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Key Features of Union Bank of India Business Loans

  • Loan Types and Purposes:
    Term Loans: For purchasing or constructing business premises, factories, offices, shops, godowns, or acquiring plant, machinery, and equipment. Also supports renovation or expansion of existing facilities.
    Working Capital: Offered as cash credit, overdraft facilities, or working capital limits to meet day-to-day operational needs of MSMEs in manufacturing, services, or trading sectors.
    Non-Fund Based Facilities: Includes letters of credit and bank guarantees for business operations.
  • Specialized Schemes:
    Union MSME Suvidha Loan: For MSMEs to meet working capital needs or purchase assets, including solar units for captive consumption.
    Stand-Up India: Targets Scheduled Caste (SC), Scheduled Tribe (ST), and women borrowers to set up greenfield enterprises in manufacturing, services, trading, or agriculture-allied activities.
    Union MUDRA Scheme: Supports micro-enterprises with loans up to ₹10 lakh under Shishu (up to ₹50,000), Kishore (₹50,000–₹5 lakh), and Tarun (₹5 lakh–₹10 lakh) categories for trading, manufacturing, or services, including professionals like CA, CS, architects, and medical professionals.
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    • Loan Amount: Minimum: ₹50,000. Maximum: Up to ₹25 crore, subject to specific conditions and scheme eligibility. For example, MUDRA loans cap at ₹10 lakh, while Stand-Up India offers higher limits for greenfield projects.
    • Loan Tenure: Up to 15 years for term loans, including moratorium periods (e.g., up to 1 year for Stand-Up India). Working capital limits are typically renewed annually, with overdraft facilities available for up to ₹10 lakh in some cases.
    • Interest Rates: Linked to the Marginal Cost of Funds-Based Lending Rate (MCLR) or External Benchmark Lending Rate (EBLR), varying by scheme. MUDRA loans start at 10.50% p.a. General business loans range from 8% to 10%, influenced by the applicant’s credit rating, business sector, location, and profit-earning capacity. Rates are determined based on an internal credit rating, with better credit scores securing lower rates.
    • Collateral and Security: Primary Security: Assets created from the loan (e.g., hypothecation or mortgage of machinery or property). Collateral Security: Required for non-CGTMSE-covered loans, including immovable properties, National Savings Certificates (NSCs), Kisan Vikas Patra (KVPs), fixed deposits, or LIC policies. Minimum collateral value is typically 25% of the loan amount, or 50% for bank guarantees/letters of credit. CGTMSE Coverage: Collateral-free loans available for eligible MSMEs up to ₹10 lakh under schemes like MUDRA or PM SVANidhi. MUDRA loans are collateral-free, but assets created must be charged to the bank. Gold coins (up to 50 grams) accepted as collateral for Union MSME Gold Loan Plus.
    • Margin Requirements: Typically 15–20% of the project cost. For example: 15% for Stand-Up India, with government subsidies counted as margin if the borrower contributes at least 10%. 20% for solar unit loans, reducible to 15% with collateral coverage above 35%. Subsidies from state or central governments may be treated as margin money in some schemes.
    • Processing Fees: Minimal fees, varying by loan amount: ₹1,000 for loans up to ₹2 lakh. 1.30% of the limit (minimum ₹3,000) for loans between ₹2 lakh and ₹5 crore. 1.10% of the limit for loans between ₹5 crore and ₹25 crore. MUDRA loans may have no processing fees for certain categories, and a 3-day cooling-off period is provided for prepayment without penalty.
    • Eligibility Criteria: Open to individuals, entrepreneurs, proprietorships, partnership firms, LLPs, and private/public limited companies classified as MSMEs under the MSMED Act 2006. Specific schemes target women entrepreneurs, SC/ST borrowers, and micro-enterprises. Applicants must provide proof of identity, residence, business continuity, and financial statements (e.g., last 3 years’ audited balance sheets for working capital loans). For MUDRA loans, a minimum 6-month-old bank account with any scheduled commercial bank is required, and the borrower must not be on a negative credit list. Good credit rating enhances eligibility for lower interest rates.
    • Documentation: General Documents: KYC documents (Aadhaar, PAN, voter ID, passport, etc.), proof of residence/business address, GST/Udyog Aadhaar, and business establishment certificate. Financial Documents: Last 3 years’ audited balance sheets, income tax/sales tax returns, projected balance sheets for loans above ₹2 lakh, and bank statements for the last 2 years. Additional Requirements: Order book position, GST assessment order, statutory clearance certificate, and details of associate/group concerns for consortium finance. For MUDRA loans, documents are submitted digitally via the NeSL platform using Aadhaar-based OTP.
    • Application Process: Online: Apply through the Union Bank of India website or apps like Vyom by navigating to the MSME loan section, selecting a scheme (e.g., Union Sishu Mudra, Union Nari Shakti), filling out the application, and uploading documents. Offline: Visit a branch with required documents for submission and processing. MUDRA loan applications can also be submitted via Aadhaar OTP-based digital submission. Approval typically takes a few days, with pre-approved loans disbursed within 3 working days after document submission.
    • Additional Benefits: Quick Approvals: Swift processing with minimal documentation for eligible applicants. Flexible Repayment: Options for equated monthly or quarterly installments, with moratorium periods for specific schemes. Women Empowerment: Special focus on women entrepreneurs through schemes like Union Nari Shakti and Union Women Professional Personal Loan. No Prepayment Penalty: For MUDRA loans during the 3-day cooling-off period. Insurance: Mandatory for term loans with a tenure of one year or more to mitigate risks.
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Benefits of Union Bank Business Loans

