Union Bank of India Home Loan

Buying a home is a major milestone, and Union Bank of India makes it easier with its range of home loan products. With straightforward application processes and customised plans, you can secure funding that fits your budget and timeline.

The bank also offers attractive interest rates and special schemes to reduce your financial burden. Dedicated customer support ensures a smooth and hassle-free loan experience from application to repayment

You can apply for a Union Bank of India home loan to finance your dream home with ease. The loan offers high borrowing limits, flexible repayment tenures, and competitive interest rates. Here is an overview:

Disclaimer: The details mentioned are subject to constant change at the lender’s discretion.

Here is a table showcasing the Union Bank of India home loan interest rates for salaried and self-employed individuals:

Union Bank of India home loan interest rates for salaried employees and self-employed individuals:

Salaried Professionals

Self-Employed Individuals

Here is a table to describe the comparison between Union Bank of India home loan and other banks and HFCs:

Disclaimer: The details mentioned are subject to constant change at the lender’s discretion.

Given below is a comprehensive list of the Union Bank of India home loan eligibility criteria you must fulfil to be eligible for this loan:

• Nationality: You need to be an Indian citizen

• Type of Employment: You need to be salaried or self-employed

• Age: Your age needs to be between 18 and 75 years

• Application Options: You can apply alone or together with other eligible applicants

• CIBIL Score: Your CIBIL score needs to be 750 or higher for a home loan

The Union Bank of India will also check whether you have a stable source of income when determining your eligibility for the loan. Get a complete understanding of the criteria set by the lender before applying for the loan to avoid delays and rejection.

It is crucial to be aware of the documents required for a Union Bank of India home loan. Provided below are some documents you may be asked to furnish:

• Identity Proof: PAN card, Voter ID, Passport, Aadhaar, or other valid ID documents

• Address Proof: Driving license, Passport, Aadhaar, or any accepted address document

• Photographs: Two recent passport-size photos of the applicant and co-applicant/guarantor (if any)

• Income Proof (Salaried): Last 2 years’ ITR or Form 16, latest 3 salary slips, and proof of other income if not shown in ITR/Form 16

• Income Proof (Non-Salaried): Last 3 years’ ITR and proof of other income if not reflected in ITR/Form 16

• Bank Statements: Statements for the last 6 months

• Property Documents: Documents related to the proposed property such as flat, house, or plot papers

Know how to apply for a Union Bank of India home loan online: 

• Step 1: Navigate to the Union Bank of India website, then go to Personal > Loans > Retail Loan > Home Loan

• Step 2: On the home loan page, select your applicant type from the "Choose your ideal option" dropdown

• Step 3: Choose your desired product type from the "Choose your Product type" dropdown

• Step 4: Further refine your search by selecting an option from the "Choose your category Filter option" dropdown, if available

• Step 5: Complete the subsequent form with your personal details (name, mobile, email, etc.)

• Step 6: In the same form, select the product, enter your pincode, provide a description, solve the Captcha, agree to the terms, and click "Submit"

Here are the interest rates of home loans offered by the Union Bank of India:

Here are some of the benefits Union Bank of India housing loan provides to its customers:

• Loan Amount

Borrow amounts as high as ₹10 Crores to purchase the property

• Flexible Repayment Tenure

Repay the loan at your pace with repayment tenures ranging up to 30 years

• Attractive Interest Rates

Benefit from interest rates starting as low as 8.50% p.a.

• High LTV Ratio

Get a loan of up to 75%-90% of the property value with this loan

• Multi-purpose Loans

Utilise the loan amount to buy, construct, extend, repair or renovate a home

There are several Union Bank of India home loan schemes provided for the customers: 

• Union Green Home Loan

You can use the loan for a range of eco-friendly housing options. It covers the purchase or construction of a residential house or flat certified as a green building. You can also buy a completed residential property, either through sub-sale or directly from a developer, as long as it carries a green building certification. 

The loan is applicable for buying an under-construction or ready-built house, flat, or villa from builders, developers, societies, other agencies, or development authorities in certified green housing projects. 

Additionally, it allows you to transfer an existing housing loan from another bank or financial institution, provided it is for a certified green housing project. The proposed residential unit must hold all necessary statutory approvals and NOCs from the relevant departments.

