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Updated August 2026

Union Bank Business Loan 2026 - Rate from 9.35%, 30-Minute Digital Approval

Union MSME Superfast delivers 30-minute in-principle approval - among the fastest PSU digital MSE products in India. Up to Rs 2.5 Cr CGTMSE-covered. Union Contractor Yojana for civil contractors up to Rs 10 Cr. Deep post-merger presence in Andhra + Karnataka + Coastal India.

9.35%+Interest Rate
Rs 2.5 CrCGTMSE Max
30 MinIn-Principle
8,700+Branches
Check Eligibility Talk to Expert
UBI
Union Bank of India
PSU Bank

MahadevX is an Empanelled UBI Business Loan Partner

We facilitate 130+ loan applications per month with Union Bank of India. Our team handles direct-bank routing, document validation, and end-to-end coordination till disbursal. Service is free - lenders pay us on disbursal.

Bank Overview

About Union Bank of India

Union Bank of India, established in 1919 and inaugurated by Mahatma Gandhi, is headquartered in Mumbai. Post-2020 merger with Andhra Bank and Corporation Bank, Union has emerged as one of India’s top-4 PSU banks with 8,700+ branches, 10,000+ ATMs, and 155+ million customers. The merged entity brought together Union’s Mumbai-Maharashtra strength, Andhra Bank’s deep Andhra Pradesh + Telangana + Odisha MSE distribution, and Corporation Bank’s Coastal Karnataka + Kerala export MSE expertise into a single powerful franchise.

For business borrowers, Union Bank stands out on two dimensions. First, digital speed - Union MSME Superfast delivers 30-minute in-principle approval, one of the fastest PSU digital MSE experiences in India. The platform pulls GST + banking + CIBIL data via account aggregator and delivers real-time decisioning up to Rs 2.5 crore. Second, specialised contractor financing - Union Contractor Yojana is one of India’s top PSU offerings for civil contractors + infrastructure contractors with contract-linked working capital up to Rs 10 crore.

Rates start from 8.50% for CGTMSE-covered MSE loans under Union MSME Superfast - competitive within the PSU segment. Post-merger integration has significantly deepened Union’s product range and geographical reach. Combined with strong digital infrastructure investment and dedicated MSE branches in tier-2 cities, Union Bank has become a preferred PSU choice for digital-ready MSEs, civil contractors, and Andhra + Karnataka regional businesses.

Product Matrix

Union Bank Business Loan Products - Complete Rate Matrix (August 2026)

Union Bank offers a comprehensive range of business loan products across MSE + SME + Corporate divisions. Rates below are indicative - actual pricing depends on borrower profile.

Loan Product Interest Rate Max Amount Max Tenure Apply
MSME Loan
Union MSME Superfast (30-min)
 8.50% - 13.50% Rs 2.50 Cr 7 Years Apply
Startup Loan
Union Startup + Stand-Up India
 9.25% - 13.90% Rs 1.00 Cr 7 Years Apply
Working Capital Loan
CC + Union Contractor WC
 9.35% - 13.85% Rs 10.00 Cr 1 Years Apply
Machinery Loan
CLCSS + Union Machinery
 9.25% - 14.50% Rs 5.00 Cr 7 Years Apply
Mudra Loan
Nil fee on Shishu
 8.65% - 12.75% Rs 20.00 Lakh 5 Years Apply
CGTMSE Loan
CGTMSE + Superfast digital
 8.75% - 13.75% Rs 2.50 Cr 7 Years Apply
Unsecured Business Loan
Union Contractor unsecured
 10.85% - 15.35% Rs 25.00 Lakh 5 Years Apply
Secured Business Loan
Union Property Loan LAP
 9.35% - 12.95% Rs 5.00 Cr 15 Years Apply
Term Loan
Union Term Loan
 9.35% - 13.85% Rs 10.00 Cr 15 Years Apply
Overdraft Facility
OD + Union Contractor
 9.35% - 14.10% Rs 10.00 Cr 1 Years Apply
Signature Products

Union Bank’s Flagship Business Loan Products

Union MSME Superfast

30-minute digital in-principle approval. Up to Rs 2.5 crore. Rate from 8.50%. Among fastest PSU MSE digital products.

