How To Get A Loan From Union Bank In Nigeria With Or Without Collateral in 2023

Union Bank is more like, it’s one of the oldest banks in Nigeria so far. This bank offers both long and short time loans to their prospective customers. So in this article, I will show you how to get a loan from Union Bank in Nigeria with or without collateral including the loan requirements and interest rate.

Brief History Of Union Bank

Union Bank of Nigeria Plc is one of the oldest and most prominent banks in Nigeria. It was established in 1917 as Barclays Bank DCO (Dominion, Colonial, and Overseas) and began operations in Lagos, Nigeria.

The bank’s name was changed to Barclays Bank Nigeria Limited in 1969, and in 1971, it became a Nigerian-owned entity after the government of Nigeria acquired a majority stake in the bank. The bank’s name was changed again to Union Bank of Nigeria when it got to 1979.

Throughout the 1980s and 1990s, Union Bank of Nigeria continued to expand and modernize its operations. The bank introduced new technologies, such as automated teller machines (ATMs), and expanded its services to include online banking, mobile banking, and other digital banking platforms.

In the early 2000s, Union Bank of Nigeria underwent a major rebranding exercise, which included a redesign of its logo and a new marketing campaign aimed at positioning the bank as a modern, customer-focused financial institution. The bank also embarked on a major restructuring effort aimed at improving its profitability.

In 2011, Union Bank of Nigeria was recapitalized and restructured, and a new management team was appointed to lead the bank. 

Since then, the bank has continued to expand its operations and improve its financial performance. Today, Union Bank of Nigeria is one of the largest banks in Nigeria, with a wide network of branches and ATMs across the country.

Union Bank Loan Types

Here are some of the loan types offered by Union Bank in Nigeria and the requirements for each:

1. Personal Loan

This loan type is designed to meet personal financial needs such as paying for education, home renovation, or buying a car.

 However, the usual requirements for a Union Bank personal loan in Nigeria are:

1. Applicant must be a Nigerian citizen or resident
2. Applicant must be between 18 and 59 years old
3. Applicant must have a verifiable source of income
4. Applicant must have a Union Bank account
5. Applicant must have a valid means of identification

2. Business Loan

This loan type is specifically designed for the entrepreneurs and small business owners to finance their business operations. 

For you to get a business loan from Union bank, you must meet the following requirements:

1. You must be a Nigerian citizen or resident
2. You must have a registered business with the Corporate Affairs Commission (CAC)
3. Applicant must have a minimum of 1-year business experience
4. You must have a Union Bank account
5. You must have a valid means of identification etc.

3. Assets Finance Loan

Another loan type you may opt-in for if it suits your need is assets finance loan, it is a type of loan that is basically designed for individuals and businesses to finance the purchase of assets such as vehicles, equipment, and machinery. 

This loan type also has some sets of requirements which are:

1. Applicant must be a Nigerian citizen or resident
2. Applicant must have a registered business with the Corporate Affairs Commission (CAC) (for business applicants)
3. Applicant must have a Union Bank account
4. Applicant must provide a proforma invoice or quotation for the asset
5. Applicant must have a valid means of identification etc.

4. Salary Advance Loan

Salary Advance Loan is another loan opportunity I would like you to know in this topic which speaks all about how to get a loan from Union Bank in Nigeria with or without collateral, this loan is designed for salary workers in either public or private organization, you can opt-in for this loan to quickly meet urgent financial needs before your next payday. 

Salary Advance Loan also has some set of requirements which includes the listed below:

1. You must be a Nigerian citizen or resident
2. You must be a confirmed staff of a reputable organization
3. You must have a Union Bank account
4. You must have received at least 3 consecutive months’ salary from your employer
5. You must have a valid means of identification.

Union Bank Borrowable Amount

Another thing that is deemed important for you to know is the Union bank borrowable amount, however, I have listed and explained the borrowable amount below:

Personal Loan

The minimum amount of loan you can get from Union Bank personal loan in Nigeria ranges from N50,000, while the maximum loan amount is N15,000,000 only.

Business Loan

With a Business loan you can get a loan from the sum of N50,000 and can get up to N50,000,000.

Assets Finance Loan

The minimum loan amount for a Union Bank asset finance loan in Nigeria is N1,000,000, while the maximum loan amount is N50,000,000.

Salary Advance Loan

Salary Advance Loan is for salary workers who need some amount of money to cater for themselves before their salary landed. 

However, the minimum loan amount for a Union Bank salary advance loan is N25,000, while the maximum loan amount is up to 50% of the borrower’s monthly salary.

Recommended: How To Get A Loan From Wema Bank In Nigeria With or Without Collateral in 2023

Note the above loan amounts are subject to change and may vary depending on the loan type.

However, It is best to visit a Union Bank branch or check their website for the most up-to-date information on loan amounts.

Union Bank loan repayment, how to borrow money from Union Bank in Nigeria, Union Bank Frequently Asked Questions

Union Bank Loan Repayment

With Union Bank, you can get various repayment options for its loan in Nigeria. The repayment period for most loans can range from 3 months to 48 months.

The loan repayment amount is usually fixed and will be calculated based on the loan amount, interest rate, and repayment period. 

Whenever your loan needs to be repaid, it will be automatically deducted from your account but you need to ensure there are enough funds in the account on or before the repayment date.

How To Get A Loan From Union Bank In Nigeria With Or Without Collateral

Once you’re ready to take a loan from Union bank, kindly visit any Union Bank near you.

1. Choose the loan type that suits your needs and eligibility.
2. Fill out the loan application form and provide the necessary documents.
3. Submit your application for review
4. Once your loan is approved, it will be disbursed into your Union Bank account.

Frequently Asked Questions On How To Get A Loan From Union Bank In Nigeria

Frequently Asked Questions On How To Get A Loan From Union Bank In Nigeria are;

How long does it take to process a Union Bank loan in Nigeria?

 As you might have possibly known, the processing time for Union Bank loans in Nigeria varies depending on the loan type and your eligibility.

However, personal loans and salary advance loans may take a few hours to process, while business loans and asset finance loans usually take several days to weeks.

Can I prepay my Union Bank loan?

Yes, Union Bank allows borrowers to prepay their loans without any form of the penalty instead, it helps reduce the interest that has to be paid on the loan and improve your creditworthiness scores.

What happens if I default on my Union Bank loan?

Defaulting on a Union Bank loan can have serious consequences, including damage to your credit score and legal action by the bank to recover the outstanding loan amount.

However, it is highly recommended to contact Union Bank if you are unable to make your loan repayments to discuss alternative payment arrangements.