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| What is the purpose of the loan ? |
| The loan is designed for the pensioners to meet their medium term financial requirements such as medical expenditure, any lumpsum payment requirements, etc. |
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| What is the maximum loan amount? |
The maximum amount of loan sanctioned would be minimum of A or B
- 12 times monthly pension.
- Rs. 1 Lakh.
The maximum loan amount would be decided by the repayment capacity of the borrower, which is determined mainly with reference to the present income. However, it should be borne in mind that besides present income, several factors like age, qualifications, spouse's income, present outgoing towards rent, present level of assets and liabilities of the borrowers, etc. will have a bearing on the repayment capacity of the borrower. In case the net take home income after all deductions (such as proposed EMI, taxes, Insurance premium and other out go) is not sufficient, the eligible amount of loan would then be reduced. |
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| Who can be the co-applicants for the loan? |
| Spouse or the person who is the nominated under the pension scheme has to join in as co-applicant. |
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| What are the loan tenure options? |
| The repayment period is maximum of 3 years in case of Demand loan and that of 4 years in case of Term loan. |
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| What are the applicable rates of interest? |
| Please click here for information on rate of interest. |
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| What are the processing charges? |
| There are no processing charges on this loan. |
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| How is the interest charged/calculated? |
| Interest will be applied in the account on the basis of reducing balance method at monthly rests. During moratorium period compounding interest would be charged. |
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| What is a Monthly Reducing balance? |
| An Equated Monthly Installment (EMI) has 2 components, interest and principal. When the interest is calculated on monthly rests, the principal on which the interest is charged goes down every month. This results in a significant saving for the customer over the tenure of the loan. |
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| How do I repay the loan? |
The loan shall be repaid in equated monthly installments (EMIs).
You can pay the EMI in any of the following ways
- Through standing instruction to your Union Bank of India savings account to directly remit the EMI amount to your loan account.
- ECS (Debit) facility.
- Post Dated Cheques (PDCs).
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| Can I prepay my loan? |
| Yes, you can prepay your loan. |
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| What security/ collateral do I have to provide? |
| Pledge of Deposit Receipts / Shares / Debentures of corporate of good standing, NSCs Bonds is required. Declaration is required from spouse in case of family pension account. |
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| Is a guarantor a must? |
| No, third party guarantee is not mandatory in most of the cases. However if sufficient security is not available, personal guarantee of spouse or the person nominated under pension scheme is required. Please visit our nearest branch to know further. |
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| What documents do I need to submit to avail a loan? |
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Please see the Forms & Documents Tab above for information on the list of documents required
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| How much time will it take for my loan to be approved? |
| It takes 5 days for your loan to be sanctioned, after you have submitted all the documents. |
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| What are the stages involved in taking a loan? |
There are three main stages -
- Application - Whereby you submit a completely filled in application with all necessary documents.
- Sanction - Whereby you get an approval for a specific loan amount based on the value of your property and repayment capabilities.
- Disbursement - Whereby the loan amount is disbursed.
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| How do I approach Union Bank of India for a loan? |
You can approach us in any of the following ways
- You can visit any of our special retail lending branches called Union Loan Points (ULPs). To locate a ULP, click here
- You can visit any of our branches. To locate a branch, click here
- Request for a contact online
- You can also contact our 24 x 7 Call Centre
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