Union Bank OD Loan - Flexi Credit, Low Interest

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Featured Personal Loan Overdraft (OD) Schemes

Union Ashiyana Overdraft Scheme

Purpose: Designed for existing and new home loan borrowers to meet personal or business expenses or repay high-cost loans.
Loan Amount: Up to ₹20 lakh or 50% of the home loan amount, whichever is lower.
Interest Rate: Same as the home loan rate plus a 0.50% margin. Starts at approximately 8.10% p.a. for home loans, so expect slightly higher for OD.
Tenure: Co-terminus with the home loan tenure, up to the borrower’s retirement age (for salaried) or 65 years (for non-salaried).
Repayment: Overdraft limit must be reduced by 20% annually in the last five years of the home loan tenure. No prepayment penalty.

- Eligibility: Typically available to salaried individuals with a strong credit profile and existing relationships with Union Bank of India.
- Minimum Income Requirements: ₹25,000 for Union Bank salary account holders and ₹50,000 for others.
- No Collateral Required: Being an unsecured facility, no assets need to be pledged for approval.
- Credit Score Importance: A strong credit profile (CIBIL score 650+) is crucial for approval and better terms.
- Pre-approved Offers: Existing Union Bank customers may receive pre-approved OD offers with minimal documentation.
- Flexible Repayment: No fixed EMIs - repay as per your cash flow convenience.
- Interest Rates: Typically lower than credit cards but may be higher than standard personal loans, charged only on utilized amount.
- Limit Determination: The OD limit is set based on your income, creditworthiness and relationship with the bank.
- Digital Management: Monitor and manage your OD facility through Union Bank's NetBanking and mobile app.
- Renewal: The OD facility typically needs to be renewed annually, subject to review of your financial profile.
- Flexible Repayment: Unlike personal loans with fixed EMIs, OD facilities have no mandatory monthly repayment schedule. Borrowers can repay at their convenience by depositing funds into the account, reducing the outstanding balance.
- Repayment can be made through:
  - Adjustment of the linked deposit (e.g., fixed deposit or securities).
  - Fresh inward remittances from outside India or local rupee resources in the borrower’s Non-Resident Ordinary (NRO) account.
  - Auto-sweep from linked salary or savings accounts when sufficient funds are available.
- PMJDY OD: The facility is a running OD with a 36-month tenure, subject to review thereafter. Borrowers can repay flexibly within the sanctioned limit.
- No Prepayment Penalties: OD facilities typically incur no charges for early repayment, unlike personal loans that may have prepayment fees.

Benefits of Personal Loan Overdraft (OD) Facility

Flexible Fund Access: Withdraw as Needed: Borrowers can withdraw funds up to the approved overdraft limit at any time, offering flexibility for urgent or unplanned expenses like medical emergencies, travel, or business needs. No Fixed EMI: Unlike term loans, there’s no mandatory monthly repayment schedule. You only pay interest on the amount utilized, not the entire limit.
Cost-Effective Interest Structure: Interest on Utilized Amount: Interest is charged only on the withdrawn amount and for the duration it’s used, unlike a term loan where interest applies to the entire loan from day one. Lower Effective Rates: For schemes like Union Ashiyana OD, interest rates align with home loan rates (starting ~8.60% p.a. after a 0.50% margin), which are lower than standard personal loan rates (11.35%–15% p.a.). Savings on Surplus Funds: Depositing surplus funds into the OD account (e.g., via Union Smart Save) reduces the outstanding balance, lowering interest costs.