Union Contractor Yojana

Civil + infrastructure contractor financing up to Rs 10 crore. Contract-linked working capital + BG + term loan.

Union Trade

Dedicated trade finance for exporters + importers. LC + BG + Packing Credit. Post-Corporation Bank merger enhanced.

Union Progress

Women entrepreneur MSE loan with 0.25%-0.50% rate concession + priority processing.

Union Mudra

3-tier Mudra (Shishu/Kishore/Tarun). Rate from 8.65%. Nil fee on Shishu. Strong Andhra + Karnataka distribution.

Stand-Up India (Union)

SC/ST/Women greenfield loan Rs 10 L - Rs 1 Cr. CGTMSE-covered term loan portion.

Eligibility

Union Bank Business Loan Eligibility

Business Vintage

Standard MSE: 2 years. Union MSME Superfast: 1 year with strong GST + banking. Union Contractor: 3 years contractor vintage. Mudra Shishu: none.

Annual Turnover

Rs 40 lakh+ for Rs 10 lakh loan. Rs 3 crore+ for Rs 50 lakh MSE. Rs 10 crore+ for Rs 2.5 crore Superfast max.

CIBIL Score

Personal CIBIL 680+ preferred for Superfast. 650+ workable via CGTMSE. Union Progress: slightly relaxed for women.

Udyam + GST

Udyam mandatory for MSE rates. Consistent GST filings last 12 months critical for Superfast digital eligibility.

Regional Advantage

Andhra + Telangana + Karnataka + Maharashtra MSEs get Union’s strongest branch network + processing.

Banking Relationship

Existing Union current-account (6+ months) accelerates Superfast digital processing. Non-Union customers also eligible.

Documents

Documents Required for Union Bank Business Loan

KYC + Personal Documents
PAN + Aadhaar of proprietor / all partners / all directors. 2 passport-size photographs. Address proof. For companies: DIN of all directors.
Business Registration
Business PAN. GST registration + 12 months returns. Udyam Registration (mandatory). Shop & Establishment Act licence. Constitution documents.
Financial Documents
12 months current-account bank statements (Union preferred for Superfast speed). 2 years ITR + audited financials + Form 26AS. 12 months GST returns. Existing loan schedules + latest statements.
Union-Specific
Union MSME Superfast application form (digital via platform). CGTMSE application form (for collateral-free - filled by Union). Existing Union current-account statement if Union customer. End-use undertaking for term loans.
For Union Contractor Yojana
Contract copies (ongoing + past 3 years). Running project reports. Past contractor track record (contracts executed + on-time completion certificates). Escrow account arrangement details for larger contracts. Contractor registration certificate + relevant government contractor category (Class A/B/C).
For LAP + Property-Backed
Property title chain (30-year traceable). Encumbrance Certificate. Property tax receipts. Approved building plan. Union-empanelled valuer report.
Application Process

How to Apply for a Union Bank Business Loan

1

Product Match

MahadevX identifies best-fit Union product (Superfast/Contractor/Trade).

2

30-Min In-Principle

For Superfast: enter GSTIN + PAN, get decision in 30 minutes.

3

Document Upload

Business + KYC + financial + collateral (if LAP) docs.

4

Branch Verification

Union MSE branch verifies documents + business.

5

Sanction Letter

Loan approved with rate + amount + tenure locked.

6

Disbursal

Amount credited to Union current account after e-signing.

Comparison

Compare Union Bank with Other Business Loan Banks

Compare Union Bank head-to-head with SBI, PNB, BoB, Canara, and others on rate, amount, tenure, and fees.

