When people talk about how to get a Union Bank loan, many will have the thought of being in a banking hall as old as time, filled with senior citizens lining up to collect their pensions.
One cannot shake that feeling as we all understand that even though the bank has kept up with the times, rebranding itself as every generation passes by; it is still one of the oldest financial institutions in the country.
Being old has not stopped them from being able to perform their core banking objectives, one of which is the ability to provide loans to businesses and individuals. With that in mind, before driving into the solutions on how to get a Unio Bank loan, let us first take a step back and learn about the history of the Union Bank and how its successes have kept it functioning to the present day.
Brief History Of The Union Bank
Union Bank first opened its doors to Nigerians in 1917 as the Colonial Bank. It was the first British bank to establish a branch in the country. When Barclays Bank bought Colonial Bank in 1925, it changed its name to Barclays Bank DCO (Dominion, Colonial and Overseas).
Barclays Bank DCO became Barclays Bank of Nigeria Limited in 1969, the year of Nigeria’s independence. The privatisation of Barclays Bank of Nigeria Limited by the Federal Government of Nigeria in 1993 resulted in the creation of Union Bank of Nigeria Plc.
What are the major milestones of the Union Bank?
Union Bank has developed through time to rank among the top banks in Nigeria. It provides both people and companies with a comprehensive range of banking products and services through its extensive nationwide branch network.
Some of Union Bank’s major milestones include:
- The first bank in Nigeria to use an ATM was Union Bank, which did so in 1981.
- The Nigerian Stock Exchange listed Union Bank as the first bank in the country in 1992.
- The Banker magazine named Union Bank the “Best Bank in Nigeria” in 2007.
- Union Bank received the 2013 Euromoney Magazine “Best Bank in Nigeria” award.
- TitanTrust Bank Limited bought Union Bank in 2022.
- The UnionMobile app, which Union Bank introduced in 2010, lets consumers do banking transactions on their mobile devices.
- In order to give consumers a single point of access to manage their financial accounts, Union Bank introduced the UnionOne platform in 2014.
- 2017 saw the 100th anniversary of Union Bank.
Offering cutting-edge and effective financial services to its clients is a priority for Union Bank; and these milestones show how dedicated they are to dominating the banking sector, expanding and prospering in the years to come.
What Are The Types Of Loans One Can Access With Union Bank?
Union Bank provides a comprehensive range of loan options tailored to meet the diverse needs of individuals and businesses facilitating financial empowerment and growth. These loans include Payroll Loans, Digital Loans and Non-payroll Loans.
1. Payroll loans:
The available types of Union Bank Payroll loans include:
a. Personal Loans
Union Bank’s personal loans offer a flexible and convenient solution for individuals in need of immediate funds. These loans are specifically designed for those with a strong credit history. Borrowers can access loan amounts of up to N15 million, providing them with the financial flexibility to address personal goals such as home improvements, medical expenses, or even leisure activities. The repayment period extends up to 60 months, allowing borrowers to comfortably manage their financial obligations. customers of this loan have to have a minimum monthly income of N15,000.
b. Car Loans
Whether it’s purchasing a new or used vehicle, Union Bank’s car loans provide a seamless way for both individuals and businesses to acquire their desired mode of transportation. With loan amounts of up to N10 million and repayment periods spanning up to 72 months, customers have the opportunity to select a repayment schedule that aligns with their budget and preferences.
c. Mortgage Loans
Union Bank’s mortgage loans cater to the aspirations of owning a home, whether for personal residence or business purposes. Offering loan amounts of up to N150 million, individuals and businesses can embark on property acquisitions with confidence. The extended repayment period of more than 15 years with a minimum interest rate of 16%, ensuring that borrowers can comfortably manage their mortgage payments and turn their real estate dreams into reality.
d. SME Loans
Recognizing the vital role of small and medium-sized enterprises (SMEs) in economic growth, Union Bank’s SME loans provide substantial financial support to these businesses. With loan amounts of up to N100 million, SMEs can fuel their expansion, invest in equipment, or meet working capital needs. The extended repayment period of up to 120 months facilitates sustainable growth and business development.
e. Back-To-School Finance
Union Bank’s back-school finance loans empower individuals with the ability to pay for their child’s or ward’s education without the burden of immediate financial constraints. With loan amounts of up to N15 million, the beneficiaries can have their children or wards focus on their studies while the loan covers for their tuition fees, accommodation expenses, and other educational costs.
The repayment period of up to 3 months for termly fee payments and 12 months for session fee payments are made available to the beneficiary.
f. Salary Advance Loans
Before receiving their next payment, employees who need immediate financial help can apply for salary advance loans from Union Bank. These loans provide a practical answer to short-term cash flow problems by assisting people in covering unforeseen costs or crises.
To access this loan, the customer needs a minimum monthly salary of N15,000 and one can access a maximum loan amount of up to 50% of one’s salary. It also has a maximum loan tenure of 12 months.
g. Senior Citizen Loan
This loan type is meant for retirees. It gives them the pleasure of sitting back and relaxing while their pension works for them. It also gives them the opportunity of accessing loans of up to N10 million to finance personal projects. customers are allowed to pay back over a period of 5 years.
This loan covers a minimum monthly pension of N10,000 and comes with a maximum loan tenor of 60 months.
h. Union Flexi Loan
For those who earn at least N30 million per annum, Union Bank has got the Union Flexi Loan that gives them the opportunity to access up to N50 million to meet their financial needs.
customers of this loan must have a minimum annual salary of N30 million and can borrow up to N50 million. The maximum tenor for the repayment of this loan is 60 months.
