The Union Bank of India personal loan interest rate starts at 10.85% per annum for up to ₹50 Lakhs, making it one of the best options in the market. Borrowers can choose from flexible repayment tenures ranging from 12 to 60 months, with minimal processing fees and quick disbursal. These interest rates vary based on your income type, creditworthiness, and employer profile.
Read more to learn about the complete breakdown of Union Bank Personal Loan interest rates, fees, EMI estimates, and how credit score or repo rate changes impact your interest rates.
| Union Bank personal loan interest rates for salaried individuals start from 11.25% p.a. and can go up to 13.95% based on risk grades. The final rate depends on your income, credit score, employer category, and whether you hold a salary account with Union Bank. |
Union Bank Personal Loan Interest Rates
Union Bank provides different slabs of personal loan interest rates based on borrower risk profiles and income sources. This is also dependent on the type of loan one opts for and the overall repayment capacity.
Although the current personal loan interest rate is between 11.25% and 12.95% for salaried individuals, it is between 13.85% and 14.95% for salaried individuals without an employer and the self-employed categories.
These personal loan interest rates are reviewed regularly as per internal risk policies and RBI guidelines.
| Personal Loan Scheme | Who is Eligible | Interest Rate (ROI) |
|---|---|---|
| Union Personal Loan (Tie-up) | Salaried with employer tie-up | 12.85% – 12.95% |
| Union Personal Loan (Non-Tie-up) | Salaried without employer tie-up | 13.85% – 13.95% |
| Union Personal Loan (Non-Salaried) | Self-employed individuals | 14.85% – 14.95% |
| Union Professional Personal Loan | Salaried & non-salaried professionals | 11.25% – 12.50% |
| Union Ashiyana Personal Loan | For housing-related personal needs | 11.25% – 12.00% |
| Union Women’s Professional Loan | Women professionals (salaried & others) | 10.85% – 12.00% |
| Union Cash (Pensioners’ Loan) | Pensioners & family pensioners | 10.85% |
| SRLGE Personal Loan | Government employees (special scheme) | 10.85% – 12.95% |
Union Bank Personal Loan Details
Union Bank offers some of the best features for its personal loans with competitive interest rates, flexible repayment options, and minimal hassle. Here is a comprehensive list of things you should know:
| Feature | Details |
|---|---|
| Interest Rate | 10.85% – 14.95% |
| Loan Amount | Up to ₹50 Lakhs |
| Tenure | 84 Months (maximum) |
| Processing Fee | 1% of the loan amount + GST |
| Prepayment Charges | Nil |
| Other Charges | • Penalty for delayed payments • Other standard charges as per bank rules |
| Eligibility | Government employees, salaried & non-salaried professionals, self-employed professionals, pensioners & family pensioners. |
| Application Process | Available at Union Bank branches; documentation required per guidelines |
Union Bank Personal Loan Fee & Charges
Before applying for a Union Bank personal loan, it’s important to understand the applicable processing fees & charges based on the type of loan.
Union Bank levies standard processing and incidental charges on personal loans. Understanding these fees helps you assess the total cost of borrowing. The processing fee for personal loans in Union Bank is as follows:
| Personal Loan Scheme | Processing Fee & Charges |
|---|---|
| Union Personal Loan (Tie-up) | Up to 1% + GST (standard fee) |
| Union Personal Loan (Non-Tie-up) | Up to 1% + GST, as per bank norms |
| Union Personal Loan (Non-Salaried) | 1% + GST; slightly higher fees may apply |
| Union Professional Personal Loan | 1% + GST; Standard processing fee |
| Union Ashiyana Personal Loan | Applicable as per the scheme |
| Union Women’s Professional Loan | Concessional: 0.50% – 1% |
| Union Cash (Pensioners’ Loan) | Minimal charges |
| SRLGE Personal Loan | Preferential fees for the government staff |
Note: All fees are subject to applicable GST.
Get Personal Loan Online Up to ₹15 Lakhs
By entering your number, you're agreeing to Terms & Conditions & Privacy Policy.
Comparison of Personal Loan Interest Rates
Before finalising a personal loan, it is best to compare Union Bank’s rates with similar lenders to assess competitiveness.
| Lender | Interest Rate (p.a.) | Processing Fee |
|---|---|---|
| Union Bank of India | 11.25% – 14.95% | Up to 1% |
| State Bank of India (SBI) | 11.15% – 13.80% | Up to 1.5% |
| Bank of Baroda | 10.50% – 15.00% | 1% – 2% |
| Punjab National Bank (PNB) | 10.90% – 14.50% | Up to 1.2% |
| Canara Bank | 11.55% – 15.85% | Up to 1.5% |
| Bajaj Finserv | 12% – 26% | 1% – 4% |
| Tata Capital | 10.99% – 24% | 1.5% – 2% |
| HDB Financial Services | 12.50% – 27% | Up to 3% |
Union Bank is more favourable for pensioners and salaried individuals with government or PSU employment.
| Union Bank Personal Loan starts at an interest rate of 10.85% p.a. for government employees, women professionals and pensioners, with flexible tenures and low processing fees. This makes Union Bank’s personal loans one of the best options in the market for individuals. |
Union Bank Personal Loan EMI Calculator
Your Amortization Schedule (Yearly/Monthly)
The Union Bank personal loan interest rates can be calculated by using a personal loan EMI calculator, which can help you estimate monthly repayment before applying. Here is a typical interest rate chart for various amounts of loans across different tenures, using the standard lowest interest rate for a salaried individual, 11.25%, as the interest rate.
