City Union Bank (CUB) is a long-standing financial institution in India, established in 1904, known for its commitment to “Trust and Excellence”. The bank provides a comprehensive suite of products catering to Retail, MSME, Corporate, and NRI customers. With its administrative office in Kumbakonam, CUB has modernized its operations by introducing tech-savvy features such as Video KYC, the Lakshmi chatbot, and mobile banking. The bank is registered with DICGC, ensuring deposit safety while offering a range of credit and investment solutions.
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Overview of City Union Bank
City Union Bank operates as a distinct financial entity providing a wide range of services across various customer segments.
| Feature | Details |
| Established | 1904 |
| Headquarters | Kumbakonam, Tamil Nadu |
| Official Website | www.cityunionbank.bank.in |
| Customer Segments | Personal, MSME, Corporate, Agri, NRI, and Academic Institutions |
| Key Tech Products | Video KYC, Lakshmi Chatbot, CUB All-in-One Mobile App |
Key Features of City Union Bank
City Union Bank distinguishes itself through personalized service and advanced digital banking options.
- Digital Innovation: The bank has launched Video KYC for instant account opening and a multilingual chatbot named Lakshmi for virtual assistance.
- Convenient Payments: CUB offers an EPF Payment Facility through Net Banking and supports BHIM UPI and WhatsApp banking.
- Diverse Portfolio: Customers can access a variety of services, including Sovereign Gold Bonds, Demat services, and insurance products from providers like LIC and TATA AIA.
- 24/7 Accessibility: The bank provides round-the-clock customer support and extensive self-service banking through kiosks and BNAs.
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Types of Loans Offered by City Union Bank
City Union Bank (CUB) offers a wide range of loan products categorized to serve individual retail needs, NRI requirements, MSME and Corporate business operations, and agricultural activities.
Overview of Loan Types
| Category | Specific Loan Products | Primary Purpose |
| Retail / Personal Loans | Personal Loan, Home Loan, LAP, Consumer Loan, Education Loan, Car & Two-Wheeler Loans | Personal asset acquisition, education, and household needs |
| Gold Loans | Agri Gold Loan, Non-Agri Gold Loan, Gold-Based Overdraft | Quick liquidity against gold ornaments for agri or personal use |
| MSME & Corporate Loans | Working Capital, Cash Credit, Bill Finance, Foreign Currency Loans | Business expansion, asset purchase, and trade facilitation |
| Agri & Rural Loans | Kisan Credit Card, Agri Term Loan, Livestock Farming Loan | Funding for crop cultivation and allied agri-business activities |
1. Retail and Personal Loans
- CUB Personal Loan
- Purpose: Can be used for personal expenses, urgent liquidity requirements, household needs, or planned purchases.
- Loan Types: Includes City Union Bank pre-qualified personal loans, CUB Consumer Loans, and other personal financing solutions.
- Eligibility: Available to eligible salaried employees, self-employed individuals, and existing CUB customers, subject to the bank’s approval criteria.
- Processing Fee: For unsecured personal loans, processing charges may be up to 2% of the sanctioned loan amount.
- Repayment: Repayment tenure varies by product. Consumer Loans generally offer repayment periods ranging from 36 to 60 months.
- CUB Home Loan / Housing Loan:
- Purpose: Funding for purchasing sites for construction, ready-built houses/flats, under-construction properties, or for repairs and renovations.
- Tenure: Offers a maximum repayment period of up to 180 months.
- Takeover Facility: Available for existing housing loans from other banks.
- NRIs: Specific home loan products are tailored for NRIs with eligibility based on 60 months of net take-home pay.
- CUB Loan Against Property (LAP):
- High Funding: Borrowers can access high loan amounts up to Rs. 15 Crores.
- LTV Ratio: Funding is available for up to 70% of the market value of the pledged property.
- Flexibility: Options include EMI-based loans or an overdraft facility for both personal and business needs.
