Union Bank of India Loan Against Property Highlights |
|
|---|---|
| Interest Rate | 10.45% - 13.10% p.a. |
| Processing Charges | Up to 1% of the loan amount |
| Loan Amount | Up to Rs 10 crore |
| Repayment tenure | Up to 15 years |
Union Bank of India Loan Against Property Interest Rates
For Non-Residential property but Self-occupied commercial/industrial; Excluding open Plots
| CIC Score | Interest Rates (p.a.) |
|---|---|
| Below 700 | 12.85% |
| 700 to 749 -1 & 1 to 5 | 11.95% |
| 750 to 799 | 11.15% |
| 800 & above | 10.95% |
For Non-Residential property which is not self-occupied like Hospital Leased to third Parties, Multi-tenanted Commercial Building-; Excluding Open plots.
| CIC Score | Interest Rates (p.a.) |
|---|---|
| Below 700 | 13.10% |
| 700 to 749 -1 & 1 to 5 | 12.20% |
| 750 to 799 | 11.60% |
| 800 & above | 11.40% |
For Residential Property (Self-occupied/Tenanted) – Excluding open plots
| CIC Score | Interest Rates (p.a.) |
|---|---|
| Below 700 | 12.35% |
| 700 to 749 -1 & 1 to 5 | 11.55% |
| 750 to 799 | 10.75% |
| 800 & above | 10.55% |
Features of Union Bank of India Loan Against Property:
- Purpose: The loan aims to provide finance to individuals with various financial goals and requirements, accepting both residential and commercial properties as collateral.
- Prepayment Charges: Charges apply for prepayment of the outstanding loan amount after six months from the loan disbursement.
- Processing Fee: A processing fee of 0.50% of the loan amount is levied, with all charges communicated upfront.
- Loan Amount: Borrowers can secure up to Rs. 10 crores at attractive interest rates.
- Repayment Options: Customers have the flexibility to choose low EMIs and longer tenures or opt for an overdraft facility.
- Loan Processing: Transparent fees are communicated upfront, ensuring no hidden charges during loan processing.
- Customised Loan: Self-employed professionals can customize their loans based on their specific needs, facilitating easier repayment and business management.
- Overdraft Facility: Borrowers can access an overdraft facility against their property, allowing them to utilize the loan amount up to an approved limit and pay interest only on the amount used.
Also read: Best Loan Against Property Interest Rate
Compare Interest Rates on Loan Against Property for Top Banks & HFCs
| Name of the Lender | Interest Rate (% p.a.) | |
|---|---|---|
| State Bank of India | 10.00 - 11.30 | Apply Now |
| Axis Bank | 10.50 - 10.95 | Apply Now |
| Bank of Baroda | 10.85 - 16.50 | Apply Now |
| ICICI Bank | 10.85 - 12.50 | Apply Now |
| Standard Chartered Bank | Starts from 9.25% | Apply Now |
| HSBC Bank | 9.75 - 14.00 | Apply Now |
| Union Bank of India | 10.45% - 13.10% p.a. | Apply Now |
| PNB Housing Finance | 9.25 - 15.00 | Apply Now |
| IDFC First Bank | 9.00 - 16.50 | Apply Now |
| HDFC Bank Limited | 9.50 - 11.00 | Apply Now |
| L&T Housing Finance | 9.50 onwards | Apply Now |
| LIC Housing Finance | 9.50 - 11.55 | Apply Now |
| Godrej Housing Finance | 9.75 onwards | Apply Now |
| Indiabulls Finance | 9.75% p.a. onwards | Apply Now |
| Tata Capital | 10.10 onwards | Apply Now |
| Bajaj Housing Finance | 9.75 - 18.00 | Apply Now |
| Punjab National Bank | 10.40 - 12.75 | Apply Now |
Types of Union Bank of India Loan Against Property
Union Mortgage Loan
- Purpose: Union Bank of India's Loan Against Property is designed for borrowers aged 18 to 75 years to fulfill various personal needs such as higher education expenses, wedding costs, medical emergencies, business travel, or unexpected financial obligations.
- Loan Amount:
- Minimum: Rs 5 lakhs
- Maximum for resident Indians: Rs 10 crore
- Maximum for non-resident Indians: Rs 5 crore
- Loan-to-Value (LTV) Ratio: The loan amount can be up to 50% of the property value.
Union Mortgage (Overdraft facility)
Union Bank of India offers a Mortgage Overdraft facility with the following features:
- Repayment:
- The account needs to be adjusted 5 years prior to the remaining property life.
- The sanctioned limit decreases each month so that the total principal is repaid by the end of the loan tenure.