Compare Banks Side-by-Side
Pros & Cons

Union Bank Business Loan - Advantages & Trade-offs

Advantages

  • Union MSME Superfast - 30-min digital in-principle
  • Union Contractor Yojana - top PSU for civil contractors
  • Enhanced Andhra + Karnataka post-merger presence
  • Competitive rates (from 8.50% CGTMSE)
  • Union Progress women entrepreneur concessions
  • Strong Union Trade for exporters + importers
  • Digital-first MSE origination platform
  • CGTMSE-covered up to Rs 2.5 Cr

Trade-offs

  • Weaker presence in North + East India
  • MSE amount cap (Rs 2.5 Cr) lower than SBI (Rs 5 Cr)
  • Slower processing (15-25 days) vs private banks
  • Union Trade less mature than BoB international
  • Slower than NBFCs on non-Superfast track
  • Legal + valuation timeline for LAP cases
20 Questions

Union Bank Business Loan - Frequently Asked Questions

What is the Union Bank Business Loan interest rate in 2026?
Union Bank of India Business Loan interest rates start from 9.35% p.a. for standard MSE segment and can go up to 14.85% p.a. depending on product, borrower profile, CIBIL score, and collateral. CGTMSE-covered MSE loans under Union MSME Superfast get preferential rates from 8.50%. Union Progress (women entrepreneur scheme) gets 0.25%-0.50% concessional rate. Rates are indicative and depend on Udyam classification, banking behaviour, and application quality.
What is the maximum Union Bank Business Loan amount?
For MSE segment (CGTMSE-covered under Union MSME Superfast): up to Rs 2.5 crore. For MSME term loans: up to Rs 5 crore. For LAP-based (Union Property Loan): up to Rs 5 crore. Union Contractor Yojana (for civil contractors): up to Rs 10 crore. Working capital limits (CC + OD): up to Rs 10 crore for larger SMEs. Corporate SME division handles up to Rs 25 crore+ for enterprises with established Union Bank relationship.
What is Union MSME Superfast and how fast is the digital approval?
Union MSME Superfast is Union Bank of India’s flagship digital MSE product with in-principle approval in 30 minutes - one of the fastest PSU MSE digital approvals in India. Fully digital application via Union Bank's digital platform: enter GSTIN + PAN, the underwriting engine pulls GST filings + CIBIL Commercial Rank + banking behaviour data, and delivers an in-principle decision in 30 minutes. Full disbursal typically completes in 10-15 working days. Loan amount: up to Rs 2.5 crore. Rate: from 8.50%. Covers MSE working capital + term loans with optional CGTMSE cover.
What are Union Bank's signature MSME loan products?
Signature products: (1) Union MSME Superfast - 30-minute digital MSE product, flagship offering. (2) Union Trade - dedicated trade finance for exporters + importers. (3) Union Contractor Yojana - specialised financing for civil contractors and infrastructure contractors up to Rs 10 crore. (4) Union Progress - women entrepreneur focused loan with rate concession. (5) Union Mudra (Shishu/Kishore/Tarun). (6) Stand-Up India variant. (7) Post-merger integrated products from Andhra Bank + Corporation Bank legacy.
What is Union Contractor Yojana?
Union Contractor Yojana is a specialised business loan scheme for civil contractors, infrastructure contractors, and government-work contractors. Provides working capital + term loan up to Rs 10 crore based on running contract value + past track record. Rate: from 9.35%. Ideal for contractors with 3+ years vintage handling ongoing government + private civil contracts. Requires contract copies, ongoing project reports, and demonstrable receivables cycle. Union Bank is one of the top PSU contractor lenders in India.
What is the eligibility for Union Bank Business Loan?
Business vintage: 2 years minimum for standard MSE, 1 year for Union MSME Superfast (with strong GST + banking history). Annual turnover: Rs 40 lakh+ for Rs 10 lakh loan (4x rule). CIBIL: 680+ preferred, 700+ for best rates. Udyam Registration mandatory for MSE rates. Existing Union Bank current-account relationship improves processing speed for Superfast product. Post-merger, Union has particular strength in Andhra Pradesh + Karnataka + Maharashtra.
