Union Bank Loan Against Property 2020
|Interest Rate||10.20% onwards|
|Loan-to-Value Ratio||Up to 50% of the fair market value of the property|
|Loan Tenure||Up to 15 years|
|Processing Fees||1.00% of the loan amount + GST, subject to a minimum of Rs.5,000 and a maximum of Rs.1,00,000|
Union Bank offers Loan Against Property (LAP), which is also known as Mortgage Loan, at an attractive interest rate starting from 10.20% per annum. Availing a LAP from Union Bank provides the flexibility to use the loan amount for any personal need such as marriage, higher education, business travel, medical emergency or any unforeseen expense. Union Bank LAP can either be availed as a Term Loan or Overdraft facility, against mortgage of immovable property (Residential/Commercial).
Union Bank Features & Benefits of Loan Against Property
Mentioned below are some features and benefits of LAP that customers get to enjoy.
- Repayment tenure of up to 15 years
- Freedom to use funds for any personal need
- High loan amount availability of up to Rs. 10 crore
- Available to both Resident and Non-Resident customers
- Affordable rate of interest
- Availability of Overdraft facility
- Availability of balance transfer facility
- Swift and hassle-free loan processing
- Simple documentation
Union Bank Loan Against Property Interest Rate
The interest rate offered by Union Bank on a Loan Against Property is linked with the External Benchmark Lending Rate (EBLR), which currently stands at 7.20%. The actual interest rate applicable is the sum of EBLR and Spread (decided on the basis of the applicant’s risk rating and type of property being mortgaged). The table below shows the ROI applicable to LAP for different property types.
|Type of Property||CIBIL score||Effective ROI|
|Residential Property (Self occupied /Tenanted) – Excluding open plots||700 & above||10.20%|
|Non-Residential but self occupied commercial/industrial properties – Excluding open plots||700 & above||10.70%|
|Non-Residential properties which are not self occupied like school/College Buildings, Hospital leased to third parties, Multi tenanted commercial building – Excluding open plots.||700 & above||10.95%|
Union Bank LAP Processing Fees & Other Charges
|Processing Fee||1.00% of the loan amount + GST, subject to a minimum of Rs.5,000 and a maximum of Rs.1,00,000|
|Valuation / Legal / Stamp Duty / CERSAI / Memorandum registration charges||As per actuals|
* Applicable Goods and Services Tax (GST) will be levied in addition to the mentioned charges.
Note: Other applicable charges will be levied by the bank as and when required.
Union Bank Loan Against Property EMI Calculator
Loan against property EMI calculator is a free and easy-to-use online tool to find an estimate of the monthly instalments to be paid towards loan repayment. Customers can use Paisabazaar’s Loan Against Property EMI calculator any time, as it is available 24/7 on the Paisabazaar website.
Follow the below-mentioned steps to calculate EMI using Paisabazaar’s LAP EMI Calculator.
- Visit Paisabazaar’s Loan Against Property EMI Calculator page
- Enter the following details, manually or by using the movable slider available on the page:
- Loan Amount: This is the principal amount borrowed from the bank or NBFC by the customer. Higher the loan amount, higher the EMI
- Rate of Interest: This is the most critical factor that determines your ability and the ease to repay the loan. Different banks and housing finance institutions offer different interest rates which keep changing from time to time. Higher interest rate on your loan means a higher EMI amount to be paid
- Loan Tenure: This is the time within which the borrower needs to repay the loan amount fully. The loan tenure depends on the borrower’s current age and the retirement age. Longer the tenure, smaller the EMIs and vice versa
Upon filling all the relevant details, the monthly installment amount will show up instantly in the right panel.
Union Bank Loan Against Property Eligibility Criteria
The minimum requirements that a customer must meet in order to avail a mortgage loan from Union Bank are as follows:
|Eligible Profiles||Indian citizen (both resident and non-resident) having regular source of income and owning non-agricultural (residential / commercial/industrial) property|
|Maximum Loan Amount||● For Residents: Rs.10 Crore |
● For NRIs: Rs.5 Crore
|Margin||50% of the fair market value of the property mortgaged as per the latest valuation report|
|Type of Property||● Residential Property|
● Commercial property
Note: Open plot/land is not accepted by the bank
|Other Conditions||● Property should be located in metro/urban/Semi-urban areas coming within municipal limits only|
● All the co-owner(s) of the property need to join in as co-applicant(s)
Check Also: Loan Against Property Eligibility Calculator
Union Bank Documents Required for Loan Against Property
The table below shows the list of documents required to apply for a Loan Against Property with Union Bank.
- Proof of identity (any of the following)
- PAN Card
- Employee identity card
- Any other valid proof
- Proof of address (any of the following)
- Electricity bill
- Telephone bill
- Any other valid proof
- PAN Card
- Last 12 months bank statement
- Proof of income
- For salaried class
- Last one year ITR
- Form-16/ letter from Employer
- Last 6 months salary slip
- For non-salaried class
- Last three years ITR
- P and L Balance sheet
- For salaried class
- Property papers
- Title Deed
- 3 photographs
- Proof of out-goes
- Loan repayment statement, if any
- LIC Policies, if any
- Valid proof of any other out-go
- Additional document required for NRI
- Copy of Visa stamped on the passport
- Latest work permit
- Employment contract (if the contract is in any language other than English, the same has to be translated into English and attested by Employer/Indian Embassy)
- Any other document required as per the application form
Check Also: Loan Against Property Documents Required
Apply for LAP on Paisabazaar.com
Customers can apply online for LAP through Paisabazaar.com by simply following the below-mentioned steps.
- Visit Loan Against Property page
- Fill in the following information:
- desired loan amount
- employment type
- annual income
- contact details
After this, various LAP offers, which you are eligible for, will appear on your screen from multiple banks. Select Union Bank from the list and click on the ‘Submit’ button. Soon, a representative from Paisabazaar will connect with you on the provided contact number to process your application.
Union Bank Customer Care Details
Customers can reach out to through the below-mentioned contact details to get their loan-related queries addressed.
- All-India Toll Free number:1800 22 22 44 / 1800 208 2244
- Charged Numbers:080-61817110
- Dedicated number for NRI:+918061817110
Q1. What is the security required to avail a LAP?
The security required to avail a LAP from is equitable/registered mortgage of immovable property.
Q2. Is it mandatory to have property Insurance?
Yes. Property should be comprehensively insured for an amount not less than the value of the property (less cost of land), covering all risks with Bank clause.
Q3. Is any guarantee required?
Third party guarantee is not mandatory for a resident Indian customer. However, for an NRI applicant, guarantee of a local resident Indian having means equivalent to that of the loan amount is required.