Union Bank - 7.35% for Home Loan - Takeover Loan

Union Bank of India is a large public sector bank with the lowest home loan percentage rate in India.

Currently, the bank offers home loans starting from  7.35% – 10.95% p.a.*  with quick approval and an easy process.

Home loan in the Union Bank of India is quite popular with their special features and attractive rates under the various Union Bank home loan schemes for different income and occupation groups.

 

Interest Rate (floating)

 7.35% – 10.95% p.a.*

Loan Amount

 As per the borrower’s eligibility and caps put on LTV ratio

Loan Tenure

 Up to 30 years 

Processing Charges

As per the borrower’s eligibility and caps put on the LTV ratio

 

The bank also offers a full waiver of a prepayment penalty on floating-rate loans

 

Some of the key features of the Union Bank of India housing loan are:

Union Bank of India Home Loan Interest Rate starts from 7.35% – 10.95% p.a.

Union Bank of India charges processing fees of Rs. As per the borrower’s eligibility and caps put on the LTV ratio

Loan Tenure Home Loan ranges from 5 years to 30 years.

The lowest EMI per lakh on a home Loan from Union Bank of India is per lakh offered at the lowest interest rate of 8.85% at the longest loan tenure of 30 years.

Union Bank of India allows prepayment of home loans with nil charges on floating rate loans.

 

Purpose:

Purchase of new/old residential unit (house/ flat/villa/apartment etc.)

Construction of residential unit on exiting nonagriculture plot.

Purchase of non-agricultural plot and construction of residential unit (composite project) thereon**

Repairs/ improvements/ extension of the existing residential property.

Take-over of housing loan availed from another bank / FI

Completion of the under-construction residential unit.

Purchase of solar power panel along with purchase/construction of the house.

 

Eligibility:

Indian citizens and NRIs

The minimum entry age is 18 years and the maximum exit age is up to 75 years.

Individuals may apply singly or jointly with other eligible individuals.

 

For Salaried employees: Union Bank Home Loan Documents:

1. Fill up the loan application form.

2. Two Passport Size Photo

3. ITR of last 2 years

4. Identity Proof - Passport/ Driving License/ Voter ID/ PAN

5. Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (up to 3 months old), Passport

6. Income Documents – 6 months’ pay slip, 2 years Form 16, 6 months' bank statement showing salary credit, and any EMI debit

7. Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

 

For Self-Employed:

1. Fill up the loan application form.

2. Two passport-size photos.

3. Identity Proof - Passport/ Driving License/ Voter ID/ PAN.

4. Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (up to 3 months old), Passport

5. Business proof such as VAT/ service tax registration, incorporation details in case of companies, business address proof, profit and loss account and balance sheets certified by CA, copy of partnership deed and proof of business existence and business profile

6. Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension.

 

Union Bank of India Home Loan Procedure:

Apply:

Apply for an ICICI Bank Home Loan easily on ApnaRupee.com – a channel partner for India’s top banks.
Our loan experts assist you throughout the process – from documentation to disbursal.
You can also compare Union Bank of India rates with other banks before choosing the best deal for your home loan needs.

 

Union Bank of India Home Loan Schemes:

Union Home:

Available for a single and joint application, even with siblings

Several convenient ways to make repayments

Also available for NRIs to purchase property in India

Customized for individuals with a minimum income of Rs.48, 000 per year

Interest Rate Union Home / Awas

For Loan Amount Up to Rs 30 Lakh

 

Union Awas:

Especially for the purchase or construction of houses with a maximum loan amount of up to Rs.10 lakh for semi-urban areas and up to Rs.7 lakh for rural areas. Of cost of Rs.7 lakh.

Can be availed for purchase/construction of a house, repairs/improvements/extension of an existing property.

 

Eligibility criteria you will have to fulfill to avail of the Union Awas home loan scheme:

You must be a resident of India.

The minimum age of eligibility is 21 years.

You must draw an income of Rs.48, 000 p.a.

Your co-applicant can be your parents, spouse, or children who are drawing a regular income.

If you hold a property where your brother or sister is a joint owner, then he/she can be a co-applicant.

 

Quantum of Loan:

If you are looking to avail of a loan for the construction of your home or purchasing a new home, then the maximum quantum of loan is Rs.7 lakh if you reside in a semi-urban area and Rs.5 lakh for a rural area.

If you are looking to repair your house, then the maximum quantum of loan is Rs.3 lakh if you reside in a semi-urban area and Rs.2 lakh for rural areas.

 

Repayment tenure:

Repayment tenure of up to 30 years

Repayment tenure of up to 10 years in case you have availed of this home loan scheme for the repairing of your house.

Flexible methods of repaying the loan amount.

 

Documents required to be submitted Union Awas home loan scheme:

Identity proof such as your passport, Aadhaar Card, PAN Card, employee identity card, etc.

Address proof such as your utility bills, ration card, passport, Aadhaar Card

PAN Card

Bank statement for the last year

Proof of income:

 

For salaried individuals:

Monthly salary slips for the last 6 months.

