Key takeaways: Federal Bank vs Union Bank of India
- Federal Bank advertises the lower starting home loan rate here, 7.35%, compared with 8.60% at Union Bank of India.
- Union Bank of India advertises the lower starting car loan rate here, 7.60%, compared with 7.90% at Federal Bank.
- On a two-wheeler loan, Union Bank of India has the lower published starting rate at 11.10%, against 12.60% at Federal Bank.
- All of them publish a numeric starting rate for: home loan, car loan and two-wheeler loan. That is the part of this page you can rank like for like.
- No numeric starting rate on the loan provider's own site: Union Bank of India for personal loan. We show "Not published" instead of estimating.
- A starting rate is the best case. Ask each loan provider for its Key Fact Statement and compare the APR and total repayable amount before you choose.
Quick verdict: who each loan provider suits
Built only from figures the loan providers publish. It says where each loan provider is ahead on paper, not who will approve you.
Pick Federal Bank if you want
- The lower published starting home loan rate (7.35%)
- The widest range of loan types with a published rate (7)
Pick Union Bank of India if you want
- The lower published starting car loan rate (7.60%)
- The lower published starting two-wheeler loan rate (11.10%)
Federal Bank vs Union Bank of India at a glance
| Detail | Federal Bank | Union Bank of India |
|---|---|---|
| Loan provider type | Private bank | Public sector bank |
| Legal name | The Federal Bank Limited | Union Bank of India |
| Loan types with a published rate | Personal loan, Home loan, Loan against property, Business loan, Education loan, Car loan, Two-wheeler loan | Home loan, Car loan, Two-wheeler loan |
| Personal loan: published rate | 11.75% to 18.99% p.a. | EBLR + 1.05% to EBLR + 4.35% (salaried); EBLR + 1.10% to +4.65% (non-salaried), by CIC score (w.e.f. 08.10.2026 |
| Personal loan: maximum tenure | 60 months | Not published |
| Home loan: published rate | 7.35% to 9.50% (term loan); 7.45% to 9.60% (overdraft); loans up to Rs 35 lakh priced 1% higher | Starts at 8.60% p.a.; EBLR - 0.85% (CIC 825+) to EBLR + 1.35% (CIC 600-649) per rate PDF w.e.f. 08.10.2026 |
| Home loan: maximum tenure | 360 months (30 years) for residents; NRI capped at 20 years | Not published |
| Official website | federal.bank.in | unionbankofindia.bank.in |
Searching for Union Bank of India vs Federal Bank instead? It is the same comparison, so both open this page.
Federal Bank vs Union Bank of India personal loan: rate, fees and tenure
Only Federal Bank publishes a numeric starting rate for this product, so a like-for-like ranking is not possible. Union Bank of India does not publish a numeric starting rate for this product on its site.
| Detail | Federal Bank | Union Bank of India |
|---|---|---|
| Published rate | 11.75% to 18.99% p.a. | EBLR + 1.05% to EBLR + 4.35% (salaried); EBLR + 1.10% to +4.65% (non-salaried), by CIC score (w.e.f. 08.10.2026 |
| Rate basis | fixed | EBLR (repo-linked) |
| Maximum tenure | 60 months | Not published |
| Prepayment / foreclosure | Part or full prepayment allowed; charges not stated on page | Not published |
| Eligibility (as published) | Age 21 to 55 years; monthly net salary Rs.25,000 and above | Schemes for salaried, non-salaried with regular income, government employees, women professionals |
| Other terms published |
|
|
| Official source | federal.bank.in/personal-loans federal.bank.in/loan-rate | unionbankofindia.bank.in/en/listing/personal-loan unionbankofindia.bank.in/pdf/retail_roi.pdf |
Read the full guide: Personal loan
Federal Bank vs Union Bank of India home loan: rate, fees and tenure
Starting home loan rates as published: Federal Bank from 7.35% and Union Bank of India from 8.60%. Federal Bank is lower at the starting rate, but the top of each range and your own credit profile decide what you are offered.