How is Union Bank different from SBI or PNB for MSE loans?
Union Bank of India stands out on digital speed - Union MSME Superfast delivers 30-minute in-principle approval, faster than SBI MSME Sahaj (45-second in-principle but longer full processing) for well-documented applicants. Post-merger (with Andhra Bank + Corporation Bank in 2020), Union has significantly enhanced Andhra Pradesh + Karnataka + Coastal India presence. Also strongest PSU for civil contractor financing via Union Contractor Yojana. Slightly slower branch density in tier-2/3 cities vs SBI. Best for: digital-ready MSEs, civil contractors, Andhra + Karnataka MSEs.
How long does Union Bank Business Loan approval take?
Union MSME Superfast digital: 30 minutes for in-principle approval, 10-15 working days for full disbursal. Standard Union MSE: 15-25 working days. Union Trade: 12-20 days. Union Contractor Yojana: 20-30 days (contract verification adds time). Union Progress (women): 12-20 days with priority processing. Union Mudra Shishu: 3-7 days. Kishore/Tarun: 10-15 days. LAP-based loans: 30-60 days (legal + valuation).
What documents does Union Bank require for business loan?
KYC: PAN + Aadhaar of proprietor / all partners / all directors. Business: PAN, GST + 12 months returns, Udyam Registration (mandatory), Shop & Establishment licence, constitution documents. Financials: 12 months current-account bank statements (Union preferred for Superfast processing), 2 years ITR + audited financials + Form 26AS. For Union Contractor Yojana: contract copies + running project reports + past 3 years contract execution history. For LAP: 30-year property title chain + EC + tax receipts.
Does Union Bank offer collateral-free business loans?
Yes - primarily through CGTMSE-covered Union MSME Superfast up to Rs 2.5 crore. Also through Union Mudra (all three tiers up to Rs 20 lakh) and Stand-Up India (up to Rs 1 crore CGTMSE-covered portion). Union Progress for women gets enhanced CGTMSE coverage. Small-ticket unsecured (up to Rs 15 lakh) available under Union Contractor for contractor working capital. CGTMSE route offers better rates and higher amounts than pure unsecured.
What is the Union Bank processing fee?
Union MSME Superfast: 0.50% - 1.00% + GST. Union Trade: 0.35% - 1.25% + GST. Union Contractor: 0.50% - 1.25% + GST. Union Property Loan (LAP): 0.50% - 1.50% + GST. Mudra Shishu: Nil. Kishore/Tarun: 0.50% + GST. Union Progress (women): 0.25% concessional. Stand-Up India: 0.25% concessional. During Union Bank MSE campaigns (typically March quarter), fees often waived. MahadevX regularly negotiates fee waivers.
Can I apply for a Union Bank Business Loan online through Union MSME Superfast?
Yes - Union MSME Superfast is fully digital for eligible amounts up to Rs 25 lakh. Full online journey: enter GSTIN + PAN, upload documents (GST returns + bank statements auto-fetched via account aggregator where available), get 30-minute in-principle approval, e-sign loan agreement. For amounts above Rs 25 lakh, some branch touchpoints (final KYC + agreement signing) required. Union Bank has invested heavily in the Superfast digital platform - one of the top PSU digital MSE experiences currently.
Does Union Bank give preferential rates for women entrepreneurs?
Yes - through Union Progress with 0.25%-0.50% rate concession. Under Union Stand-Up India, women entrepreneurs get greenfield loans up to Rs 1 crore. Union Mudra has 0.25% preferential concession for women applicants. Additionally, Union MSME Superfast digital platform has streamlined processing for women-led businesses with dedicated Union Progress channel. Women-owned partnerships and companies (51%+ shareholding) qualify.
Can I get a Union Bank Business Loan with CIBIL below 680?