- Interest is debited monthly based on the actual usage of the limit and must be serviced monthly.
- Tenure:
- For Overdraft: The maximum tenure is 15 years.
- For Term Loan: The maximum tenure is the lowest among 15 years, the residual period until the borrower reaches the age of 75 years, or 5 years prior to the residual life of the property.
- Security:
- All property co-owners must jointly apply as co-applicants.
- Open plots or land are not acceptable as collateral.
- Residential or Commercial property in the name of the borrower(s) is accepted.
- The property should be located in metro, urban, or semi-urban areas within municipal limits.
Also read: Best Loan Against Property EMI Calculator
Union Bank of India Loan Against Property Fees & Charges
For Union Mortgage Loan
Processing Fees:
| Particulars | Charges |
|---|---|
| Union Mortgage (secured overdraft) | The processing fee for a Union Bank of India Loan Against Property is 0.25% of the loan amount, with no minimum charges, and a maximum fee of Rs 1 lakh. However, for staff members, there are no processing fees. |
| Term Loan | For Union Bank of India Loan Against Property, the processing fee is 1% of the loan amount, with a minimum of Rs 5000 and a maximum of Rs 1 lakh. However, for staff members, the processing fee is reduced to 0.25% of the loan amount. |
Eligibility Criteria For Union Bank of India LAP
Union Bank of India offers Loan Against Property to:
- Indian citizens, including both residents and non-residents.
- Applicants should have a steady source of income.
- The property offered as collateral must be non-agricultural, including residential, commercial, or industrial properties.
- The minimum age requirement is 18 years, and the maximum age limit is 75 years.
- Individuals can apply individually or jointly with other eligible co-applicants.
Also read: Best Loan Against Property Eligibility
Documents Required for Union Bank of India Loan Against Property
Documents required for applying for a Loan Against Property include:
- Application form and Credit Information
- Last 6 months' bank statements
- Income proof for Salaried: ITR/Form 16 of the last 2 years, latest 3 months salary slips, and proof of any other income (if not mentioned in ITRs/Form 16)
- Income proof for other than Salaried: ITR of the last 2 years and proof of other income (if not mentioned in ITRs/Form 16)
- KYC documents of applicant & co-applicant/guarantor (if any): Identity proof (PAN Card/Passport/Voter's ID/Aadhaar etc), Address proof (Passport/Driving License/Aadhaar etc), and 2 passport size photographs (latest)
- Property documents: Agreement to sell/Allotment letter, Original Sale Deed/Title deed/advance payment receipts or own contribution receipts, Copy of approved plan by the local body, NOC from Developer/Builder/Society, Statutory and regulatory approval as per state laws, and the estimated cost of construction/extension/repairs/renovations.
Additional documents required in case of Take-over from other Bank/Financial Institution:
- Sanction letter
- Last 12 months’ statement of account
- Confidential credit report required from existing bank
Additional documents in case applicant/co-applicant are NRIs:
- Passport copy
- Employment contract/offer letter
- Latest work permit
- Local address proof, if any
- Visa stamped on the passport
- Identity card issued by current employer
- The document attested by the respective Indian Embassy in case NRI borrowers execute the power of attorney (POA) abroad
Banks may also request additional documents for Loan Against Property based on the credit profiles of the applicants.
Also Read : Best Loan Against Property Documents Required
Union Bank of India Loan Against Property FAQ
1. Will I be charged a penalty for not paying my EMI on Union Bank of India loan against property?
Yes, if you miss an EMI payment, you will be charged a penalty as per the norms of Union Bank of India.
2. What are that properties that can be considered as collateral for Union Bank of India loan against property?
Self-occupied residential properties and commercial properties, including shops and offices, are accepted as collateral for Union Bank of India's Loan Against Property.
3. Can I pre-close my loan against property account?
Yes, you can close your Union Bank of India Loan Against Property account by submitting a written request to the nearest branch. There may be a small fee charged as a penalty for prepayment, which varies depending on the loan amount and interest type.
4. Can I make part-prepayment on Union Bank of India loan against property?
Yes, you can make part-prepayment on your Union Bank of India Loan Against Property, and no charges are levied if you have a floating interest rate.
5. How can apply for Union Bank of India loan against property?
You can apply for a Union Bank of India Loan Against Property either online, by visiting a nearby Union Bank of India branch, or through the MybankingTips official website.
6. What is the maximum loan amount I can get from Union Bank of India loan against property?
The maximum loan amount you can obtain through Union Bank of India's Loan Against Property is up to Rs. 10 crores.