City Union Bank Home Loan

Last Updated : April 7, 2025, 6:12 p.m.

In India, owning a home remains a luxury for many due to high property prices, making it difficult to pay the full amount upfront. That’s why home loans are essential. When applying for a home loan, the interest rate is a key factor as it directly affects your EMI—higher rates mean higher monthly payments. City Union Bank home loans offer competitive interest rates, helping you choose based on your financial comfort and repayment ability.

Check the content below for key loan details.

City Union Bank Home Loan Interest Rate Details 2025

Here are the latest City Union Bank Home Loan Interest Rates . Make sure to check before applying -

Margin of City Union Bank Home Loan

Applicants are required to contribute a minimum of 20% of the total cost of the property purchase or construction, while the remaining 80% can be financed by the bank.

Prepayment Penalty of City Union Bank Home Loan

• Floating Rate Loans : No prepayment or takeover charges, even if the loan is transferred to another bank.
• Fixed Rate Loans : No prepayment penalty if the repayment is made from the borrower’s own sources. However, a 2% takeover penalty (above the card rate) is applicable if the loan is transferred to another bank.

Security of City Union Bank Home Loan

• The loan must be secured through an equitable mortgage of the land and building/flat for which the loan is sanctioned.

Interim Security (Pending Mortgage) of City Union Bank Home Loan

• If the mortgage creation is delayed beyond 24 months for valid reasons, a suitable alternative security or third-party guarantee may be accepted for the interim period.

Insurance of City Union Bank Home Loan

• The property must be comprehensively insured (excluding land cost) against all risks, with the bank clause included.
• Life insurance for the borrower is mandatory to protect the family from loan liability in case of the borrower's death.

Disbursement of City Union Bank Home Loan

Loan disbursement will be made only when:

• All required loan/security documents are duly executed.
• A valid equitable mortgage has been created in favor of the bank.
• Construction is progressing (disbursement will be done in stages).
• All statutory approvals and relevant proofs have been submitted.

Repayment & Moratorium Period of City Union Bank Home Loan

Types of City Union Bank Home Loan

Here are the types of City Union Bank home Loans -

1. Affordable Home Loan
2. Prime Home Loan
3. Premium Home Loan

City Union Bank Affordable Home Loan

An Affordable Home Loan is designed to help individuals from the Economically Weaker Sections (EWS), Low Income Groups (LIG), and Middle Income Groups (MIG) own a home at lower interest rates and minimal processing fees. These loans typically come with flexible repayment options, lower EMIs, and are ideal for first-time homebuyers looking to purchase, construct, or renovate a home in urban or semi-urban areas.

• Income:

• CIBIL Score: 700 & Above
• Loan Amount : Minimum Rs 10 lakh; Maximum Rs 30 lakh for the construction or purchase of a ready-built house.

City Union Bank Prime Home Loan

City Union Bank Prime Home Loan is designed for individuals looking to purchase, construct, or renovate residential property. The scheme offers competitive interest rates, flexible repayment options, and financing for ready-built homes, under-construction properties, or home extensions. Applicants with a stable income—whether salaried or self-employed- can avail this loan, with loan amounts and tenure based on repayment capacity.

• Income:

• CIBIL Score - Minimum 700

• Loan Amount - Minimum Rs.30 lakh and Maximum Rs.75 lakh.

City Union Bank Premium Home Loan

City Union Bank Premium Home Loan is designed for high-income individuals seeking higher loan amounts for purchasing or constructing premium residential properties. It offers competitive interest rates, flexible repayment options, and a longer tenure based on the applicant’s income and repayment capacity. The scheme is ideal for those looking to invest in upscale housing.

• Income:

• CIBIL Score Required - Minimum 700
• Loan Amount - For construction / Build: Minimum Rs. 75 lakh and Maximum Rs. 7.5 Crore.

Eligibility Criteria For City Union Bank Home Loan Application

Eligible applicants include Resident Indian citizens and NRIs/PIOs (holding foreign passports) aged 21 years or above. Applications can be made singly or jointly with up to 3 eligible co-applicants (spouse/children/parents).

