Easy Way to Get a Different Types of Union Bank of India Business Loan in 2021?

Union Bank of India Business Loan | The Union Bank of India is known as one of the leading Government-owned banks in India. This bank provides various types of MSME Loans at an interest rate of 6.80%. MSME Loans are offered to broad businesses like trading, manufacturing, and service center. When it comes to MSME Sector, Union Bank of India Business Loans offers several types of beneficiary schemes like Union Mudra Union Bank of India Business Loan, Union Trade Plus Union Bank of India Business Loan, Union Start-up Union Bank of India Business Loan, Union Liqui Property Union Bank of India Business Loan, and Union SME Plus Union Bank of India Business Loan.  

Types of Union Bank of India Business Loans Offered 2021  

Union Bank of India provides a variety of business loans for small businesses to meet the demands of its customers. The following are some of the most popular Union Bank MSME loan programs: 

Union Start-Up Union Bank of India Business Loan

As per the Start-up India Initiative, this scheme is for “start-up” entities to assist them in creating, producing, and commercializing new products or services based on technology or intellectual property. 

• The loan amount ranges from Rs. 10 lakhs to Rs. 5 crores. 
• Collateral isn’t required. 
• There will be no processing fees. 
• The loan can be used for working capital or as a term loan. 
• Working capital is repaid over 12 months. 

Union Liquidity Property Union Bank of India Business Loan 

• The interest rate offered under this arrangement starts at 9.50% and goes up from there. 
• This loan is available to any small business that has been in operation for at least two years. Individuals, HUFs, and businesses engaged in real estate and other speculative activities are not eligible to participate in the scheme. 
• Applicants must have a credit score that meets the minimum requirements. 
• All necessary statutory approvals/NOCs should be obtained from the appropriate authorities. 
• The loan amount might be anything between Rs. 10 lakh and Rs. 10 crores. The funds can be used to purchase equipment or machinery, as well as to supplement working capital for everyday needs or to pay off large debts. 
• The maximum loan term is ten years, with a six-month moratorium. Furthermore, interest must be paid on a timely basis. 
• Collateral and a guarantee are also required. 
• The loan can be taken out as a term loan or as an overdraft. 

Union High Pride Union Bank of India Business Loan

• Apart from trade units, Union High Pride loan offered to MSME units that have been engaged in manufacturing or service operations for a minimum of one financial year and have filed income tax reports. 
• The account’s credit rating must adhere to the standards.  
• The loan amount starting from Rs. 1 crore to Rs. 25 crores. 
• The loan repayment duration is set according to the bank’s current loan policy. 
• The applicable interest rate is: 
• MSME rates are 1% lower than the applicable rate, subject to the minimum applicable MCLR. 
• MSME rates are 25% lower than the applicable rate, subject to the minimum applicable MCLR if any of the following conditions are met: 

1. External credit grade of BBB and above.   
2. Collateral coverage of 100% and higher.  

Union Nari Shakti Union Bank of India Business Loan

This loan is developed specifically for women who own and manage small businesses and micro-enterprises. The majority of partners in a partnership concern or company should be women. In the event of a corporation, the majority of the board of directors must be female. This loan is available to sole proprietorships, limited liability companies, and other entities. 

• The interest rate offered under this arrangement starts at 6.80% and goes up from there. 
• The loan amount might start at Rs. 2 lakh and go up to Rs. 1 crore. 
• Up to a loan sum of Rs. 10 lakh, no collateral security is required. 
• The repayment duration is limited to 7 years.

Union Trade Union Bank of India Business Loan 

• This credit is offered to all retail and wholesale businesses, including grocery and consumer durables department store dealers, malls, and supermarkets. 
• The scheme is open to new and existing sole proprietorships, partnership concerns (including LLPs), and limited corporations involved in commercial activities. 
• The business must be registered for sales tax, VAT, and the Shop and Establishment Act. The highest working capital that can be approved is Rs. 2.5 crore, and the maximum term loan amount that can be approved is Rs. 5 crores. The ceiling will be established at 75% of the project or asset’s cost. 
• The maximum repayment duration, including the moratorium period, is 7 years. 

Documents Required for Union Bank Business Loan 2021  

When applying for a Union Bank of India Business Loan, you must present the following documents: 

• The application form that has been filled out 
• Photos the size of a passport 
• ID proof for the business plan, such as a voter ID card, a driver’s license, an Aadhaar card, a PAN card, and so on. 
• Aadhaar Card, Passport, Driving License, and other forms of identification can be used as evidence of address. 

Conclusion  

The bank may request additional information and documentation to back up your claim. To avail of a business loan or acquire further knowledge about various loan products, one can visit a nearby Union Bank branch or apply Union Bank of India Business Loan at online lending websites that are convenient to your home.