  • Competitive Interest Rates: Interest rates starting from 8% to 10% per annum, with attractive concessions for eligible businesses. Lower rates are available for applicants with higher collateral coverage and a strong credit profile. Transparent pricing linked to RLLR (Repo Linked Lending Rate) ensures competitive rates for all borrowers.
  • Flexible Loan Amounts: Loans ranging from ₹50,000 to ₹2 crore, suitable for businesses of all sizes. Available for various purposes such as working capital, asset purchase, business expansion, and debt consolidation. Collateral-free loans available under certain schemes like the Union Progress Scheme and CGTMSE coverage for MSMEs.
  • Quick and Easy Loan Processing: Union Bank offers fast approval and disbursement, with some loans like **PSB Loans in 59 minutes** providing **in-principle approval within an hour**.
    • Minimal Documentation: Simplified documentation, requiring only identity/address proofs, business registration, and financial statements.
    • Quick Processing and Disbursal: Fast loan processing, with disbursal in 2-7 days for eligible applicants. In-principle approval within 59 minutes through PSB Loans in 59 Minutes portal.
    • Collateral Flexibility: Collateral-free options for loans up to ₹1 crore under CGTMSE-backed schemes. Multiple collateral options including property, gold, and financial securities.
    • Customized Solutions: Specialized schemes for specific groups, such as startups, doctors, food businesses, and traders. Tailored products for equipment financing, working capital, and business expansion.
    • Business Growth Support: Funds can be used for working capital, purchasing machinery/vehicles, renovating premises, or expanding operations, driving business scalability. Support for both established businesses and new startups.
    • Government-Backed Support: Schemes aligned with government initiatives like MUDRA, CGTMSE, and Startup India. Additional benefits and concessions under these programs.
    • Flexible Repayment Terms: Loan tenures up to 15 years for term loans, with moratorium periods. Working capital limits renewed annually, and overdraft facilities provide ongoing liquidity.
    • Support for Diverse Borrowers: Specialized schemes like Union Nari Shakti and Stand-Up India empower women, SC/ST, and first-time entrepreneurs. Union MUDRA and PM SVANidhi support micro-enterprises inclusive growth.
    • Quick and Hassle-Free Processing: Fast approvals with minimal documentation, especially for pre-approved loans (disbursed within 3 working days). Digital application options simplify the process.
    • No Prepayment Penalties: Certain schemes, like MUDRA, allow prepayment without penalties during a 3-day cooling-off period, offering repayment flexibility.
    • Business Growth and Expansion: Funds can be used to purchase machinery, renovate premises, acquire solar units, or meet operational needs, driving business scalability.
    • Minimal Upfront Costs: Low processing fees (e.g., ₹1,000 for loans up to ₹2 lakh; waived for some MUDRA categories). Margin requirements (15–20%) can be offset by government subsidies in schemes like Stand-Up India.
    • Risk Mitigation: Mandatory insurance for term loans (tenure ≥1 year) protects businesses from unforeseen risks. Gold coins accepted as collateral in schemes like Union MSME Gold Loan Plus, offering a secure financing option.
    • Encourages Sustainability: Loans for solar units (e.g., Union MSME Suvidha) promote eco-friendly business practices with reduced margin requirements for higher collateral coverage.
    • Tailored Solutions: Industry-specific schemes like Union Textile cater to niche sectors, ensuring relevant financial support. Union MSME Gold Loan Plus provides a unique, hassle-free option for MSMEs needing quick funds.
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How to Apply for Union Bank Business Loans

