Looking for a Small Business Loan from Union Bank of India?

Look no further. We bring you all the information you need to make a sensible and sound decision.

MSME Loans from Union Bank of India

Being one of the popular public sector banks in India, Union Bank of India offers a range of loans to different segments of its customer base. As of now, the bank offers seventeen loan options right from working capital loans to infrastructure loans to its MSME customers to help them run their business smoothly. The bank also offers non-funded assistance to its MSME borrowers.

The small business loans offered by Union Bank of India are:

  • Union Enterprises Scheme
  • Union GST Input Credit
  • Union Turnover Plus
  • Nari Shakti Loan
  • Union Dealer Finance
  • Union Procure Scheme
  • Union Rent Scheme
  • Union Progress Scheme
  • Union Parivahan Scheme
  • Union SME Plus Scheme
  • Union High Pride Scheme
  • Union Liqui Property Loan
  • Union Trade Plus Scheme
  • Union Trade GST Loan
  • Union Start-up Scheme
  • Stand-up India Scheme
  • Mudra Loan

We give you a brief introduction to each of these MSME loans below. In addition you have the option to click further and read in detail about each loan on a specific page of its own. This specific page has been made specifically for you to get all the information you need on that loan in an uncluttered and easy-to-read format. In case information is less or not available, we have been not been able to create an information page as yet, but we may do so in the course of the next few months.

Union Bank of India Union Enterprises Scheme

This loan helps businesses in the MSME sector meet their capital expenditure and working capital requirements. Proprietorships, partnerships and limited companies in the manufacturing and services sector that fit the MSME definition are eligible for this loan.

Features of Union Enterprises Scheme

Why this Loan?

  • This Union Bank of India Union Enterprises Scheme is meant for small businesses that need financial assistance to meet their working capital and capital expenditure needs
  • Only businesses in the manufacturing, trade and service sectors that are seeking financial assistance are eligible for this loan

Union Bank of India Union GST Input Credit

This short-term loan helps MSME enterprises finance their everyday operations such as for investment in current assets, purchase of raw materials, salary payments, etc. All MSME businesses with a valid GSTIN are eligible for this loan.

Features of Union GST Input Credit Scheme

Why this Loan?


  • The Union Bank of India Union GST Input Credit helps MSME enterprises get financial assistance to meet their needs to carry out everyday business operations
  • This is a secured loan. The bank asks for hypothecation of stock and book debts

Union Bank of India Union Turnover Plus

This loan helps businesses in the Micro and Small Enterprises (MSE) sector meet their working capital requirements. Proprietorships, partnerships and limited companies in the manufacturing, trade and services sector that fit the MSE definition are eligible for this loan.

Features of Union Turnover Plus Loan Scheme

Why this Loan?

  • This Union Bank of India Union Turnover Plus is meant for small businesses in the MSE sector that need financial assistance to carry out their day-to-day business operations
  • The maximum loan amount sanctioned under this loan is Rs. 5 crore
  • This is a secured loan

Union Bank of India Nari Shakti Loan

This loan helps women running Micro and Small Enterprises fulfil their working capital and capital expenditure needs. The maximum loan amount sanctioned under this loan is Rs. 1 crore. This loan scheme is one of the bank’s initiatives to encourage women engaged in income-generating activities.


Features of Nari Shakti Loan

Why this Loan?

  • The Union Bank of India Nari Shakti Loan is meant for small businesses in the MSE sector run by women to finance their capital requirements
  • All MSE businesses in the manufacturing, service and trading sectors where the management is controlled by women and partnerships where a majority of partners are women are eligible for this loan
  • This is a collateral-free loan

Union Bank of India Union Dealer Finance

This loan helps authorised dealers of OEM/Corporates in the MSME sector get funds for their working capital needs. The maximum loan amount sanctioned under this loan scheme is Rs. 50 crore.

Features of Union Dealer Finance

Why this Loan?

