United Bank of India Business Loan - Features, Benefits, Highlights

Maximum Loan Amount

Rs. 50 lakh based on 20% of projected yearly sales

Rs. 1 lakh - Rs. 2 crores

Up to Rs. 10 lakhs

Rs.25, 000 - Rs.10 lakhs

Up to Rs. 5 lakhs

Interest Rate

From 12.85% 

0.25% lesser than MSME loan interest rate

Not fixed

Not fixed

Not fixed

Tenure

Up to 60 months

3 years - 5 years, with extension up to 7 years

Term loans: 3-5 years 

Cash credit: Maximum 12 months’ time since the date of withdrawal

Within 3 years

3-5 years

Other fees

Pre-payment fee charged at 2.36% of the outstanding loan balance

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The processing fee is nil for loan amount up to Rs. 25,000

Margin

0% against the value of house property or commercial building proposed to be mortgaged

Up to Rs. 5 lakh - 10% 

A loan above Rs. 5 lakh - 15% of the cost of equipment

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Security

Mortgage of free/ marketable immovable property/ securities like LIC policies, KVPs etc.

Hypothecation of equipment, machinery, vehicles, stocks and other moveable assets/mortgage of chambers and other immovable property

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Loan Scheme

Working Capital or Overdraft

Term Loan or Cash credit 

Term Loan or Cash credit