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2. Digital Loans
These loans are set for salary earners in need of quick cash for personal reasons. They help the customer save stress while providing the financial support he needs. Available types of Union Bank Digital loans include:
a. Payday Loan
This loan gives the customer up to 50% of his salary; giving him the opportunity to pay back in a month’s time without hassles or collaterals.
The loan is up for customers with a minimum monthly salary of N15,000; and one can get the maximum loan amount of N500,000.
It has a loan tenure of 30 days and a salary domiciliation of 3 months. The loan is limited to 50% of salary. That means if a customer receives N100,000 per month, he can access a digital loan of N50,000.
3. Non-Payroll Loans
For those who are not on a payroll, there are a few loans available including:
a. Self-employed Loans
This loan gives the customer access up to N5 million to facilitate the day-to-day activities of his large-scale business in any location nationwide. This loan also comes with an average credit turnover of N500,000; a maximum loan tenor of 6 months; and customers willing to access this loan must be a customer of Union Bank for up to 6 months. The loan also comes up with a clean-up cycle that comes every 90 days.
b. Self-employed Revolving Overdraft
Customers of this loan type can also access up to N5 million to facilitate the day-to-day activities of their large-scale business in any location nationwide.
This loan has a Net Turnover of N10,000 per month and a Credit Turnover of N50,000 per month. The loan tenor is set at 6 months, with a Clean-up cycle that comes every 60 days.
c. Cash-backed Loans
This loan type helps customers get a loan for their personal or business needs fully backed by their investments.
This loan type is unique in the fact that it has a maximum loan amount which is 80% of the investment amount. That means if you have an investment worth N100,000 in Union Bank, you will be able to access a maximum loan amount of N80,000.
The loan also is unique as it has its interest rate set at just 1%. It also comes with a maximum loan tenor of 12 months.
Customers eligible for the cash-backed loan include customers with target savings products (e.g. UnionKorrect, UnionFlex etc.) and customers with investments.
What other Types of Loans do Union Bank Offer?
There are types of loans that Union Bank also give. They include:
i. Business Loans
For businesses of all sizes, Union Bank’s business loans serve as a catalyst for expansion, innovation, and success. With access to loan amounts of up to N500 million, enterprises can invest in new projects, expand operations, or enhance their competitive edge. The extended repayment period of up to 120 months ensures that businesses have the financial flexibility to strategize for the long term.
ii. Agribusiness Loans
Union Bank provides agribusiness loans to help the agriculture industry. These loans are made to finance agricultural projects, the acquisition of farm machinery, raising animals, and other agribusiness-related operations. The bank wants to support the expansion of Nigeria’s agriculture sector.
iii. Asset finance loans
These loans let companies buy the equipment, machinery, and vehicles they need to run their operations. The conditions of these loans are variable, and they are frequently made to fit the particular item being funded.
How does one apply for Union Bank loans?
When looking for how to get a Union Bank loan, you need to follow these steps to apply:
1. Apply by visiting a Union Bank Branch
- Go to any Union Bank branch in Nigeria.
- Speak to a Union Bank representative. The representative will help you understand the different loan options available to you and will guide you through the application process.
- Provide the required documents. The required documents may vary depending on the type of loan you are applying for. However, you will typically need to provide the following:
- Credit report: This will show your credit history and how well you have managed your debts in the past.
- Valid ID: This could be your driver’s licence, national ID card, or passport.
- Proof of income: This could be your salary slip, tax returns, or business records.
- Proof of address: This could be a utility bill, bank statement, or rent receipt.
- Bank statements: This will show your financial history and how regularly you make payments.
- Sign the loan agreement.
Having all of the required documents ready, will help to speed up the application process and increase your chances of getting approved.
If your loan application is approved, you will be required to sign a loan agreement. The loan agreement will specify the terms and conditions of the loan, such as the interest rate, repayment period, and fees.
2. Applying online
When applying for a Union Bank online on your computer or on their mobile application
- Visit their official website at https://www.unionbankng.com/loans/#personal-loan
- Scroll to your preferred loan and click on it
- Click on the “loan application guide” option directly below the loan dialog box to understand what it entails
- When done, click on the “apply for a loan” button to proceed and apply
You then wait for the loan to be approved, processed and disbursed.
Here are some additional things to keep in mind when applying for a loan from Union Bank:
- You can apply for a loan online or at a Union Bank branch.
- The application process may take a few days or weeks.
- You will be notified of the decision on your loan application within a reasonable time.
- If your loan application is approved, you will be required to make a down payment.
- You will start repaying the loan after the grace period.
- If you have any questions about the loan application process, you can contact a Union Bank representative.
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Does Union Bank Have A USSD Code For Loans?
When looking for how to get a Union Bank loan, it is true that Union Bank has a USSD Code that one can use to access their loans. Just dial *826*41# and follow the prompt till you can access the loans that are available.
How can one contact Union Bank?
You can contact Union Bank through any of the following ways:
- Via phone at +234-1-2716816
- Via Union Bank’s customer feedback and support: log on to https://unionbankng.unionbankng.p.azurewebsites.net/support/#feedback-and-support
- You can also visit in person any of their branches near you.
In Conclusion
We have found out how to get a Union Bank loan and their diverse range of loan products. This diversity reflects Union Bank’s commitment to supporting both individual financial aspirations and business growth in various sectors. Each loan type is designed to address specific needs, and borrowers can choose the one that aligns with their goals and circumstances. Apply for one today.