- CUB Education Loan (Vidya Vani):
- Coverage: Supports meritorious students for higher education in India or abroad.
- Margin Benefits: No margin money is required for loans up to Rs. 4 Lakhs, and low margin for loans up to Rs. 7 Lakhs.
- Sanction: Offers pre-admission loan sanctions to help students secure their spot in universities.
- CUB Consumer Loan:
- Usage: For purchasing new consumer durables like televisions, refrigerators, furniture, and wet grinders.
- Limits: Maximum loan amount is Rs. 1.00 Lakh with a low 10% margin.
- Repayment: Tenure ranges from 36 to 60 months.
2. Gold Loans
- Agriculture Gold Loan:
- Target: Specifically for farmers for agricultural and allied activities.
- Terms: Offered as a demand loan with a 12-month tenor and an ROI of 10.25%.
- Non-Agriculture Gold Loan:
- Speed: Features speedy processing and simple documentation.
- Quantum: Maximum of 75% of the market value of gold ornaments.
- Flexible Tenors: Options available for 4, 6, 9, or 12 months.
3. MSME and Corporate Business Loans
- Working Capital Loans:
- Scope: Considered for purchasing machinery, construction of business buildings/complexes, or general working capital improvement.
- Margin: A 25% margin is generally required.
- Bill Finance:
- Function: Provides financial assistance against genuine requirements in the form of bill purchase.
- Margin: Requires a 25% margin.
- Foreign Currency Loans:
- Trade Finance: Specialized financing solutions in foreign currency for global trade needs.
- Bank Guarantee (BG) & Letter of Credit (LC):
- Assistance: Provides business guarantees and trade credits secured by movable or immovable assets.
4. Agriculture and Rural Loans
- Kisan Credit Card (KCC): Provides agricultural crop loans to farmers.
- Agri Term Loans: Specialized funding for longer-term agricultural investments beyond seasonal crop cycles.
- Livestock Farming Loan: Directed toward agriculture-allied sectors like livestock and animal husbandry.
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City Union Bank Loan Interest Rate, Fees & Charges
City Union Bank links its floating retail interest rates to an External Benchmark Lending Rate (EBLR), ensuring that its interest rate structure remains transparent and competitive for all categories of borrowers.
| Product Details | Interest Rate p.a. |
| CUB Consumer Loan | 8.60% |
| Prime Home Loan | 9.15% |
| Affordable Housing Loan | 9.35% |
| Loan Against Property (LAP) | 9.35% |
| Education Loan (Vidya Vani) | 12.20% |
| Personal Loan (Salaried) | 11.00% |
| CUB Eazy Ride (Two-Wheeler) | 10.60% |
| CUB Yohavahana (Car Loan) | 8.60% |
| Non-Agri Jewel Loan | 9.50% |
| Agriculture Gold Loan | – |
Processing Fees & Other Charges
| Charge Type | Details |
| Loan Against Property – Processing Charges | Maximum 1% of the loan amount. Charges are 0.35% for loans up to ₹1 Crore and 0.25% for loans above ₹1 Crore, plus applicable GST. |
| Agriculture Gold Loan – Processing Charges | Nil processing charges for loans up to ₹3.00 Lakhs. For loan amounts above ₹3.00 Lakhs, a fee of 0.15% + GST applies. |
| Foreclosure Charges | Nil prepayment charges for individual borrowers closing floating rate retail loans using their own funds for non-business purposes. For business-purpose loans or non-individual borrowers, foreclosure charges of up to 4% may apply. |
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City Union Bank Loan EMI Calculator
Borrowers can accurately estimate their monthly financial commitments using an EMI calculator. Here are the steps to use the CUB EMI calculator:
₹
Min ₹10KMax ₹50L
%
Min 8%Max 40%
Min 3 MonthsMax 84 Months
Monthly EMI₹0
Total Payable₹0
Loan Amount₹5,00,000
Interest₹0
Tenure36 Mo
Loan Amount
Total Interest
Your Amortization Schedule (Yearly/Monthly)
- Visit the official CUB website and navigate to the relevant loan product page, such as Home Loan or Consumer Loan.
