Looking for MSME Loan 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 Trade GST 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 and so on. 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

Loan Amount

  • The maximum loan amount offered under this loan scheme is Rs. 2 crore

Interest

  • The interest rate for this Union Bank of India MSME loan is defined as the sum of two factors viz. one-year Marginal Cost of Funds Based Lending Rate (MCLR) and Credit Risk Spread.
  • Currently, one-year MCLR of Union Bank of India is 7.20% and the Credit Risk Spread may range from 0.75% to 1.25% depending on the credit risk rating of the borrower. This means that the effective interest rate for this loan may range anywhere from 7.95% to 9.45%

Repayment

  • The loan must be repaid within 12 months

Security Needed

  • The bank asks for hypothecation of stocks and book debts as primary security for this loan
  • The bank also asks for equitable mortgage of property or CGTMSE coverage to secure the loan

Eligibility

  • All MSME units engaged in the trading and manufacturing sector with a valid GSTIN are eligible for this loan
  • The borrower should have valid GSTR-1 and GSTR-4 in place
  • The loan amount can only be used to meet the working capital needs of the business

Borrower Contribution to Total Cost (Margin Money)

  • The bank asks for 25% on stocks and 40% on book debts as margin for this loan

Note: Margin money refers to the amount the borrower contributes to the overall amount required. The bank covers the rest.

Processing Charges

  • This information is not mentioned on the bank’s website. Please talk to a bank representative at the time of applying for this loan

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