Union Bank of India provides home loans for up to 90% of the property value with repayment periods of up to 30 years. Interest rates for Union Bank Home Loans start at 8.35% per annum, and they vary based on factors like credit score, loan amount, occupation, and Loan-to-Value (LTV) ratio. The bank also offers a home loan overdraft facility to new applicants and allows existing borrowers from other banks to transfer their home loans to Union Bank at lower interest rates. Additionally, Union Bank offers a special home loan scheme called Union Awas for applicants in semi-urban and rural areas.
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Union Bank of India (UBI) Home Loan Interest Rate
Union Bank of India offers Housing Loan interest rates starting from 8.35% per annum onwards. The bank determines these rates based on various factors including credit score, loan amount, Loan-to-Value (LTV) ratio, occupation profile, gender of loan applicants, and the type of loan offered to home loan applicants.
Types of Union Bank of India Home Loan
Union Home Loan
Purpose: Union Bank of India provides home loans for various needs like buying a new or old home, building a house or flat, buying a plot and constructing a house on it, renovating existing properties, adding extensions to homes, and finishing under-construction residential units. They also allow existing borrowers from other banks or housing finance companies to transfer their home loans to Union Bank at lower interest rates.
Loan Amount:
- As per the repayment capacity of the borrower
- For repair/renovation: Up to Rs 30 lakh
Tenure:
- For purchase/construction: Up to 30 years
- For repair/renovation: Up to 15 years
LTV Ratio:
- Loan Amount up to Rs 30 lakh - Up to 90% of total purchase cost
- Loan Amount Above Rs 30 lakh - Up to 80% of total purchase cost
- Repair/renovation - Up to 80% of total cost
Union Home-Smart Save
Purpose: Union Smart Save is a home loan overdraft facility offered by Union Bank of India. With this facility, applicants can deposit any surplus amount into a linked overdraft account and withdraw funds from it as needed. The balance in this account is then subtracted from the outstanding home loan amount, reducing the borrower's interest cost.
Union Ashiyana Personal Loan Scheme
Purpose: The Union Ashiyana Personal Loan scheme is a top-up facility offered to both existing and new home loan borrowers of Union Bank. This facility allows borrowers to access additional funds to meet their personal expenses.
Loan Amount: Up to Rs 15 lakh
Tenure: Up to 7 years
Union Ashiyana Overdraft Scheme
Purpose: Both existing and new home loan borrowers from Union Bank of India have the option to utilize a Home Loan overdraft facility. This allows them to access funds for personal or business requirements, as well as for repaying high-cost loans.
Loan Amount: Up to Rs 20 lakh
Tenure:
- The retirement age for salaried applicants is up to their retirement age, while for non-salaried applicants, it's up to 65 years.
- The overdraft account must be closed simultaneously with the closure of the home loan account.
Union Awas
Purpose: People living in rural or semi-urban areas can benefit from Union Awas, a special home loan scheme offered by Union Bank of India. This scheme helps them buy or build homes, as well as make repairs, improvements, or extensions to existing dwellings.
Loan Amount:
- For construction/purchase: Up to Rs 10 lakh for semi-urban areas and up to Rs 7 lakh for rural areas.
- For repair/improvement: Up to Rs 5 lakh for both semi-urban and rural areas.
Tenure:
- For purchase/construction: Up to 30 years
- For repair/renovation: Up to 15 years
LTV Ratio:
- For purchase and construction - Up to 90% of total purchase cost
- For repair and improvement - Up to 80% of total purchase cost
Union Loan for Plot Purchase
Purpose: Union Bank of India provides a Plot Purchase Loan designed for acquiring residential plots or sites. This loan covers purchases from various entities including State Development or Town Planning Authorities, other government bodies, central or state government statutory authorities, local authorities, and private entities with approval from state government authorities. Consumers can purchase residential land directly from government development authorities such as LDA, HUDA, DDA, JDA, etc., either directly from the authorities or through a second sale.
Loan Amount:
- Minimum Loan Amount- Rs 50 lakh (Tier-I cities/Urban/Metro/State Capital)
- Maximum Loan Amount- Rs 5 crore (Tier-I cities/Urban) and Rs 10 crore (Metro/State Capital)
LTV Ratio:
- Up to Rs 75 lakh- Up to 80%
- Above Rs 75 lakh- Up to 75%
Tenure:
- For borrowers who do not take a home loan for construction purposes from Union Bank of India: Up to 10 years or until the borrower reaches 70 years of age, whichever comes first.
- For borrowers who take a home loan for construction purposes from Union Bank of India: Up to 30 years or until the borrower reaches 70 years of age, whichever comes first.
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Union Bank of India Home Loan Processing Fees & Charges
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Eligibility Criteria for Union Bank Home Loan
Age
- Minimum Age: 21 years
- Maximum Age: 70 years
Residency Status
- Resident Indian
- Non-Resident Indian (NRI)
Type of Employment
- Salaried
- Self-employed
- Agriculturist
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Documents Required for Union Bank of India Home Loan
To apply for a home loan with Union Bank of India, you'll need to provide the following documents:
- Duly filled application form and credit information.
- KYC documents: ID proof, address proof, and 2 passport-size photographs.
- For Salaried individuals:
- Last 2 years ITR/Form 16.
- Latest 3 salary slips.
- Proof of any other income.
- For self-employed or other than salaried individuals:
- Last 3 years ITR.
- Proof of any other income.
- Bank statement for the last 6 months.
Property Documents:
- NOC (No Objection Certificate) from the developer, builder, or society.
- Estimate cost of construction, extension, repair, or renovation.
- Copy of the approved plan by the local body.
- Advance payment receipt or own contribution receipt.
- Allotment letter or Sale agreement.
- Copy of property ownership document: Original sale deed, Title deed, Share certificate issued by the society, and other linked parent documents conveying t he relationship.
In case of takeover of loans from other financial institution:
- Sanction letter from the current lender.
- List of documents on the letterhead of the financial institution.
- Last 12 months account statement from your existing loan account.
- Authority letter from the bank or financial institution authorizing Union Bank to directly handle over the security documents.
If the applicant is an NRI, additional documents required include:
- Local address proof.
- VISA stamp on passport.
- Passport copy.
- Latest work permit.
- ID card issued by the current employer.
- Offer letter or employment contract.
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