| Detail | Federal Bank | Union Bank of India |
|---|---|---|
| Published rate | 7.35% to 9.50% (term loan); 7.45% to 9.60% (overdraft); loans up to Rs 35 lakh priced 1% higher | Starts at 8.60% p.a.; EBLR - 0.85% (CIC 825+) to EBLR + 1.35% (CIC 600-649) per rate PDF w.e.f. 08.10.2026 |
| Rate basis | floating, linked to RBI Repo Rate | EBLR (repo-linked); fixed option max 5 years at 11.40% to 12.65% |
| Loan amount | Rs. 1500 lakhs (page title says up to Rs 15 lakhs; inconsistent) | Not published |
| Maximum tenure | 360 months (30 years) for residents; NRI capped at 20 years | Not published |
| Prepayment / foreclosure | No pre-closure charges; part or full prepayment allowed | None; no prepayment penalty on Union Home Loan |
| Eligibility (as published) | Self-employed residents up to 65 years (80 with co-obligant); NRI age not above 55 at end of tenure | Based on income, repayment capacity, age, margin, credit bureau record |
| Other terms published |
|
|
| Official source | federal.bank.in/housing-loan federal.bank.in/loan-rate | unionbankofindia.bank.in/en/details/home-loan-interest-rate unionbankofindia.bank.in/en/details/home-loan unionbankofindia.bank.in/pdf/retail_roi.pdf |
EMI illustration: ₹50 lakh over 20 years
| Loan provider | Rate used | Monthly EMI | Total interest | Total repayable |
|---|---|---|---|---|
| Federal Bank | 7.35% | ₹39,822 | ₹45,57,354 | ₹95,57,354 |
| Union Bank of India | 8.60% | ₹43,708 | ₹54,89,953 | ₹1,04,89,953 |
Illustration only, at each loan provider's lowest published rate. It leaves out processing fees, GST, insurance and any other charges, and it is not an offer. Your approved rate may be higher.
Read the full guide: Home loan
Federal Bank vs Union Bank of India home loan: full comparison with EMI, fees and FAQs
Federal Bank vs Union Bank of India loan against property: rate, fees and tenure
Only Federal Bank publishes a numeric starting rate for this product, so a like-for-like ranking is not possible. Union Bank of India does not publish a numeric starting rate for this product on its site.
| Detail | Federal Bank | Union Bank of India |
|---|---|---|
| Published rate | Property Power Loan 8.30% to 10.00% (term), 8.50% to 10.50% (overdraft) | EBLR + 1.05% to EBLR + 3.85% by property type and CIC score (w.e.f. 08.10.2026) |
| Rate basis | floating, linked to RBI Repo Rate (fixed also available) | EBLR (repo-linked) |
| Loan amount | Up to Rs. 20 Crore | Not published |
| Maximum tenure | 15 years (120 months) | Not published |
| Prepayment / foreclosure | Foreclosure and part-payment processes described; charges not stated | Not published |
| Eligibility (as published) | Resident/NRI/PIO; minimum age 24; salaried or self-employed; 720 or above credit score for better approval chances | Indian citizens owning non-agricultural property with regular income |
| Other terms published |
|
|
| Official source | federal.bank.in/loan-against-property federal.bank.in/loan-rate | unionbankofindia.bank.in/en/details/union-mortgage unionbankofindia.bank.in/pdf/retail_roi.pdf |
Read the full guide: Loan against property
Federal Bank vs Union Bank of India business loan: rate, fees and tenure
Only Federal Bank publishes a numeric starting rate for this product, so a like-for-like ranking is not possible. Union Bank of India does not publish a numeric starting rate for this product on its site.
| Detail | Federal Bank | Union Bank of India |
|---|---|---|
| Published rate | Other Business Loans 10.85% to 16.60% (MSME, floating repo-linked); 11.90% to 17.75% (non-MSME, MCLR-linked) | Floating, linked to EBLR (no figure stated) |
| Rate basis | repo-linked (MSME) / MCLR (non-MSME) / fixed | EBLR |
| Loan amount | Up to Rs 20 crore (rate table scope) | Rs. 10 lakh to Rs. 50 crore (overdraft limit Rs. 10 crore) |
| Maximum tenure | 120 months | Not published |
| Eligibility (as published) | Individuals, proprietorships, partnerships, LLPs, companies in manufacturing, services or trading | Not published |
| Other terms published |
|
|
| Official source | federal.bank.in/business-loans federal.bank.in/loan-rate | unionbankofindia.bank.in/en/details/union-msme-suvidha |
Read the full guide: Business loan
Federal Bank vs Union Bank of India gold loan: rate, fees and tenure
None of these loan providers publishes a plain starting rate for a gold loan; some tie the rate to a benchmark and add a spread, which is shown in the table as published. Federal Bank and Union Bank of India do not publish a numeric starting rate for this product on their site.