- Revolving Credit Line: Repay the withdrawn amount at your convenience, and the credit limit is replenished, allowing repeated borrowing without reapplying. Offers greater flexibility compared to fixed EMI-based personal loans.
- Instant Access to Funds: Withdraw funds instantly via NetBanking, mobile banking, or HDFC Bank ATMs, ensuring quick liquidity for urgent requirements.
- Tailored for Salaried Individuals: Designed for salaried professionals with strong credit profiles, especially existing HDFC Bank customers, with eligibility based on income.
- No Fixed EMI Commitment: Unlike personal loans with mandatory monthly EMIs, the OD facility allows you to repay at your pace, making it suitable for those with irregular cash flows or seasonal expenses.
- Cost-Effective for Short-Term Needs: Since interest is charged only on the utilized amount, it's ideal for short-term borrowing, reducing overall interest costs compared to a full loan disbursement.
- Comparative Advantage Over Personal Loans: While personal loans are best for one-time, large expenses with fixed EMIs, the OD facility is suited for ongoing or unpredictable expenses with flexible withdrawals.
- Revolving Credit Facility: Reusability: As you repay the utilized amount, the overdraft limit is restored, allowing repeated use without reapplying for a new loan.
- Tailored for Specific Needs: The Ashiyana OD is ideal for home loan customers, offering up to ₹20 lakh or 50% of the home loan amount for personal or business expenses, with competitive rates tied to the home loan.
- Simplified Repayment and Prepayment: Repaying the overdraft early or reducing the utilized limit incurs no penalties, encouraging financial discipline without extra costs.
- Quick and Hassle-Free Access: Minimal Documentation: Existing customers (home loan or salary account holders) benefit from pre-approved offers, requiring minimal paperwork and faster disbursal.
- Balance Transfer Benefits: Borrowers with high-cost personal loans from other banks/NBFCs can transfer them to Union Bank’s OD facility, potentially lowering interest rates and gaining flexible repayment options.
- Financial Discipline and Transparency: Transparent Charges: Processing fees are capped (e.g., 1% of loan amount, max ₹7,500 for Ashiyana OD), with no hidden costs.
- Customized Eligibility: Available to salaried (minimum ₹15,000–₹20,000 monthly salary) and non-salaried individuals , including government employees, PSU staff, and home loan borrowers.
- Multi-Purpose Usage: Versatile Applications: Funds can be used for diverse needs—medical expenses, education, weddings, travel, business investments, or debt repayment—without restrictions, unlike purpose-specific loans.

Steps to Apply for Union Bank of India Personal Loan OD

1. Check Eligibility
- Union Ashiyana Overdraft Scheme:
  - Existing or new home loan borrowers (including balance transfers from other banks/NBFCs).
  - Age: Minimum 18 years at application; maximum at maturity is retirement (salaried) or 65 years (non-salaried).
  - Salaried: Minimum gross monthly salary of ₹15,000 (₹20,000 in metro cities).
  - Non-salaried: Maintain ₹25,000 average quarterly balance for the past four quarters, with no cheque returns.
- Salary Plus Overdraft Facility:
  - Salaried individuals with a salary account at Union Bank of India.
  - Permanent employees of reputed organizations, government, or PSUs.
  - Minimum gross salary of ₹15,000 (₹20,000 in metro cities).
  - At least 6 months’ relationship with Union Bank.
2. Gather Required Documents
- KYC Documents: PAN, Aadhaar, Passport, Voter ID, Driving License.
- Address Proof: Aadhaar, Passport, Utility Bill, or Rent Agreement.
- Income Proof:
  - Salaried: Last 3–6 months’ salary slips, Form 16, salary account statements.
  - Non-salaried: Last 2–3 years’ ITRs, business proof, and profit/loss statements.
- For Ashiyana OD: Home loan agreement, property documents, repayment track record.
- Bank Account Details: Union Bank account statement.
- Photograph: Recent passport-size photo.
- Application Form: Duly filled form (online or offline).
3. Choose Application Method
- Option A: Online Application
  - Visit www.unionbankofindia.co.in and go to the “Loans” section.
  - Navigate to "Personal Loan" or "Overdraft Facility" (Ashiyana or Salary Plus).
  - Login or check pre-approved offers.
  - Fill out the online form with personal, income, and loan details.
  - Upload required documents (KYC, income proof, home loan papers).
  - Submit and receive application reference number for tracking.
- Option B: Visit Branch
  - Find the nearest branch using the branch locator or call 1800 22 22 44.
  - Collect and fill out the application form.
  - Submit documents physically to the branch.
  - Consult with a loan officer for any queries.
  - Verification and approval by the branch followed by OD activation.
- Option C: Mobile Banking (Pre-Approved Offers)
  - Log in to the Union Bank mobile app.
  - Navigate to “Loans” or “Offers.”
  - Select and apply for the OD offer.
  - Enter necessary details and upload documents if required.
  - Submit and await approval and OD activation.
4. Track Application Status
- Online: Use the Union Bank website or mobile app with your reference number.
- Branch: Contact the branch where you submitted your application.
5. Activation of OD Facility
- Once approved, the OD limit is linked to your savings/current or home loan account.
- You can withdraw funds via ATM, mobile banking, net banking, or cheque.
- Interest is charged only on the utilized amount.
- Any surplus deposit reduces the outstanding balance.

