City Union Bank Personal Loan | Eligibility, Factors, Features, Details and Documens Required

City Union Bank Personal Loan: City Union Bank, earlier known as The Kumbakonam Bank Limited, was incorporated as a limited company on 31 October 1904. The bank played the role of the regional bank in Thanjavur District Tamil Nadu.

Its primary purpose is to help deposit holders get the much-needed financial help against their deposit in their time of need for medical expenses, any type of family urgencies, the expansion of business, etc.

In this specific article, we will look at City Union Bank Personal Loan minimum salary, City Union Bank Personal Loan apply online, and City Union Bank Personal Loan Interest Rate.

Curious to check other banks’ offered Personal loan features, eligibility, interest rates, tax benefits, and a repayment plan. Go with our one-stop Personal Loan Page & swipe out your doubts within no time.

City Union Bank

Eligibility for City Union Bank Personal Loan

You are eligible for any type of personal loan from City Union Bank Personal Loan if you can meet the below-mentioned criteria:

  • Given age: The applicant must at all costs be above 21 years of age and less than 58 years of age.
  • The deposit made: The applicant must be an account and deposit holder in the City Union Bank.
  • The credit score of the applicant: The applicant must have a relatively good credit score so that City Union Bank has the confidence that you will repay the loan promptly.

How the CIBIL Score affects anyone’s City Union Bank Personal Loan Eligibility conditions?

When an applicant applies for any personal loan with City Union Bank, the bank starts a credit check to ensure the applicant can refund the loan used.

  • If the applicant’s CIBIL Score is above the required score, the bank will then acknowledge the application and look at the applicant’s credit report.
  • The bank also additionally takes into consideration the loans the previous loans applied and accepted by the said applicant.
  • The bank will also consider the repayment time and the tenure to ensure that payments are made promptly. It also feels the types of loans that the applicant has taken, if it is a good mix of unsecured or secured.
  • If any applicant has settled a previous loan because they has any financial constraints, then it gets recorded in the credit report. This record is maintained for six years.
  • These settlements are again considered as a negative mark in your CIBIL report and can additionally have the City Union Bank question your ability to refund the loan and can even refrain from offering you a personal loan.

Factors Affecting City Union Bank Personal Loan Eligibility

Income of the Applicant

The salary which is earned in a month is a vital factor in determining the applicant’s loan eligibility, and this shows that they are capable of repaying the loan.

The employment history of the applicant

If the applicants are employed with a firm with confirmed service of a minimum of 3 years, it increases the stability factor and your chances.

Repayment history of the applicant

Payments made towards your previous loans, credit cards, mortgages, vehicle loans, etc., regularly help increase your eligibility for a personal loan since the bank is sure that you’re regular and timely with your payments.

Credit history and CIBIL score

Your credit history and CIBIL score are significant factors to determine your loan eligibility. All banks review your track records of previous loans taken, EMIs and payments, etc.

It establishes a loan pattern of your credit and repaying capabilities. Allowing the bank to trust that you will make payments regularly.

Features of Personal Loans at City Union Bank

Here are the features of personal loan City Union Bank:

  1. You can buy new consumer durables such as furniture, washing machines, television, wet grinders, computers, laptops, refrigerators, electronic gadgets, and others with the fund.
  2. The loan amount is Rs. 25,000 to Rs. 1 lakh or for the non-salaried group, 50% of the gross annual income as reflected in the last ITR/for salaried individuals, the net take-home pay of the previous ten months
  3. The maximum loan sum is Rs. 1 lakh, and 10% is the margin (of the total value of goods purchased) the bank retains.
  4. The tenure is between 36 months and 60 months.
  5. You have to get the consumer durables insured. You have to also take personal life insurance, whose limit must be equivalent to the purchased items.

Documents Required for City Union Bank Personal Loan

Here are the required documents for the loan application:

  • Identity Proofs: Passport, Aadhaar Card, Voter’s Identity Card, PAN Card, Ration Card, Driving Licence, Confirmation Card from the employer or other bank, Letter from a public authority, NREGA Job Card retained by a State Government Officer, Letter issued by UIDAI
  • Address Proofs: Aadhaar Card, a rent agreement with address and registration, Passport, Driver’s Licence, Voter ID, Telephone bill, Letter from a recognized public authority, Bank statement, newest electricity bill, ID issued by mailing authorities, NREGA Job Card recognised by the State Government officer, Letter issued by the UIDAI, Consumer passbook.
  • Latest passport-size photographs
  • Demand Promissory Note
  • The bank requests other documents.

What Influences the Personal Loan’s Rate of Interest?

The applicant’s credit history influences the City Union Bank’s loan rate of interest, the repayment track record, the applicant’s net annual income, age, credit score, work stability, debt to income ratio, other financial obligations, and so on.

Loan Processing Fee for CUB

Processing Charges  Particulars
  Nil For advances up to Rs. 25,000/- (for Priority Sector and Micro & Small Enterprise Advances)
  100/- For Priority sector advances above Rs. 25,000/- but up to 2.00 lakhs (other than Micro & Small Enterprises Advances)
  750/- For Priority Sector Advances above Rs. 2.00 lakh and up to Rs. 5.00 lakh (other than Micro & Small Enterprises Advances)
  Nil For Micro & Small Enterprises Advances up to Rs. 5.00 lakh
  Nil For Agricultural Advances up to Rs. 5.00 lakh.
  0.25 % per annum For Agricultural Advances above Rs. 5.00 lakh
  0.25 % per annum For non-priority advances up to Rs. 5.00 lakh
  Nil For all Jewel Loans & LAD

Details of non-agriculture Gold Loans

The personal jewelry or gold loan scheme involves quick and straightforward documentation. It additionally offers a low margin (of about 10%), speedy processing, flexible repayment terms, and essential KYC documentations.

There is no processing fee required. The City Union Bank or CBU Gold Loan interest rate is currently 9.50%.

Evaluation of Personal Loan Application of City Union Bank

When the bank receives your completed application form for the personal loan and the necessary documents, it analyses your eligibility for the loan.

If you qualify, you shall gain approval for a particular loan sum as per your repayment capacity and requirement. You can as well also get in touch with the customer care support or department for inquiries and track your loan application.

Norms for the City Union Bank Personal Loan

If you are taking the loan from CBU, you must provide a Standing Instruction, PDS, or ECS arrangement. You have to submit the last two years’ ITR, or Form 16.

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