  • 1. Choose the Right Loan Scheme
    • Select the appropriate scheme (e.g., Union MUDRA, Union MSME Suvidha, Union Nari Shakti, Stand-Up India, or Union MSME Gold Loan Plus) based on your business needs and eligibility.
    • Refer to the official Union Bank of India website or the Union Vyom App for detailed information.
  • 2. Check Eligibility
    • Ensure you meet scheme-specific criteria such as MSME registration, women/SC/ST status, CIBIL score, or business vintage.
    • For MUDRA: Minimum 6-month-old bank account is required.
  • 3. Gather Required Documents
    • Identity Proof: Aadhaar, PAN, passport, voter ID, or driving license.
    • Address Proof: Aadhaar, utility bills, rental agreement, or passport.
    • Business Proof: GST registration, Udyog Aadhaar, shop & establishment certificate, or partnership deed/company registration.
    • Financial Documents: Last 3 years’ audited balance sheets and P&L statements, ITRs, bank statements (6 months to 2 years).
    • Projected balance sheet and project report for larger loans or term loans above ₹2 lakh.
    • Collateral documents (if applicable for secured loans).
  • 4. Apply Online
    • Go to the Union Bank website or Union Vyom App.
    • Navigate to MSME Loans or Business Loans section.
    • Click "Apply Online", complete the form, and upload scanned documents.
    • Submit the application for quick processing (via PSB59 platform if available).
    • Note the reference number for tracking.
  • 5. Apply Offline
    • Visit your nearest Union Bank branch.
    • Consult with a loan officer for scheme selection and documentation guidance.
    • Submit the physical application along with required documents.
  • 6. Loan Verification and Processing
    • The bank will verify submitted details, assess creditworthiness, and evaluate business viability.
    • Collateral evaluation may be conducted for secured loans.
  • 7. Loan Approval and Disbursement
    • Upon successful verification, a sanction letter is issued with loan details.
    • Post agreement signing, the loan is disbursed to your Union Bank account within 2–7 working days.
  • 8. Setup Repayment
    • Choose convenient repayment modes: ECS, auto-debit, or post-dated cheques.
    • Track EMIs via Union Vyom App or net banking.
  • 9. Post-Disbursement Support
    • Contact your relationship manager or branch for any loan servicing needs.
    • Use online channels for query resolution, account updates, or repayment management.
    • Access EMI calculators and repayment schedules digitally.
  • 10. Loan Top-Up & Renewal Options
    • Based on performance and repayment history, top-up loans or renewals may be available.
    • Apply online or visit a branch with updated financials and KYC documents.
    • Eligible businesses may also avail additional working capital under enhanced limits.
  • 11. Additional Benefits
    • Avail government interest subsidies (e.g., under CGTMSE, PMEGP, etc.).
    • Union Bank also offers advisory services, business mentoring, and support for digital banking setup.
    • Prepayment and part-payment options available with minimal charges (as per scheme terms).
  • 12. Digital Loan Tracking
    • Use the Union Vyom App or net banking portal to monitor loan application status in real-time.
    • Get SMS and email alerts for every major update.
  • 13. Dedicated Customer Support
    • Reach Union Bank’s MSME customer care at 1800-22-2244 for assistance.
    • Visit designated MSME support desks at selected branches for hands-on guidance.
  • 14. Training & Financial Literacy Programs
    • Participate in workshops or online sessions organized by the bank on business finance management.
    • Learn about bookkeeping, digital transactions, and credit building techniques.
  • 15. Loan Restructuring Facility
    • In case of business downturns, you may request restructuring or rescheduling of loans.
    • Subject to eligibility and RBI guidelines, Union Bank may offer deferred repayment or reduced EMI plans.
  • 16. Integration with Government Portals
    • Access Union Bank services via Udyam Registration Portal or the PSB59 platform for faster processing.
    • Enjoy priority benefits under schemes like Stand-Up India, CGTMSE, and PMEGP.

