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Features of Professional Loan OD by Union Bank of India

  • Overdraft Facility for Flexible Access: The facility allows professionals to withdraw funds from their account even when the balance is zero, up to a pre-approved credit limit. This provides flexibility to manage cash flow for business or personal needs without the need for a traditional loan application.
  • High Overdraft Limit: Professionals can avail of an overdraft limit up to ₹20 lakh (₹50 lakh for women professionals under special schemes), depending on eligibility, income, and credit history.
  • Interest Charged on Utilized Amount: Interest is levied only on the amount withdrawn and for the duration it is used, not on the entire sanctioned limit. This makes it cost-effective compared to traditional loans where interest is charged on the full loan amount.
  • No EMI Requirement: Unlike term loans, there are no fixed Equated Monthly Installments (EMIs). Repayment is flexible, allowing professionals to repay at their convenience within the agreed tenure, subject to interest on the utilized amount.
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    • Collateral-Free Facility: The Professional Loan OD is typically unsecured, requiring no collateral. However, a guarantor may be required for single/widowed/divorced applicants.
    • Competitive Interest Rates: Interest rates start from 11.35% p.a. (floating, linked to EBLR or MCLR), with concessional rates (from 10.30% p.a.) for women professionals.
    • Quick Disbursal: Funds are typically disbursed within 3 working days after document verification and approval.
    • No Prepayment Charges: There are no penalties for repaying the overdrawn amount early if funded from verifiable legitimate sources.
    • Eligibility Based on Professional Profile: Eligible professionals include doctors, engineers, CAs, CS, and cost accountants with minimum annual income of ₹12 lakh (₹5 lakh for women professionals).
    • Bank Relationship Requirement: Applicants must maintain a savings/current account with Union Bank with minimum quarterly balance of ₹25,000 for last four quarters.
    • Interest Rate Structure: The interest rate is calculated daily and billed monthly, based on the utilized amount. Rates are competitive and may be lower for women professionals or pre-approved customers.
    • Online Accessibility: Professionals can apply online through Union Bank's website or mobile app, with account integration for easy access to funds.
    • Supports Professional Growth: Enables professionals to seize opportunities like upgrading facilities or managing seasonal cash flow gaps, fostering practice or business development.
    • Special Provisions for Women: The Union Women Professional Scheme offers higher limits (up to ₹50 lakh), lower rates, and waived processing fees for eligible women professionals.
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Benefits of Professional Loan OD by Union Bank of India

  • Flexible Fund Access: Provides an overdraft limit allowing professionals to withdraw funds as needed, up to ₹20 lakh (₹50 lakh for women), without repeated loan applications.
  • Cost-Effective Interest Structure: Interest is charged only on the amount utilized and for the duration it is used, not on the entire sanctioned limit, making it more economical than traditional loans.
  • No Fixed EMI Burden: Unlike term loans, there are no mandatory Equated Monthly Installments (EMIs). Professionals can repay at their convenience, offering flexibility to manage cash flow.
    • Collateral-Free Option: No need to pledge assets like property or investments, making it accessible for professionals without substantial collateral.
    • Quick and Hassle-Free Process: Streamlined application with minimal documentation, often accessible online. Disbursal within 3 working days after approval.
    • High Overdraft Limit: Offers substantial credit limits (up to ₹20 lakh general, ₹50 lakh for women professionals), supporting significant expenses.
    • No Prepayment Penalties: Professionals can repay the overdrawn amount early without incurring additional charges if funded from legitimate sources.
    • Convenient Management: The facility can be linked to existing Union Bank accounts for seamless access through online banking, cheques, or ATMs.
    • Long Repayment Tenure: Flexible tenure up to 7 years, with interest-only payments on utilized amounts during the draw period.
    • Supports Professional Growth: Enables professionals to seize opportunities like upgrading facilities or managing seasonal cash flow gaps.
    • Special Benefits for Women: Women professionals enjoy concessional rates, higher limits, and waived processing fees under the Union Women Professional Scheme.
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How to Apply for Union Bank of India Professional Loan OD

