Union Bank of India offers Loan Against Property (LAP) starting from 10.45% p.a. for repayment tenures of up to 15 years. Additionally, the bank provides a secured overdraft facility against property to meet liquidity needs. Moreover, existing LAP borrowers from other lenders can transfer their LAP to Union Bank of India at reduced interest rates.
Union Bank of India Loan Against Property Highlights
Interest Rate
10.45% - 13.10% p.a.
Processing Charges
Up to 1% of the loan amount
Loan Amount
Up to Rs 10 crore
Repayment tenure
Up to 15 years
Union Bank of India Loan Against Property Interest Rates
For Non-Residential property but Self-occupied commercial/industrial; Excluding open Plots
CIC Score
Interest Rates (p.a.)
Below 700
12.85%
700 to 749 -1 & 1 to 5
11.95%
750 to 799
11.15%
800 & above
10.95%
For Non-Residential property which is not self-occupied like Hospital Leased to third Parties, Multi-tenanted Commercial Building-; Excluding Open plots.
CIC Score
Interest Rates (p.a.)
Below 700
13.10%
700 to 749 -1 & 1 to 5
12.20%
750 to 799
11.60%
800 & above
11.40%
For Residential Property (Self-occupied/Tenanted) – Excluding open plots
CIC Score
Interest Rates (p.a.)
Below 700
12.35%
700 to 749 -1 & 1 to 5
11.55%
750 to 799
10.75%
800 & above
10.55%
Features of Union Bank of India Loan Against Property:
Purpose: The loan aims to provide finance to individuals with various financial goals and requirements, accepting both residential and commercial properties as collateral.
Prepayment Charges: Charges apply for prepayment of the outstanding loan amount after six months from the loan disbursement.
Processing Fee: A processing fee of 0.50% of the loan amount is levied, with all charges communicated upfront.
Loan Amount: Borrowers can secure up to Rs. 10 crores at attractive interest rates.
Repayment Options: Customers have the flexibility to choose low EMIs and longer tenures or opt for an overdraft facility.
Loan Processing: Transparent fees are communicated upfront, ensuring no hidden charges during loan processing.
Customised Loan: Self-employed professionals can customize their loans based on their specific needs, facilitating easier repayment and business management.
Overdraft Facility: Borrowers can access an overdraft facility against their property, allowing them to utilize the loan amount up to an approved limit and pay interest only on the amount used.
Types of Union Bank of India Loan Against Property
Union Mortgage Loan
Purpose: Union Bank of India's Loan Against Property is designed for borrowers aged 18 to 75 years to fulfill various personal needs such as higher education expenses, wedding costs, medical emergencies, business travel, or unexpected financial obligations.
Loan Amount:
Minimum: Rs 5 lakhs
Maximum for resident Indians: Rs 10 crore
Maximum for non-resident Indians: Rs 5 crore
Loan-to-Value (LTV) Ratio: The loan amount can be up to 50% of the property value.
Union Mortgage (Overdraft facility)
Union Bank of India offers a Mortgage Overdraft facility with the following features:
Repayment:
The account needs to be adjusted 5 years prior to the remaining property life.
The sanctioned limit decreases each month so that the total principal is repaid by the end of the loan tenure.
Interest is debited monthly based on the actual usage of the limit and must be serviced monthly.
Tenure:
For Overdraft: The maximum tenure is 15 years.
For Term Loan: The maximum tenure is the lowest among 15 years, the residual period until the borrower reaches the age of 75 years, or 5 years prior to the residual life of the property.
Security:
All property co-owners must jointly apply as co-applicants.
Open plots or land are not acceptable as collateral.
Residential or Commercial property in the name of the borrower(s) is accepted.
The property should be located in metro, urban, or semi-urban areas within municipal limits.
Union Bank of India Loan Against Property Fees & Charges
For Union Mortgage Loan
Processing Fees:
Particulars
Charges
Union Mortgage (secured overdraft)
The processing fee for a Union Bank of India Loan Against Property is 0.25% of the loan amount, with no minimum charges, and a maximum fee of Rs 1 lakh. However, for staff members, there are no processing fees.
Term Loan
For Union Bank of India Loan Against Property, the processing fee is 1% of the loan amount, with a minimum of Rs 5000 and a maximum of Rs 1 lakh. However, for staff members, the processing fee is reduced to 0.25% of the loan amount.
Eligibility Criteria For Union Bank of India LAP
Union Bank of India offers Loan Against Property to:
Indian citizens, including both residents and non-residents.
Applicants should have a steady source of income.
The property offered as collateral must be non-agricultural, including residential, commercial, or industrial properties.
The minimum age requirement is 18 years, and the maximum age limit is 75 years.
Individuals can apply individually or jointly with other eligible co-applicants.
Documents Required for Union Bank of India Loan Against Property
Documents required for applying for a Loan Against Property include:
Application form and Credit Information
Last 6 months' bank statements
Income proof for Salaried: ITR/Form 16 of the last 2 years, latest 3 months salary slips, and proof of any other income (if not mentioned in ITRs/Form 16)
Income proof for other than Salaried: ITR of the last 2 years and proof of other income (if not mentioned in ITRs/Form 16)
Property documents: Agreement to sell/Allotment letter, Original Sale Deed/Title deed/advance payment receipts or own contribution receipts, Copy of approved plan by the local body, NOC from Developer/Builder/Society, Statutory and regulatory approval as per state laws, and the estimated cost of construction/extension/repairs/renovations.
Additional documents required in case of Take-over from other Bank/Financial Institution:
Sanction letter
Last 12 months’ statement of account
Confidential credit report required from existing bank
Additional documents in case applicant/co-applicant are NRIs:
Passport copy
Employment contract/offer letter
Latest work permit
Local address proof, if any
Visa stamped on the passport
Identity card issued by current employer
The document attested by the respective Indian Embassy in case NRI borrowers execute the power of attorney (POA) abroad
Banks may also request additional documents for Loan Against Property based on the credit profiles of the applicants.