BoB vs Union Business Loan, 2026.
Reviewed by Jay Patel· Last reviewed: stale
A ledger-columns read on Bank of Baroda and Union Bank— rate, EMI, fee, fine print. Which one wins your file, not the pitch deck.
BoB vs Union — Business Loan Comparison
Key parameters compared side by side.
| Parameter | BoB | Union |
|---|---|---|
| Interest Rate (p.a.) | 10.5% – 14.75% | 10.5% – 14.75% |
| Processing Fee | 1.00% (min Rs 5,000) | 1.00% (min Rs 5,000) |
| Max Loan Amount | Rs 5 Cr | Rs 5 Cr |
| Max Tenure | 7 Years | 7 Years |
| Bank Type | Public Sector | Public Sector |
| Founded | 1908 | 1919 |
| Headquarters | Vadodara | Mumbai |
Interest Rate (p.a.)
BoB
10.5% – 14.75%
Union
10.5% – 14.75%
Processing Fee
BoB
1.00% (min Rs 5,000)
Union
1.00% (min Rs 5,000)
Max Loan Amount
BoB
Rs 5 Cr
Union
Rs 5 Cr
Max Tenure
BoB
7 Years
Union
7 Years
Bank Type
BoB
Public Sector
Union
Public Sector
Founded
BoB
1908
Union
1919
Headquarters
BoB
Vadodara
Union
Mumbai
Rates as of April 2026. Subject to change based on RBI policy and bank revisions.
EMI Comparison
Estimated EMI for Rs 20 Lakh business loan for 5 years at each bank's lowest rate.
BoB
Union
Feature Comparison
Key features offered by BoB and Union for business loan.
| Feature | BoB | Union |
|---|---|---|
| Baroda Mudra Loan | ||
| MSME special schemes | ||
| CGTMSE coverage | ||
| Lower rates for Gujarat-based businesses | ||
| Union MSME scheme | ||
| Working capital options | ||
| Priority sector lending |
Baroda Mudra Loan
MSME special schemes
CGTMSE coverage
Lower rates for Gujarat-based businesses
Union MSME scheme
Working capital options
Priority sector lending
Which Is Better — BoB or Union?
It depends on your priorities. Here is a quick guide.
Choose BoB If...
- Government-backed (public sector bank)
Choose Union If...
- Government-backed (public sector bank)
Still unsure? Contact Money Matrix Hub for a free personalised recommendation based on your income, credit score, and loan requirement.
Eligibility Comparison
General eligibility criteria for business loan at both banks.
BoB Eligibility
- Business vintage: 2+ years (ITR required)
- Min annual turnover: Rs 10 Lakh
- CIBIL score: 650+ preferred
- Valid GST registration
- Age: 21–65 years at loan maturity
Criteria may vary. Contact Money Matrix Hub for exact eligibility assessment.
Union Eligibility
- Business vintage: 2+ years (ITR required)
- Min annual turnover: Rs 10 Lakh
- CIBIL score: 650+ preferred
- Valid GST registration
- Age: 21–65 years at loan maturity
Criteria may vary. Contact Money Matrix Hub for exact eligibility assessment.
Frequently Asked Questions
Common questions about BoB vs Union business loan.
Which bank has a lower business loan interest rate in 2026 — BoB or Union?
BoB currently offers a lower starting rate of 10.5% p.a. for business loan. However, the actual rate you receive depends on your credit score, income, and loan amount. Money Matrix Hub can help you get the best negotiated rate from both banks.
What is the maximum business loan amount I can get from BoB vs Union?
BoB offers a higher maximum loan amount of up to Rs 5 Cr. BoB offers up to Rs 5 Cr while Union offers up to Rs 5 Cr for business loan.
Which bank charges a lower processing fee for business loan — BoB or Union?
BoB charges a processing fee of 1.00% (min Rs 5,000), while Union charges 1.00% (min Rs 5,000). Processing fees are often negotiable, and Money Matrix Hub can help waive or reduce these charges.
Should I choose BoB or Union for business loan in 2026?
The best choice depends on your specific needs. BoB offers rates from 10.5%–14.75% with a max tenure of 7 years, while Union offers 10.5%–14.75% with 7 years tenure. Contact Money Matrix Hub for a personalised comparison based on your profile.
Can Money Matrix Hub help me apply for a business loan from both BoB and Union?
Yes. Money Matrix Hub is an authorised DSA partner for both BoB and Union. We can submit parallel applications at no extra cost and help you pick the best sanction offer. Our service is 100% free for borrowers.
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