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Union Bank Home Loan Interest Rate 2026

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Competitive Interest Rates

Starting 7.35% p.a.

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Union Bank Home Loan Interest Rates

Particulars Details
Current EBLR 87.10% p.a. w.e.f. 24.07.2026
RBI Repo Rate 5.25%
EBLR Spread 2.75%
Lowest Union Home Loan Rate 7.10% p.a.*
Rate Type Floating / Fixed, depending on scheme

*As per the special rate applicable through Paisabazaar.

Factors that Affect Union Bank Home Loan Interest Rate

    1. External Benchmark Based Lending Rate (EBLR): The EBLR is linked to an external benchmark, such as repo rates, so changes in the benchmark rate can directly affect the home loan interest rate.
    2. Marginal Cost of Funds Based Lending Rate (MCLR) : The MCLR reflects the bank’s cost of funds and can influence the interest rate applicable to certain home loans.
    3. CIBIL Score : A higher CIBIL score generally indicates better creditworthiness and may help borrowers secure a more competitive interest rate.
    4. Loan-to-Value Ratio (LTV): A lower LTV, meaning a higher borrower contribution, may reduce the lender’s risk and can affect the interest rate offered.
    5. Loan Amount: The home loan amount can influence the applicable interest rate, depending on the bank’s loan slabs and policies.
    6. Loan Tenure: A longer repayment tenure may affect the interest rate and result in higher overall interest paid over the loan period.
    7. Income: A stable and higher income demonstrates stronger repayment capacity and may help borrowers qualify for favourable rates.

Union Bank Home Loan Interest Rates 2026 Highlights

Loan Amount LTV CIC Score ROI for Government/ PSU Employees
Irrespective of Loan amount, based on income and repayment capacity As per quantum-wise LTV norms 750 & above EBLRA - 0.85 =+ 7.15%

Union Bank Home Loan Interest Rate by CIBIL Score

CIBIL/CIC Score  Interest Rate
Salaried/ Professional Non Salaried
825 & above 7.15% p.a. onwards 7.15% p.a. onwards
800-824 7.20% p.a. onwards 7.20% p.a. onwards
750-799 7.30% p.a. onwards 7.40% p.a. onwards
700-749 7.75% p.a. onwards 7.85% p.a. onwards
680-699 8.00% p.a. onwards 8.10% p.a. onwards
650-679 8.85% p.a. onwards 8.85% p.a. onwards
600-649 9.35% p.a. onwards 9.35% p.a. onwards

Union Bank Home Loan Interest Rate vs Other Banks (2026)

Bank Home Loan Interest Rate*
Union Bank of India 7.10% p.a. onwards
State Bank of India (SBI) 7.25% p.a. onwards
Punjab National Bank (PNB) 7.25% p.a. onwards
Bank of Baroda 7.30% p.a. onwards
Bank of India 7.10% p.a. onwards
Canara Bank 7.15% p.a. onwards
HDFC Bank 7.20% p.a. onwards
ICICI Bank 7.40% p.a. onwards

Union Bank Home Loan Processing Fees & Other Charges

Charge Details
Processing Fee 0.50% of the loan amount subject to a maximum of Rs. 15,000 plus GST
Prepayment/Foreclosure
  • Floating Rate Loans: No prepayment or take-over penalty.
  • Fixed Rate Loans: 2% prepayment/take-over penalty + GST on the average outstanding balance of the preceding 12 months.
Legal Charges/CERSAI Charges/Valuation Charges/ Stamp Duty / Memorandum registration   As per actuals

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How Is Union Bank Home Loan Interest Rate Calculated?

Union Bank of India Home Loan EMI is the monthly amount you repay towards your home loan until the outstanding principal and interest are fully paid. Your EMI mainly depends on the loan amount, interest rate, and repayment tenure.

You can use a Home Loan EMI Calculator to quickly estimate your monthly installment without performing manual calculations.

How is the EMI Calculated?

The standard formula for calculating a home loan EMI is:

EMI = [P × r × (1 + r)ⁿ] / [(1 + r)ⁿ − 1]

Here:

  • P = Loan amount borrowed
  • r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
  • n = Total number of monthly instalments (tenure in years × 12)
  • EMI = Monthly repayment amount

By entering the loan amount, interest rate, and tenure, you can estimate your EMI and plan your monthly budget accordingly.

Examples of Union Bank Home Loan EMI

Union Home Loan EMI for 10 years

Interest Rate (p.a.) Loan Amount (Rs.) Loan Tenure (years) EMI (Rs.)
8.80% 15 lakh 10 18,839
8.80% 20 lakh 10 25,119
8.80% 25 lakh 10 31,399
8.80% 30 lakh 10 37,679
8.80% 32 lakh 10 40,191

Union Bank Home Loan EMI for 30 Lakh

Interest Rate (p.a.) Loan Amount (Rs.) Loan Tenure (years) EMI (Rs.)
8.80% 30 lakh 10 37,679
8.80% 30 lakh 15 30,072
8.80% 30 lakh 20 26,607
8.80% 30 lakh 25 24,766
8.80% 30 lakh 30 23,708

Types of Union Bank Home Loan Interest Rates

Union Bank of India offers home loans with both fixed and floating interest rate options:

  • Floating Rates: Floating interest rates are variable and may change based on changes in the RBI’s repo rate. These rates are generally lower than fixed interest rates.
  • Fixed Rates: Fixed interest rates are MCLR-linked and remain unchanged throughout the loan tenure. Union Bank of India offers home loan interest rates starting from 11.40% p.a. onwards.
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FAQs

What is the current Union Bank Home Loan Interest Rate in 2026?

Union Bank of India offers home loan starting from 7.15% p.a., with the applicable rate varying according to CIBIL score, borrower profile, loan amount, tenure, LTV, and lending benchmark. However, borrowers applying through Paisabazaar can get loans starting at 7.10% p.a.

What is the lowest interest rate offered by Union Bank for home loans?

The lowest Union Bank home loan interest rate is 7.10% p.a., applicable to eligible borrowers meeting the bank’s prescribed credit and other lending criteria and applying through Paisabazaar.

Does Union Bank offer different home loan interest rates based on CIBIL score?

Yes. Union Bank’s rates vary by credit score. For example, rates start at 7.15% for scores of 825+, 7.30% for salaried borrowers scoring 750–799, and 9.35% for scores of 600–649.

How does the RBI repo rate affect Union Bank Home Loan Interest Rates?

Floating-type interest rates for Union Bank home loans depend directly on the repo rate. Any change in it can impact the effective interest rate.

How can I reduce my Union Bank Home Loan interest rate?

Maintaining a strong credit profile, particularly a CIBIL score of 760 or above, choosing an appropriate LTV, demonstrating stable income and comparing applicable loan schemes can help obtain a lower rate.

What factors determine the Union Bank Home Loan Interest Rate offered to a borrower?

The applicable rate can depend on CIBIL score, loan amount, LTV, income, tenure, lending benchmark, borrower category and applicable scheme. Higher credit scores and stronger repayment profiles may qualify for lower rates.

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