Union Bank of India Home Loan

Highlights

  • How could Union Bank of India Home Loan be the best option for you?
  • Know about its features, interest rates, eligibility, repayment methods, documents required and much more!

In the latest monetary policy meet held on March 24-27 2020, the RBI has decided to give a 3-month moratorium period for all outstanding loans as on March 1, 2020. Remember, this is not an EMI WAIVER. The move is in line with the economic pressures induced by the Coronavirus outbreak. So, this could mean some savings for you on your loan and help you deal with the likely situation of less or no income. Your credit score will not reduce if you don't pay the EMI. But doing so can raise your interest liability as banks would like to cover their losses, which is likely to be the case on deferred EMI payments, by increasing the interest component of the EMI after the moratorium period gets over. So, if you have the money, keep paying to reduce your interest liability. The moratorium, which was ending on May 31, 2020, has been extended till August 31, 2020.

Everybody needs a home of their own. A home loan helps those individuals in purchasing their own homes who do not have enough funds to buy it. If you are also someone who is looking for a home loan at affordable interest rates, Union Bank of India could be a suitable option for you. After the recent merger of Andhra Bank and Corporation Bank into it, Union Bank of India has emerged as one of the leading public sector banks of India. Available for a wide range of purposes such as the purchase of the house/flat, construction of house, Repairs, Renovation, etc, Union Bank of India Home Loan is one of the most preferred options among individuals. Read on to know more about the details of this product!

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    Union Bank of India Home Loan Interest Rate

    ParticularsDetails
    Interest Rate6.70% - 7.15% per annum
    Maximum Loan AmountAbove INR 2 crore
    For repairs and renovations - INR 30 lakh
    Loan to Value Ratio75% to 90%
    Repayment PeriodUpto 30 years
    Upto 10 years in case of repair or renovation
    Processing Fee0.50% of the total loan amount plus GST charges
    Maximum INR 15,000
    Prepayment ChargesNil
    Repayment MethodsEquated Monthly Installments (EMI)
    Equated Quarterly Installments (EQI)
    Step-up Repayment Method
    Ballon Repayment Method
    Flexible Loan Installment Plan (FLIP)
    Bullet Repayment Plan

    Union Bank of India Home Loan Features

    We are providing some of the amazing features of the Union Bank of India Home Loan. These features will help you in knowing the reason behind its popularity.

    • The most special thing about this loan facility is the affordable interest rate which ranges from 6.70% - 7.15% per annum. The rate of interest on your home loan will be decided on the basis of the CIBIL score of an individual and Loan to Value Ratio. So it may change from one lender to another.
    • You can easily opt for the maximum loan amount possible depending upon your property value and repayment capacity. The repayment capacity will be decided by the borrower’s present income, age, employment type, existing obligations, etc.
    • By opting for a loan with a co-applicant, an individual can improve your repayment capacity. The co-applicant can be your parents, siblings, son, spouse.
    • In the case of Home Loan for Repair, the maximum loan amount is fixed at INR 30 lakh.
    • You can be given a maximum period of 30 years to repay the loan. This period will include the moratorium period of 18 months from the date of disbursal or when the house is completed. The repayment period for the House Repair Loan is fixed at a maximum of 10 years.
    • Interest will be calculated on a reducing balance method so that you can have significant savings as the Interest amount will decrease with time.
    • Individuals with a good repayment track can also opt for the Top-up Loan facility. With this, you can get the additional loan amount over and above your current amount.

    Union Bank Home Loan Eligibility Criteria

    Before applying for the Union Bank of India Home Loan, it’s important to know the eligibility criteria required to get the loan amount. The eligibility criteria are nothing but a set of conditions that are required to be fulfilled by any individual. Without meeting the eligibility criteria, your loan application may be rejected and that’s why it is important to know them in advance.

    You can have a glance at all of them below.

    • The age of an applicant must be between 21 years and 65 years.
    • Both Indian citizens and NRIs can apply for this loan facility.
    • The borrower can opt singly or jointly with other eligible co-applicants.
    • The CIBIL score must be good to be eligible for the loan.
    • The borrower must have a stable source of income to ensure smooth loan repayment.