For CIBIL 650-680: possible via CGTMSE-covered Union MSME Superfast at slightly higher pricing (10.75%-13.25%). For CIBIL 600-650: only Union Mudra Shishu (up to Rs 50,000) and Stand-Up India (greenfield) workable. Below 600: standard products rejected - alternatives via Mudra Shishu, Union Progress (if woman entrepreneur), or NBFC routing. Union Progress has slightly relaxed CIBIL norms for women applicants. MahadevX identifies best-fit Union product based on your credit profile.
What is the Union Bank Business Loan tenure?
Working capital + CC + OD: 12 months, renewable annually. Term loans (Union MSME Superfast): 3-7 years. Union Property Loan (LAP): up to 15 years (180 months). Machinery finance: up to 7 years. Union Mudra: up to 5 years. Stand-Up India: up to 7 years with moratorium. Union Contractor Yojana: aligned with contract completion + 12 months. Project term loans for large capex: up to 10 years including moratorium.
Can I prepay my Union Bank Business Loan?
Yes. Floating-rate Union business loans - nil prepayment / foreclosure charges (RBI mandated for floating-rate MSE loans). Fixed-rate loans: 2%-4% of prepaid principal, often reducing after 12-24 months. Nil prepayment on Mudra loans (Mudra guidelines). Union Contractor Yojana - flexible prepayment aligned with contract completion. Talk to your Union RM before executing prepayment for optimal outcome.
How does the post-Andhra Bank + Corporation Bank merger affect Union Bank MSE lending?
Post-2020 merger with Andhra Bank + Corporation Bank significantly expanded Union’s presence, particularly in Andhra Pradesh + Telangana (Andhra Bank legacy) and Karnataka + Coastal Andhra (Corporation Bank legacy). Combined branch network grew from ~4,300 to 8,700+. Andhra Bank’s strong MSE + retail-trader relationships integrated into Union’s product portfolio. Corporation Bank’s coastal India export MSE expertise strengthened Union Trade product. MSE processing capacity nearly doubled - Union now among top-3 PSUs by MSE loan volume.
How does Union Bank finance civil contractors and infrastructure projects?
Union Contractor Yojana provides working capital + term financing for civil contractors, road contractors, water/sewer contractors, government-work contractors. Structure: (1) Contract-specific overdraft up to 60% of running contract value. (2) Bank Guarantee (bid/performance/mobilisation) at 1%-2% p.a. commission. (3) Term loan for equipment financing under contract. (4) Post-completion working capital for warranty period. Requires 3+ years contractor vintage + past contract completion track record. Union is one of the top-2 PSU contractor lenders.
What happens if I default on a Union Bank Business Loan?
Union follows standard RBI NPA classification: 90-day overdue = NPA. SMA-0/SMA-1/SMA-2 warning stages before NPA classification. For CGTMSE-covered loans: Union claims government guarantee - your obligation continues, borrower CIBIL takes major hit. For Union Property Loan (LAP): SARFAESI Act invoked for property attachment. Personal guarantee (if signed) allows attachment of promoter assets. Talk to MahadevX RM at first sign of stress - Union is one of the more flexible PSUs for restructuring, particularly for contractor loans with genuine contract stress.
How does MahadevX help with Union Bank Business Loans?
MahadevX is an empanelled Union Bank of India DSA with 130+ loan facilitations/month via Union. Value: (1) direct routing to Union MSME Superfast digital platform for eligible cases (30-min in-principle). (2) Pre-check Udyam + GST + CIBIL to maximise Superfast approval odds. (3) Identify Union Progress eligibility for women entrepreneurs. (4) Route contractors to Union Contractor Yojana. (5) Follow-up on application status daily. (6) Coordinate CA-audited financials + property valuation for LAP. Service is free - Union Bank pays us on disbursal.
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