Eligibility Criteria for Union Bank of India Personal Loan Overdraft (OD) Facility

1. Union Ashiyana Overdraft Scheme
This scheme is tailored for home loan borrowers seeking an overdraft facility for personal or business expenses.
- Applicant Categories:
  - Existing Home Loan Borrowers: Individuals with an active home loan from Union Bank of India.
  - New Home Loan Borrowers: Applicants applying for a new home loan with Union Bank or transferring an existing home loan from another bank/NBFC.
  - Balance Transfer Cases: Borrowers transferring high-cost personal or home loans from other financial institutions to Union Bank.
- Age Criteria:
  - Minimum Age: 18 years at the time of application.
  - Maximum Age at Loan Maturity: Salaried: Up to 60 years; Non-Salaried: Up to 65 years.
  - Co-Applicant: Age and income of co-applicant (if any) also considered.
- Income Criteria:
  - Salaried Individuals:
    - ₹15,000 for non-metro cities.
    - ₹20,000 for metro cities.
    - Stable employment with a reputed employer for at least 2 years.
  - Non-Salaried Individuals:
    - Maintain an account with Union Bank.
    - Minimum ₹25,000 average quarterly balance for last 12 months.
    - Stable income with ITR for the last 2–3 years (minimum ₹2–3 lakh annual income).
- Home Loan Linkage:
  - Loan Amount: OD limit capped at ₹20 lakh or 50% of the home loan amount, whichever is lower.
  - Tenure: Linked to home loan tenure.
  - Property: Legally clear with valid documents.
- Banking Relationship:
  - Loan account or savings/current account with Union Bank.
  - 6–12 months banking relationship preferred.
2. Salary Plus Overdraft Facility
This scheme targets salaried individuals with salary accounts at Union Bank.
- Applicant Categories:
  - Employees with salary accounts at Union Bank.
  - Preferred: Government, PSU, reputed private companies, or tie-up organizations.
- Age Criteria:
  - Minimum Age: 18 years.
  - Maximum Age: Typically 60 years; up to 65 in special cases.
  - Young Professionals aged 21–35 may be eligible with reputed employers.
- Income Criteria:
  - ₹15,000 for non-metro cities, ₹20,000 for metro cities.
  - Salary should be credited to Union Bank account for at least 6 months.
- Employment Criteria:
  - Permanent employment required.
  - Minimum 2 years total work experience.
  - Minimum 6 months with current employer.
- Banking Relationship:
  - Mandatory salary account at Union Bank.
  - Pre-approved OD offers for strong account holders.
- Loan Amount Eligibility:
  - OD limit up to ₹15 lakh, or 5–10 times net monthly salary.
  - Special cases: Up to ₹20 lakh for certain government/PSU employees.

Documents Required for Union Bank Personal Loan Overdraft (OD) Facility

Application Form:
- Duly filled and signed personal loan OD application form (available on Union Bank’s website or at branches).
- For online applications, the form is filled digitally.
Identity Proof (any one of the following, preferably with a photograph):
- PAN Card (mandatory for financial transactions)
- Aadhaar Card
- Passport
- Voter ID
- Driving License
Address Proof (any one of the following):
- Aadhaar Card
- Passport
- Utility Bill (electricity, water, or gas bill, not older than 3 months)
- Rent Agreement (registered)
- Voter ID
- Driving License
Photograph:
- Recent passport-size photographs (typically 2–3, as specified by the bank)
Scheme-Specific Documents:
1. Union Ashiyana Overdraft Scheme
This OD is linked to a home loan, so additional home loan-related documents are required.
Income Proof:
For Salaried Individuals:
- Latest 3–6 months’ salary slips
- Form 16 or Income Tax Return (ITR) for the last 1–2 years
- Bank statement (of salary account) for the last 6 months showing salary credits
For Non-Salaried Individuals (self-employed, professionals):
- ITR for the last 2–3 years with computation of income
- Profit and Loss Account and Balance Sheet (certified by a Chartered Accountant, if applicable)
- Bank statement (savings/current account) for the last 12 months showing an average quarterly balance of ₹25,000 for the last four quarters
- Business proof (e.g., GST registration, shop license, or professional license, if applicable)
Home Loan Documents:
- Home loan sanction letter or loan agreement (for existing Union Bank home loan borrowers)
- Property documents (e.g., sale deed, title deed, or possession certificate) related to the home loan
- Repayment track record or statement of the home loan account (for existing borrowers)
2. Salary Plus Overdraft Facility
This OD is designed for salaried individuals with a salary account at Union Bank, requiring salary-related documents.
Income Proof:
- Latest 3–6 months’ salary slips reflecting regular salary credits
- Form 16 or ITR for the last 1–2 years
- Bank statement of the Union Bank salary account for the last 6–12 months, showing consistent salary credits
Employment Proof:
- Appointment letter or employment contract from the employer
- Employee ID card (especially for government/PSU employees)
- Proof of permanent employment (e.g., confirmation letter from the employer, if required)
Bank Account Details:
- Union Bank salary account statement for at least 6 months, confirming a minimum relationship with the bank
- Minimum gross monthly salary of ₹15,000 (₹20,000 in metro cities like Delhi, Mumbai, Bangalore, etc.)

