Union Bank Business Loan

Union Bank of India prioritizes the MSME sector, providing schemes like Union MSME Gold Loan Plus, PM SVANidhi, and Union Textile. Offering loan tenures of up to 15 years, Union Bank supports women entrepreneurs with their business loan schemes.

With competitive interest rates, minimal processing fees, and swift loan approval, Union Bank stands out as an ideal choice for your financing needs.

To know more about Union Bank its business loan offerings, read further.

Apply for a business loan now!

Union Bank Business Loan Highlights

Union Bank's business loans offer financing solutions for various needs, from establishing a startup to empowering women entrepreneurs and supporting established MSMEs. The table below provides details associated with their loan service:

Loan type Business loan
Purpose Provides MSME loans, for women entrepreneurs and startup
Loan Amount Up to ₹10 crores
Interest Rate Depends on MCLR
Tenure 15 years
Note: Please be informed that the Union Bank business loan interest rates are subject to change per the market.

Union Bank Business Loan Processing Fees

Scheme Fees
Union Nari Shakti Scheme Zero processing charges for loan limits up to Rs 2.00 Crores
Union Stand-Up India Nil
Union Mudra documentation charges Flat Rs 500 + actual stamp duty

Types of Union Bank Business Loans

Whether it's the Union MSME Gold Loan Plus supporting diverse MSMEs or the Union Stand-Up India fostering entrepreneurship, the table below provides an overview of Union Bank's focus on the varied MSME sector.

To know more highlights on ICICI Bank’s PPF offerings, glance through the table

Scheme Purpose Eligibility Type of Loan
Union MSME Gold Loan Plus Finance MSMEs for business needs Individual MSMEs, SHGs with Udyam Demand Loan
Union Nari Shakti Scheme Term loan for premises/machinery purchase Women-owned/managed MSMEs. Term Loan, CC
Union Equipment Finance Purchase commercial equipment and vehicles All units availing working capital. Term Loan
Union MSME Suvidha For existing business activities only Engaged in various activities. Term Loan or Working Capital
Union Stand-Up India Promote entrepreneurship among SC/STs and Women entrepreneurs SC/ST/woman borrowers. Composite Loan

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Know more about loan criteria to help qualify for quick business loan approvals.

Curious to know more on the different types of business loan offered?
Check more on working capital loan, equipment purchase loan, medical equipment loan, construction equipment loan and commercial vehicle loans from the linked pages.

Documents Required for Union Bank MSME Loans

Here are the documents required to avail of Union Bank MSME Loans:

For Existing Units Seeking Working Capital (WC) Facilities:

  • Last 3 years' audited balance sheet with notes and annexures.
  • Last 3 years IT returns
  • CMA data.
  • Order book position/contracts/proof of demand.
  • Last GST assessment order.
  • Statutory clearance certificate.
  • Lead Bank assessment note (for consortium finance).
  • Details of Associate/Sister/Group Concerns (names, bankers, credit facilities, present status, etc.).
  • Details of collaterals where applicable.

Additional Documents for Takeover Accounts:

  • NOC/status of the account.
  • Credit report from existing bankers.
  • Statement of account for the last 1 year.

Additional Documents for Term Loan/Letter of Credit (LC) for Capital Goods Application (if not included in the project report):

  • Cash flow statement for the entire repayment schedule.
  • Fund flow statement for the entire repayment schedule.
  • Profitability projections and assumptions for the entire repayment period.
  • Break-even analysis.
  • IRR (Internal Rate of Return) working.
  • DSCR (Debt Service Coverage Ratio) working.
  • CA certificate for promoter's contribution.
  • Project report covering:Cost of machinery and suppliers, quotations/proforma invoices from suppliers etc
Note:These documents are indicative and may vary based on specific requirements and loan types.

Why Union Bank Business Loan

Union Banks helps entrepreneurs step into a realm where financial support meets innovation, propelling your business. To top it off, here are other major benefits offered by the bank for entrepreneurs.

