Looking for an MSME Loan for Your Business from Union Bank of India?

You have landed at the right place. This page contains all the information you will need on Union Bank of India’s SME Plus Scheme.

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 MSME definition are eligible for this loan. The maximum loan amount sanctioned under this loan is Rs. 2.5 crore.

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

Loan Amount

  • The maximum loan amount sanctioned under this loan is Rs. 2.5 crore

Interest

  • Working Capital Loan: The interest rate for this loan is defined as the sum of External Benchmark Lending Rate (EBLR) of Union Bank of India, Credit Risk Premium and an additional factor of 1%. Currently, the EBLR of Union Bank of India is 6.80% and the credit risk premium may range from 2.75% to 4.75% depending on the credit risk rating of the borrower. This mean that the effective interest rate may range from 10.55% to 12.55% for this loan
  • Term Loan: The interest rate for this loan is defined as the sum of External Benchmark Lending Rate (EBLR) of Union Bank of India and Credit Risk Premium. Currently, the EBLR of Union Bank of India is 6.80% and the credit risk premium may range from 2.75% to 4.75% depending on the credit risk rating of the borrower. This mean that the effective interest rate may range from 9.55% to 11.55% for this loan

Repayment

  • Working Capital Loans: These loans must be repaid within 12 months
  • Term Loans: These loans need to be repaid in 5 years including moratorium. The moratorium period for this loan can be up to 6 months

Security Needed

  • The bank asks for hypothecation of assets created out of loan amount as primary security for this loan
  • These loans must be covered under CGTMSE guarantee

Margin Money (Borrowers Contribution to Total Cost)

  • The bank charges 25% of total cost as margin money

Processing Charges

  • This information is not available on the bank’s website. A bank representative will be able to answer these questions, we suggest calling them for details

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