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A Guide to Union Bank of India Home Loan

Updated on April 11, 2024 , 19698 views

Union Bank of India offers home loans at the competitive interest rates with a longer tenure. The loan starts with 7.40% per annum. The bank offers a smooth loan process, hassle-free documentation along with a flexible repayment period.

Union Bank of India Home Loan

To get a Union Bank Home Loan at lower rates, you need to have a CIBIL Score of 700+. A score below than 700, might attract higher interest rates. So, ideally it is suggested to make an enquiry about a loan if your Credit Score is good.

Read such important information about Union housing home loans.

Union Bank Home Loan Interest Rates 2024

The interest rates for Union housing loans start @7.40 per annum. The Floating Rate for a maximum tenure is up to 30 years.

The table below gives details about interest rates for loan amount between Rs. 30 lakh to Rs. 75 lakh:

CIBIL Score Salaried Non-Salaried
700 & above Male- 7.40%, Female- 7.35% Male- 7.40%, Female- 7.35%
Below 700 Male- 7.50%, Female- 7.45% Male- 7.50%, Female- 7.45%

 

The following table shows interest rate for the amount above Rs. 75 lakh:

CIBIL Score Salaried Non-Salaried
700 & above Male- 7.45%, Female- 7.40 Male- 7.45%, Female- 7.40%
Below 700 Male- 7.55%, Female- 7.50% Male- 7.55%, Female- 7.50%

 

Here's a Fixed Interest Rate for a maximum of 5 years:

Loan amount Rate of Interest
Up to Rs. 30 lakh 11.40%
Rs. 30 lakh to Rs. 50 lakh 12.40%
Rs 50 lakh to Rs. 200 lakh 12.65%

Union Bank Smart Save Feature

Under the smart save option, you can deposit additional amount with an option to withdraw the excess amount at a later date as per your requirements

Excess funds assist the borrower to reduce the outstanding amount, therefore, a lower interest rate is charged in the loan account. In simple words, these options help you to increase the savings on interest without hampering your financial liquidity.

Types of Union Bank Home Loan Schemes

1. Union Bank Home Loan

The purpose of the loan is to fund borrowers wanting to purchase a new, plot, villa or apartment. The bank provides you with many options under the scheme, such as-

  • You can repair or improve the existing residential property
  • You can purchase a non-agricultural plot and construct the residential unit
  • The solar power panel can also be purchased from the scheme
  • The bank gives an option to take over the home loan availed from another bank

Union Bank Home Loan Eligibility

Following individuals can avail the loan-

  • Indian citizens and NRIs
  • The minimum age requirement for a home loan is 18 years and maximum age is up to 75 years
  • Individuals may apply alone or jointly with other eligible individuals

Loan Quantum

  • The maximum loan amount for repairs or renovation of your home is Rs. 30 lakh.
  • The loan eligibility relies on the repayment capacity of the borrower and property value.
  • There is no limit on the loan quantum

Moratorium & Repayments

The moratorium period and repayments are based on the purpose of the loan.

The period for the moratorium and repayments are as follows:

Moratorium Repayment
Up to 36 months for purchase and construction Up to 30 years for purchase and construction
12 months for repair and renovation 15 years for repair and renovation

Repayment Options

Applicants those who are engaged in agriculture or allied activities may be permitted with Equated Quarterly Instalment (EQI) instead of EMI.

a. Step-up Repayment Option

Under this option, at the initial stage, you have to pay lower EMIs and for the remaining tenure, a higher EMIs are set than the normal ones.

b. Balloon Repayment Method

Initially a lower than normal EMIs to be paid. At the end of the repayment tenure, a lump sum amount is expected.

c. Flexible Loan Instalment Plan

After paying a lump sum amount, the applicant can get the lower EMI than the normal for the remaining period.

d. Bullet Payment

Payment of lump-sum amount is required during the repayment tenure and lower the EMI for the remaining tenure.

2. Union Awas Home Loan

Union Awas is a special scheme which offers purchase or renovation of your home in semi-urban or rural areas. You can avail 10% of the total cost of the purchase & construction, and 20% of the total cost for repairs & renovation.

Eligibility

  • The applicant must be from rural and semi-urban areas.
  • A minimum of 18 years of age and maximum age up to 75 years is required.
  • Individuals can apply alone or jointly with other eligible individuals.
  • Permanent employees from school, colleges, farmers and other establishments. having an Income of Rs. 48,000 per annum.
  • The repayment capacity is based on the income certificate given by Tehsildar.

