UNION Bank Of India Home Loan

Union Bank of India home loan makes it easier to own your dream home with readily accessible financing options. Experience seamless home buying with Union Home, offering attractive interest rates, minimal paperwork, and the reliable backing of Union Bank of India. Access our premier housing loans effortlessly through our digital platforms, enhancing your home-buying experience. Start your house hunting confidently, knowing the best home loan solutions are just a click away.

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PURPOSE

  • Acquisition of new or existing residential properties such as houses, flats, villas, or apartments.
  • Building of a residential unit on a pre-owned non-agricultural plot.
  • Acquisition of a non-agricultural plot followed by the construction of a residential unit (composite project).
  • Renovation, enhancement, or extension of an existing residential property.
  • Transfer of existing housing loans from another bank or financial institution.
  • Completion of residential units that are under construction.
  • Acquisition of solar power panels in conjunction with the purchase or construction of a residential property.

ELIGIBILITY

  • Open to Indian citizens and Non-Resident Indians (NRIs).
  • Applicants must be at least 18 years old at the time of loan commencement and not older than 75 at the time of loan maturity.
  • Loans can be applied for individually or jointly with other qualifying individuals.

QUANTUM OF LOAN

  • There is no upper limit to the amount of loan one can apply for.
  • Loan amount eligibility is determined by the borrower's repayment capability and the property’s value.
  • The maximum amount available for repairs or renovations is ₹30 lakhs.

MARGIN, I.E. YOUR SHARE

For Purchase/Construction of Residential Unit (House, Flat, Bungalow etc)
Loan Amount Margin Loan to Value (LTV) Ratio
Up to Rs.30.00 Lakhs
10%
90%
Above Rs.30.00 to Rs.75.00 Lakhs
20%
80%
Above Rs.75.00 Lakhs
25%
75%
  • Finance available for buying or constructing residential units (houses, flats, bungalows, etc.).
  • Financing covers 20% of the total cost for repairs/renovations.

HOME LOAN MORATORIUM PERIOD

  • Up to 36 months for purchase/construction.
  • 12 months for repairs and renovations.
  • Up to 48 months for Composite Home Loans or as permitted by the Development Authority from the plot purchase date.

REPAYMENT

  • Up to 30 years for purchase/construction.
  • Up to 15 years for repairs and renovations.

REPAYMENT METHODS

  • Standard Equated Monthly Instalments (EMI).
  • Equated Quarterly Instalment (EQI) for agricultural workers.
  • Various flexible plans including Step-Up, Balloon, and Flexible Loan Instalment Plans, and Bullet payments.

COSTS

  • Processing fees are 0.50% of the loan, capped at Rs. 15,000 plus GST.
  • Additional charges for valuation, legal fees, stamp duty, etc., as applicable.
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PREPAYMENT PENALTIES

  • No penalty for floating rate loans when taken over by other banks/FIs.
  • Fixed-rate loans incur a 2% penalty on the average balance of the last 12 months if closed or transferred.

SECURITY

  • Mortgage of the property.
  • Interim security required if the residential unit is under construction, unless covered by a tripartite agreement with the builder.

GURANTEE

  • No third-party guarantee required for Resident Indians.
  • NRIs need a guarantee from one or two local residents, unless a resident co-applicant is present.

INSURANCE

  • Property insurance is mandatory, covering all risks for the value of the property (excluding land) with Bank clauses.

UNION AWAS

PURPOSE

  • Dedicated Home Loan Program for buying or constructing properties in Semi-Urban and Rural Areas.
  • Financing for the repair, improvement, or expansion of existing residential properties in Semi-Urban and Rural Areas.

ELIGIBILITY

  • Designed for residents of semi-urban and rural locales.
  • Suitable for permanent employees of educational institutions and other organizations, as well as proficient farmers with a steady income of at least Rs.48,000 annually.
  • Applicants must be at least 18 years old, with a maximum age limit of 75 years.
  • Applications can be made individually or jointly with other qualified applicants.
  • Loan approval is based on the income proof provided by the Tehsildar or Mandal Revenue Officer.