Form 16 or the letter from the employer.

Income Tax Returns for the last year.

 

For self-employed individuals:

Profit and Loss balance sheet.

Income Tax Returns for the last three years.

For agriculturists.

Certificate of income from the Tehsildar or revenue officer.

Proof of land holding.

Property papers such as title deeds, allotment letters, advance money receipts, etc.

3 photographs.

Proof of outgoes such as loan repayment statement, LIC policies, valid proof of any other outgo, etc.

Documents are required as per the application form.

 

Union Smart Save:

Allows borrowers to deposit additional funds with the regular EMIs

Savings on interest payments in case of additional deposits

Opportunity to withdraw the excess funds later for personal requirements

 

Union Smart Save Interest Rate:

The final interest rate that you are offered on the Union Smart Save Loan is based on your loan amount and you’re CIBIL Score.

Union Bank offers floating interest rates on this loan pegged to the Reserve Bank of India’s repo rate.

Here are the interest rates charged on this home loan product:

 

Features and Benefits of Union Smart Save Interest Rate Scheme:

You can apply for this loan for:

Purchase or construction of a flat or a house,

Purchase of a plot and subsequent construction,

For repairs and renovations, and Refinancing.

The loan amount offered will depend on your repayment capacity and the property value. The maximum financing is 80%.

The maximum financing offered for repairs is Rs.30 lakh.

The repayment period for this loan is up to 30 years, however, in case of repairs, the repayment period offered is up to 10 years.

The loan comes with a moratorium period of up to 36 months.

 

Eligibility Criteria of Union Smart Save Interest Rate Scheme:

Nationality – Indian residents and NRIs (Non-Resident Indians).

Minimum age – Above 21 years.

Single and joint applications are allowed.

Co-applicants can be family members such as spouses, parents, siblings, or children having a regular source of income.

Security – Equitable mortgage of the property to be provided.

Guarantee – Resident Indians do not require a third-party guarantee. NRIs need to produce 1 or 2 guarantors with repayment capability to pay the loan amount.

Property must be insured for the entire value of the loan amount.

 

Union Bank of India Pradhan Mantri Awas Yojana:

Union Bank of India provides central assistance to the urban poor including slum dwellers to buy a house under the Pradhan Mantri Awas Yojana:

Purchase/construct a new residential house

Purchase of plot and construction of a residential house

Extend/renovate an existing property

 

To be eligible for benefits under PMAY, the applicant must be a resident Indian citizen of at least 21 years of age and belong to one of the following categories:

Economically Weaker Section (EWS)

Low-Income Group (LIG)

Middle Income Group – I (MIG – I)

Middle Income Group – II (MIG – II)

Furthermore, the beneficiary or any of the beneficiary’s family should not own a pucca house under their name in any part of the country.

Housing loans availed under the PMAY scheme are eligible for an interest subsidy of up to 8.85% depending on the category the beneficiary belongs to.

Union Bank of India also offers a moratorium period of up to 36 months. However, the moratorium period does not apply to loans availed for the purchase of a completed house/flat.

 

Frequently Asked Questions:

Q. Who can be a co-applicant for my housing loan?

Ans. Any immediate family member – your parents, spouse, earning children, or siblings – is permitted to be a co-applicant for a loan.

Adding a co-applicant will increase your loan eligibility as the income of the co-applicants will also be considered while determining the eligible loan amount.

 

Q.What is the moratorium period?

Ans. The moratorium period is defined as the period during the tenure when you will not be required to make any kind of repayment towards your loan.

You will have to make repayments in the form of EMIs only after the completion of the moratorium period. It is also known as a repayment holiday.

 

What is an amortization schedule?

Ans. An amortization schedule is a table that depicts the repayments to be made during the loan tenure.

The table also illustrates the contribution of your EMI towards the interest and principal components of the loan.

 

What are the documents required for a home loan from Union Bank?

Ans. To apply for Union Bank of India Home Loan, you will be required to submit Union Bank home loan documents such as a home application form with attested photographs along with various other documents such as identity proof, bank statements, residence proof, property papers, and loan account statements if any.

 

Which is the best Union Bank home loan scheme?

Ans. Choosing the best Union Bank home loan scheme is subjective to the requirements of the home loan applicant. For instance, there are different home loan offers for the purchase, construction, or renovation of a home. Therefore, choosing the best Union Bank home loan scheme is based on one’s needs.

 

Q. Is Union Bank good for a home loan?

Ans. Union Bank is one of the best home loan lenders in the country.

Currently, Union Bank's home loan interest rate in 2021 starts at 6.80%.

 

Q. What is the benchmark applicable for a housing loan?

The benchmark applicable for Home Loans in Union Bank of India is RLLR.

RLLR is an external benchmark wherein commercial banks use the RBI’s repo rate to calculate the retail loan interest rate.

In RLLR, the reset period is 3 months which implies that banks would revise your interest rate of RLLR-linked loans every 3 months.