CIBIL Score: Union Bank Personal Loan

Personal loan is the quickest solution for the urgent need of cash. The need could be for marriage, travel, purchase of certain high budget personal items or sudden medical or other emergencies. Union Bank offers personal loan for all these purposes. However, the eligibility criteria need to be met for these types of high risk loans and Union Bank follows the stringent guideline to determine eligibility before approving any personal loan.

The most important eligibility criterion is the CIBIL score. It is the credit score of the customer that indicates the borrowing pattern, spending habits, personal finance management and overall creditworthiness of the borrower. A good CIBIL score of 700 - 750 and above gives higher chance of Union Bank Personal loan approval while a lower credit score might pose a negative impact on the credit behaviour and reduce the chance of availing personal loan from Union Bank.

Union Bank of India is one of the largest nationalised banks in India and offers personal loans to diverse group of customers for their diverse needs like home improvement, travel, wedding, education or medical treatment. It offers certain advantages like:

• No collateral is required for the personal loan
• Lower interest rate
• Income requirement is minimum
• Long tenure
• Less paperwork

EOther important points of Union Bank Personal loan include:

• Loan Tenure – 12 to 60 months
• Loan Amount – Maximum of 10 Lakhs
• Interest Rate – 14.4% for salaried and self-employed; 12.9% for pensioners
• Processing Fee – Higher of: 0.5% of the loan amount or 500 Rupees. This is a one-time fee
• Pre-payment charges – Prepayment is allowed after 12 instalments of EMI. Pre-payment charges are applicable
• 2 Guarantee required

Documents required for Union Bank Personal Loan

• Signed and duly filled Loan Application form (This could be downloaded from: www.unionbankofindia.co.in
• 3 Passport size photographs
• Identity Proof: Driving License/ Voter ID Card/ Passport copy/ PAN Card
• Address Proof: Telephone Bill/ Electricity Bill/ Aadhar Card
• Cheque for processing fee
• Bank statement for most recent three months OR Bank passbook for most recent 6 months
• Income Proof for Salaried person: (1) Most recent (last 3 months) salary slip and (2) Up to date salary certificate with latest Form 16
• Income Proof for Self-employed: (1) Most recent bank statement and (2) Latest Form 16 or ITR
• Proof of out-goes, if any. For example, Loan repayment statement (if applicable), LIC Policies and other valid proofs

EMI Payment Options

• Standard Instruction (SI) – An existing Union Bank account holder can set up a standing instruction so that EMI on the personal loan will be auto-debited from the specified account as and when it is due
• Electronic Clearing Services (ECS) – In case there is no account with Union Bank, then the payment could be done from any other bank account through net banking using ECS facility
• Post-dated cheques from a non-Union Bank could be submitted in advance and periodically to the Union Bank branch where the loan has been taken. This method is applicable only at non-ECS locations

If certain steps are adopted, those can help to improve the CIBIL score and the approval of personal loan from Union Bank will be easier. These are:

• Use credit card in a way such that balance could be paid off within the due date and no balance is kept unpaid
• Pay EMI of all the loans on time and there should be no missed or late payment
• Clearing up any discrepancies in the CIBIL report. Erroneous reporting can damage the credit score
• Maintain a credit card for a long time with timely payment and without using the maximum credit limit. This will help to boost the credit score
• Credit utilization ratio should ideally be around 30% to keep the CIBIL score healthy
• Maintain healthy balance of secured and unsecured loans
• Do not apply for too many loans within a short period of time