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Please Note: City Union Bank is not a Paisabazaar partner. Offers would be from partner banks/NBFCs only.
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City Union Bank is an Indian public-sector bank, offering financial services to its customers. The bank offers various types of MSME loans that include Working Capital Loans, Cash Credit, Letter of Credit, Bills Finance and business loans for its customers. The business loan offered by City Union Bank is termed as Easy Business Loan that offers funding at an interest rate of 12.50% p.a. onwards.
City Union Bank Business Loan Highlights
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| Interest Rate | 12.50% p.a. onwards |
| Loan Amount | Min. Rs. 15 lakh & Max. 75 lakh |
| Eligible Entities | Trading, Micro and Small enterprises (Proprietary / Firm / Companies) |
| Repayment Tenure | 24-60 months (Demand/Term Loan) |
| Margin required | 25% |
| OLCC | 1 year and renewable every year |
| Pre-closure charges | 2% of the amount |
Note: The mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the bank and RBI. GST and service tax shall be levied extra on the mentioned charges
Compare – Business Loan Interest Rate of Top Banks
Primarily, Easy Business Loan is offered to small traders and shop keepers and for trading, micro and small enterprises.
Types of MSME Business Loans
| Loan Type/Category | Cash Credit | Working Capital Loan | Letter of Credit | Bills Finance |
| Availability | CC, OD, Drop Line OD | Loan with EMI & Non EMI for working capital purpose | In form of guarantee to their customers, for business purposes | In the form of Bill Purchase and Bill Discount |
| Margin | 25% | 25% | NA | 25% |
| Moveable and Immoveable securities | Yes | Yes | Yes | NA |
Documents Required for Loan Application
- Duly filled application form with passport-sized photographs
- Business Plan
- PAN Card – For Company/Firm/Individual
- Aadhaar Card
- Identity, Age, Income and Address proofs (Valid Passport, Voter’s ID Card, Driving License, Utility Bills (Water, Electricity))
- Bank statement of last 6 months
- Business Address proof
- Rent agreement/Sale Deed
- Latest ITR along with computation of income, Balance Sheet and Profit & Loss account for the previous 2 years, after being CA Certified/Audited
- Business establishment certificate
Additional Documents
- Sole Proprietorship Declaration or Certified Copy of Partnership Deed, Certified true copy of MoA & AoA
- Proof of continuation (ITR/Trade license/Establishment/Sales Tax Certificate)
How to Apply for Business loan in City Union Bank?
There are two ways through which one can apply for a business loan:
Online: One can visit the official website of the Citi Union Bank to apply for Business loan. Customers simply need to visit the website and apply online.
Visit the nearest branch: An individual can directly visit nearest bank branch to apply for a business loan. Here again, an application should be filled and the important documents should be submitted.
FAQs
Q. What is the City Union Bank business loan interest rate in 2022?
Ans. The City Union Bank Business loan is offered at 12.50% onwards.
Q. What is the loan amount offered for City Union Bank business loan?
Ans. The minimum loan amount offered is Rs. 15 lakh and maximum loan amount goes up to Rs. 75 lakh.
Q. What is the maximum repayment period of business loan?
Ans. The maximum repayment period of business loan is 5 years.
Q. Do I need to deposit collateral in any form with the bank?
Ans. No, collateral is not required by City Union Bank.
Also Read: How to get a loan without security in India?
Q. How to check City Union Bank business loan status?
Ans. You can check the City Union Bank business credit status by reaching the client care number (044-71225000) or in the event that you as of now have a record can login to your record and check the status there. You can likewise check with your account manager in the event that you have been designated one.
Q. What is the maximum loan amount can avail under MSME scheme?
Ans. The maximum loan amount that can be availed is up to Rs. 2 crore. It can even exceed depending upon business requirements.
Q. Is there any collateral or security required to get a loan under the MSME sector?
Ans. No, there is no collateral or security required for unsecured business loans up to Rs. 2 crore. Banks do ask for collateral for loan types, such as equipment finance, line of credit, machinery loan, term loan, etc.
Q. Is Bill discounting and Bill purchasing the same thing?
Ans. Both Bill discounting and Bill purchase is a funding term used for businesses in which the invoices are raised to acquire funds. However, the processes of availing loans under these two banking terms are bit different.