Eligibility Criteria for Union Bank Business Loans

  • Applicant Type:
    • Individuals, entrepreneurs, proprietorships, partnership firms, Limited Liability Partnerships (LLPs), private limited companies, or public limited companies.
    • Must be classified as an MSME under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, for most schemes.
    • Specific schemes target:
      • Women entrepreneurs (e.g., Union Nari Shakti, Union Women Professional).
      • Scheduled Caste (SC) or Scheduled Tribe (ST) borrowers (e.g., Stand-Up India).
      • Street vendors or micro-entrepreneurs (e.g., PM SVANidhi).
  • Business Type:
    • Engaged in manufacturing, trading, services, or agriculture-allied activities.
    • For MUDRA loans: Non-corporate, non-farm small/micro-enterprises, including professionals (e.g., CA, CS, architects, medical practitioners).
    • For Stand-Up India: Greenfield enterprises in manufacturing, services, trading, or agriculture-allied activities.
    • For Union Textile: Businesses in the textile sector.
    • For Union MSME Gold Loan Plus: MSMEs seeking hassle-free financing.
  • Business Vintage:
    • Typically, a minimum of 1–2 years of business operations is required for most schemes, supported by financial statements or bank records.
    • For MUDRA loans: A minimum 6-month-old bank account with any scheduled commercial bank is mandatory.
    • New businesses may qualify under schemes like Stand-Up India for greenfield projects, provided they meet other criteria.
  • Age Criteria:
    • Applicant’s age should generally be between 21 and 65 years at the time of loan maturity (varies by scheme).
    • For Stand-Up India: Applicants must be above 18 years.
  • Creditworthiness:
    • Good credit rating or CIBIL score enhances eligibility and may secure lower interest rates.
    • Applicant must not be a defaulter with any bank or financial institution (mandatory for MUDRA and other schemes).
    • Internal credit rating by Union Bank of India determines loan terms and interest rates.
  • Bank Account:
    • A savings or current account with Union Bank of India or any scheduled commercial bank is required.
    • For MUDRA loans: Account must be at least 6 months old.
  • Registration and Compliance:
    • Valid MSME registration (Udyog Aadhaar or Udyam Registration) for most schemes.
    • GST registration, where applicable, for businesses involved in taxable goods/services.
    • Compliance with statutory requirements (e.g., shop & establishment certificate, trade license, or other permits).
  • Scheme-Specific Eligibility Criteria
    • Union MUDRA Scheme:
      • For micro-enterprises in non-farm sectors (manufacturing, trading, services, or professionals).
      • Loan categories: Shishu (up to ₹50,000), Kishore (₹50,000–₹5 lakh), Tarun (₹5 lakh–₹10 lakh).
      • Applicant must not be a defaulter and should have a 6-month-old bank account.
      • Open to individuals, proprietorships, partnerships, or small businesses.
    • Stand-Up India:
      • For SC/ST or women entrepreneurs setting up greenfield enterprises in manufacturing, services, trading, or agriculture-allied activities.
      • Applicant must hold at least 51% ownership/control of the business.
      • Minimum age: 18 years.
      • New businesses are eligible; existing businesses are not.
      • Non-defaulter status required.
    • Union Nari Shakti:
      • For women-managed or women-owned MSMEs (at least 51% ownership by women).
      • Business must be registered as an MSME and engaged in manufacturing, trading, or services.
      • Good credit history and valid business proofs required.
    • Union MSME Suvidha Loan:
      • For MSMEs needing working capital or asset purchase (including solar units for captive use).
      • Valid MSME registration and a minimum business vintage (typically 1–2 years).
      • Non-defaulter status and satisfactory credit rating.
    • PM SVANidhi:
      • For street vendors or micro-entrepreneurs in urban/semi-urban areas.
      • Valid vendor ID or certificate from local authorities.
      • No formal business registration required, but proof of vending activity is needed.
    • Union MSME Gold Loan Plus:
      • For MSMEs seeking quick financing.
      • Gold coins (up to 50 grams per customer) accepted as collateral.
      • Valid MSME registration and non-defaulter status.
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Documents Required for Canara Bank Business Loans

