Union Bank Of India Home Loan |

Union Bank of India Home Loan

Home loans offered by the Union Bank of India come with low interest rates, affordable processing fees, and long tenure. The bank offers loans for every housing-related need, including loan for new/old home purchase, construction of a house, purchase of plot, repair/extension/improvement of an existing home, balance transfer, and so on.

Types of Union Bank of India Home Loans

Home Loan

Union Awas

PMAY – Pradhan Mantri Awas Yojna

Eligibility

Indian residents as well as Non-Resident Indians (NRIs) are eligible

Individuals (singly or jointly) may apply for the loan

Minimum age required to apply for the loan is 18 years and maximum exit age should be up to 75 years.

For Union Awas scheme, residents of rural & semi urban areas are eligible. Permanent employees of schools, colleges, or other establishments, as well as good farmers with regular income source (Rs.48,000 p.a. of above) can also apply.

Interest Rate, Processing Fee, and Other Charges

The current Union Bank of India Home Loans interest rates are:

Floating Rate of Interest

6.85% – 8.40%

Fixed Rate of Interest (for maximum 5 years)

11.40% – 12.65%

Smart Save Option

7.05% + 7.65%

Processing fees

Home Loan:

0.50% of the sanctioned loan amount (maximum Rs.15,000) + applicable GST.

Union Awas/ PMAY:

Nil

Other charges

Prepayment penalty: Nil for floating rate based housing loan or if a fixed rate loan is prepaid from own sources. 2% take-over penalty on the average outstanding balance of the previous 12 months will be charged if the loan is taken over by other bank or financial institution or adjusted in lump-sum by the borrower from any third party/source. Nil prepayment penalty for Union Awas and PMAY loan if the loan is taken over by other bank or financial institution.

Fee for giving Title Search Report: Rs.1,000 for Mumbai/ Delhi/ Bengaluru/ Chennai, Rs. 15,000 for Kolkata/ Hyderabad/ Ahmedabad.

Vetting of documents: Rs. 750 for loan up to Rs. 10 Crores and Rs. 1,000 for loan above Rs.10 Crores.

Valuation fee: Vary between Rs. 500 to Rs. 10,000 (depending on the loan amount).

Relaxation charges: 0.10% of the loan amount (minimum Rs. 500 and maximum Rs. 5,000).

Documents Required

Common documents for all applicants

Duly filled application form with 3 recent passport-sized photographs

PAN Card

Bank statement of last 12 months

Identity proof (any one): Employee ID Card/ Passport/ PAN Card/ any other valid document.

Address proof (any one): Aadhar Card/ Telephone Bill/ Electricity Bill/ any other valid document.

Income proof for salaried applicants

ITR for last 1 year

Form 16 or letter from employer

Salary slips of last 6 months

Income proof for business class

ITR of last 3 years

P& L

Balance Sheet

Income proof for agriculturists

Income certificate by concerned revenue officer (Tahsildar)

Land holding proof

Property related documents

Allotment letter

Title Deed

Advance money receipt

Proof of outgoes

Loan prepayment statement

LIC policies

Valid proof of any other outgo

Additional documents for NRIs

All previous vendors agreement (copy), duly stamped & registered

Registration receipts (copy)

Original share certificate

Latest work permit

Visa stamped on passport (copy)

Employment contract in English (if the contract is any other language, it should be translated in English by & attested by Employer/Indian Embassy).

Any other document as required by the bank

Why to Choose Union Bank of India Home Loan?

Lowest interest rate on home loans

Home loan available for all purpose

NRIs can also apply

High loan amount

Low margin required

Availability of moratorium period

FAQs

How much moratorium is offered under Union Bank of India Home Loan?

Under Home Loan offered by the Union Bank of India, you can get a moratorium period of up to 36 months for purchase & construction, and up to 12 months for repair & renovation.

What is the maximum loan amount?

There is no maximum loan limit under Union Bank of India Home Loan. However, for repairs and renovation purpose, you can get up to Rs. 30 Lakhs.

What is the repayment period for home loan scheme?

The maximum repayment tenure for Union Bank of India Home Loan scheme is 30 years (for purchase or construction) and 15 years (for repairs or renovations).

What is Smart Save Option?

Under this product, customers can deposit additional amount over & above the regular EMI for the loan, with an option to withdraw such excess quantum at a later date as per their requirement. The excess fund helps in reducing the loan outstanding, hence, a lower interest is charged in the loan account of the borrower (till there are such excess funds in the account). This option helps the borrowers to maximize their savings on interest.

What is the current EBLR of the bank?

As on 01.06.2020, the bank’s EBLR is 6.80%, i.e. RBI Repo Rate (4%) + Spread (2.80%).

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Types of Union Bank of India Home Loans Eligibility Floating Rate of Interest Fixed Rate of Interest (for maximum 5 years)Smart Save Option Processing fees Other charges Documents Required Property related documents Why to Choose Union Bank of India Home Loan?FAQs Blog