Unity Bank Personal Loan: From eligibility to features; all you need to know
Personal loans from Unity Small Finance Bank cater to those needing quick funds, offering flexible amounts and competitive rates. Applicants aged 23-55 with a minimum income of Rs. 20,000 and a CIBIL score above 675 can apply. A 3-day cooling-off period allows for loan cancellation.
Unity Small Finance Bank provides personal loans to those who require instant funds in unforeseen circumstances or want financial assistance to cover an important event. Personal loans have become quite a popular choice amongst people due to the ease of access as well as the flexibility in loan repayment tenure.
Key features
Flexible loan amounts:Unity bank offers flexible loan amounts which you can choose according to your needs.
Competitive interest rates:The interest rates offered by the bank are designed to cater to your budget so that you can compare and choose wisely.
Cooling off period:You are provided with a 3 days window post loan disbursement to return the loan amount if you do not wish to proceed with the loan.
No collateral:The personal loans offered by the bank do not require collateral. Hence, you can apply for the loan even if you do not have any assets.
Eligibility criteria
Age:Must be between 23 years to 55 years old.
Income:Minimum monthly income of Rs. 20,000 (Rs. 2,40,000 annually) is required in order to be eligible for the loan.
CIBIL score:A score higher than 675 is considered to be eligible for the loan and improves approval chances.
Documents required
ID proof (Aadhar card/passport/voter ID)
- Pan Card
- Income proof ( salary slips, bank statements and tax returns)
- Passport size photographs
- Self attested form for personal loan
- Address proof ( Aadhar card/voter ID/ rental agreement/electricity bill)
Fees and charges
Foreclosure charges:
Months on Board (MOB) | Charges plus GST |
After 12 months post the lock-in period | 3% of the principal outstanding |
Within the first 12 months post the lock-in period | 5% of the principal outstanding |
Partial preclosure charges:
Particulars | Charges plus GST |
Partial Preclosure Charges | 5% of the principal being repaid + GST Or as rolled out by the Bank and intimated to the customer |
Digital personal loan fees and charges :
Particulars | Charges |
Processing Fees | Up to 5% of the loan amount |
Bounce Charges | Up to ₹500 |
Stamp Duty Charges | Payable as per actuals by the applicant |
Penal Charges | 36% p.a. on the overdue amount for the default period |
Foreclosure charges | Up to 3% + GST |
Insurance (Credit Shield) | If opted by the borrower voluntarily, As per the guidelines of the Insurer |
Other charges:
Particulars | Charges |
Processing Fees | Up to 3% of the loan amount |
Cheque Bounce Charges | ₹100 |
Stamp Duty Charges | Payable as per actuals by the customer |
Cheque Swap Charges | ₹1,500 |
Penal Charges | 36% p.a. on the overdue amount for the default period |
Loan reschedule charges in terms of EMI/Tenure/ROI | Rs. 2,000 (can be changed at the sole discretion of the Bank) |
Insurance (Credit Shield) | If opted by the borrower voluntarily, As per the guidelines of the Insurer |
Amortization schedule statement/ Statement of Accounts/Duplicate No-Dues/Foreclosure statement charges/NOC charges | One request per year is free ₹100 for every additional request + GST |
Loan cancellation/fees | Nil; the cancellation is allowed only within the cooling off period (Only applicable interest and upfront fees to be retained) |
Recovery/collection charges | ₹300 per visit + GST |
E-Mandate Failure Charges | ₹500 + GST |
Source: paisabazaar
In conclusion, personal loans offer a higher interest rate as compared to other loans in the market. Hence, before you decide on getting a loan, explore other options and compare other options so that you can get the best deal for yourself. You must note that even a single default in EMI repayment can drastically deteriorate your credit score. Make informed decisions to avoid any future debts.
(Note: Personal loan interest rates and other provisions keep changing with time. Readers are advised to check the relevant bank's official website for the latest updates.)
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