| Detail | Federal Bank | Union Bank of India |
|---|---|---|
| Published rate | Not published | Union Swarna Shakti (Retail): EBLR + 1.40% (male, 22K) / EBLR + 1.30% (female, 22K); MSME Gold Loan Plus: EBLR + 0.70% |
| Rate basis | Not published | EBLR / MCLR |
| Loan amount | Rs 3,000 to Rs 150 Lacs | Up to Rs. 50 lakh (Retail, MSME); Rs. 25 lakh (Krishi Kamdhenu) |
| Prepayment / foreclosure | Foreclosure and prepayment allowed; charges not stated | Not published |
| Eligibility (as published) | Individuals above 18 years with gold to pledge | Not published |
| Other terms published |
|
|
| Official source | federal.bank.in/gold-loans | unionbankofindia.bank.in/en/listing/gold-loan |
Read the full guide: Gold loan
Federal Bank vs Union Bank of India education loan: rate, fees and tenure
Only Federal Bank publishes a numeric starting rate for this product, so a like-for-like ranking is not possible. Union Bank of India does not publish a numeric starting rate for this product on its site.
| Detail | Federal Bank | Union Bank of India |
|---|---|---|
| Published rate | 10.10% to 13.50% | EBLR + 2.00% (male) / +1.50% (female) up to Rs.7.50 lakh; EBLR + 1.75% / +1.25% above Rs.7.50 lakh (w.e.f. 08.10.2026) |
| Rate basis | floating, linked to RBI Repo Rate | EBLR |
| Loan amount | Special Vidya Loan: Rs 10 lakhs (India), Rs 20 lakhs (abroad); Fed Scholars: Rs 20 lakhs | Not published |
| Maximum tenure | Moratorium (course period + 1 year) plus 15 years | Repayment generally 5 to 15 years after course (FAQ) |
| Processing fee | Fed Scholars: no processing fee | Nil |
| Prepayment / foreclosure | Not published | Not stated |
| Eligibility (as published) | Indian national with admission to approved professional/technical course; vocational courses not eligible | Not published |
| Other terms published |
|
|
| Official source | federal.bank.in/education-and-career-loans federal.bank.in/loan-rate | unionbankofindia.bank.in/en/details/educational-loan-for-india unionbankofindia.bank.in/pdf/retail_roi.pdf |
Read the full guide: Education loan
Federal Bank vs Union Bank of India vehicle loans
Union Bank of India advertises the lower starting car loan rate here, 7.60%, compared with 7.90% at Federal Bank. On a two-wheeler loan, Union Bank of India has the lower published starting rate at 11.10%, against 12.60% at Federal Bank.
| Detail | Federal Bank | Union Bank of India |
|---|---|---|
| Car loan: published rate | 7.90% - 9.00% | 7.60% - 10.00% |
| Car loan: maximum tenure | 84 months | Not published |
| Car loan: processing fee | 1% of loan (min ₹1,000, max ₹50,000) | Flat ₹1,000 |
| Two-wheeler loan: published rate | 12.60% - 16.00% | 11.10% - 11.20% |
| Two-wheeler loan: maximum tenure | 60 months | Not published |
| Two-wheeler loan: processing fee | 2.50% (min ₹2,500) | Flat ₹500 |
Full vehicle loan comparison for Federal Bank vs Union Bank of India (all vehicle types, EMI tables and sources) · Vehicle loans guide
Which is better: Federal Bank or Union Bank of India?
No loan provider is best for everyone. This is how the published figures split, product by product.
- Home loan, lower starting rate: Federal Bank (7.35%) versus 8.60% at Union Bank of India.
- Car loan, lower starting rate: Union Bank of India (7.60%) versus 7.90% at Federal Bank.
- Two-wheeler loan, lower starting rate: Union Bank of India (11.10%) versus 12.60% at Federal Bank.
Pick on total cost, not the headline rate: ask each loan provider for the Key Fact Statement and compare the APR and total repayable amount. A low rate with a high processing fee can cost more than a slightly higher rate with no fee. If you already bank with one of them, a salary or relationship account can change the rate you are offered, so ask.
Bank type and how each loan provider sets its rate
Federal Bank is a private bank and Union Bank of India is a public sector bank.
How the loan providers' own pages say their rates are set:
- Federal Bank personal loan: fixed.
- Federal Bank home loan: floating, linked to RBI Repo Rate.
