At a time when most look to employ the masses by opening the startups, the need for an attractive financing scheme has grown manifold up. Businesses around the country are in need of a fresh capital to get started as well as meet their day-to-day requirements. Another factor that calls for fresh finance is the increasingly intensified competition existing in the business sphere.
Doesn’t matter which business you want to start and grow, you need capital. From trade finance to funding the startups, Union Bank of India, a renowned public lender, has emerged as a valuable option to meet all such needs. It offers business loan schemes to cater different needs of an entrepreneur. Get ready to explore different Union Bank of India Business Loan Schemes.
Different Types of Business Loan Schemes
The public lender offers the following business loan schemes to finance projects across the country.
- Union Trade
- Union Trade Plus
- Union Trade GST
- Union Turnover Plus
- Union Start-up
- Union SME Plus
- Cluster Schemes
- Union High Pride
- Union Transport
- Union Progress
- Union Rent
- Union Nari Shakti
- Union Liqui Property
Let’s discuss these schemes separately.
This scheme is applicable to retail traders, wholesale traders including malls, supermarkets, departmental stores involved in groceries, consumer durable, and co-operative stores. The firm must have VAT/Sales Tax/Shop & Establishment Act registration. The maximum loan that can be financed equals to ₹25 crore, subject to a limit of 75% of the project cost or asset.
There’s no margin on a loan of up to ₹10 lakh. For a loan above ₹10 lakh to ₹25 cr, the margin money to be paid is equivalent to 20%. The term loan will attract a margin of 25%. The maximum repayment period granted, particularly in a term loan, equals to 84 months which also include the moratorium period.
Union Trade Plus
Trading units classified under MSE will be eligible to avail the benefits of the scheme. This loan is provided to help these units meet their working capital requirements. A maximum of ₹5 Crore can be financed under the scheme. A margin equivalent to 20% is applicable for the borrowers. It means the maximum finance is limited to 80% of the project cost. The interest rate ranges from 8.45%-9.45% per annum.
- Mortgage of immovable property such as land/building to the extent of minimum 100% of the loan amount
- Liquid securities such as NSCs, KVPs, life insurance policies, Union Bank of India deposits
- The value of property exceeding 133% of the total outstanding term loan account may be considered as eligible collateral for existing term loan secured by landed property
Union Trade GST
Units engaged in manufacturing, trading or services with GST registration can apply for a loan under the scheme to meet their working capital needs. The minimum and maximum finance to be granted equal to ₹10 lakh and ₹2 Cr, respectively. The rate of interest ranges from 8.95%-9.45% per annum.
Union Turnover Plus
All micro and small trading, manufacturing or service units are eligible to apply for Union Turnover Plus scheme. The maximum loan expected under the scheme equals to ₹5 Crore. The extent of finance is calculated as 30% of the digital portion of projected sales or 25% of the balance portion of projected sales. A collateral value of 60% of the total credit facility has to be the case to avail the scheme.
This type of finance is extended to units certified as startups by the Government of India. Startups get the finance to innovate, develop, deploy and commercialize new products, services or processes using technology and intellectual property as per Start-up India Scheme. The minimum and maximum finance equal to ₹10 lakh and ₹5 Crore. A start-up has to pay a margin equivalent to 20% of the term loan applied.
Union Bank Business Loan Interest Rate
The interest rate of Union Bank of India business loans ranges from 8.45%-13.10% per annum.
Union Bank of India Business Loan Application Form
All set to apply? Do that online as it would be more convenient than staying a long queue at a bank branch. Visit the official website of Union Bank of India, click ‘Online Loan Application’ link, fill the necessary details before submitting it to the lender.