  • 1. Check Eligibility
    • Ensure you meet the eligibility criteria, typically including being a self-employed professional (e.g., doctor, engineer, CA) with valid professional qualification.
    • Minimum annual income of ₹12 lakh (₹5 lakh for women professionals).
    • Good credit score (preferably 700+) and stable income.
    • Existing Union Bank account with minimum quarterly balance of ₹25,000.
  • 2. Gather Required Documents
    • Identity Proof: PAN Card (mandatory), Aadhaar Card, Passport, or Driving License.
    • Address Proof: Aadhaar Card, Utility Bills, or Rental Agreement.
    • Income Proof: Income Tax Returns (ITR) for last 2-3 years, salary slips or bank statements.
    • Professional Proof: Degree/certificate, registration with relevant authority (e.g., Medical Council for doctors).
    • Bank Statements: 12 months of Union Bank account statements.
    • Photographs: Two recent passport-sized photos.
  • 3. Online Application Process
    • Visit Union Bank of India website (www.unionbankofindia.co.in) or mobile app.
    • Navigate to "Loans" > "Personal Loans" and select "Professional Loan OD".
    • Fill out the online application form with personal, professional, and financial details.
    • Upload digital copies of required documents (e.g., PAN, Aadhaar, ITR).
    • Submit the application. A bank representative will contact you for verification.
  • 4. Offline Application Process
    • Visit the nearest Union Bank of India branch.
    • Request the Professional Loan OD application form from a bank official.
    • Submit the completed form along with physical copies of required documents.

Eligibility Criteria for Union Bank of India Professional Loan OD

  • 1. Professional Status
    • Must be a salaried or self-employed professional (doctors, engineers, CAs, CS, cost accountants).
    • For women professionals: Includes healthcare, fashion, education, legal services, etc.
    • Valid professional qualification/registration required (e.g., MCI for doctors, ICAI for CAs).
  • 2. Income Criteria
    • Minimum annual income of ₹12 lakh for general professionals.
    • ₹5 lakh minimum for women professionals under special scheme.
    • Income should be stable and verifiable through ITR/salary slips.
  • 3. Age Criteria
    • Minimum age: 18 years at application.
    • Maximum age at loan maturity: Retirement age (salaried) or 75 years (non-salaried).
  • 4. Credit Score and History
    • Good credit score (typically above 700) preferred.
    • No history of loan defaults or adverse credit events.
  • 5. Banking Relationship
    • Must maintain savings/current account with Union Bank.
    • Minimum quarterly average balance of ₹25,000 for last four quarters.
    • No cheque returns or irregular transactions in account.
  • 6. Guarantor Requirement
    • Mandatory for single/widowed/divorced applicants.
    • Guarantor should be co-worker or individual with sufficient means.
  • 7. Business Vintage
    • Minimum 2-3 years of professional practice preferred.
    • Longer vintage may secure higher limits.
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Documents Required for Union Bank of India Professional Loan OD

  • 1. KYC Documents
    PAN Card (mandatory)
    Aadhaar Card, Passport, Voter ID
    Driving License
    Two recent passport-sized photographs
  • 2. Address Proof
    Aadhaar Card
    Passport
    Utility Bill (not older than 3 months)
    Driving License
    Voter ID
  • 3. Income Proof
    For Salaried: Last 3 months' salary slips, Form 16, bank statements
    For Non-Salaried: ITR for 2-3 years, balance sheets, bank statements
  • 4. Professional Proof
    Degree/certificate (e.g., MBBS for doctors, CA certificate)
    Professional registration (e.g., MCI, ICAI)
    For women professionals: Relevant field certificates
  • 5. Bank Account Details
    12 months' Union Bank account statements
    Proof of minimum quarterly balance (₹25,000)
  • 6. Additional Documents (if applicable)
    Guarantor KYC and income proof
    Business registration/license
    GST certificate (if applicable)

Factors Considered for Professional Loan OD

  • 1. Professional Status
    Profession type (doctor, CA, engineer, etc.) and valid registration directly affect eligibility and limit. Women professionals may qualify for special schemes with higher limits.
  • 2. Income Level
    Minimum ₹12 lakh annual income (₹5 lakh for women). Higher income may secure higher limits (up to ₹20 lakh general, ₹50 lakh for women).
  • 3. Credit Profile
    Good credit score (700+) increases approval chances and may secure lower rates (from 11.35% p.a.). No defaults or adverse credit history preferred.
  • 4. Bank Relationship
    Existing Union Bank account with minimum ₹25,000 quarterly balance for last four quarters. Clean account conduct enhances approval chances.
  • 5. Age of Applicant
    Minimum 18 years at application. Maximum 75 years at loan maturity (non-salaried) or retirement age (salaried).
  • 6. Guarantor/Co-Applicant
    Required for single/widowed/divorced applicants. Guarantor's financial stability impacts approval.
  • 7. Loan Purpose
    Clear professional or personal needs (expansion, equipment, emergencies) aligned with repayment capacity.
  • 8. Documentation
    Complete and accurate documents (KYC, income proof, professional credentials) ensure smooth processing.