- Union Bank of India personal loan: EBLR (repo-linked).
- Union Bank of India home loan: EBLR (repo-linked); fixed option max 5 years at 11.40% to 12.65%.
Public sector banks, private banks and non-banking finance companies (NBFCs) price differently. Banks usually link floating rates to the RBI repo rate or their own benchmark and add a spread based on your credit score; NBFCs more often quote a wider range with a higher ceiling and charge higher processing fees. Some publish a range, some only a starting rate and some only a ceiling, which is why this page compares like with like and marks every gap as not published instead of guessing.
About Federal Bank and Union Bank of India
Federal Bank
Private bank · The Federal Bank Limited
We found terms for personal loan, home loan, loan against property, business loan, gold loan and education loan on Federal Bank's website. Where a rate is missing, the tables on this page say Not published.
Lowest published starting rate on this page: 7.35% (Home loan)
Union Bank of India
Public sector bank
We found terms for personal loan, home loan, loan against property, business loan, gold loan and education loan on Union Bank of India's website. Where a rate is missing, the tables on this page say Not published.
Lowest published starting rate on this page: 8.60% (Home loan)
Explore each loan provider: loans, calculators and more comparisons
Federal Bank
- Federal Bank vehicle loans
- Federal Bank car loan
- Federal Bank used car loan
- Federal Bank two-wheeler loan
More comparisons
Guides: Personal loans · Home loans · Car loan · Car loan EMI calculator · EMI calculators
What to check before you choose a loan provider
- Ask for the Key Fact Statement (KFS). RBI requires loan providers to give you one before you sign, showing the interest rate, all fees, the APR and the total amount you will repay.
- Compare APR, not the headline rate. Processing fee, documentation charges and insurance change the real cost.
- Check the rate basis. A floating rate moves with the loan provider's benchmark; a fixed rate does not. Ask when the rate resets.
- Ask about prepayment and foreclosure. Floating-rate loans to individuals cannot carry pre-closure charges; fixed-rate loans often do.
- Read the eligibility and documents. Income, credit score, employment type and collateral decide the rate band you land in.
Terms used on this page
Plain meanings of the terms this comparison uses.
Starting rate: The lowest rate a loan provider advertises for a product. Most borrowers are offered a higher rate, because the final rate depends on credit score, income, employer and loan amount.
APR: Annual percentage rate. It adds the processing fee and other charges to the interest rate, so it shows the yearly cost of the loan better than the interest rate alone.
Key Fact Statement: A short summary the loan provider gives you before you sign. It lists the interest rate, every fee, the APR and the total amount you will repay. RBI requires it for retail loans.
Floating rate and repo rate: A floating rate moves with a benchmark, and for banks that is usually the RBI repo rate, the rate at which RBI lends to banks. A fixed rate stays the same for the period you agree.
Processing fee: A one-time charge for handling the application. It is usually a percentage of the loan amount plus GST, and it is often deducted before the money reaches you.
Credit score: A number from 300 to 900 that shows how you have repaid past loans and cards. A higher score usually gets you a lower rate.
Sources, method and last check
Every figure above comes from the loan provider's own website. We checked them on 12 October 2026 (vehicle loan figures on 4 October 2026) and list the pages used.
- Federal Bank: federal.bank.in/personal-loans · federal.bank.in/loan-rate · federal.bank.in/housing-loan · federal.bank.in/loan-against-property · federal.bank.in/business-loans · federal.bank.in/gold-loans
- Union Bank of India: unionbankofindia.bank.in/en/listing/personal-loan · unionbankofindia.bank.in/pdf/retail_roi.pdf · unionbankofindia.bank.in/en/details/home-loan-interest-rate · unionbankofindia.bank.in/en/details/home-loan · unionbankofindia.bank.in/en/details/union-mortgage · unionbankofindia.bank.in/en/details/union-msme-suvidha
| Loan provider | Official pages opened | Loan types with a published rate | Loan types where rate is not published | Last checked |
|---|---|---|---|---|
| Federal Bank | 11 | 7 | 1 | 12 October 2026 |
| Union Bank of India | 10 | 3 | 5 | 12 October 2026 |
A "not published" count means we opened the loan provider's page for that product and the rate was not shown there, or the loan provider has no such page on its site. If you spot an error, tell us and we will correct it.
Method: we list only figures we could read on the loan provider's official pages. A blank means the loan provider does not publish that figure on the page we checked, and we never estimate one. Rankings use the published starting rate and published maximum tenure only. Read our editorial policy, how we make money and tell us about an error.
