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City Union Bank Home Loan Interest Rates

Buying a home is considered an utmost necessity for every Indian family. Having your own little private space is an important milestone in life. Every individual saves a portion of their income towards achieving this principal goal. However, purchasing a house only after accumulating the entire amount is not a smart move. Individuals should be prudent and make use of the home loans offered by various banks & financial institutions.

City Union Bank (CUB) is a premier banking institution of our country that has been serving the Indian population for more than a century. Their products and services are aimed at taking basic banking facilities to a wide range of customers.

Their CUB Swayam Gruha Home Loan scheme is aimed at customers who prefer a hassle-free loan process. They offer quick turnaround time with minimal documentation. They also have multiple channels of customer care to assist you with the entire home loan process.

CUB Swayam Gruha Scheme Interest Rates

CUB Swayam Gruha SchemeRate of Interest
Repayment tenureLoan amount of up to Rs.25LLoan amount above Rs.25L
Up to 5 years10.50%11.00%
5 years - 10 years11.00%11.25%
10 years - 15 years11.50%12.00%
Above 15 years12.00%13.00%

Factors that affect the interest on City Union Bank Home Loans

The bank currently offers home loans up to 75% value of the property. While obtaining the home loan, the rate of interest for each applicant differs based on various factors such as credit score, income, type of interest and loan amount.

Good Credit Score :

Your credit score determines your creditworthiness. The City Union Bank prefers an individual with a good credit score. It ensures that you are approved for a higher loan amount and a lower rate of interest. You can ensure a higher credit rating by maintaining a healthy repayment habit on your existing loans and credit card bills. Any score of 750 and above is considered a good credit score.

Loan amount :

The interest rate would increase with a higher loan amount. Currently, City Union Bank offeres home loans up to Rs. 25 Lakhs. Though it is a lower amount when compared to other lenders, you can still get a good rate of interest with a lower loan amount. A higher loan amount increases the risk for the lender and hence they charge a higher interest rate. Women applicants are given a concession on the interest rate.

Down payment :

Higher the down payment you are ready to make, the loan amount is lower and hence a lower interest rate. You have the maximum margin of 25% on City Union Bank home loan and with an extra down payment above that limit can get you lower interest home loans.

Type of Interest :

City Union Bank provides the option of floating rates and fixed rate. Floating rate is bound to change as per market conditions. A fixed rate doesn’t change throughout the loan tenure. Banks offers additional benefits and offers for floating rates.

Tenure :

With the longer tenure, the interest rate increases on City Union Bank home loans. Currently the lowest interest rate is 10.50% on the tenure of 5 years. If you opt for a tenure of 15 years and above, you may end up paying the home loan at an interest rate of 13%.

Purpose of CUB Swayam Gruha Scheme

  • Purchase of a ready built property or a flat under construction
  • Loan available for repair, renovation or modification of existing property
  • Can be availed for purchase of land for house construction

Eligibility for CUB Swayam Gruha Scheme

Any resident individual is welcome to apply for this loan. The individual should have a steady source of income viz. salaried individuals, self-employed professionals or non-professionals, business owners and farmers are eligible to apply for this loan.

  • Minimum of 2 years of work experience for salaried individuals and minimum of 2 years of business continuity for self-employed
  • Minimum age to apply is 21 years and the maximum age is 60 years (at the time of loan completion)

Loan amount & Tenure

City Union Bank offers a maximum loan amount of Rs. 25 lakhs. Borrowers can apply for up to 75% of the property purchase price as loan amount.

The maximum repayment tenure is 15 years for salaried individuals and 10 years for business owners/self-employed individuals.

Processing charges

A processing fee of 1% of the loan amount, subject to a minimum of Rs.700 shall be charged.

Documentation

KYC Documents: ID Proof, Address Proof, PAN Card and Aadhaar card

Income proof for salaried individual: Latest payslips of 3 months, latest 6 months salary account statement and the latest Form 16.

Income proof for self-employed: Latest 2 years ITR form, latest audited financial statement & 6 months company’s current account statement

City Union Bank Home Loan EMI Calculator

City Union Bank has an exclusive EMI calculator for home loans. This calculator helps you in determining the monthly EMI you will be required to shell out for the loan amount and the corresponding rate of interest. This tool is handy to determine whether you will have a comfortable loan repayment for the given loan amount and the rate of interest. You can also enter varying amounts and note down the corresponding EMIs to decide on the final loan amount you can afford to repay comfortably.

Ease of access

You can apply for a City Union Bank home loan through various channels.

  • Visit their website and click on the ‘Apply Now’ button to register your interest in a home loan. A bank representative will get in touch with you to assist you with the loan application
  • Approach the nearest bank branch to meet their representative and initiate the loan process
  • Register your interest through the CUB Mobile Banking Plus app
  • E-mail or call their customer care to request for doorstep assistance

FAQs

1. Who can apply for a City Union Bank home loan?

Any resident individual, salaried or self-employed, can apply for the City Union Bank home loan. This loan can be applied for the following purposes:

  • Purchase of a ready built property or land for house construction
  • Loan available for repair, renovation or modification of existing property
  • Can be availed for purchase of a flat under construction

2. What is the maximum loan amount offered by City Union Bank?

CUB Swayam Gruha home loan offers a maximum loan amount of Rs.25 lakhs.

3. Are there any processing fees for the home loan?

Yes, a processing fee of 1% of the loan amount subject to a minimum of Rs.700.

4. Is the interest on home loan floating rate or fixed rate?

City Union Bank offers both floater rates and fixed rates. They are based on the MCLR rate and are bound to change periodically.

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