Factors Affecting Union Bank of India Personal Loan Overdraft (OD) Facility

Applicant Profile:
- Salaried individuals with a stable job are preferred; salary account holders with at least 6 months' relationship get access to Salary Plus OD
- Home loan borrowers with a clean repayment record can avail Ashiyana OD
- Self-employed applicants need stronger financial proof (e.g., ITR, stable business income)
Credit Score and Credit History:
- CIBIL score of 750+ preferred for better rates; 650–750 may still qualify
- No defaults, missed EMIs, or bounced cheques for approval
Income and Repayment Capacity:
- Minimum income: ₹15,000–₹20,000 (metro) for salaried; ₹2–3 lakh annually for self-employed
- DTI ratio below 50%–60% preferred
- Higher income leads to higher OD limit (₹15–20 lakh based on scheme)
Bank Relationship:
- 6+ months with Union Bank salary account improves chances for Salary Plus OD
- Home loan relationship with satisfactory repayment for Ashiyana OD
- ₹25,000 average quarterly balance for non-salaried accounts
Loan Amount and Tenure:
- Ashiyana OD: Up to ₹20 lakh or 50% of home loan; co-terminus with home loan
- Salary Plus OD: Up to ₹15 lakh, based on salary multiples; tenure up to 5–7 years
Interest Rates and Fees:
- Ashiyana OD: ~8.60% p.a. (home loan rate + margin)
- Salary Plus OD: ~11.35%–11.8% p.a.
- Processing fee: 0.5%–1%, capped at ₹7,500
- No prepayment penalty
Purpose and Usage:
- Allowed for personal/business use, debt consolidation, medical, education, etc.
- Not allowed for speculative/illegal use
- Clear purpose helps with approval
Documentation:
- KYC (PAN, Aadhaar), income proof, bank statements, photos
- Ashiyana OD: ITR, home loan papers, ₹25k avg. balance proof
- Salary Plus OD: Salary slips, Form 16, employer proof
- Pre-approved customers require minimal documents
Collateral and Security:
- Ashiyana OD backed by home loan collateral (property); allows lower rates and higher limits
- Salary Plus OD is unsecured; relies on creditworthiness and salary account history
Market and Economic Conditions:
- RBI policies (e.g., repo rate) and Union Bank's internal policies affect OD rates and terms
- Promotions during festive seasons may ease terms (e.g., fee waivers)
Loan Utilization History:
- Responsible usage of past credit facilities can build trust with the bank
- Frequent overdraft limit utilization with timely repayment supports future eligibility
Employer Category:
- Applicants from reputed organizations or government/PSUs are viewed more favorably
- Private sector employees may need additional verification or proof of stability
Age and Retirement Consideration:
- Ideal age group: 21–60 years for salaried, up to 65 for self-employed
- Applicants nearing retirement may receive lower OD limits or shorter tenure

Frequently Asked Questions (FAQs)

What is a Personal Loan Overdraft (OD) Facility?

A personal loan OD is a revolving credit facility where you get an approved credit limit linked to your bank account. You can withdraw funds as needed up to the limit, and interest is charged only on the amount used, not the entire limit. Union Bank offers two key OD schemes: Union Ashiyana OD (for home loan borrowers) and Salary Plus OD (for salaried individuals).

What is the Union Ashiyana Overdraft Scheme?

The Union Ashiyana Overdraft Scheme is a facility for existing or new home loan borrowers to access funds up to ₹20 lakh or 50% of their home loan amount (whichever is lower) for personal or business expenses. The interest rate is linked to the home loan rate (~8.60% p.a. with a 0.50% margin) and is co-terminus with the home loan tenure.

What is the Salary Plus Overdraft Facility?

The Salary Plus Overdraft Facility is designed for salaried individuals with a Union Bank salary account. It provides a flexible credit line for personal needs (e.g., medical expenses, education, or debt consolidation), with interest rates starting at ~11.35%–11.8% p.a. The OD limit depends on salary and repayment capacity.