  • MSME Loan Products: Union Bank of India offers a range of MSME loan products like Union Sishu Mudra, Union Nari Shakti, and Union GST Gain to encourage new entrepreneurs and women entrepreneurs.
  • Digital Application Process: The bank facilitates a seamless digital application process for business loans. Entrepreneurs can conveniently apply online, saving time and ensuring a hassle-free experience. The online platform allows for quick submission and tracking of applications.
  • Interest Rates: Union Bank Business Loans, particularly under MSME schemes, offer tax benefits to borrowers. The interest rates are competitive for businesses looking to secure funds for various purposes, including working capital needs.
  • Quick Processing and Approval: The bank aims to deliver quick approvals, ensuring that businesses can access the required funds promptly to address their financial requirements.
  • Wide Range of Loan Amounts: Whether you are seeking a modest loan under Union Sishu Mudra or a larger loan under Union GST Gain, the bank accommodates varying financial needs.
  • Support for Government Schemes: Union Bank actively participates in supporting government schemes like PMSVANidhi, to promote entrepreneurship and provide financial assistance to businesses.

How to Apply for a Union Bank Business Loan

Here is the step-by-step guide for applying for a business loan with Union Bank of India online:

Step 1: Visit Union Bank's Official Website

Step 2: Explore MSME Loan Section. Navigate to the MSME loan section to view available products like Union Sishu Mudra, Union Kishore & Tarun Mudra, Union Nari Shakti, and Union GST Gain.

Step 3: Select the specific MSME loan product that suits your business requirements.

Step 4: Click "Apply Now" associated with your chosen loan scheme.

Step 5: Fill Online Application Form with accurate details, including business and personal information.

Step 6: Upload necessary documents such as KYC, business proof, and financial statements as specified by the bank.

Step 7: Review and ConfirmReview the entered information for accuracy before proceeding.

Step 8: Submit Application.

Step 9: Await communication from the bank regarding the status of your application and any further steps.

Note: Refer to the official Union Bank of India website or contact the bank directly for the most accurate and up-to-date information.

Apply for a business loan now!

Steps to Apply for Business Loan on Buddy Loan

Buddy Loan offers business loans starting at an annual interest rate of just 11.99%. Follow the steps and apply for you loan today!

Step 1:Visit buddyloan.com or download the Buddy Loan App (Android or iOS).

Step 2:Proceed to the business loan application page and enter your mobile number and OTP to access the Business Loan Application Page.

Step 3:Specify Loan Amount and Email. Select the Business Loan option.

Step 4:Choose Business Proof (Yes/No)

  • If 'Yes' (support your statement with a business proof), input both business and personal details.
  • If 'No' (No business proof), select your profession type and enter your personal details.

Step 5: Provide Income Details and Click 'Submit'

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Frequently Asked Questions

The interest rate on a business loan from Union Bank of India may vary based on factors such as the type of loan, loan amount, and the scheme chosen

Union Bank offers a range of benefits on business loans, including competitive interest rates, flexible repayment options, quick processing, and tailored loan solutions for different business needs.

The processing fee for a business loan from Union Bank of India can vary depending upon the scheme chosen

The eligibility criteria for a business loan from Union Bank of India depend on various factors, including the type of loan, the nature of the business, financial stability, and the applicant's creditworthiness.

Union Bank may offer both fixed and floating interest rate options on business loans. The choice between fixed and floating rates depends on the type of loan and the applicant's preferences.

The maximum and minimum business loan amounts offered by Union Bank of India can vary based on the type of loan and the scheme. However, with the Union Nari Shakti scheme, you can avail loan up to ₹10 crores.

Common KYC (Know Your Customer) documents required for a business loan application with Union Bank include

  • Identity proof,
  • Address proof,
  • Business proof,
  • Financial statements, and any other documents specified by the bank. The exact documents may vary based on the type of business loan.

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