Union Bank of India Home Loan

Union Bank of India Home Loan Interest Rate starts at 6.70%

Note: The mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the bank and RBI. GST and service tax shall be levied extra on the mentioned charges.

Quantum of loan for Union Home and Union Smart Save:

• The loan amount totally depends upon the repayment capacity of the borrower as assessed by the bank and also upon the actual value of the property.
• The loan amount sanctioned by the bank for repairs cannot exceed the amount of Rs. 30 lakhs.

Union Awas Loan Quantum

• For the purchase or construction of a house a house in semi-urban area loan allowed is up to Rs. 7 lakhs and for rural areas it is Rs. 5 lakhs.
• For repairs of flat or a house in semi-urban area is Rs. 3 lakhs and for the rural areas it is Rs. 2 lakh.

Maximum Loan Amount for Union Top–Up:

• Minimum of Rs.50000 is allowed and maximum of the loan depends upon the repayment capacity of the borrower based on the outstanding amount of the loan taken but the top-up amount along with the outstanding amount should not exceed the original amount.

Eligibility Criteria for Union Bank Home Loans:

• Any individual who is above 21 years of age can apply for the loan. For Union AWAS, the minimum annual income is fixed at Rs. 48,000.
• Any individual either single or jointly with his family members like father, mother, son or spouse having a regular source of income can become a co-applicant.
• Siblings like brother – brother, brother-sister or sister-sister can become applicants if the property is in the joint names of the applicants.
• NRIs can also apply for the home loan but are subject to the terms and condition.

Union Home Scheme

Purpose of Union Home Loan:

• For the purchase/construction of property, house, flat,
• For purchasing a plot of land and construction of a house thereon.
• For repairs/renovations or extension of the existing property.
• For the repayment of the home loan taken from other banks.

Moratorium Period:

The suspension period for the loan cannot exceed for more than 36 months.

Repayment

• The repayment period of the loan cannot exceed more than 30 years
• The loan taken for repairs has to be repaid within 10 years.
• The repayment of loans is made flexible by the bank.

Prepayment Penalty

The prepayment penalty on Union Home depends on the type of interest charged on your loan and they are as follows:

Floating rate of interest

• There is no pre-payment penalty for the loan if it is pre-paid by the applicant from the own verifiable source or is taken over by any other bank.

Fixed rate of interest

• There is no penalty on pre-payment of the loan if it is paid by own verifiable income source.
• The takeover charges of 2% is charged over the average of outstanding balance of the preceding 12 months if the loan is taken over by any other bank/or is adjusted in a lump sum,if taken over by a third party.

Security

• Equitable mortgage of the property for which the loan is taken.
• If the property for which the loan is taken is incomplete or still under construction the interim security is needed to be given till the date of completion.

Guarantee

No third party guarantee is required if the applicant is an Indian resident. If the applicant is an NRI then one or two guarantors of Indian Origin having means of income equivalent to the loan taken would be required.

Insurance

The insurance of the property is compulsory under this home loan scheme.

Union AWAS

The Union AWAS loan can be availed for purchase or construction of house or for purchase of plots from government agencies and can also be availed for repairs, extension or improvement of existing residential property.

Moratorium Period

The suspension period allowed for the loan is up to maximum of 36 months.

Repayment

• The repayment period of up to 30 years and 10 years for repairs
• The method of payment is made flexible by the bank.

Security

• Equitable mortgage of the property for which the loan is taken.
• If the property for which the loan is taken is incomplete or still under construction the interim security is needed to be given till the date of completion.

Guarantee

A guarantee in a sufficient manner is required by the bank.

Insurance

The property insurance is compulsory by the bank.

UNION SMART SAVE

Under this loan scheme the customer above regular EMI (Equated Monthly Instalment) amount can deposit an excess amount in his/her account which he/she can utilize later as per his/her requirements. The excess amount helps in reducing the outstanding amount and lower interest is charged by the bank on the loan amount thus customer can make savings from interest.

Purpose for which the loan is taken:

• For the purchase or construction of property, house, flats etc.
• For purchasing a plot of land and construction of a house thereon.
• For repairs/renovations or extension of the existing property.
• For the repayment of the home loan taken from other banks.

Margin Money

The bank does not sanction the total amount of loan as sought by the applicant, but it keeps a certain % of margin money i.e. the share of the customer to be paid by the customer himself.

The margin money for this home loan is as follows:

• 20% of the total cost of purchase or construction of house, flat or any other residential property for the loan up to 75lakh.
• 25% of the total cost of purchase or construction of any house, flat or any other residential property for the loan above 75lakh but less than 2 crore.
• 35% of the total cost of purchase or construction of any house, flat or any residential property for the loan above 2 crore.
• The margin money for repairs has been limited to 20% of the cost of repairs.

Moratorium Period

The suspension period for the loan cannot exceed for more than 36 months.

Repayment

• The repayment period of the loan cannot exceed more than 30 years
• The loan taken for repairs has to be repaid within 10 years.
• The repayments of loans are made flexible by the bank.

Processing charges

• The processing fees for the loan amount up to Rs.15000 are 0.50% plus service tax as applicable.
• The other charges like valuation/legal/stamp duty/CERSAI/Memorandum registration charges as per regulations.