Who is Eligible for These OD Facilities?

Union Ashiyana OD:
Existing or new home loan borrowers, including those transferring loans from other banks/NBFCs.
Age: 18 years (minimum) to retirement age (salaried) or 65 years (non-salaried) at loan maturity.
Salaried: Minimum gross monthly salary of ₹15,000 (₹20,000 in metro cities).
Non-salaried: Average quarterly balance of ₹25,000 in a savings/current account for the last four quarters.

Salary Plus OD:
Salaried individuals with a Union Bank salary account (minimum 6 months’ relationship).
Permanent employees of government, PSUs, or reputed private firms.
Minimum gross monthly salary of ₹15,000 (₹20,000 in metro cities).
A good credit score (preferably 750+) is required for both schemes.

What is the Maximum OD Limit I Can Get?

Union Ashiyana OD: Up to ₹20 lakh or 50% of the home loan amount, whichever is lower, subject to income and repayment capacity.
Salary Plus OD: Typically up to ₹15 lakh, depending on salary, credit profile, and bank’s assessment.
The exact limit varies based on your income, credit score, and existing liabilities.

What are the Interest Rates for Personal Loan OD?

Union Ashiyana OD: Starts at ~8.60% p.a. (home loan rate + 0.50% margin), which is lower than standard personal loans.
Salary Plus OD: Starts at ~11.35%–11.8% p.a., with preferential rates for government/PSU employees (e.g., as low as 6.80% for specific tie-ups like LIC employees).
Rates depend on credit score, applicant profile, and market conditions. Confirm current rates with Union Bank.

How is Interest Calculated for OD?

Interest is charged only on the amount withdrawn and for the duration it is used, not on the entire OD limit. For example, if you have a ₹5 lakh OD limit but use ₹1 lakh for 10 days, interest is calculated only on ₹1 lakh for those 10 days. Depositing surplus funds into the OD account reduces the outstanding balance and interest liability.

What Documents are Required to Apply?

Common Documents:
Duly filled application form.
KYC: PAN, Aadhaar, Passport, Voter ID, or Driving License (for identity and address proof).
Recent passport-size photographs.

Union Ashiyana OD:
Income proof: Salary slips (3–6 months), Form 16/ITR (salaried); ITR, financial statements (non-salaried).
Home loan documents: Loan agreement, property papers, repayment track record.
Bank statement: 12 months for non-salaried (average quarterly balance ₹25,000).

Salary Plus OD:
Income proof: Salary slips (3–6 months), Form 16/ITR.
Employment proof: Appointment letter, employee ID.
Salary account statement: 6–12 months showing regular credits.
Additional documents may be required for balance transfers or specific profiles.

How Can I Apply for a Personal Loan OD?

Online: Visit www.unionbankofindia.co.in, go to the “Loans” section, select the OD scheme, fill the application form, and upload documents.
Mobile App: Log in to Union Bank’s mobile app, check for pre-approved offers, and apply digitally.
Branch: Visit a Union Bank branch, collect the application form, submit documents, and consult a loan officer.
Pre-approved offers (for existing customers) simplify the process with minimal documentation.

How Long Does It Take to Get Approval?

Pre-approved offers: 1–3 days with minimal documentation.
Standard applications: 5–10 working days, depending on document verification, credit checks, and scheme (e.g., home loan verification for Ashiyana OD may take longer).
Delays may occur if documents are incomplete or additional verification is needed.

Are There Any Processing Fees?

Union Ashiyana OD: 1% of the loan amount (minimum ₹500, maximum ₹7,500). Waived for certain categories (e.g., special tie-ups).
Salary Plus OD: 0.50%–1% of the loan amount (maximum ₹7,500).
Confirm current fee structure with Union Bank, as waivers or changes may apply.

Is There a Prepayment Penalty?

No prepayment penalty is charged for either scheme if repaid from legitimate sources. You can reduce the utilized OD amount or clear it early without extra costs, making it cost-effective.

List of Overdraft (OD) Facilities at Union Bank

Union Ashiyana Overdraft Scheme
Union Smart Save (Home Loan Overdraft Facility)

Secured Overdraft (SOD) Against Gold Ornaments
Overdraft Against Salary Account

Overdraft Against Fixed Deposits (FDs)
Overdraft Against NSC/KVP

Overdraft Against LIC Policies
Overdraft Against Shares/Debentures/Mutual Funds

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