HDFC vs Union Business Loan, 2026.
Reviewed by Jay Patel· Last reviewed: stale
A ledger-columns read on HDFC Bank and Union Bank— rate, EMI, fee, fine print. Which one wins your file, not the pitch deck.
HDFC vs Union — Business Loan Comparison
Key parameters compared side by side.
| Parameter | HDFC | Union |
|---|---|---|
| Interest Rate (p.a.) | 10.5% – 15% | 10.5% – 14.75% |
| Processing Fee | 1.50% (min Rs 10,000) | 1.00% (min Rs 5,000) |
| Max Loan Amount | Rs 5 Cr | Rs 5 Cr |
| Max Tenure | 7 Years | 7 Years |
| Bank Type | Private Sector | Public Sector |
| Founded | 1994 | 1919 |
| Headquarters | Mumbai | Mumbai |
Interest Rate (p.a.)
HDFC
10.5% – 15%
Union
10.5% – 14.75%
Processing Fee
HDFC
1.50% (min Rs 10,000)
Union
1.00% (min Rs 5,000)
Max Loan Amount
HDFC
Rs 5 Cr
Union
Rs 5 Cr
Max Tenure
HDFC
7 Years
Union
7 Years
Bank Type
HDFC
Private Sector
Union
Public Sector
Founded
HDFC
1994
Union
1919
Headquarters
HDFC
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.
HDFC
Union
Feature Comparison
Key features offered by HDFC and Union for business loan.
| Feature | HDFC | Union |
|---|---|---|
| Instant approval for existing HDFC customers | ||
| Flexi-loan option | ||
| Working capital + term loan combo | ||
| Online disbursement | ||
| Union MSME scheme | ||
| Working capital options | ||
| CGTMSE coverage | ||
| Priority sector lending |
Instant approval for existing HDFC customers
Flexi-loan option
Working capital + term loan combo
Online disbursement
Union MSME scheme
Working capital options
CGTMSE coverage
Priority sector lending
Which Is Better — HDFC or Union?
It depends on your priorities. Here is a quick guide.
Choose HDFC If...
- Trusted brand with strong business loan offerings
Choose Union If...
- Government-backed (public sector bank)
- Lower maximum rate (14.75% vs 15%)
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.
HDFC 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 HDFC vs Union business loan.
Which bank has a lower business loan interest rate in 2026 — HDFC or Union?
HDFC 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 HDFC vs Union?
HDFC offers a higher maximum loan amount of up to Rs 5 Cr. HDFC 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 — HDFC or Union?
HDFC charges a processing fee of 1.50% (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 HDFC or Union for business loan in 2026?
The best choice depends on your specific needs. HDFC offers rates from 10.5%–15% 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 HDFC and Union?
Yes. Money Matrix Hub is an authorised DSA partner for both HDFC 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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