Union vs IDFC Business Loan, 2026.
Reviewed by Jay Patel· Last reviewed: stale
A ledger-columns read on Union Bank and IDFC First Bank— rate, EMI, fee, fine print. Which one wins your file, not the pitch deck.
Union vs IDFC — Business Loan Comparison
Key parameters compared side by side.
| Parameter | Union | IDFC |
|---|---|---|
| Interest Rate (p.a.) | 10.5% – 14.75% | 11% – 15.5% |
| Processing Fee | 1.00% (min Rs 5,000) | 2.00% (min Rs 10,000) |
| Max Loan Amount | Rs 5 Cr | Rs 3 Cr |
| Max Tenure | 7 Years | 5 Years |
| Bank Type | Public Sector | Private Sector |
| Founded | 1919 | 2015 |
| Headquarters | Mumbai | Mumbai |
Interest Rate (p.a.)
Union
10.5% – 14.75%
IDFC
11% – 15.5%
Lower/better: Union
Processing Fee
Union
1.00% (min Rs 5,000)
IDFC
2.00% (min Rs 10,000)
Max Loan Amount
Union
Rs 5 Cr
IDFC
Rs 3 Cr
Lower/better: Union
Max Tenure
Union
7 Years
IDFC
5 Years
Lower/better: Union
Bank Type
Union
Public Sector
IDFC
Private Sector
Founded
Union
1919
IDFC
2015
Headquarters
Union
Mumbai
IDFC
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.
Union
IDFC
Savings: Choosing Union saves you approximately ₹497 per month, or ₹29,820 in total interest over the loan tenure.
Feature Comparison
Key features offered by Union and IDFC for business loan.
| Feature | Union | IDFC |
|---|---|---|
| Union MSME scheme | ||
| Working capital options | ||
| CGTMSE coverage | ||
| Priority sector lending | ||
| Fast digital journey | ||
| GST-based pre-approval | ||
| Flexible repayment | ||
| Competitive NBFC rates |
Union MSME scheme
Working capital options
CGTMSE coverage
Priority sector lending
Fast digital journey
GST-based pre-approval
Flexible repayment
Competitive NBFC rates
Which Is Better — Union or IDFC?
It depends on your priorities. Here is a quick guide.
Choose Union If...
- Lower starting interest rate (10.5% vs 11%)
- Higher max loan amount (Rs 5 Cr vs 3 Cr)
- Longer max tenure (7 yrs vs 5 yrs)
- Government-backed (public sector bank)
Choose IDFC If...
- Trusted brand with strong business loan offerings
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.
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.
IDFC 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 IDFC business loan.
Which bank has a lower business loan interest rate in 2026 — Union or IDFC?
Union 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 Union vs IDFC?
Union offers a higher maximum loan amount of up to Rs 5 Cr. Union offers up to Rs 5 Cr while IDFC offers up to Rs 3 Cr for business loan.
Which bank charges a lower processing fee for business loan — Union or IDFC?
Union charges a processing fee of 1.00% (min Rs 5,000), while IDFC charges 2.00% (min Rs 10,000). Processing fees are often negotiable, and Money Matrix Hub can help waive or reduce these charges.
Should I choose Union or IDFC 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 IDFC offers 11%–15.5% with 5 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 IDFC?
Yes. Money Matrix Hub is an authorised DSA partner for both Union and IDFC. 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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