• Minimum Age: Borrower – 21 years; Co-applicant – 18 years
• Maximum Age: 60 years for salaried individuals and 65 years for non-salaried (at loan maturity), subject to stable and regular income
• Employment Type:
  • Salaried: Regular employees of MNCs, reputed companies, educational institutions, Central/State Govt., or PSUs with at least 2 years of confirmed service (can be relaxed to 1 year for PSU/Quasi-PSU employees)
  • Non-salaried: Minimum 3 years of business continuity in the same field.

Documents Required for City Union Bank Home Loan

You need to submit a set of documents at the time of the loan application. Know about them below.

• Duly filled loan application form
• Proof of Identity and Residence (PAN and Aadhaar are mandatory)
• For Salaried Applicants: Latest 6 months’ salary slips
• For Non-Salaried Applicants: ITR of the last 2 financial years
• Bank account statement for the past 6 months showing salary or income credits.

ID Proof (Any one of the following):

• Aadhaar Card
• Passport
• PAN Card
• Voter ID
• Driving License
• Ration Card
• Employer-issued ID/confirmation letter (subject to the bank’s satisfaction)
• An ID card issued by a recognized educational institution or postal authorities
• Letter from a recognized public authority/public servant (not below Tahsildar rank) verifying identity and address
• Job card issued by NREGA signed by a State Govt officer
• UIDAI-issued letter with name, address, and Aadhaar number

Address Proof (Any one of the following):

• Aadhaar Card
• Passport
• Voter ID
• Driving License
• Recent telephone bill (not older than 2 months; installation should be 6+ months old)
• Latest electricity bill
• Ration Card
• Bank account statement
• Letter from a recognized public authority/public servant (not below Tahsildar rank)
• Letter from employer (subject to the bank's satisfaction)
• Postal authority-issued ID
• A job card issued under NREGA and authenticated by a State Government official.
• UIDAI-issued letter with address details
• Consumer Gas Passbook
• Registered rent agreement indicating the customer’s current address

Documents to be Executed:

• Demand Promissory Note
• Other loan-related agreements and security documents as prescribed by the bank.

How Can You Calculate EMI for City Union Bank Home Loan?

If you are planning to avail of an affordable home loan from the bank, it’s equally important to know the EMIs you’ll be paying. The City Union Bank Home Loan EMI Calculator is a smart and convenient tool that helps you calculate your monthly installments accurately and effortlessly. All it requires is your loan amount, interest rate, and loan tenure.

Example -

Abhishek Ranjit, a Programming Head by profession, is planning to take a home loan of Rs 30 lakh from City Union Bank to purchase a beautiful home in Mumbai. With a home loan interest rate starting from 8.25% to 10.50% for a tenure of 25 years, he’s curious to know his monthly EMI commitments. Wondering what the repayment might look like? Check the table below to find out.

Purpose of City Union Bank Home Loan

City Union Bank offers home loans for a variety of residential needs. Here’s what you can use the loan for:

• Purchase of property : Ready-to-move houses, flats, villas, or apartments.
• Purchase of resale property : Old houses/flats/apartments, provided the building is not older than 30 years.
• Plot and construction : Purchase of non-agricultural house sites with construction of a residential unit.
• Construction completion : To complete an under-construction house or apartment.
• Home improvement : Repairs, renovations, or extensions on an existing property (loan amount between Rs 5 lakh and Rs 30 lakh based on property location).
• Loan takeover : Balance transfer of existing home loans from other banks, limited to the remaining repayment period.
• Builder tie-ups : Purchase of flats/villas from builders whose projects are approved or funded by the bank.
• Furnishing/interior work : Loans are available for interiors, provided you contribute at least 50% of the cost from your funds.

Fee/Charges on City Union Bank Home Loan

Conclusion

City Union Bank Home Loans are crafted to meet the varied housing needs of individuals across income groups—whether you're buying your first home, constructing a house, or upgrading your current one. With flexible repayment options, competitive interest rates, and a range of schemes like Prime and Premium Home Loans, the bank ensures that your dream home is financially within reach. Its transparent processing, customer-centric eligibility terms, and multiple loan purposes make it a reliable partner in your home ownership journey. Whether you're salaried, self-employed, or an NRI, City Union Bank provides customized solutions to help you move into the home you’ve always envisioned.