Union Bank of India Home Loan

Union Bank of India offers Housing Loan interest rates starting from 8.35% per annum onwards. The bank determines these rates based on various factors including credit score, loan amount, Loan-to-Value (LTV) ratio, occupation profile, gender of loan applicants, and the type of loan offered to home loan applicants.

Purpose: Union Bank of India provides home loans for various needs like buying a new or old home, building a house or flat, buying a plot and constructing a house on it, renovating existing properties, adding extensions to homes, and finishing under-construction residential units. They also allow existing borrowers from other banks or housing finance companies to transfer their home loans to Union Bank at lower interest rates.

Loan Amount:

• As per the repayment capacity of the borrower
• For repair/renovation: Up to Rs 30 lakh

Tenure:

• For purchase/construction: Up to 30 years
• For repair/renovation: Up to 15 years

LTV Ratio:

• Loan Amount up to Rs 30 lakh - Up to 90% of total purchase cost
• Loan Amount Above Rs 30 lakh - Up to 80% of total purchase cost
• Repair/renovation - Up to 80% of total cost

Purpose:  Union Smart Save is a home loan overdraft facility offered by Union Bank of India. With this facility, applicants can deposit any surplus amount into a linked overdraft account and withdraw funds from it as needed. The balance in this account is then subtracted from the outstanding home loan amount, reducing the borrower's interest cost.

Purpose: The Union Ashiyana Personal Loan scheme is a top-up facility offered to both existing and new home loan borrowers of Union Bank. This facility allows borrowers to access additional funds to meet their personal expenses.

Loan Amount: Up to Rs 15 lakh

Tenure: Up to 7 years

Purpose: Both existing and new home loan borrowers from Union Bank of India have the option to utilize a Home Loan overdraft facility. This allows them to access funds for personal or business requirements, as well as for repaying high-cost loans.

Loan Amount: Up to Rs 20 lakh

Tenure:

• The retirement age for salaried applicants is up to their retirement age, while for non-salaried applicants, it's up to 65 years.
• The overdraft account must be closed simultaneously with the closure of the home loan account.

Purpose: People living in rural or semi-urban areas can benefit from Union Awas, a special home loan scheme offered by Union Bank of India. This scheme helps them buy or build homes, as well as make repairs, improvements, or extensions to existing dwellings.

Loan Amount:

• For construction/purchase: Up to Rs 10 lakh for semi-urban areas and up to Rs 7 lakh for rural areas.
• For repair/improvement: Up to Rs 5 lakh for both semi-urban and rural areas.

Tenure:

• For purchase/construction: Up to 30 years
• For repair/renovation: Up to 15 years

LTV Ratio:

• For purchase and construction - Up to 90% of total purchase cost
• For repair and improvement - Up to 80% of total purchase cost

Purpose: Union Bank of India provides a Plot Purchase Loan designed for acquiring residential plots or sites. This loan covers purchases from various entities including State Development or Town Planning Authorities, other government bodies, central or state government statutory authorities, local authorities, and private entities with approval from state government authorities. Consumers can purchase residential land directly from government development authorities such as LDA, HUDA, DDA, JDA, etc., either directly from the authorities or through a second sale.

Loan Amount:

• Minimum Loan Amount- Rs 50 lakh (Tier-I cities/Urban/Metro/State Capital)
• Maximum Loan Amount- Rs 5 crore (Tier-I cities/Urban) and Rs 10 crore (Metro/State Capital)

LTV Ratio:

• Up to Rs 75 lakh- Up to 80%
• Above Rs 75 lakh- Up to 75%

Tenure:

• For borrowers who do not take a home loan for construction purposes from Union Bank of India: Up to 10 years or until the borrower reaches 70 years of age, whichever comes first.
• For borrowers who take a home loan for construction purposes from Union Bank of India: Up to 30 years or until the borrower reaches 70 years of age, whichever comes first.

Also Read : Best Home Loan EMI Calculator

Also read: Best Home Loan Fees and Charges

Age

• Minimum Age: 21 years
• Maximum Age: 70 years

Residency Status

• Resident Indian
• Non-Resident Indian (NRI)

Type of Employment

• Salaried
• Self-employed
• Agriculturist

Also Read : Best Home Loan Eligibility

To apply for a home loan with Union Bank of India, you'll need to provide the following documents:

• Duly filled application form and credit information.
• KYC documents: ID proof, address proof, and 2 passport-size photographs.
• For Salaried individuals:
• Last 2 years ITR/Form 16.
• Latest 3 salary slips.
• Proof of any other income.
• For self-employed or other than salaried individuals:
• Last 3 years ITR.
• Proof of any other income.
• Bank statement for the last 6 months.

Property Documents:

• NOC (No Objection Certificate) from the developer, builder, or society.
• Estimate cost of construction, extension, repair, or renovation.
• Copy of the approved plan by the local body.
• Advance payment receipt or own contribution receipt.
• Allotment letter or Sale agreement.
• Copy of property ownership document: Original sale deed, Title deed, Share certificate issued by the society, and other linked parent documents conveying t he relationship.

In case of takeover of loans from other financial institution:

• Sanction letter from the current lender.
• List of documents on the letterhead of the financial institution.
• Last 12 months account statement from your existing loan account.
• Authority letter from the bank or financial institution authorizing Union Bank to directly handle over the security documents.

If the applicant is an NRI, additional documents required include:

• Local address proof.
• VISA stamp on passport.
• Passport copy.
• Latest work permit.
• ID card issued by the current employer.
• Offer letter or employment contract.

Also Read : Best Home Loan Documents Required

Yes, Union Bank of India offers home loans with two types of interest rates: fixed and floating. However, fixed-rate home loans typically have higher interest rates compared to floating-rate home loans.

Union Bank of India offers home loan interest rates starting from 8.35% per annum onwards, which vary based on your credit profile.

Also read: Best Home Loan Balance Transfer

Union Bank of India typically takes about 5 working days to sanction a home loan after the applicant submits all the required documents.

Yes, Union Bank of India provides a concession of 5 basis points (bps) on home loan interest rates to women applicants.

It is not mandatory to have a co-applicant when applying for Union Bank Home Loans. Applicants have the option to apply singly or jointly for home loans.

Union Bank of India assesses the loan amount eligibility of home loan applicants based on various factors including their monthly income, repayment capacity, age, co-applicant's income, credit score, of occupation, repayment history, and other relevant criteria.

Yes, you can prepay your home loans obtained from Union Bank of India. The bank does not charge any prepayment fees for home loans.

Union Bank of India hasn't specified a cutoff credit score for home loan applicants. However, the bank offers lower interest rates to applicants with higher credit scores. For instance, those with credit scores of 800 and above are offered the lowest interest rates, followed by those with scores of 750-799, 700-749, 650-699, 600-649, and below 600.