To repay an existing home loan from Union Bank of India, here are some of the repayment options offered by the bank:
- Borrowers can use Equated Monthly Instalments (EMI) for loan repayment
- For borrowers who are engaged in agriculture or allied activities, the bank offers Equated Quarterly Instalment (EQI) in place of EMI.
When it comes to EMIs, borrowers can choose different repayment options like:
- The bank also has step-up repayment, under which the EMI is calculated at a value lower than the regular EMI for initial loan tenure. The EMIs are higher than normal EMI through the remaining loan tenure.
- Under the balloon repayment option, the bank allows lower than normal EMI during the initial repayment tenure. This is followed by lump sum repayment at end of repayment tenure.
- Borrowers can use a Flexible Loan Instalment Plan (FLIP) under which they can repay some portion of the loan as a lump-sum amount midway into the loan tenure. Post this, the EMI for the remaining tenure is set at a lower value than the normal EMI.
- In bullet repayment, borrowers have to deposit a lump sum payment during the repayment tenure and the bank then allows downward revision in EMIs applicable for remaining tenure.
Key Points to Know about Home Loan Repayment at Union Bank of India
- Union Bank of India home loan repayment period is maximum up to 30 years in case of loan taken for land purchase or home construction.
- The home loan repayment period is set at 15 years in case of loan taken for repair & renovation.
You can choose any one of the repayment options mentioned above depending on one’s financial situation. Borrowers can also consider extending the loan tenure if they find it impossible to make faster repayment. The bank allows borrowers to choose to prepay in case they have sufficient disposable income. A home loan borrower can reach out to the bank if they would like to either prepay or delay home loan repayment at any time.