Public Sector Bank (PSU)Term Loan (Capex / Expansion)Women-Led Enterprises🛡️CGTMSE CoveredVerified: 2026-09-29

Union Bank Union Mahila Udyam (Women Entrepreneurs)

Primary Lending Institution:Union Bank of India

₹5 Lakh to ₹1 Crore MSME credit at 8.40% – 9.65% with Up to 7 years tenure.

Interest Rate8.40% – 9.65%Linked to EBLR / MCLR / Risk

Loan Amount Quantum₹5 Lakh to ₹1 CroreBased on turnover & project cost

Repayment TenureUp to 7 yearsWith moratorium where applicable

Collateral SecurityEnterprise must be at least 51% owned and actively managed by women.

What's Missing: Crucial Fine-Print & Exclusion Gaps

Enterprise must be at least 51% owned and actively managed by women.

Note: Eligo publishes these regulatory and commercial exclusions directly from bank product guidelines and CGTMSE rules to protect MSME applicants from unexpected fee debits or loan rejection surprises.

What is Union Bank Union Mahila Udyam (Women Entrepreneurs)?

Targeted loan for women-owned enterprises providing 0.50% interest concession and full waiver of processing fees.

Key Benefits & Features

Concessional interest rate; nil processing fee; credit guarantee support; handholding assistance.

Government Subsidy & Credit Guarantee Coverage

CGTMSE / Bank Guarantee / Normal Security

Enterprise Eligibility Criteria

Women entrepreneurs across manufacturing, services, or trading.

Business VintageNew & Existing units eligible

Min. Annual TurnoverTurnover proportionate

Processing FeeNil processing fee

Prepayment TermsZero prepayment penalty on floating rate loans as per regulatory norms

How to Apply (3 Verified Paths)

💼Path 1: Current Account Portal

Apply online via business net banking or approach loan account manager.

🌐Path 2: Official FinTech / Govt Portal

Apply online at https://www.unionbankofindia.co.in/english/union-mahila-udyam.aspx with digital KYC and financial statements.

🏢Path 3: SME Banking Center Walk-In

Visit nearest MSME branch of the institution with business registration and bank statements.

Eligo does not collect business loan applications or financial data. Apply directly on the verified official domain:

Visit Official Portal↗

Documents Required Checklist

Udyam Registration Certificate, PAN, Aadhaar, Last 2 years ITR and financial statements, 12 months GST returns, 6 months bank statement.

Frequently Asked Questions

What is the maximum loan tenure and amount for Union Bank Union Mahila Udyam (Women Entrepreneurs)?

Borrowers can avail ₹5 Lakh to ₹1 Crore with a repayment tenure of Up to 7 years.

What are the processing charges and collateral terms for Union Bank Union Mahila Udyam (Women Entrepreneurs)?

The processing fee is Nil processing fee. Collateral terms: Enterprise must be at least 51% owned and actively managed by women.

What are the eligibility criteria for Union Bank Union Mahila Udyam (Women Entrepreneurs)?

Women entrepreneurs across manufacturing, services, or trading. Minimum business vintage required is 0 year(s).

How can an applicant apply for Union Bank Union Mahila Udyam (Women Entrepreneurs)?

Apply online at https://www.unionbankofindia.co.in/english/union-mahila-udyam.aspx or visit nearest branch with KYC, Udyam registration, and bank statements.