UNION BANK OF INDIA

Charter for Small Scale Industries

  • Acknowledgements for receipt of loan application by branch by affixing date stamp
  • Time Norms for disposal of loan applications:

    Upto Rs. 25000/-

    2 weeks

    Over Rs. 25000 & upto Rs. 5.00 lacs

    4 weeks

    Over Rs. 5.00 lac

    8-9 weeks

  • Collateral security-

Loans upto Rs. 5.00 lac

- No collateral Security

 

Loans over Rs. 5.00 lac
and upto Rs. 25 lac

- No collateral Security based on good track record and financial position of units

  • Credit Guarantee-

Loans upto Rs.25 lac

- No collateral security and third party guarantee loans availed under Credit Guarantee Scheme (CGFSI). For obtaining guarantee cover, guarantee fee is payable @ 2.5% upfront and annual service charges are payable @ 1% on the outstanding loan amount. Our Bank is bearing 50% of the fees to reduce the burden to the beneficiaries.

  • Women Entrepreneurs -

Loans above Rs. 1 lac

- Relaxation in margin money from 25% to 20% and 1% reduction in rate of interest subject to a minimum of PTLR/PLR on case to case basis

  • Composite loans upto Rs. 50 lakh are sanctioned to SSI units

  • Loan quantum: Minimum 20% of projected annual sales turnover (Nayak Committee norms)

  • Rate of Interest : For SSI advances effective from 1.1.2004

    - Loans upto Rs. 50,000/-

    		  

    - PLR - 2%, i.e. 8.75%

    - Loans above Rs. 50,000/- upto Rs. 2 lac

    		  

    - PLR -1.75%, i.e. 9.00%

    - Loans above Rs. 2 lac upto Rs. 5 lac

    		 

    - PLR, i.e. 10.75%

    - Above Rs. 5 lakh

    		  

    - PLR+2% depending on credit rating.

  • Simple loan application form as per Kapoor Committee recommendations introduced
  • Union Laghu Udhyami Credit Card (ULUCC): ULUCC introduced for providing bassle free credit upto Rs. 10.00 lakh to small borrowers
  • Union Artisan Credit Card (UACC): UACC introduced for providing adequate and timely assistance upto Rs. 2 lakh to the artisans to meet their credit requirements.