1. What is Union Bank Personal Loan Calculator?

This calculator helps determine how much you can borrow from Union Bank of India based on your desired monthly payment. It uses the bank's personal loan terms with interest rates starting at 10.50% p.a. for eligible borrowers.

2. How Does the Calculator Work?

The calculator uses the principal amount formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( PMT \) — Monthly payment amount (INR)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (term in years × 12)

Explanation: The formula calculates the present value of an annuity (the loan principal) based on fixed monthly payments.

3. Importance of Principal Calculation

Details: Knowing your maximum loan amount helps in financial planning and ensures your desired payment fits your budget before applying for a loan.

4. Using the Calculator

Tips: Enter your desired monthly payment in INR, annual interest rate (minimum 10.50%), and loan term (1-7 years). The calculator will show the maximum loan amount you could qualify for.

5. Frequently Asked Questions (FAQ)

Q1: What are Union Bank's current personal loan rates?
A: Rates start at 10.50% p.a. for salaried individuals, with actual rates depending on credit profile and other factors.

Q2: What is the maximum loan term available?
A: Union Bank offers personal loans with terms up to 7 years (84 months) for eligible borrowers.

Q3: Are there any processing fees?
A: Yes, Union Bank charges processing fees up to 2% of the loan amount plus applicable taxes.

Q4: What is the minimum salary requirement?
A: For salaried individuals, minimum net monthly income should be ₹15,000 in metro/urban areas or ₹10,000 in semi-urban/rural areas.

Q5: Can I prepay the loan?
A: Yes, prepayment is allowed after 6 EMIs, with charges of 2% of the principal outstanding plus applicable taxes.