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Union Bank of India Home Loan Interest Rate

Getting a home of your own might be your ultimate goal in life. And that’s not easy to achieve because not everybody has a lot of money lying around. It takes your blood and sweat to earn that money and it takes a long time to get there. There are banks and financial institutions that provide home loans to help you get your dream home. Union Bank of India provides home loans where you can apply for online. As long as you fit the criteria of getting a home loan, you are just one step away from getting that house you always wanted.

While taking any kind of loan, the bank will have an interest rate according to the loan you are going to borrow. Interest rates are charged as you are acquiring money from a particular entity and for that you will be charged a particular percentage of the loan. For home loans that are borrowed from Union Bank of India, the interest rate starts from 8.80%.

Union Bank of India Home Loan Details

  • Interest rates that are charged for home loans, range from 8.80% to 12.65%
  • Processing fee of up to 0.5% is to be paid from the loan amount that you’re borrowing from. A maximum of Rs. 15,000 is charged.
  • Maximum tenure for home loans is 30 years. In case of repairs on the house, the tenure is 10 years.
  • Lowest EMI that is being charged per lakh is Rs. 790.
  • The applicant should be at least 21 years of age while availing for a home loan and maximum of 60 years of age if he or she is a salaried employee. But if the individual is self-employed individual, he or she can apply for a loan till they reach an age of 65.
  • Union Bank of India housing loan interests depend on the loan amount, salary of the applicant and the type of loan opted for.
  • The quantum of the loan depends on the repaying capacity of the borrower and the value of the property.
  • For repairs, the quantum of the loan is Rs. 30 lakhs.
  • Moratorium period of up to 30 years.

Union Bank of India Home Loan Eligibility

People would want to get a home loan for different purposes:

  • Purchasing or constructing a house or a flat
  • Purchasing a plot and constructing a house thereafter.
  • Repairing, improving or extending residential property that already exists.
  • Takeover of housing loans that was borrowed from another bank initially.

Eligibility

  • Indian citizens that are above the age of 21 are applicable for a home loan from Union Bank of India.
  • Applicants either singly or jointly with family members can apply.
  • Siblings can be permitted as co-applicants on some terms and conditions.
  • Non-Indian Residents are applicable for a home loan. For further information you can contact the nearest Union Bank of India branch.

Union Bank of India Home Loan Interest Rate and Other Charges

  • Interest rates range between 8.80% to 12.65% in Union Bank of India.
  • The rate will vary depending on the loan that was taken up and also depends on the applicant’s occupation and income.
  • Loan AmountHome Loan Interest Rates
    Up to Rs. 30 lakhs8.80%
    Above Rs. 30 lakhs to Rs. 75 lakhs8.80%
    Above Rs.75 lakhs to Rs. 1 crore8.85%
    Above Rs. 1 crore8.85%
  • A takeover penalty of 2% is charged on the average outstanding balance of the preceding 12 months if the applicant opts to switch over to any other bank.
  • Processing fee of up to 0.5% is to be paid from the loan amount that you’re borrowing from. A maximum of Rs. 15,000 is charged.

Loan margin

Category of loanLoan Margin
Up to Rs. 75 lakhs20%
Above Rs. 75 lakhs to Rs. 2 crores25%
Above Rs. 2 crores35%
Total cost of repairs20%

Documents Needed to Avail Home Loan at Union Bank of India

  • The loan application form should be filled up.
  • 3 passport size photos of the applicant will be needed
  • Any proof of identity of the applicant like PAN Card, Employee identity card, passport, voter ID card or driving license.
  • Property papers like allotment letter, title deed and advance money receipt.
  • Any proof of residence like an electricity bill, telephone bill, Aadhar or voter ID card.
  • Proof of age of the applicant such as passport, birth certificate, PAN Card.
  • Last six months of bank statements would also be needed.
  • For salaried individuals the previous three years income tax returns along with income computations and the most recent pay slip.
  • For self-employed individuals previous two years tax returns and recent income computation will be needed.
  • Additional documents required if the applicant is an NRI.
  • And other documents that are requested by the Union Bank of India.

FAQs: Union Bank of India Home Loan

1. Can there be co-applicants for the home loan?

Yes, family members are allowed to become co- applicants of a home loan provided by Union Bank of India. The following members of the family will be able to become co- applicants:

  • Mother
  • Father
  • Spouse
  • Son
  • Siblings, with some term and conditions

The income of the co – applicants will be taken into account for the purpose of calculating eligible loan amount.

2. What are the loan tenure options that we should know of?

The repayment time period is maximum of 30 years. In case of repairs of the house, it is 10 years.

3. How long will it take for my home loan to get approved?

If you are deemed eligible for a home loan, the loan will be sanctioned after about 5 days from the day after you have submitted all the necessary documents.

4. What are the processing charges?

The processing charges are 0.5% of the loan amount where the maximum amount that is charged is Rs. 15,000.

5. What is the range of interest rates that are applied to home loans?

Interest rates on Union Bank of India ranges between 8.80% to 12.65%.

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