1. What is Union Bank Loan Interest Rate?

The Union Bank Loan Interest Rate refers to the annual percentage rate (APR) charged by Union Bank of the Philippines on borrowed funds. This calculator helps estimate the interest and total payment for personal loans, auto loans, or other loan products.

2. How Does the Calculator Work?

The calculator uses simple interest formula:

Where:

• \( Principal \) — Loan amount (PHP)
• \( r \) — Annual interest rate (decimal)
• \( Time \) — Loan duration in years

Note: For more precise calculations, Union Bank may use compound interest or add fees. This provides a basic estimate.

3. Importance of Interest Calculation

Details: Understanding loan interest helps borrowers compare loan offers, plan repayments, and assess affordability before committing to a loan.

4. Using the Calculator

Tips: Enter loan amount in PHP, annual interest rate (%), and time period. Select appropriate time unit (years, months, or days) for accurate results.

5. Frequently Asked Questions (FAQ)

Q1: What's the typical interest rate for Union Bank loans?
A: Rates vary (5-20% APR) based on loan type, amount, term, and borrower's credit profile.

Q2: Does this calculator include processing fees?
A: No, it calculates basic interest only. Union Bank may charge additional fees.

Q3: How often is interest compounded?
A: This calculator uses simple interest. Actual loans may compound monthly or quarterly.

Q4: Can I prepay my Union Bank loan?
A: Yes, but check for prepayment penalties which may affect total interest.

Q5: Where can I get exact loan terms?
A: Visit any Union Bank branch or their official website for current loan products and rates.