Loan Quantum

  • To purchase or construct a house, a maximum amount up to Rs. 10 lakhs is given to semi-urban areas and Rs. 7 lakh to rural areas.
  • For repair and renovation, a maximum loan amount up to Rs. 5 lakhs given to semi-urban and rural areas.
  • The loan eligibility relies on the repayment capacity and value of property.

Moratorium & Repayments

The moratorium period and repayments are based on the activity of the loan.

The period for the moratorium and repayments are as follows:

Moratorium Repayment
Up to 36 months for purchase and construction Up to 30 years for purchase and construction
12 months for repair and renovation 15 years for repair and renovation

Repayments Options

  • Repayment will be done by Equated Monthly Instalments EMIs
  • Instead of EMI, applicants those who are engaged in agriculture or allied activities may be permitted for quarterly, half-yearly and annual instalments

3. Union Smart Save

The Union Smart Save loan product allows you to make additional payments over your EMIs (equated monthly instalments) along with the option to withdraw the amount at any time in the future. The additional funds that you deposit will lower your outstanding principal amount and subsequently the interest as long as the additional amount remains in your account.

This Union Bank home loan option helps you to maximize your savings. It allows you to make additional payments over your EMIs with an option to withdraw it anytime in the future. The additional deposit lowers your outstanding principal amount, which also helps in reducing interest rates till the excess amount is in your account. In simple words, it helps to increase your savings without hampering your financial liquidity.

Eligibility

Indian citizens above 21 years of age can apply for the Union Smart Save scheme. You can singly or with any other family member who has a regular income.

Loan Quantum

  • The loan amount will be decided on the repayment capacity of the borrower and value of property.
  • You can avail a maximum of Rs. 30 lakhs for repairs.

Union Bank Smart Save Interest Rates

The smart save interest rates majorly relies on your CIBIL score.

Also, the interest rates for salaried and non-salaried are different from each other-

Loan amount Salaried Non-salaried
Up to Rs. 30 lakh CIBIL above 700- 7.45%, Below 700- 7.55% CIBIl above 700- 7.55%, Below 700- 7.65%
Above Rs. 30 lakh to Rs. 75 lakh CIBIL above 700- 7.65%, Below 700- 7.75% CIBIL above 700- 7.65%, Below 700- 7.75%
Above Rs. 75 lakh CIBIL above 700- 7.95%, Below 700- 8.05% CIBIL above 700- 7.95%, Below 700- 8.05%

Loan Margin

The moratorium period of the loan is up to 36 months.

The loan margin is as follows:

Particulars Details
Loan up to Rs. 75 lakh 20% of the total cost of the purchase or construction of the house
Loan up to 75 lakhs to Rs. 2 Crore 25% of the total cost of the purchase or construction of the house
Loan above Rs. 2 crore 35% of the total cost of the purchase or construction of the house

Repayment

  • You can repay the loan up to 30 years
  • If the loan is taken for repair, then the repayment period is 10 years
  • Flexible methods of repayments are available

4. Union Top-up Loan

Union Top-up loan enables the home loan borrowers to avail an additional loan for those who have paid 24 EMIs in their existing loan. This scheme is to meet additional expenses such as repairs, renovation and furnishing.

Loan Quantum

The maximum loan amount in Union top-up loan is subjected to outstanding under loan.

Ideally, both amounts (home loan and top-up loan) put together should not exceed the original housing loan limit. The details of the loan is given in the table below-

Particulars Details
Minimum amount Rs. 0.50 lakh
Maximum amount Depending on the repayment capacity
Processing fees 0.50% of the loan amount
Repayment period Up to 5 years

Documents

  • Identity Proof- Passport, PAN Card, Employee identity card, Any other valid proof.
  • Proof of address- Electricity bill, Telephone bill, Aadhar, Any other valid proof

Income Proof

For Salaried Class

  • Last one-year ITR
  • Form-16 letter from employer
  • Last 6-month salary slip

For Business Class

For Agriculturists

  • Income certificate from revenue officer (Tehsildar)
  • Proof of owning a Land
  • Property papers
  • 3 photographs
  • LIC policy of any

Documentation for NRI

  • Copy of VISA stamped on Passport
  • Latest work permit
  • Employment contract
  • Any other documents required according to the application

Union Bank Customer Care Number

Union Bank has a 24x7 customer care service for its customers as well as non-customers. You can get your queries resolved here. The toll-free numbers of Union Bank of India are as follows:

  • 1800 22 2244
  • 1800 208 2244
  • +91-8025302510 (for NRIs)
Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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