At a time when most look to use the masses by opening the startups, the necessity for a beautiful financing scheme has grown manifold up. Businesses around the country need fresh capital to urge started also as meet their day-to-day requirements. Another factor that involves fresh finance is that the increasingly intensified competition existing within the business sphere. Doesn’t matter which business you would like to start and grow, you would like capital. From trade finance to funding the startups, Union Bank of India, a renowned public lender, has emerged as a valuable choice to meet all such needs. It offers commercial loan schemes to cater to the different needs of an entrepreneur. prepare to explore different Union Bank of India commercial loan Schemes.
Different Types of commercial loan Schemes
The public lender offers the subsequent commercial loan schemes to finance projects across the country.
- Union Trade
- Union Trade Plus
- Union Trade GST
- Union Turnover Plus
- Union Start-up
- Union SME Plus
- Cluster Schemes
- Union High Pride
- Union Transport
- Union Progress
- Union Rent
- Union Nari Shakti
- Union Liqui Property
Let’s discuss these schemes separately.
This scheme applies to retail traders, wholesale traders including malls, supermarkets, departmental stores involved in groceries, consumer durable, and co-operative stores. The firm must have VAT/Sales Tax/Shop & Establishment Act registration. the utmost loan which will be financed equals to ₹25 crores, subject to a limit of 75% of the project cost or asset. There’s no margin on a loan of up to ₹10 lakh. For a loan above ₹10 lakh to ₹25 cr, the margin money to be paid is like 20%. The term loan will attract a margin of 25%. the utmost repayment period granted, particularly during a term loan, equals to 84 months which also include the moratorium period.
Union Trade Plus
Trading units classified under MSE are going to be eligible to avail the advantages of the scheme. This loan is provided to assist these units to meet their capital requirements. A maximum of ₹5 Crore is often financed under the scheme. A margin like 20% is applicable for the borrowers. It means the utmost finance is restricted to 80% of the project cost. The rate of interest ranges from 8.45%-9.45% once a year.
- Mortgage of immovable property like land/building to the extent of minimum 100% of the loan amount
- Liquid securities like NSCs, KVPs, life assurance policies, Union Bank of India deposits
- The value of property exceeding 133% of the entire outstanding term loan account could also be considered as eligible collateral for existing term loan secured by landed property
Union Trade GST
Units engaged in manufacturing, trading or services with GST registration can apply for a loan under the scheme to satisfy their capital needs. The minimum and maximum finance to be granted adequate to ₹10 lakh and ₹2 Cr, respectively. the speed of interest ranges from 8.95%-9.45% once a year.
Union Turnover Plus
All micro and little trading, manufacturing or service units are eligible to use for Union Turnover Plus scheme. the utmost loan expected under the scheme equals to ₹5 Crore. The extent of finance is calculated as 30% of the digital portion of projected sales or 25% of the balance portion of projected sales. The collateral value of 60% of the entire credit facility has got to be the case to avail the scheme.
This type of finance is extended to units certified as startups by the govt of India. Startups get the finance to innovate, develop, deploy and commercialize new products, services or processes using technology and property as per Start-up India Scheme. The minimum and maximum finance adequate to ₹10 lakh and ₹5 Crore. A start-up has got to pay a margin like 20% of the term loan applied.
Union Bank commercial loan rate of interest
The rate of interest of Union Bank of India business loans ranges from 8.45%-13.10% once a year.
Union Bank of India commercial loan form
All set to apply? do this online because it would be more convenient than staying an extended queue at a bank branch. Visit the official website of Union Bank of India, click ‘Online Loan Application’ link, fill the required details before submitting it to the lender.