  • The Union Bank of India Dealer Finance is perfect for dealers of OEM/Corporates in the Micro, Small and Medium Enterprise sector to get access to funds for working capital needs
  • Dealers satisfactorily dealing with the OEM/Corporates for at least one year are eligible for this loan

Union Bank of India Union Procure

This loan helps eligible vendors get financial assistance against receivables through bill discounting. The loan must be repaid on maturity of the bill. The maximum loan amount sanctioned under this loan scheme is Rs. 5 crore.

Features of Union Procure (Vendor Finance)

Why this Loan?

  • The Union Bank of India Union Procure Loan is designed to help eligible MSME vendors to get funds by financing receivables through bill discounting for their needs, where bills are related to the products supplied to select corporates
  • Only MSME vendors who supply to identified large corporate borrowers of the bank are eligible for this loan
  • This is a secured loan

Union Bank of India Union Rent Scheme

This loan is designed to help property owners who have leased out their commercial or rental properties in the metro, urban, semi-urban areas to public sector undertakings, reputed private educational institutions, reputed private hospitals or nursing homes, franchises of reputed corporates and so on get funds for their various needs.

Features of Union Rent Scheme (Loan Against Future Lease Rentals)

Why this Loan?

  • The Union Rent Scheme is the perfect MSME loan to help landlords meet the expenses of alteration, addition or renovation to the premises. The loan amount can also be used for business purposes
  • The maximum loan amount depends on the Net Present Value of net rent receivables within the unexpired period of lease up to 10 years or loan tenure, whichever is lower

Union Bank of India Union Parivahan Scheme

This loan helps MSME units in the transportation sector to buy new vehicles in the small, light, medium and heavy commercial and passenger vehicle category for business use. The maximum loan amount is Rs. 5 crore.

Features of Union Bank of India Parivahan Scheme

Why this Loan?

  • The Union Bank of India Parivahan Scheme is meant for small businesses in the transportation sector purchase vehicles such as Light Motor Vehicles (LMVs)/Heavy Motor vehicles (HMVs), cars, tempos, mini-vans and trucks for business use
  • This loan cannot be availed to purchase pre-owned vehicles

Union Bank of India Union SME Plus Scheme

This loan helps small businesses meet their capital expenditure and working capital requirements. Proprietorships, partnerships and limited companies in the manufacturing and services sector that fit the MSME definition are eligible for this loan.

Features of Union SME Plus Scheme

Why this Loan?

  • This Union SME Plus Scheme is meant for businesses in the MSME sector that need financial assistance to meet their working capital and capital expenditure needs. The loan can be availed for the purchase of office unit, construction of office premises, purchase of machinery or equipment, purchase of vehicles, etc. for business use in addition to meeting the working capital needs
  • The maximum loan amount sanctioned by Union Bank of India under this loan scheme is Rs. 2.5 crore

Union Bank of India Union High Pride Scheme

This loan helps MSME units meet their capital expenditure and working capital requirements. Proprietorships, partnerships and limited companies in the manufacturing and services sector that fit the MSME definition are eligible for this loan. The maximum loan amount sanctioned under this loan is Rs. 2.5 crore.

Features of Union High Pride Scheme

Why this Loan?

  • This Union High Pride Scheme is meant for small businesses in the MSME sector that need financial assistance to meet their working capital and capital expenditure needs
  • The loan can be availed for the purchase of office unit, construction of office premises, purchase of machinery or equipment, purchase of vehicles, etc. for business use in addition to meeting their working capital needs
  • Only the borrowers with a credit rating of CR-1/UBC-1 to CR-3/UBC-3 or equivalent are eligible for this loan

Union Bank of India Union Liqui Property Loan

This loan helps business owners raise capital towards expanding their business by availing a loan against property. The maximum loan amount sanctioned under this loan is Rs. 5 crore.

Features of Union Liqui Property Loan

Why this Loan?

  • The Union Liqui Property Loan is perfect for businesses in the MSME sector to get access to funds for working capital, business growth and expansion-related activities
  • Borrowers with a credit rating of CR-5/UBI-5 and above are eligible for this loan

Union Bank of India Union Trade Plus Scheme

This loan helps businesses in the MSME sector meet their working capital and capital expenditure needs. The maximum loan amount is Rs. 10 crore for this loan.