  • Identity Proof (any one):
    - Aadhaar Card
    - PAN Card
    - Voter ID
    - Passport
    - Driving License
  • Address Proof (for applicant and business, any one):
    - Aadhaar Card
    - Utility bills (electricity, water, or telephone bill, not older than 3 months)
    - Rental agreement
    - Passport
    - Property tax receipt
  • Business Proof:
    - GST Registration Certificate (if applicable)
    - Udyog Aadhaar or Udyam Registration Certificate (for MSMEs)
    - Shop & Establishment Certificate
    - Partnership Deed (for partnership firms)
    - Certificate of Incorporation and Memorandum & Articles of Association (for companies)
    - Trade License or other statutory permits (if applicable)
  • Financial Documents:
    - Audited Financial Statements: Balance sheets and profit & loss statements for the last 3 years (required for loans above ₹2 lakh or term loans)
    - Income Tax Returns (ITR): For the last 3 years (self and business, if applicable)
    - Sales Tax Returns: For the last 3 years (if applicable)
    - Bank Statements:
    - Last 2 years for general business loans
    - Last 6 months for MUDRA loans (from any scheduled commercial bank)
    - Projected Balance Sheet: For term loans or loans above ₹2 lakh, including cash flow and profit projections
  • Loan Application Form:
    - Duly filled and signed application form specific to the loan scheme (available online or at the branch)
    - For online applications, details are submitted digitally
  • Photographs:
    - Recent passport-sized photographs of the applicant(s) or authorized signatories
  • Additional Documents (Scheme-Specific)
    Union MUDRA Scheme:
    - Proof of business activity (e.g., invoices, order books, or client contracts)
    - Category-specific documents:
    - Shishu (up to ₹50,000): Minimal documentation, primarily KYC and bank statements
    - Kishore (₹50,000–₹5 lakh): Business proof and financial statements
    - Tarun (₹5 lakh–₹10 lakh): Detailed financials and projected balance sheet
    - Aadhaar-based OTP verification documents for digital submission via the NeSL platform
    - Quotation for assets to be purchased (if applicable)
    Stand-Up India:
    - Proof of category: SC/ST certificate or proof of women ownership (51% stake)
    - Project report for the greenfield enterprise, detailing business plan, cost estimates, and revenue projections
    - Proof of land/property (if applicable)
    - Government subsidy details (if applicable)
    Union Nari Shakti:
    - Proof of women ownership or management
    - MSME registration certificate
    - Detailed business plan for asset purchase or renovation (if applicable)
    Union MSME Suvidha Loan:
    - Quotation for assets to be purchased
    - Proof of MSME registration
    - Details of existing loans or financial obligations (if any)
    PM SVANidhi:
    - Vendor ID or certificate from Urban Local Body (ULB) or Town Vending Committee (TVC)
    - Proof of vending activity
    - KYC documents (Aadhaar, PAN, or voter ID)
    Union MSME Gold Loan Plus:
    - Details of gold coins (up to 50 grams per customer) to be pledged as collateral
    - MSME registration certificate
    - Proof of business continuity
    Union Textile:
    - Proof of engagement in the textile sector
    - MSME registration certificate
    - Financial statements showing business stability