- Click on the EMI Calculator option available on the page.
- Enter the required loan amount.
- Input the applicable interest rate based on the current EBLR-linked rates.
- Select the repayment tenure according to your preference.
- The calculator will instantly display the estimated monthly EMI amount.
City Union Bank Loan Eligibility Criteria
Eligibility varies by loan type and employment status to ensure proper repayment capacity.
- Salaried Individuals (Home/LAP): Minimum age of 21 years at origination and a minimum net take-home pay of INR 20,000 per month.
- Self-employed/Professionals (Home/LAP): Minimum age of 23 years with a combined cash profit of at least INR 2.40 Lakhs per annum.
- NRIs (Home Loan): Salaried NRIs are eligible based on 60 months of net take-home pay.
- Consumer Loan: Salaried employees are eligible for up to 10 months of net take-home pay.
- Age Limits: Maximum age at loan maturity is generally 60 years for salaried applicants and 65–70 years for self-employed applicants.
Documents Required for City Union Bank
While specific requirements vary by loan type, the following are standard documents generally required.
- Proof of Identity and Address: Required for Re-KYC and account opening purposes.
- Income Proof: Salary slips for salaried employees or the latest ITR for professionals and self-employed individuals.
- Property Documents: Required for Loan Against Property and Home Loans, including valuation reports.
- PAN Card: Mandatory for grievance analysis and standard banking operations.
- Academic Proofs: Required for education loans, including admission details and academic performance records.
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Loan Application Process for City Union Bank
CUB offers a streamlined loan application process through multiple channels.
- Select the Application Channel: Choose between the online application portal, visiting the nearest branch, or using the Lakshmi chatbot.
- Submit the Application Form: Fill out the “Bank on CUB” online form with details such as Name, Mobile Number, Email ID, and Preferred Branch.
- Upload or Submit Documents: Provide the required identity, address, and income documents as requested by the bank.
- Verification Process: The bank evaluates the application and performs asset evaluation for property-based loans.
- Loan Sanction and Disbursement: Upon approval, security documents are executed and the loan amount is disbursed. Construction-related loans may be released in stages.
City Union Bank Loan Repayment
Repayment structures are designed to be flexible and borrower-friendly.
- Property Loans: Long-term repayment tenures of up to 180 months are available for construction and property purchase loans.
- Consumer Durables: These loans generally offer shorter repayment tenures ranging between 36 and 60 months.
- Agriculture Gold Loans: These are structured as demand loans with a one-year repayment tenor.
- Prepayment: No prepayment penalty is charged for floating-rate retail loans taken over by other banks or fixed-rate loans closed using the borrower’s own funds.
Also Read: CUB FD Rates | CUB RD Rates
City Union Bank Customer Care
CUB provides multiple customer support channels for banking assistance and grievance redressal.
| Contact Method | Details |
| Domestic Toll-Free | 1800 120 5000 |
| International Support | +91 44 7122 5000 |
| Email Address | customercare@cityunionbank.in |
| Virtual Assistant | Lakshmi Chatbot |
| Administrative Office | Kumbakonam: +91 435 2402322 / 2401622 |
Summary & Key Insights
- Long-Standing Trust: City Union Bank has over a century of banking experience, having been established in 1904.
- EBLR-Linked Rates: Most retail loan products are competitively priced and linked to the Repo Rate through the EBLR framework.
- Diverse Credit Solutions: The bank offers financing solutions ranging from small consumer durable loans to large-scale business funding of up to ₹15 Crores.
- Customer-Centric Technology: Features like Video KYC and the AI-powered Lakshmi chatbot simplify the banking experience.
- Flexible Repayment Options: Borrowers benefit from long repayment tenures and minimal prepayment charges under eligible conditions.
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