| Loan Amount | 1 Year | 2 Years | 3 Years | 4 Years | 5 Years |
|---|---|---|---|---|---|
| ₹1 Lakh | ₹8,847 | ₹4,701 | ₹3,312 | ₹2,634 | ₹2,218 |
| ₹2 Lakh | ₹17,694 | ₹9,402 | ₹6,624 | ₹5,268 | ₹4,436 |
| ₹3 Lakh | ₹26,541 | ₹14,103 | ₹9,936 | ₹7,902 | ₹6,654 |
| ₹4 Lakh | ₹35,388 | ₹18,804 | ₹13,248 | ₹10,536 | ₹8,872 |
| ₹5 Lakh | ₹44,235 | ₹23,505 | ₹16,560 | ₹13,170 | ₹11,090 |
| ₹6 Lakh | ₹53,082 | ₹28,206 | ₹19,872 | ₹15,804 | ₹13,308 |
| ₹7 Lakh | ₹61,929 | ₹32,907 | ₹23,184 | ₹18,438 | ₹15,526 |
| ₹8 Lakh | ₹70,776 | ₹37,608 | ₹26,496 | ₹21,072 | ₹17,744 |
| ₹9 Lakh | ₹79,623 | ₹42,309 | ₹29,808 | ₹23,706 | ₹19,962 |
| ₹10 Lakh | ₹88,470 | ₹47,010 | ₹33,120 | ₹26,340 | ₹22,180 |
| ₹15 Lakh | ₹1,32,705 | ₹70,515 | ₹49,680 | ₹39,510 | ₹33,270 |
| ₹20 Lakh | ₹1,76,940 | ₹94,020 | ₹66,240 | ₹52,680 | ₹44,360 |
| ₹25 Lakh | ₹2,21,175 | ₹1,17,525 | ₹82,800 | ₹65,850 | ₹55,450 |
| ₹30 Lakh | ₹2,65,410 | ₹1,41,030 | ₹99,360 | ₹79,020 | ₹66,540 |
| ₹50 Lakh | ₹4,42,350 | ₹2,35,050 | ₹1,65,600 | ₹1,31,700 | ₹1,11,100 |
Disclaimer: These values are indicative and may vary based on exact terms and borrower risk category.
Using the Union Bank Personal loan EMI calculator, you can get a quick view of your monthly EMI and what total interest might look like.
Get Personal Loan Online Up to ₹15 Lakhs
By entering your number, you're agreeing to Terms & Conditions & Privacy Policy.
Factors Affecting Union Bank Personal Loan Interest Rate
Interest rates are influenced by personal and financial attributes of the borrower. There are several factors that can affect your Union Bank Personal Loan Interest Rate.
- Credit score (CIBIL)
- Employer type (Govt, PSU, Pvt)
- Loan tenure
- Monthly income
- Banking relationship with Union Bank
- Existing loans or EMIs
Impact of Credit Score on Union Bank Personal Loan Interest Rates
A credit score is a three-digit numerical representation of an individual’s creditworthiness. The score ranges from 300 to 900 and shows how reliable you are at repaying the loan.
The impact of credit score on the personal loan interest rate includes:
- Lower interest rates
- Pre-approved loan offers
- Faster loan approval
Generally, a credit score of 700 and above is considered ideal. Below 700, the Indian Bank personal loan interest rates may be higher. For example,
| Scheme | CIC Score | Effective ROI |
|---|---|---|
| Union Professional Personal – Salaried Tie-up | 700 & above | 11.25% |
| Below 700 | 11.50% | |
| Union Professional Personal – Salaried Non-Tie-up | 700 & above | 11.75% |
| Below 700 | 12.00% | |
| Union Professional Personal – Non-Salaried | 700 & above | 12.25% |
| Below 700 | 12.50% |
Impact of Repo Rate Cut on Union Bank Loan Interest Rate
A repo rate is the interest rate at which the RBI lends money to commercial banks.
The MCLR (Marginal Cost of Funds Based Lending Rate) is the minimum rate at which a bank can offer loans. It is calculated based on the bank’s own cost of funds and other factors. It is indirectly influenced by the repo rate.
The EBLR is the External Benchmark Lending Rate, which is set by Union Bank and is directly linked to the RBI Repo Rate.
The RBI repo rate indirectly affects Union Bank’s lending rates via its internal MCLR and external benchmark system.
Union Bank changes personal loan interest rates as they are calculated based on the RBI’s repo rate, which is most applicable to floating interest rates.
As of April 2025, the EBLR is 8.75%, and the MCLR for one year stands at 9.00%. Let’s look at the impact of the repo rate on personal loan interest rates.
- Lending is more affordable by traditional banks at a lower repo rate.
- Indian banks offer more personal loans at reduced interest rates.
- This influences the MCLR and EBLR at which a bank equates the total interest rate for individuals.
When the RBI reduces the repo rate, banks lower their MCLR. Union Bank links personal loans to its internal benchmark, or EBLR, so new borrowers may benefit if linked to floating rates. Fixed-rate borrowers remain unaffected.
For example, if a bank’s MCLR is 9.00%, and they add a 2.25% margin for a personal loan, your final interest rate will be:
9.00% + 2.25% = 11.25% p.a.
This 11.25% p.a. becomes your Effective Rate of Interest (ROI) on the personal loan.
For further queries on the Union Bank of India Personal Loan, connect with the Union Bank Personal Loan Customer Care.
Download the Buddy Loan App Now!
One solution to each of your financial needs at your fingertip.
Scan to download now