Features of Union Trade Plus Loan

Why this Loan?

  • The Union Trade Plus Loan is meant for trading businesses in the MSME sector to meet their Working Capital and capital expenditure needs
  • The bank is offering high quantum of loan in the working capital loans category to traders as compared to other banks and financial institutions in the market
  • This is a secured loan

Union Bank of India Trade GST Loan

The Union Bank of India Trade GST Scheme helps MSME enterprises finance their everyday operations such as for investment in current assets, purchase of raw materials, salary payments, power charges, etc. These loans are perfect for businesses that need help during periods of reduced business activity or while waiting for receipt of payment after completing projects.

Features of Union Bank of India Star MSME GST Plus Scheme

Why this Loan?

  • The Union Bank of India Trade GST Loan helps MSME enterprises get financial assistance to meet their needs to carry out everyday business operations
  • All MSME businesses in the trading, services and manufacturing sector with a valid GSTIN are eligible for this loan

Union Bank of India Union Start-up Loan Scheme

This loan is designed to help new businesses get access to funds for engaging activities such as innovation, development, deployment, commercialisation of new products, processes, services, etc. The maximum loan amount for this loan is Rs. 5 crore.

Features of Union Start-Up Loan

Why this Loan?

  • This loan is meant for any business entity incorporated or registered within the previous five years in India with an annual turnover less than Rs. 25 crore
  • The maximum loan amount for the Union Bank of India Union Start-up loan is Rs. 5 crore
  • The loan is extended as a term loan or working capital loan depending on the needs of the borrower

Union Bank of India Stand-up India Loan Scheme

This loan is designed to help women and SC/ST entrepreneurs set up greenfield enterprises in India. Greenfield enterprises eligible for this loan scheme are all first time ventures of women and SC/ST beneficiaries in the manufacturing, trading and services sector.

Features of Stand-Up India Loan

Why this Loan?

  • This loan is meant for encouraging people from the SC/ST category and women entrepreneurs to set up greenfield enterprises in the manufacturing, services or trading sectors. In the case of non-individual enterprises, at least 51% of the company stakes should be held by women or people in the SC/ST category
  • The maximum loan amount for the Union Bank of India Stand-up India loan is Rs. 1 crore

Union Bank of India Mudra Loan Scheme

This loan helps unfunded individuals, proprietors and partnerships running small manufacturing units, fruit and vegetable shops, food service units, repair shops, small industries, machine operators, truck operators and so on get funds for their needs. The maximum loan amount is Rs. 10 lakh.

Features of Union Bank of India Pradhan Mantri Mudra Yojana (PMMY)

Why this Loan?

  • The Union Bank of India Mudra Loan is divided into three variants depending on the type and size of business, namely Shishu, Kishore and Tarun. The quantum of loan depends on the loan variant applicable to the business
  • It is designed for Non-corporate Small Business Segment to help them get funds to meet their working capital needs

Important Note: Union Bank of India may offer more MSME loan options that are not yet published on the website. We suggest that you get in touch with the nearest branch to check the loan schemes they offer. This will also help you get a custom quote since many loan schemes are need-based and certain charges such as application charges, service charges, strategic premium, etc. may be decided on a case-to-case basis.

Interest Rate for Union Bank of India MSME Loans

  • The interest rate for Union Bank of India Loans is defined as the sum of two factors, namely: One-year Marginal Cost of Funds-based Lending Rate (MCLR)/External Benchmark Lending Rate (EBLR) and Credit Risk Premium where the Credit Risk Premium, as the name suggests, depends on the Credit Risk Rating of the borrower

Documents Needed for Individuals

  • 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: Last 6 months Bank Account Statement of applicant and co-applicant, Loan Statement of Running Loans, Latest Closed Loan NOC, Net Worth of the applicant and co-applicant
  • 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

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
  • 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: Partnership’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References

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