Prepayment Penalty

Penalty depends on type of interest rate

Floating rate of interest

There is no pre-payment penalty for the loan if it is pre-paid by the applicant from the own verifiable source or is taken over by any other bank.

Fixed rate of interest

There is no penalty on pre-payment of the loan if the loan is paid by own verifiable source.
The takeover charges of 2% is charged over the average of outstanding balance of the preceding 12 months if the loan is taken over by any other bank/or is adjusted in a lump sum if taken over by a third party.

Security

• Equitable mortgage of the property for which the loan is taken.
• If the property for which the loan is taken is incomplete or still under construction the interim security is needed to be given till the date of completion.

Guarantee

No third party guarantee is required if the applicant is an Indian resident. But if the applicant is an NRI then one or two guarantors of Indian Origin having means of income equivalent to the loan taken would be required.

Insurance

The insurance of the property is compulsory.

UNION TOP-UP

Interest rate offered for Union Top-up loan is 9.05% onwards

The applicant avail this loan as a top-up on the existing loan with a condition that 24 EMIs have already been paid and the loan required is for repairs, renovations, extension or furnishing of the house.

Processing Fee is 0.50% of the loan amount.

The security given as mortgage to the bank is extended for the period of top-up loan.

The repayment tenure is 5 years or the remaining tenure of the loan whichever is earlier.

• • Proof of identity (any of the following)
    1. Passport
    2. PAN Card
    3. Employee identity card
    4. Any other valid proof

• • Proof of address (any of the following)
    1. Electricity bill
    2. Telephone bill
    3. Ration card

• • PAN Card

• • Last 12 months bank statement

• • Proof of income
    1. For salaried class –
       1. Last one year ITR
       2. Form16 / letter from Employer
       3. Last 6 months salary slip
    2. For business class –
       1. Last three years ITR
       2. P and L,  Balance sheet
    3. Agriculturists
       1. Income certificate from concerned revenue officer (Tahsildar)
       2. Proof of land holding

• • Property papers
    1. Allotment letter
    2. Advance money receipt
    3. Title Deed

• • 3 photographs

• • Proof of out-goes
    1. Loan repayment statement, if any
    2. LIC Policies, if any
    3. Valid proof of any other out-go

• Any other document required as per the application form

The fees and charges applicable to Union Bank home loan variants vary from one type of loan to another. The following are some key variants:

Processing charges for Union Home

• The processing fees for the loan amount up to Rs.15000 are 0.50% plus service tax as applicable.

Processing Fees for Union Awas

• The processing fees for the loan amount up to Rs.15000 are 0.50% plus service tax as applicable.

Processing Fees for Union Paradise

• A processing fee of 0.50% of the loan amount would be charged subject to a maximum of Rs.15000 including taxes.

All the additional charges like Valuation/legal costs/stamp duty/CERSAI/Memorandum registration charges as charged as per regulations. Other home loan variant feature processing charges can be confirmed with the nearby bank branch.

The home loan EMI calculator is available on the paisabazaar.com site so that the customers can easily calculate their EMIs for the home loan they are willing to take from the bank. The tool is free is to use and provides you the monthly EMI amount in seconds after input of 3 key criteria – loan principal, loan tenure and applicable interest rate

Interested customers willing to avail of any variant of the home loan offered by Union Bank can visit the paisabazaar.com website and apply for the loan. The website is an online aggregator which also provides the means to apply for a home loan from Union Bank of India.

Union Bank of India reduces MCLR by 10 bps

10^th March 2020 – The Union Bank of India reduces its Marginal Cost of funds based Lending Rate (MCLR) by 10 basis points (bps) across all tenors. The reduced MCLR will be effective from 11 March 2020 till 31 March 2020. The revised one year MCLR of Union Bank of India stands at 8%.

Union Bank of India slashes MCLR from September 1

31^st August 2019 – Union Bank of India has reduced its Marginal Cost of Funds-based Lending Rate (MCLR) by up to 15 basis points (bps) across all tenors. The rate cut is effective from September 1. The bank’s 1-year MCLR is reduced to 8.35% from 8.50%. The MCLR for overnight tenor is down to 7.95% from 8.10%. The MCLR for one month tenor is cut to 8% from 8.10%. The bank also offers 3-month and 6-month MCLR at 8.10% and 8.20%, respectively. Earlier this month, the bank also introduced Repo Linked Lending Rate (RLLR) for new home loans. For home loans above Rs. 30 lakh to Rs. 75 lakh, the bank is levying 8.25% RLLR. The bank will also continue to offer home loan linked to MCLR to its customers.

Union Bank of India reduces MCLR by 20 bps

30^th July 2019 – The Union Bank of India cuts Marginal Cost of funds-based Lending Rate (MCLR) by 20 basis points (bps) across all tenors, effective August 1. Its 1-year MCLR has now come down from 8.55% to 8.50%. The overnight tenor and 1-month MCLR are also reduced to 8.10% each as compared to earlier rates of 8.25% and 8.30%, respectively. The 3-month and 6-month rates are reduced only by 10 bps each, giving 8.25% and 8.35%, respectively.