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.

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.

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

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.

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.

Prepayment Policy

No penalty for prepayment if the loan is transferred to another bank or financial institution.

Collateral

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

Guarantee 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 & Age

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	Nil	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

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

Security & Interest Rate

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

Repayment & 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 Between 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 and 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 Rates 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%)

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.