Union vs Bajaj Business Loan, 2026.
Reviewed by Jay Patel· Last reviewed:
Union Bank and Bajaj Housing Finance side by side — interest rate, EMI, processing fee and fine print — so you can see which one suits your profile.
Union vs Bajaj — Business Loan Comparison
Key parameters compared side by side.
| Parameter | Union | Bajaj |
|---|---|---|
| Interest Rate (p.a.) | 10.5% – 14.75% | 14% – 23% |
| Processing Fee | 1.00% (min ₹5,000) | 2.00% (min ₹10,000) |
| Max Loan Amount | Rs 5 Cr | Rs 5 Cr |
| Max Tenure | 7 Years | 7 Years |
| Bank Type | Public Sector | NBFC |
| Founded | 1919 | 2015 |
| Headquarters | Mumbai | Pune |
Interest Rate (p.a.)
Union
10.5% – 14.75%
Bajaj
14% – 23%
Lower/better: Union
Processing Fee
Union
1.00% (min ₹5,000)
Bajaj
2.00% (min ₹10,000)
Max Loan Amount
Union
Rs 5 Cr
Bajaj
Rs 5 Cr
Max Tenure
Union
7 Years
Bajaj
7 Years
Bank Type
Union
Public Sector
Bajaj
NBFC
Founded
Union
1919
Bajaj
2015
Headquarters
Union
Mumbai
Bajaj
Pune
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.
Union
Bajaj
Savings: Choosing Union saves you approximately ₹3,549 per month, or ₹2,12,940 in total interest over the loan tenure.
Feature Comparison
Key features offered by Union and Bajaj for business loan.
| Feature | Union | Bajaj |
|---|---|---|
| Union MSME scheme | ||
| Working capital options | ||
| CGTMSE coverage | ||
| Priority sector lending | ||
| Flexi business loan | ||
| Property-backed lower rates | ||
| Fast processing | ||
| Pan-India coverage |
Union MSME scheme
Working capital options
CGTMSE coverage
Priority sector lending
Flexi business loan
Property-backed lower rates
Fast processing
Pan-India coverage
Which Is Better — Union or Bajaj?
It depends on your priorities. Here is a quick guide.
Choose Union If...
- Lower starting interest rate (10.5% vs 14%)
- Government-backed (public sector bank)
- Lower maximum rate (14.75% vs 23%)
Choose Bajaj If...
- Trusted brand with strong business loan offerings
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.
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.
Bajaj Eligibility
- Business vintage: 2+ years (ITR required)
- Min annual turnover: Rs 15 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 Union vs Bajaj business loan.
Which bank has a lower business loan interest rate in 2026 — Union or Bajaj?
Union currently shows a lower published starting rate of 10.5% 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 Union vs Bajaj?
Union offers a higher maximum loan amount of up to Rs 5 Cr. Union offers up to Rs 5 Cr while Bajaj offers up to Rs 5 Cr for business loan.
Which bank charges a lower processing fee for business loan — Union or Bajaj?
Union lists a processing fee of 1.00% (min ₹5,000), while Bajaj lists 2.00% (min ₹10,000). 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 Union or Bajaj for business loan in 2026?
The best choice depends on your specific needs. Union offers rates from 10.5%–14.75% with a max tenure of 7 years, while Bajaj offers 14%–23% 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 Union and Bajaj?
Money Matrix Hub can help you compare available lender information for Union and Bajaj. 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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