Union Bank Personal Loan Sample Computation

Loan Payment Formula:

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

Monthly Payment (PMT):

Total Payment:

Total Interest:

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1. What is Union Bank Personal Loan?

Union Bank of the Philippines offers personal loans up to ₱2 million with flexible repayment terms from 1 to 5 years. These loans can be used for various purposes including home improvement, education, travel, or debt consolidation.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

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

Where:

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

3. Understanding Loan Terms

Interest Rates: Union Bank personal loans typically have competitive interest rates, often between 10-20% annually depending on creditworthiness.

Sample Computation: For a ₱2 million loan at 10% interest for 5 years (60 months), the monthly payment would be approximately ₱42,494.75.

4. Using the Calculator

Tips: Enter the principal amount in PHP, annual interest rate in percentage, and loan term in years (1-5). The calculator will show monthly payment, total repayment, and total interest.

5. Frequently Asked Questions (FAQ)

Q1: What is the maximum loan amount?
A: Union Bank offers personal loans up to ₱2 million for qualified borrowers.

Q2: What is the loan term range?
A: Terms range from 12 months (1 year) to 60 months (5 years).

Q3: Are there processing fees?
A: Yes, there may be processing fees of 1-3% of the loan amount.

Q4: How is interest calculated?
A: Interest is calculated on a reducing balance method (interest charged only on outstanding principal).

Q5: What are the eligibility requirements?
A: Typically requires proof of income, valid ID, and good credit history.