Frequently Asked Questions (FAQs)

1. What is the Professional Loan Overdraft (OD) facility?
The Professional Loan OD is a flexible credit facility offered by Union Bank of India to self-employed professionals, allowing them to withdraw funds up to a pre-approved limit, even when their account balance is zero. Interest is charged only on the utilized amount, making it ideal for managing cash flow or professional expenses.
2. Who is eligible for the Professional Loan OD?
Eligible applicants include:
- Self-employed professionals (doctors, engineers, CAs, CS, cost accountants)
- Minimum annual income: ₹12 lakh (₹5 lakh for women professionals)
- Age: 18 years at application; maximum 75 years at maturity
- Must maintain Union Bank account with ₹25,000 quarterly balance
- Good credit score (preferably 700+)
Women professionals may qualify under special scheme with higher limits.
3. What is the maximum overdraft limit available?
General professionals: Up to ₹20 lakh
Women professionals: Up to ₹50 lakh under Union Women Professional Scheme
The actual limit depends on income, credit profile, and professional credentials.
4. What documents are required to apply?
Common documents include:
- KYC: PAN, Aadhaar, Passport, etc.
- Income Proof: ITR, salary slips, bank statements
- Professional Proof: Degree, registration certificates
- Bank Statements: 12 months of Union Bank account statements
- Photographs: Two passport-sized
Additional documents may be required for guarantors or special cases.
5. How can I apply for the Professional Loan OD?
Online: Visit Union Bank website or mobile app, navigate to "Loans" > "Professional Loan OD", fill application form and upload documents.
Offline: Visit nearest Union Bank branch, collect application form, submit with required documents.
Processing typically takes 3 working days after document verification.
6. Is collateral required for the Professional Loan OD?
The facility is typically unsecured, requiring no collateral. However, single/widowed/divorced applicants need a guarantor (co-worker or individual with sufficient means).
7. What is the interest rate?
Interest rates start from 11.35% p.a. (floating, linked to EBLR/MCLR).
Women professionals may get concessional rates from 10.30% p.a. under special scheme.
Interest is charged only on utilized amount, calculated daily and billed monthly.
8. Are there fixed EMIs for repayment?
No, the Professional Loan OD has no fixed EMIs. You pay interest only on the amount utilized. The principal can be repaid flexibly within the tenure (up to 7 years).
9. What are the fees associated?
- Processing fee: 1% of loan amount (min ₹500, max ₹7,500)
- No prepayment charges if repaid from legitimate sources
- Women professionals get processing fee waiver under special scheme
10. How long is the overdraft facility valid?
The facility is typically valid for up to 7 years, with annual reviews. The limit may reduce by 20% in last five years of repayment period.
11. Can I use the overdraft for any purpose?
Yes, funds can be used for professional needs (practice expansion, equipment) or personal expenses (marriage, travel, emergencies).
12. What happens if I don't repay the overdraft amount?
Interest will continue to accrue on outstanding amount. Default may lead to:
- Negative impact on credit score
- Recovery actions by bank
- Penal interest (2% p.a. on overdue amounts)
Timely repayments are advised to maintain good credit standing.
13. Can I increase my overdraft limit?
Yes, you can request limit increase based on improved income, credit score, or business performance. Submit request at Union Bank branch with updated financial documents.
14. What if I'm not a Union Bank customer?
Non-customers can apply but must open a Union Bank account with minimum ₹25,000 quarterly balance. Existing relationship enhances approval chances.
15. Are there special benefits for women professionals?
Yes, under Union Women Professional Scheme:
- Higher limits (up to ₹50 lakh)
- Lower interest rates (from 10.30% p.a.)
- Waived processing fees
- Relaxed income criteria (₹5 lakh minimum)
Covers women in healthcare, education, legal services, fashion, etc.

List of Union Bank of India Overdraft Facilities

  • Union Professional Personal Loan Overdraft Scheme
  • Union Women Professional Personal Loan Overdraft Scheme
  • Union Ashiyana Overdraft Scheme
  • Union Bank Overdraft Against Fixed Deposits
  • Union Bank Overdraft Against Property
  • Union Bank Overdraft Facility for Current Accounts
  • Union Bank Overdraft Against Securities
  • Union Bank Overdraft Against Insurance Policies