Factors for Union Bank of India Business Loans

  • Creditworthiness and Credit Score:
    - A strong credit score (CIBIL or equivalent) indicates good repayment history and increases approval chances.
    - Union Bank of India conducts an internal credit rating to assess risk.
    - Better scores secure lower interest rates (typically 8–10.50% p.a.), influence loan amount and terms.
    - Applicants must not be defaulters with any bank or financial institution (mandatory for schemes like MUDRA).
  • Business Profile and Stability:
    - Must be classified as an MSME under the MSMED Act, 2006.
    - Must be engaged in manufacturing, trading, services, or agriculture-allied activities.
    - Typically, 1–2 years of operations are required with financial proof.
    - MUDRA loans require a minimum 6-month-old bank account.
    - New businesses qualify under schemes like Stand-Up India for greenfield projects.
  • Financial Performance:
    - Stable revenue, profitability, and cash flow required.
    - Audited balance sheets and P&L statements (last 3 years for loans above ₹2 lakh).
    - Income tax/sales tax returns and bank statements (last 2 years or 6 months for MUDRA).
  • Loan Purpose:
    - Working capital (e.g., cash credit, overdraft), asset purchase (machinery, solar units), business expansion or renovation.
    - MUDRA: Micro-enterprise needs up to ₹10 lakh.
    - Stand-Up India: Greenfield enterprises.
    - Union Nari Shakti: Women-owned MSME growth.
  • Collateral and Security:
    - Collateral-free loans available under MUDRA, PM SVANidhi, and CGTMSE (up to ₹10 lakh).
    - Other loans require property, FDs, NSC/KVP, LIC policies, or gold coins.
    - Minimum collateral value: 25% of loan amount (50% for guarantees/LCs).
    - Primary security (e.g., hypothecation of machinery or mortgage of property) is mandatory.
  • Applicant Profile:
    - Eligible: Individuals, proprietorships, partnerships, LLPs, private/public companies, entrepreneurs.
    - Special categories: Women (Union Nari Shakti), SC/ST (Stand-Up India), street vendors (PM SVANidhi).
    - Age: Typically 21–65 years at loan maturity (18+ for Stand-Up India).
    - Ownership: At least 51% ownership for some schemes (e.g., Union Nari Shakti).
  • Loan Amount and Margin:
    - Loan amount ranges from ₹50,000 to ₹25 crore (scheme dependent).
    - Margin typically 15–20% of the project cost.
    - Govt subsidies (like in Stand-Up India) may count toward margin with minimum 10% contribution.
    - Reduced margin (15%) for solar unit loans with collateral over 35%.
  • Repayment Capacity:
    - Assessed through DSCR and cash flow projections.
    - Stable income and EMI repayment capability are critical.
    - Repayment tenure: up to 15 years (term loans); working capital has annual renewal.
    - Moratorium periods apply (e.g., 1 year for Stand-Up India).
  • Regulatory and Statutory Compliance:
    - Valid MSME registration (Udyog Aadhaar or Udyam).
    - GST registration if applicable.
    - Comply with environmental/labour regulations and industry-specific requirements.
    - Statutory documents like GST assessment order, trade license.
  • Business Plan and Project Viability:
    - Required for large or term loans.
    - Must include business goals, market analysis, revenue estimates, and funding plan.
    - Project feasibility is essential for Stand-Up India.
    - Quotations for assets (e.g., machinery) strengthen application.
  • Industry and Location:
    - Certain schemes prioritize sectors like textiles (Union Textile), solar (Union MSME Suvidha).
    - Urban/semi-urban businesses may get easier access to schemes like PM SVANidhi.
    - Property location affects collateral value.

