Union Bank Of India Personal Loan Calculator Based On Credit Score

Personal Loan Payment Formula:

\[ PMT = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \]

Principal Amount (P):

INR

Credit Score:

Loan Term:

Monthly Payment (PMT):

Total Interest:

Total Payment:

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1. What is the Union Bank Personal Loan EMI Calculator?

The Union Bank of India Personal Loan EMI Calculator helps you estimate your monthly payments based on loan amount, credit score (which determines interest rate), and loan term. It uses the standard EMI formula to provide accurate payment estimates.

2. How Does the Calculator Work?

The calculator uses the EMI formula:

\[ PMT = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \]

Where:

\( P \) — Principal loan amount (INR)
\( r \) — Monthly interest rate (annual rate ÷ 12)
\( n \) — Number of monthly installments
\( PMT \) — Monthly payment (EMI)

Explanation: The formula accounts for compound interest over the loan term, calculating equal monthly payments that pay off both principal and interest.

3. Importance of EMI Calculation

Details: Accurate EMI calculation helps borrowers understand their repayment obligations, plan their finances, and choose loan terms that fit their budget.

4. Using the Calculator

Tips: Enter loan amount in INR, select your credit score range (which determines interest rate), and choose loan term. All values must be valid (amount ≥ ₹10,000, term 1-5 years).

5. Frequently Asked Questions (FAQ)

Q1: What are Union Bank's personal loan interest rates?
A: Rates start at 10.50% p.a. for excellent credit (750+ score) and go up to 18.00% p.a. for lower scores.

Q2: What is the maximum loan amount available?
A: Union Bank offers personal loans up to ₹15 lakhs, depending on income and creditworthiness.

Q3: Are there any processing fees?
A: Yes, typically 1-2% of loan amount plus GST. This calculator doesn't include fees in the calculation.

Q4: Can I prepay my loan?
A: Yes, but prepayment charges may apply (usually 2-5% of outstanding amount).

Q5: How does credit score affect my loan?
A: Higher scores qualify for lower interest rates. A 750+ score gets the best rate of 10.50%.