    Documents Required for Union Bank of India Home Loan

    Apart from meeting the eligibility criteria, you also need to submit the right documents to authenticate your candidature. Improper documentation can lead to the rejection of the home loan application. The list of documents is given in the table below. Do not forget to check them!

    List of Documents Required for Union Bank of India Home Loan
    Proof of IdentityAny of the Following -
    Passport
    PAN Card
    Employee ID Card
    Any other Valid Proof
    Proof of AddressAny of the Following -
    Electricity Bill
    Telephone Bill
    Aadhaar Card
    Any other Valid Proof
    PAN Card
    Last 12 Months Bank Statement
    Proof of Income
    For Salaried IndividualsIncome Tax Return (ITR) of the last year
    Form 16 or Letter From Employer
    Salary Slip of the last 6 months
    For Business ClassITR of the last 3 years
    Profit and Loss Balance Sheet
    For AgriculturistsIncome Certificate from Concerned Revenue Officer (Tahsildar)
    Proof for Land Holding
    Property PapersAllotment Letter
    Advance Money/Receipt
    Title Deed
    Three Recent Passport Size Photographs
    Proof of Existing Loan or Any Other ObligationLoan Repayment Statement (if any)
    LIC Policies (if any)
    Valid proof of any other out-go

    Maximum Loan Amount for Union Bank of India Home Loan

    While applying for any kind of home loan, there is a common question asked by the individuals that what is the maximum loan amount that they can get? As we told before, there is no maximum limit on the loan amount taken by an individual. Rather, it will depend on the repayment capacity of the borrower and overall property value. Also, there is one thing that you need to remember that you will not get the loan amount to the extent of the property value. There is a fixed margin set by the lender that you have to adhere to.

    For example, if the overall value of your property value is INR 50 lakh, you can get upto 80% of its value as the loan amount. So the maximum loan amount, in this case, will be INR 40 lakh. Check out the table below showing the LTV ratio and margin payment acoss loan amounts.

    Loan AmountLoan to Value (LTV) RatioMargin (Borrower’s Contribution)
    Upto INR 75 lakhs80% of the Property Value20% of the Total Cost
    Above INR 75 lakh to INR 2 crore75% of the Property Value25% of the Total Cost
    Above INR 2 crore65% of the Property Value35% of the Total Cost
    Upto INR 30 lakh for Construction or Repair80% of the Property Value20% of the Total Cost

    Union Bank of India Home Loan Repayment Methods

    Repayment is a crucial part of any home loan facility. Union Bank of India provides a repayment period of a maximum of 30 years for the home loan taken for the purchase. However, this period is set at a maximum of 10 years in case the loan is taken for repair and renovation. You can choose the tenure according to your repayment capacity.

    Coming to the methods of repayment, Union Bank of India provides more than one for you to choose from. You can choose any of them according to your convenience and income. These are Equated Monthly Installments (EMI), Equated Quarterly Installments (EQI), Step-up Repayment Method, Ballon Repayment Method, Flexible Loan Installment Plan (FLIP), and Bullet Repayment Plan.

    The most popular one among them is the EMI repayment method. You can also have an estimate about your EMI amount with the help of Union Bank of India Home Loan EMI Calculator. For this, you just need a few details such as required loan amount, rate of interest, and tenure.

    How to Apply for Union Bank of India Home Loan

    After knowing all the details related to the Union Bank of India Home Loan, it is important to know about the application process through which you can get the loan amount. There are a total of three stages involved in the overall application process. These are Application, Sanction, and Loan Amount Disbursement.

    To apply for the Union Bank of India Home Loan, you can follow any of the methods mentioned below.

    1. Union Bank of India has set some of its special retail lending branches as Union Loan Points (ULPs). To apply for the loan, you just need to visit one of these ULPs with your documents. The representatives will tell you everything about the home loan facility.
    2. Other than this, you can also go to any of the normal Union Bank of India branches to apply for the home loan.
    3. You can also apply for this loan via online method. All you need is an internet connection, a laptop or mobile. Just visit the official website of the Union Bank of India and fill the application form with the required details. Soon, you will get a call back from the concerned officials regarding your loan application.
    4. The fourth and last method is to apply via Union Bank of India’s 24*7 Call Centre by calling 1800-22-22-44 or 1800-208-2244.

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