Different COVID Loans for Different Customers.

COVID-19 loans for retail and corporate/MSME borrowers.

Union Bank of India COVID-19 Loans

As of May 2020, Union Bank of India is offering two loan schemes to help its existing retail and corporate/MSME borrowers deal with the financial aftermath of COVID-19. They are:

  • Union Bank of India Union COVID-19 Personal Loan Scheme (for Retail Customers)
  • Union Bank of India Emergency Line of Credit COVID-19 (for Businesses)

We give you important details of these COVID-19 loans below. If you need more details about a particular COVID-19 loan scheme, please get in touch with us at [email protected].

Union Bank of India Union COVID-19 Personal Loan Scheme (for Retail Customers)

Thisloan is designed to help existing Union Bank of India salary account holders, pensioners drawing pension from the bank and other retail loan borrowers meet their personal or medical needs.

Features of Union COVID-19 Personal Loan Scheme (UCPLS)

  • Quantum of Loan for Salary Account Holders/Pensioners: The maximum loan amount sanctioned under the Union Bank of India COVID-19 Personal Loan Scheme is six times the last credit salary/pension or Rs. 5 lakh, whichever is lower
  • Quantum of Loan for Retail Loan Borrowers: The maximum loan amount sanctioned under this loan is Rs. 5 lakh or the difference amount of original sanction limit and present outstanding amount of existing loan, whichever is lower
  • Interest Rate: As of May 2020, the interest rate applicable to this loan is 7.20% (Floating EBLR)
  • Repayment Period: The loan must be repaid within 5 years including a moratorium of 3 months
  • Eligibility: Confirmed/permanent salaried employees of government units, semi-government units and other public sector units maintaining a salary account with the bank are eligible for this loan. In the private sector, salaried employees of reputed MNCs maintaining a salary account with the bank are eligible for this loan. Existing retail borrowers who are in standard category and the account has never slipped to SMA 1 and SMA 2 categories in the last 12 months are eligible for this loan. NRI borrowers are not eligible for this loan
  • Margin & Processing Charges: Nil
  • Security: This is a collateral-free loan for salary account holders and pensioners. However, the bank asks for extension of charge on existing collaterals for retail borrowers except personal and cash loan borrowers
  • Guarantee: Personal guarantee of spouse/parents is required in the case of salaried and pensioner applicants. The bank asks for extension of third-party/personal guarantee obtained in the existing loan

Union Bank of India Emergency Line of Credit COVID-19 (for Businesses)

This Union Bank of India loan helps businesses in India get some relief from the impact of COVID-19 on their finances. Only the existing bank customers with at least a 6-month relationship with the bank are eligible for this scheme. This facility is extended as a term loan.

Features of Union Bank of India Emergency Line of Credit COVID-19

  • This short-term loan scheme is only in force up to 30th June 2020
  • Quantum of Loan: The bank sanctions up to Rs. 50 crore under the Union Bank of India Emergency Line of Credit COVID-19 scheme
  • Interest Rate: The interest rate applicable to this loan is 8% (fixed)
  • Repayment Period: The loan must be repaid within 2 years including a moratorium period of 6 months from the date of first disbursement
  • Eligibility: Existing business customers enjoying working capital limits (funds-based only) with the bank are eligible for this loan
  • Margin & Processing Charges: Nil
  • Security: The bank asks for extension of charge on primary and collateral security on the existing loan in addition to hypothecation of stocks and receivables
  • Guarantee: Union Bank  of India asks for existing personal/corporate guarantee of promoters, concern, group concern or guarantors to be continued for this loan

Documents Needed for Individuals (Salaried and Self-employed)

  • 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
  • Income/Banking Proof for Self-employed Professionals/Insurance Agents: Computation of income of last 2 years, Balance Sheet, Profit and Loss Account, Registration Certificate, GST Return, Income Tax Challan/ Form 26AS/TDS Certificate, IT Assessment, etc.

Documents Needed for Proprietorship and Partnership Firms

  • Loan Application Form duly filled and signed
  • Partnership Deed and Partnership Registration Certificate
  • ID Proof of the Firm: Firm PAN Card or PAN Issuing Letter
  • Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Income Proof: CMA Data and Project Report, Debtors and Creditors Certificate, GST Return, Last 3 years ITR of applicant and co-applicant, Audited or CA Certified Computation of Income/Trading Account/Profit and Loss Account/Balance Sheet, Annual Audit Report and Tax Audit Report if audited, Form 16A if applicable, Net Worth of applicants, co-applicants and guarantors
  • Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account

Documents Needed for Private Limited and Public Limited Companies

  • Application Form duly filled and signed
  • Company ID Proof: Company’s PAN Card
  • Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Business Proof: AOA and MOA, Company Incorporation Certificate, Business Commencement Certificate, Board Resolution, CA/CS verified Share Holding Pattern, ROC Annual Return, DIN Certificate, List of Directors on Company Letter Head, GST Number, Form 32 in case of Director Change
  • Income Proof: CMA Data and Project Report, Last 3 Years ITR Acknowledgement copy of Company and all Directors, Last 3 Years Annual Credit Report or Tax Audit Report with Article 3CB, Article 2D, Article 3CD, TDS Certificate/Form 16A, Net Worth Certificate
  • Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
  • Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
  • Other Relevant Documents: Company’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References

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