More loan provider comparisons
Federal Bank compared with other loan providers (15)
Union Bank of India compared with other loan providers (12)
Add a third loan provider to Federal Bank vs Union Bank of India (8)
Compare any two or three loan providers · Personal loans · Home loans · Vehicle loans
Frequently asked questions
Which is better: Federal Bank or Union Bank of India?
Federal Bank advertises the lower starting home loan rate here, 7.35%, compared with 8.60% at Union Bank of India. Union Bank of India advertises the lower starting car loan rate here, 7.60%, compared with 7.90% at Federal Bank. The page also compares two-wheeler loans. A starting rate is the best case, not a typical offer, so confirm the annual percentage rate (APR) and total repayable amount in each loan provider's Key Fact Statement. Figures are as published on the loan providers' own websites and checked 12 October 2026. The better choice depends on your profile, the loan type, the amount and the fees in your offer letter.
Union Bank of India or Federal Bank: which should I pick for a loan?
Order does not change the comparison, so Federal Bank vs Union Bank of India and Union Bank of India vs Federal Bank are the same page. Start with the loan type you need: the sections above show each loan provider's published rate, fees, tenure and prepayment terms for it, and the lower starting rate is not always the lower total cost.
Which has the lower home loan interest rate: Federal Bank or Union Bank of India?
Federal Bank has the lower published starting rate. Published starting rates: Federal Bank 7.35% and Union Bank of India 8.60% (checked 12 October 2026). Your actual rate depends on your credit profile and the loan provider's approval.
What is the maximum home loan tenure at Federal Bank and Union Bank of India?
Federal Bank: 360 months (30 years) for residents; nri capped at 20 years. Union Bank of India: not published.
What is the EMI on a ₹50 lakh home loan at Federal Bank and Union Bank of India?
Over 20 years at each loan provider's lowest published rate: Federal Bank about ₹39,822 a month at 7.35%; Union Bank of India about ₹43,708 a month at 8.60%. An illustration that leaves out fees, GST and insurance; your offered rate may be higher.
Can I prepay or foreclose a home loan early at Federal Bank and Union Bank of India?
Federal Bank: No pre-closure charges; part or full prepayment allowed. Union Bank of India: None; no prepayment penalty on Union Home Loan. Floating-rate loans to individuals cannot carry pre-closure charges; fixed-rate loans often do.
Which loans do Federal Bank and Union Bank of India publish rates for?
Federal Bank: personal loan, home loan, loan against property, business loan, education loan. Union Bank of India: home loan. Based on each loan provider's own website, checked 12 October 2026.
Which is better for a car loan: Federal Bank or Union Bank of India?
Union Bank of India advertises the lower starting car loan rate here, 7.60%, compared with 7.90% at Federal Bank. See the full vehicle loan comparison for tenure, fees and EMI tables.
Are Federal Bank and Union Bank of India regulated by the RBI?
Federal Bank and Union Bank of India are banks regulated by the Reserve Bank of India (RBI). Check a loan provider's registration on the RBI website before you apply, and apply only through its official channels.
How do I compare Federal Bank and Union Bank of India on real cost, not just the rate?
Ask each loan provider for its Key Fact Statement, then compare three numbers: the APR, the total amount you repay and the fees charged upfront, such as processing fee, documentation charge and insurance. The loan with the lower APR and the lower total repayment is the cheaper one, even when its headline rate looks higher.
Does my credit score change the rate at Federal Bank and Union Bank of India?
Yes. Loan providers keep their lowest published rate for borrowers with a strong credit score, usually 750 and above, and steady income. A lower score or a short work history usually means a higher rate, a higher processing fee or a smaller loan amount.
Are the rates on this page the rate I will get?
No. They are the rates the loan providers publish, usually a range or a starting rate. Your approved rate depends on your credit score, income, loan amount, tenure and, for secured loans, the asset. Always read the Key Fact Statement before you sign.
Does KhatuLoans lend money or charge for this comparison?
KhatuLoans is not a loan provider. The loan provider decides approval, rate and terms. Our comparisons are free to read, and we are not paid by the loan providers named here to rank them. See how we make money on our advertiser disclosure page.
KhatuLoans is not a loan provider and is not paid by the loan providers named here to rank them. Rates, fees and eligibility change; always confirm with the loan provider. Read our editorial policy and how we make money.