ICICI vs Union Business Loan, 2026.
Reviewed by Jay Patel· Last reviewed: stale
A ledger-columns read on ICICI Bank and Union Bank— rate, EMI, fee, fine print. Which one wins your file, not the pitch deck.
ICICI vs Union — Business Loan Comparison
Key parameters compared side by side.
| Parameter | ICICI | Union |
|---|---|---|
| Interest Rate (p.a.) | 11% – 15.5% | 10.5% – 14.75% |
| Processing Fee | 2.00% (min Rs 10,000) | 1.00% (min Rs 5,000) |
| Max Loan Amount | Rs 3 Cr | Rs 5 Cr |
| Max Tenure | 6 Years | 7 Years |
| Bank Type | Private Sector | Public Sector |
| Founded | 1994 | 1919 |
| Headquarters | Mumbai | Mumbai |
Interest Rate (p.a.)
ICICI
11% – 15.5%
Union
10.5% – 14.75%
Lower/better: Union
Processing Fee
ICICI
2.00% (min Rs 10,000)
Union
1.00% (min Rs 5,000)
Max Loan Amount
ICICI
Rs 3 Cr
Union
Rs 5 Cr
Lower/better: Union
Max Tenure
ICICI
6 Years
Union
7 Years
Lower/better: Union
Bank Type
ICICI
Private Sector
Union
Public Sector
Founded
ICICI
1994
Union
1919
Headquarters
ICICI
Mumbai
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.
ICICI
Union
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 ICICI and Union for business loan.
| Feature | ICICI | Union |
|---|---|---|
| InstaBIZ portal for MSMEs | ||
| EMI holiday for first 3 months | ||
| OD & CC facilities | ||
| GST-based instant offers | ||
| Union MSME scheme | ||
| Working capital options | ||
| CGTMSE coverage | ||
| Priority sector lending |
InstaBIZ portal for MSMEs
EMI holiday for first 3 months
OD & CC facilities
GST-based instant offers
Union MSME scheme
Working capital options
CGTMSE coverage
Priority sector lending
Which Is Better — ICICI or Union?
It depends on your priorities. Here is a quick guide.
Choose ICICI If...
- Trusted brand with strong business loan offerings
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 6 yrs)
- 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.
ICICI 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.
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 ICICI vs Union business loan.
Which bank has a lower business loan interest rate in 2026 — ICICI or Union?
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 ICICI vs Union?
Union offers a higher maximum loan amount of up to Rs 5 Cr. ICICI offers up to Rs 3 Cr while Union offers up to Rs 5 Cr for business loan.
Which bank charges a lower processing fee for business loan — ICICI or Union?
ICICI charges a processing fee of 2.00% (min Rs 10,000), 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 ICICI or Union for business loan in 2026?
The best choice depends on your specific needs. ICICI offers rates from 11%–15.5% with a max tenure of 6 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 ICICI and Union?
Yes. Money Matrix Hub is an authorised DSA partner for both ICICI 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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