SBI vs Union Business Loan, 2026.
Reviewed by Jay Patel· Last reviewed:
State Bank of India and Union Bank side by side — interest rate, EMI, processing fee and fine print — so you can see which one suits your profile.
SBI vs Union — Business Loan Comparison
Key parameters compared side by side.
| Parameter | SBI | Union |
|---|---|---|
| Interest Rate (p.a.) | 10.25% – 14.5% | 10.5% – 14.75% |
| Processing Fee | 1.00% (min ₹5,000) | 1.00% (min ₹5,000) |
| Max Loan Amount | Rs 5 Cr | Rs 5 Cr |
| Max Tenure | 7 Years | 7 Years |
| Bank Type | Public Sector | Public Sector |
| Founded | 1955 | 1919 |
| Headquarters | Mumbai | Mumbai |
Interest Rate (p.a.)
SBI
10.25% – 14.5%
Union
10.5% – 14.75%
Lower/better: SBI
Processing Fee
SBI
1.00% (min ₹5,000)
Union
1.00% (min ₹5,000)
Max Loan Amount
SBI
Rs 5 Cr
Union
Rs 5 Cr
Max Tenure
SBI
7 Years
Union
7 Years
Bank Type
SBI
Public Sector
Union
Public Sector
Founded
SBI
1955
Union
1919
Headquarters
SBI
Mumbai
Union
Mumbai
Rates as of September 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 listed starting rate.
SBI
Union
Savings: Choosing SBI saves you approximately ₹247 per month, or ₹14,820 in total interest over the loan tenure.
Feature Comparison
Key features offered by SBI and Union for business loan.
| Feature | SBI | Union |
|---|---|---|
| MSME priority processing | ||
| CGTMSE cover available | ||
| No collateral up to ₹50L | ||
| Pre-approved for existing SBI customers | ||
| Union MSME scheme | ||
| Working capital options | ||
| CGTMSE coverage | ||
| Priority sector lending |
MSME priority processing
CGTMSE cover available
No collateral up to ₹50L
Pre-approved for existing SBI customers
Union MSME scheme
Working capital options
CGTMSE coverage
Priority sector lending
Which Is Better — SBI or Union?
It depends on your priorities. Here is a quick guide.
Choose SBI If...
- Lower starting interest rate (10.25% vs 10.5%)
- Government-backed (public sector bank)
- Lower maximum rate (14.5% vs 14.75%)
Choose Union If...
- Government-backed (public sector bank)
Need context for this comparison? Contact Money Matrix Hub to discuss the displayed lender information. Any service terms and lender decisions should be confirmed before proceeding.
Eligibility Comparison
General eligibility criteria for business loan at both banks.
SBI 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 SBI vs Union business loan.
Which bank has a lower business loan interest rate in 2026 — SBI or Union?
SBI currently shows a lower published starting rate of 10.25% p.a. for business loan. However, the actual rate you receive depends on lender eligibility, current documentation, credit score, income, and loan amount. Money Matrix Hub can help you compare available lender information from both banks.
What is the maximum business loan amount I can get from SBI vs Union?
SBI offers a higher maximum loan amount of up to Rs 5 Cr. SBI 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 — SBI or Union?
SBI lists a processing fee of 1.00% (min ₹5,000), while Union lists 1.00% (min ₹5,000). Fees and waivers can depend on lender policy and borrower eligibility, so confirm the current Key Fact Statement before accepting an offer.
Should I choose SBI or Union for business loan in 2026?
The best choice depends on your specific needs. SBI offers rates from 10.25%–14.5% 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 SBI and Union?
Money Matrix Hub can help you compare available lender information for SBI and Union. Any application, credit enquiry, offer, sanction decision, lender fee, and borrower charge are subject to the relevant lender's current policy and documentation.
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