Union Bank of India Personal Loan, Key Details
Fair RateUnion Bank of India offers one of the tightest rate ranges among PSU banks, with both the starting rate and maximum below the market red flag level. Good for government employees and existing account holders.
Who should choose Union Bank of India?
Union Bank of India is particularly strong for government employees, central and state, who consistently receive preferential rate categories. After merging with Andhra Bank and Corporation Bank, Union Bank now has a wide branch presence, especially across South and West India. Pensioners and existing Union Bank account holders also get dedicated schemes.
Who should look elsewhere?
Union Bank's digital experience still lags behind private banks significantly. Online applications can be cumbersome and branch processes involve considerable paperwork. Private sector employees and self-employed borrowers typically find better deals at private banks. For urgent requirements, the processing timelines at Union Bank are not suitable.
Hidden charges to watch out for
- Processing fee of 0.5% of loan amount, with a minimum of ₹500 and maximum of ₹15,000.
- No prepayment charges on floating rate personal loans after 6 months from disbursal.
- Late payment fee of 2% per month on the overdue principal amount.
- Stamp duty charges applicable as per the state government's prevailing norms.
Approval time and minimum income
Real borrower scenario
A central government officer in Mumbai received a quote of 10.60% from Union Bank under the government employee scheme. Axis Bank quoted 13.25% for identical income and credit profile. The 2.65% rate difference on a ₹6 lakh, 5-year loan translated to nearly ₹50,000 in saved interest — a concrete illustration of why government employees should always check PSU banks first.
💡 Tips for Union Bank customers
- Union Bank's rate range of 11.35 to 15.85% is among the tightest in the PSU bank segment.
- Government employees and salary account holders get the best rates.
- Processing fee of 0.5% is very low — one of the best in the market.
- Maximum loan of ₹15 lakhs is moderate. For larger amounts, consider private banks.
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Check My Loan Rate → Compare all lendersWe don't recommend specific lenders, we tell you if your rate is fair. Always verify any offer against our benchmark before signing.
We don't recommend specific lenders, we tell you if your rate is fair. Always verify any offer against our benchmark before signing.
What is Union Bank personal loan interest rate in 2026?
Union Bank of India personal loan rates range from 11.35% to 15.85% per annum in 2026.
Is Union Bank personal loan rate fair?
Yes, Union Bank's rate range is fair and tight. Both the starting rate and maximum are within market benchmarks.
What is the maximum personal loan from Union Bank?
Union Bank of India offers personal loans up to ₹15 lakhs.
What is Union Bank processing fee for personal loans?
Union Bank charges approximately 0.5% plus GST, which is among the lowest processing fees in the market.