Frequently Asked Questions (FAQs)

What types of business loans does Union Bank of India offer?
Union Bank of India offers various business loans, primarily for MSMEs, including:
• Term Loans – For purchasing assets, constructing premises, or expanding operations
• Working Capital Loans – Cash credit, overdraft, or limits for daily operations
• Non-Fund Based Facilities – Letters of Credit and Bank Guarantees
Who is eligible for a business loan from Union Bank of India?
• Applicant Types: Individuals, Proprietorships, Partnerships, LLPs, Pvt/Public Ltd Companies
• Business Types: Manufacturing, Trading, Services, or Agri-Allied Activities
What is the minimum and maximum loan amount?
• Minimum: ₹50,000
• Maximum: Up to ₹25 crore (depending on the scheme)
• MUDRA: ₹10 lakh (Shishu: ₹50,000, Kishore: ₹5 lakh, Tarun: ₹10 lakh)
• Stand-Up India & Suvidha/Nari Shakti: Up to ₹25 crore
• PM SVANidhi: For street vendors with small amounts
What are the interest rates for business loans?
• Linked to MCLR or EBLR
• Range: 8% to 10.50% p.a.
• Depends on credit rating, business sector/location, and chosen scheme
Are collateral-free loans available?
Yes, under specific schemes:
• MUDRA Scheme – Up to ₹10 lakh
• PM SVANidhi – For street vendors
• CGTMSE Coverage – For eligible MSMEs up to ₹10 lakh
What documents are required to apply for a business loan?
• Identity Proof – Aadhaar, PAN, Voter ID, Passport, Driving License
• Address Proof – Aadhaar, Utility Bills, Rental Agreement
• Business Proof – GST registration, Udyog Aadhaar, Shop License, Partnership Deed
How can I apply for a business loan?
Online:
• Visit Union Bank website or Vyom App
• Choose a scheme, fill out the form, upload docs, and submit
• For MUDRA, apply digitally via Aadhaar OTP (NeSL platform)

Offline:
• Visit a nearby branch
• Consult a loan officer, submit application and documents
What is the loan tenure and repayment structure?
• Term Loans – Up to 15 years (including moratorium)
• Working Capital – Annual renewal (OD limits up to ₹10 lakh)
• Repayment – Monthly/Quarterly EMIs; Flexible for working capital
What are the processing fees for business loans?
• Loans up to ₹2 lakh – ₹1,000
• ₹2 lakh to ₹5 crore – 1.30% of the loan amount (min ₹3,000)
• ₹5 crore to ₹25 crore – 1.10% of the loan amount
Can new businesses apply for a business loan?
Yes, under:
• Stand-Up India – For SC/ST or women-led greenfield enterprises
• MUDRA Scheme – For micro-enterprises with minimal paperwork
Are there special benefits for women or SC/ST entrepreneurs?
• Union Nari Shakti – For women-owned MSMEs (≥51% ownership)
• Stand-Up India – For SC/ST and women entrepreneurs
• Union Women Professional – Personal loans for women professionals
What is the margin requirement for business loans?
• Generally 15–20% of the project cost
• Stand-Up India – 15%, with subsidies treated as margin if borrower contributes 10%
• Solar Unit Loans – 20% (can be reduced to 15% with 35%+ collateral)
How long does it take to get a business loan approved?
• Pre-Approved Loans – Disbursed within 3 working days
• Standard Applications – 7–15 days (depends on amount, scheme, and verification)

List of Union Bank of India Business Loans

  • Union Bank of India Term Loans
  • Union Bank of India Working Capital Loans
  • Union Bank of India Textile
  • Union Bank of India MUDRA Scheme
  • Union Bank of India MSME Gold Loan Plus
  • Union Bank of India Nari Shakti
  • Union Bank of India MSME Suvidha Loan
  • Union Bank of India PM SVANidhi
  • Union Bank of India Stand-Up India
  • Union Bank of India Non-Fund Based Facilities (Letters of Credit, Bank Guarantees)