest Rates 2025

If you need money, Union Bank gives personal loans. The Union Bank personal loan interest rate depends on your job, credit score, and if your employer works with the bank.
 

 

 

Other Important Details
 

• You can borrow up to ₹50,00,000.
• You can repay in up to 7 years (84 months).
• A higher credit score means lower interest.
• If your employer works with the bank, you get better rates.
• Maximum loan amount: up to ₹50,00,000.
• Maximum tenure: up to 84 months (7 years) (as per typical guidelines).
• Union Bank personal loan interest rate depends on factors including credit score, and employment type. It also includes whether the employer has a tie-up with the bank.

Find out which category you belong to, to find your Union Bank Personal Loan Interest Rate.

Types of Union Bank Personal Loan Schemes

Union Bank offers different personal loan schemes to meet the needs of various people, like salaried employees, self-employed professionals, women, and even home loan borrowers. Here’s a quick look at the main options:
 

 

Union Bank has made it easier for different types of borrowers to get personal loans. Union Bank personal loan interest rate depends on the type of borrower you are.

Key Features of Union Bank Personal Loan

Union Bank makes it easy for people to get personal loans for their needs, like medical bills, education, travel, or any urgent expense. Below are the main features that make their personal loans helpful and easy to manage:

• You can borrow up to ₹50,00,000, based on your income and repayment ability.
• You can repay the loan over a long period, up to 84 months (7 years).
• The interest rate stays the same throughout the loan (fixed interest).
• You don’t need to give any property or assets as security (collateral-free).
• You can repay the loan early (prepayment allowed) with minimal charges.
• The loan process is quick and simple, with very few documents required.
• You can apply online from your home using the digital loan application system.
• The bank provides an EMI calculator to help you plan your monthly payments.

Union Bank personal loans are flexible and easy to apply for. If you are salaried or self-employed, this loan can help you meet your financial goals quickly and safely.

Factors Affecting Union Bank Personal Loan Interest Rate

When you apply for a personal loan, the Union Bank personal loan interest rate is not the same for everyone. The bank looks at a few things before deciding how much interest to charge. Here are the main factors that can affect your rate:

• Your credit score matters: A high credit score shows you repay loans on time. This can help you get a lower interest rate.
• Your monthly income counts: If you earn more and have a steady income, the bank may trust you more and offer better rates.
• Your job type is important: If you have a stable job in a good company, you might get a lower rate than someone who is self-employed or has irregular income.
• Loan amount and time to repay: If you borrow a large amount or choose a long repayment period, the rate may be slightly higher.
• Your current debts: If you already have many loans or credit card dues, the bank may charge more interest.
• Your relationship with the bank: If you’re already a Union Bank customer or your employer has a tie-up with the bank, you may get a lower rate.
• Your repayment history: If you’ve missed EMIs or used too much of your credit limit before, the bank may increase your interest.
• Bank’s own rules and market trends: Sometimes, the rate also depends on the bank's policies or changes in the economy.

These factors help the bank understand how risky it is to give you a loan. If you keep your credit score high and manage your money well, you’re more likely to get a lower Union Bank personal loan interest rate.

Union Bank Personal Loan Interest Rate Calculation

There s a fair and clear method to calculate Union Bank personal loan interest rate. Here's how it works:

• The bank charges interest on the remaining loan amount every day.
• It calculates your daily interest by dividing the annual rate by 365 days.
• Every day, this small interest is added up.
• At the end of the month, the bank adds the total monthly interest to your loan.
• You can use the Union Bank EMI Calculator to see how much you’ll pay every month.
• The formula used for EMI calculation is: EMI =

[P x R x (1+R)^N]/[(1+R)^N-1]. Where R denotes your Union Bank Personal Loan Interest Rate. P stands for the Principal Amount. And N stands for the loan term or tenure.

This method makes sure you're only charged interest on what you still owe. If you repay faster, you pay less interest over time. For example, a ₹5,00,000 loan at Union Bank personal loan interest rate of 15% for 5 years gives an EMI of about ₹11,610. The monthly rate becomes 15% divided by 12, which is 1.25% per month. Higher interest or longer tenure increases your EMI and total payable amount.

Tips to Get Lower Union Bank Personal Loan Interest Rates

Want to pay less interest on your personal loan? Follow these easy tips to improve your chances of getting a better deal from Union Bank:

• Keep your credit score high: Always pay your EMIs and credit card bills on time.
• Show steady income: Prove that you earn well and regularly.
• Lower your other debts: Don’t take too many loans at once.
• Borrow only what you need: Don’t ask for a bigger loan than required.
• Check for employer tie-ups: You may get a lower rate if your company works with Union Bank.
• Be a good bank customer: Keep your Union Bank account active and avoid missed payments.

By staying financially healthy and responsible, you can enjoy lower interest rates and save more on your loan.

Conclusion

Union Bank gives personal loans that are easy to get and simple to repay. The Union Bank personal loan interest rate you get depends on your credit score, income, job, and loan type. If you understand how the loan works and take care of your money, you can get a lower rate. This will help you save money and pay off your loan faster.

FAQs on Union Bank Personal Loan Interest Rates

1. What are the interest rates for Union Bank personal loans?

Union Bank offers personal loan interest rates starting from 11.80% per annum for salaried individuals with employer tie-ups. Rates can go up to 15.50% per annum for self-employed individuals without employer tie-ups.

2. How is the interest on my personal loan calculated?

The bank charges interest on the remaining loan amount every day. It divides the yearly interest rate by 365 to find the daily rate. Then it adds up the daily interest at the end of the month.

3. Can I get a lower interest rate on my personal loan?

Yes. If you have a good credit score (700 or more), steady income, and your employer works with Union Bank, you may get a lower interest rate.

4. Are there any prepayment penalties on Union Bank personal loans?

You can pay your loan early. Union Bank may charge small fees, but usually, prepayment fees are low. Check the loan terms when you apply.

5. How can I apply for a Union Bank of India personal loan?

You can apply online or visit a branch, provided you meet basic eligibility like stable employment, employer tie-up, and income requirements.
 

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