Public Sector Bank (PSU)Working Capital Facility (CC / OD)Micro Enterprise (Investment ≤ ₹1 Cr)🛡️CGTMSE CoveredVerified: 2026-09-29

Union Bank Union Trade Loan for Commercial Traders

Primary Lending Institution:Union Bank of India

₹2 Lakh to ₹2 Crore MSME credit at 8.75% – 10.50% with Up to 5 years tenure.

Interest Rate8.75% – 10.50%Linked to EBLR / MCLR / Risk

Loan Amount Quantum₹2 Lakh to ₹2 CroreBased on turnover & project cost

Repayment TenureUp to 5 yearsWith moratorium where applicable

Collateral SecurityRequires commercial shop and establishment certificate or trade license.

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

Requires commercial shop and establishment certificate or trade license.

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 Trade Loan for Commercial Traders?

Hassle-free overdraft facility for traders, distributors, commission agents, and retail shops.

Key Benefits & Features

Smooth overdraft operation; allows seasonal spikes; simple stock declaration norms.

Government Subsidy & Credit Guarantee Coverage

CGTMSE / Bank Guarantee / Normal Security

Enterprise Eligibility Criteria

Retail and wholesale commercial traders with 1+ year operations.

Business Vintage1+ Years in Operation

Min. Annual Turnover₹10.0 Lakh

Processing Fee0.50% + 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-trade.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 Trade Loan for Commercial Traders?

Borrowers can avail ₹2 Lakh to ₹2 Crore with a repayment tenure of Up to 5 years.

What are the processing charges and collateral terms for Union Bank Union Trade Loan for Commercial Traders?

The processing fee is 0.50% + GST. Collateral terms: Requires commercial shop and establishment certificate or trade license.

What are the eligibility criteria for Union Bank Union Trade Loan for Commercial Traders?

Retail and wholesale commercial traders with 1+ year operations. Minimum business vintage required is 1 year(s).

How can an applicant apply for Union Bank Union Trade Loan for Commercial Traders?

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