LOAN AMOUNT

  • Up to Rs.20 lakhs for semi-urban and Rs.15 lakhs for rural areas for purchases or constructions.
  • Up to Rs.10 lakhs for repairs and improvements in both semi-urban and rural areas.
  • Loan eligibility is determined by the borrower's ability to repay and the property's value.

MARGIN

  • 10% of the total cost for new purchases or constructions.
  • 20% of the total cost for repairs and improvements.

MORATORIUM PERIOD

  • Up to 36 months for new purchases or constructions.
  • 12 months for repairs and renovations.
  • Up to 48 months for Composite Home Loans, or until the development authority's approved period, starting from the first disbursement or plot purchase date.

REPAYMENT TERMS

  • Up to 30 years for new purchases or constructions.
  • 15 years for repairs and renovations.

REPAYMENT METHODS

  • Standard Equated Monthly Installments (EMI). Alternative payment schedules such as quarterly, half-yearly, or annual installments may be available for agricultural workers, depending on the crop cycle.
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FEES AND INTEREST RATES

  • Actual charges for valuation, legal fees, stamp duty, etc.
  • Processing fees are 0.50% of the loan amount, capped at Rs. 15,000 plus GST.

REPAYMENT POLICY

  • No penalty for prepayment if the loan is transferred to another bank or financial institution.
  • Interim security required if the residential unit is under construction, unless covered by a tripartite agreement with the builder.

COLLATERAL

  • Simple or equitable mortgage of the property.
  • Interim security may be required if the residential unit is still under construction.

GURANTEE REQUIREMENTS

  • One or two guarantors with financial standing equivalent to the loan amount.

INSURANCE

  • Mandatory comprehensive insurance covering all risks for the property value (excluding land cost) as per bank clauses.

LOAN FOR PURCHASE OF PLOT

PURPOSE

  • Acquisition of residential plots/sites from governmental or recognized private developers, including approved and RERA-registered projects.
  • Includes purchasing land directly from government development authorities or through resale.

ELIGIBILITY

  • Existing bank customers with satisfactory transactions and newly introduced customers, including NRIs and bank employees (convertible to staff home loans if used for construction).
  • The maximum entry age is 60 years.

LOAN AMOUNT

Determined by the borrower’s repayment capacity, with set minimum and maximum thresholds: 

Parameter

Rural

Seme Urban

Tier I/Urban Cities

Metro/State Capital

Minimum Quantum

Nil

Rs.15.00 Lakhs

Rs.50.00 Lakhs

Maximum Quantum

Rs.50.00 Lakhs

Rs.5.00 Crore*

Rs.10.00 Crore*

* Maximum amount subject to repayment capacity assessed under Union Home Scheme.

LTV / MARGIN

For Purchase/Construction of Residential Unit (House, Flat, Bungalow etc)

Loan Amount Margin Loan to Value (LTV) Ratio
Up to Rs. 75 Lacs
20%
80%
Above Rs. 75 Lacs
25%
75%

SECURITY AND INTEREST RATES

  • Equitable mortgage of the proposed plot along with personal guarantees from all applicants.
  • The interest rate is governed by the Union Home Scheme.
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REPAYMENT AND TENURE

  • If the borrower does not secure a home loan from us (i.e., constructs the house using personal funds), the repayment period is either up to 120 months or until the borrower turns 70 years old, whichever occurs sooner.
  • If the borrower obtains a construction loan from us, the maximum repayment period is 360 months or until the borrower reaches the age of 70 at the time of this loan's closure for the plot purchase, whichever is earlier.
  • This scheme does not permit a moratorium period.

TAKEOVER POLICY

  • Takeover of the loan is not permitted if the construction on the plot is incomplete.

