Union Bank of India Union Personal Salaried Loan

Union Bank of India – Union Personal Salaried Loan

The Union Personal Salaried Loan is open to all salaried employees of private sector businesses. The bank has classified borrowers into two categories: Scheme A or Tie-Up and Scheme B or Non Tie-Up. For Scheme A (Tie-Up), applicants may or may not have their salary account with Union Bank but for Scheme B (Non Tie-Up), the applicant must have a salary account with the bank. The maximum loan amount for new borrowers differs under these two schemes.

The loan helps borrowers to get funds to meet their personal needs such as expenses for a child’s wedding, domestic and foreign travel, medical emergency, etc. Since this is an easy-to-get unsecured loan, the borrowers can avail of this loan scheme as a consolidation loan to pay off their debts.

Features of Union Personal Loan for Salaried Individuals

Why this Loan?

  • The Union Bank of India Personal Salaried Loan is designed to help permanent/confirmed employees of reputed private companies, institutes or organisations get financial assistance to meet their personal needs. Borrowers can also avail of this loan scheme to pay off their debts
  • This loan is offered as a term loan and overdraft. The borrowers who maintain a salary account with the bank can avail the loan as a term loan as well as overdraft whereas others can only avail this as a term loan
  • This is a collateral-free loan

Loan Amount

The maximum loan amount offered under this loan scheme is Rs 15 lakh. But there are a few specifics you need to know:

  • Scheme A (Tie-Up): The maximum loan you can get is Rs 15 lakh
  • Scheme B (Non Tie-Up):
    • If you are borrowing for the first time, you can get a maximum of Rs 5 lakh only
    • If you have borrowed before from the bank or have an existing banking relationship with Union Bank, then you are eligible to apply up to the full limit of Rs 15 lakh

The actual loan amount sanctioned by the bank depends on a case-to-case basis. For instance, borrowers who maintain a salary account with the bank can get a higher quantum of loan as compared to borrowers who do not have an existing relationship/salary account with Union Bank.


The interest rate for this loan is defined as the sum of two factors: External Benchmark Lending Rate (EBLR) and Credit Risk Spread. The spread varies based on your credit score.

As of April 2023, the EBLR of Union Bank of India is 9.30% and the interest rates are as below:

  • Scheme A (Tie-Up)
    • Credit Score of 700 or Above: EBLR and a spread of 4.10% taking the interest rate to 13.40% per annum
    • Credit Score Below 700: EBLR and a spread of 4.20% taking the interest rate to 13.50% per annum
  • Scheme B (Non Tie-Up)
    • Credit Score of 700 or Above: EBLR and a spread of 5.10% taking the interest rate to 14.40% per annum
    • Credit Score Below 700: EBLR and a spread of 5.20% taking the interest rate to 13.50% per annum


  • This loan must be repaid within 5 years
  • The loan must end on/before retirement
  • There is no moratorium period for this loan which means the repayment starts from the next month after the first disbursement of the loan


  • Permanent/confirmed employees of reputed national and multinational companies, organisations and institutions
  • The minimum monthly gross salary of the borrower should be Rs. 20,000 per month for Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Ahmedabad and Pune and Rs. 15,000 per month for other areas
  • The person must be at least 18 years old and must have more than one year to their retirement

Security Needed

  • This is an unsecured loan, meaning you don’t have to offer any collateral to get the loan but you will need your spouse to be a co-applicant on the loan
  • If the borrower is single, divorced or widowed, then Union Bank needs a personal guarantee from one of their co-employees

Documents Needed

  • Loan Application Form duly filled and signed by the applicant and co-applicant, if any
  • Two Passport Size Photographs of applicant and co-applicant
  • Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card / PAN Card Issuing Letter is must
  • Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
  • Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Income/Banking Proof for Salaried Professionals: Last 3 months’ salary slip, Form 16 or income tax returns
  • Salary account details

Reference Facts:

  • Union Bank of India Website: www.unionbankofindia.co.in and www.unionbankonline.co.in (net banking)
  • Headquarters: Mumbai, Maharashtra
  • Call Centre Toll-Free Number: 1800 2222 44, 1800 208 2244