Public Sector Bank (PSU)Term Loan (Capex / Expansion)All MSME Borrowers🛡️CGTMSE CoveredVerified: 2026-09-29

Union Bank of India Union MSME Suvidha

Primary Lending Institution:Union Bank of India

₹10 Lakh to ₹5 Crore MSME credit at 8.65% – 10.20% with Up to 7 years tenure.

Interest Rate8.65% – 10.20%Linked to EBLR / MCLR / Risk

Loan Amount Quantum₹10 Lakh to ₹5 CroreBased on turnover & project cost

Repayment TenureUp to 7 yearsWith moratorium where applicable

Collateral SecurityRequires statutory Udyam registration and clean credit bureau track.

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

Requires statutory Udyam registration and clean credit bureau track.

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 of India Union MSME Suvidha?

Flagship MSME financing scheme of Union Bank of India providing composite loans for plant and working capital.

Key Benefits & Features

Unified term loan and working capital sanction; competitive EBLR rate; concessions for women entrepreneurs.

Government Subsidy & Credit Guarantee Coverage

CGTMSE / Bank Guarantee / Normal Security

Enterprise Eligibility Criteria

Manufacturing and service MSMEs with viable project plan.

Business Vintage1+ Years in Operation

Min. Annual Turnover₹20.0 Lakh

Processing Fee0.40% + GST

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-msme-suvidha.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 of India Union MSME Suvidha?

Borrowers can avail ₹10 Lakh to ₹5 Crore with a repayment tenure of Up to 7 years.

What are the processing charges and collateral terms for Union Bank of India Union MSME Suvidha?

The processing fee is 0.40% + GST. Collateral terms: Requires statutory Udyam registration and clean credit bureau track.

What are the eligibility criteria for Union Bank of India Union MSME Suvidha?

Manufacturing and service MSMEs with viable project plan. Minimum business vintage required is 1 year(s).

How can an applicant apply for Union Bank of India Union MSME Suvidha?

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