UNION SMART SAVE

  • Housing loans will be granted according to the terms and conditions of the Union Home program, with disbursements made into the housing loan account following existing norms. Borrowers are required to make regular EMI or EQI payments monthly or quarterly.
  • Any additional funds deposited by the borrower beyond the scheduled repayments will be credited to the account, reducing the outstanding balance and thus lowering the interest burden. Unlike typical housing loans where excess payments cannot be withdrawn, the Smart Save option allows for the withdrawal of any surplus funds deposited.
  • It is crucial to understand that only the surplus funds—amounts exceeding scheduled repayments—are available for withdrawal.
  • Therefore, the outstanding balance in the housing loan account decreases with the deposit of excess funds but will increase again if these funds are withdrawn, as long as the withdrawals do not exceed the permissible surplus above the scheduled outstanding.
  • Throughout this process, the borrower must continue making EMI payments according to the standard schedule.
  • The outstanding balance under the housing loan cannot be reduced below 10% of the scheduled outstanding at any time.
  • Should the borrower decide to close the account, the credit of an amount equal to the total outstanding balance, including interest, will be allowed.

SWITCHING BETWEEB LOAN TYPES

  • Borrowers can switch between a regular home loan and a Smart Save account or vice versa.
  • A switch is allowed up to two times during the loan tenure.
  • A fee of 0.25% of the outstanding loan amount + GST (up to a maximum of Rs. 5000 + GST), subject to changes, will be charged for each conversion from Smart Save to a regular home loan.
  • No fees will be charged for switching to a Smart Save loan.

ADDITIONAL TERMS & CONDITIONS

The standard terms, such as age requirements, loan tenure, and processing fees, will adhere to the existing guidelines of the Union Home floating rate scheme.

HOME LOAN INTEREST RATES

Floating Rate: Please note that the rates specified in the above statements are subject to change based on fluctuations in the REPO rate. Customers are encouraged to regularly consult with Union Bank of India officials to stay informed about the most current interest rate updates. The stated rate of interest will apply to all new customers of Union Home and Union Awas loans, including those transitioning from other benchmarks such as MCLR, Base Rate, or BPLR to EBLR.

INTEREST RATE FOR VARIOUS HOME LOAN SCHEMES

Union Bank Home Loan Scheme Name

Interest Rate

Union Home

8.35% p.a. Onwards

Union Awas

8.35% p.a. Onwards

Union Smart Save

9.30% p.a. Onwards

Interest Rate

Rate of Interest of Retail Lending Schemes Updated on 01.01.2024

EBLR as on 11-12-2023 is 9.25%; i.e. RBI Repo Rate (6.50%) + Spread (2.75%)

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Frequently Asked Questions

What are the eligibility criteria for a Union Bank of India home loan?

Eligibility criteria for our home loans include age (the applicant must be at least 21 years old at the time of loan application and up to 70 years at the end of the loan tenure), employment status (salaried, self-employed, businessman), and income stability. Please visit our detailed eligibility section or contact our nearest branch for a personalized assessment.

What documents are required to apply for a home loan with Union Bank of India?

Required documents typically include identity proof (Aadhar card, PAN card, Passport, etc.), address proof (recent utility bills, Passport, etc.), income proof (latest salary slips, IT returns, business continuity proof for self-employed), and property documents. For a comprehensive list of required documents, please refer to our home loan documentation checklist on the website.

How can I calculate my home loan EMI?

You can use our online EMI calculator available on our website by entering the loan amount, tenure, and the interest rate. This tool will help you estimate your monthly repayments and plan your finances accordingly.

What types of home loans does Union Bank of India offer?

Union Bank of India offers a variety of home loans to meet different needs, including loans for purchasing new or resale properties, constructing a house, home improvement and extension loans, as well as loans for NRIs. For more details on each type of loan, please visit the home loans section on our website.

How can I apply for a home loan from Union Bank of India?

You can apply for a home loan through multiple channels: by visiting any of our branches, through our official website where you can fill out an online application form, or by contacting our customer service center. Additionally, you can schedule a call-back from our loan experts by submitting your contact information on our website.

Home Loan

Home Loan Balance Transfer

Loan Against Property

Personal loan

Office Address

AltF Empire Square – Unit 1, 3rd Floor, JMD Empire Square, Near Sikanderpur Metro, MG Rd, Gurugram, Haryana – 122002.

Additional Information

Customer Care Working Hours:

Monday through Saturday,
10:00 A.M. to 6:30 P.M.

About us: At My Finance care we understand that financial needs vary from person to person, and that’s why we are committed to providing tailored financial solutions for home and personal loans. 

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