• Union Home Loan

You can use a home loan for various purposes. It covers the purchase of a new or resale residential unit, such as a house, flat, villa, or apartment. The loan also supports the construction of a residential unit on an existing non-agricultural plot. 

For composite projects, it finances the purchase of a non-agricultural plot and the construction of a home on it. You can fund repairs, improvements, or extensions to your current residential property. It allows you to take over a housing loan availed from another bank or financial institution. 

The loan can help you complete an under-construction residential unit. Additionally, it supports the purchase of a solar power panel along with the purchase or construction of your home.

• Union Awas

Union Bank of India offers a Special Home Loan Scheme designed to help you purchase or construct a house in semi-urban or rural areas. You can also use this scheme to repair, improve, or extend your existing residential property in these locations. 

Whether you are planning to build your dream home from the ground up or enhance your current living space, this scheme provides the financial support you need to bring your plans to life.

• Economically Weaker Section (EWS), Low Income Group (LIG), and Middle-Income Group (MIG): Urban Area

You can use a Union Bank of India home loan for a wide range of needs related to your home. It helps you purchase a new or existing residential house or flat. You can also finance the construction of a brand-new residential property. 

If you plan to extend your existing home, the loan supports that as well. Additionally, it covers expenses for repairs and renovations, helping you maintain or upgrade your property with ease.

• Builder Tie-ups (Approved projects)

Union Bank of India has partnered with builders and approved housing projects across various locations. You can now choose properties from these approved projects and enjoy a hassle-free home loan experience. Opting for a home loan under these builder tie-ups offers several advantages. 

You benefit from quick processing and faster loan sanction, helping you move ahead with your property purchase without delays. The legal charge burden is reduced, easing the overall cost of buying a home. 

Moreover, there is no requirement for interim security, making the entire process simpler and more convenient for you.

• Pradhan Mantri Awas Yojana (PMAY)

This scheme supports your dream of owning a home, and you can access it easily through Union Bank of India. Use this scheme to purchase a new or old residential unit, construct a residential property, or buy land and build your home on it. 

With the support of Union Bank of India, PMAY offers a flexible path to make affordable homeownership a reality for you.

• Union Smart Save

The Union Smart Save housing loan gives you flexible repayment options under Union Home’s terms. You will pay regular EMIs or EQIs monthly or quarterly, while any extra payments above the schedule reduce your loan balance and interest burden. 

Unlike typical loans, this surplus amount is available for you to withdraw when needed. Only the amount exceeding your scheduled repayments can be withdrawn. Your loan balance will drop when you pay extra but will increase if you withdraw these funds, all while keeping EMIs on schedule. 

You cannot reduce your loan outstanding below 10% of the scheduled amount. When you want to close the loan, you need to repay the full outstanding amount including interest. This option helps you save on interest while giving you flexibility with your payments.

Your home loan interest rates are greatly influenced by the following factors, including:

• Credit Score

A credit score (750 or more from CIBIL and other bureaus) represents your credit history and indicates responsible financial behaviour, which makes house loans more favourable. Lenders and financial organisations use credit scores to set interest rates on house loans. Individuals with higher scores frequently receive reduced rates.

• Housing Loan

Interest rates vary depending on the kind of house loan. Standard interest rates apply to regular house loans, whereas they may be higher for any specialised loan.

• Your Employment and Income

Lenders consider your income, occupation type, and employer profile when determining your eligibility for a house loan. Individuals working for the government, PSUs, or reputable private sector companies receive preference due to the security of their jobs and income, which results in lower house loan interest rates. 

Inconsistent or inadequate income leads to higher interest rates or reduced loan eligibility.

• Type of Interest Rate

Repayment is impacted by the type of interest rate (fixed or variable). The EMI for a floating-rate loan varies based on factors such as the repo rate, whereas the EMI for a fixed-rate loan remains consistent throughout the tenure. 

As fixed-rate home loans carry a larger risk, they frequently have higher interest rates.

• Amount of Loan

The required loan amount influences house loan interest rates. A large down payment reduces the interest burden and results in a lower interest rate. Loans up to Rs. 30 Lakhs generally offer cheaper rates.

• Rates of MCLR

The marginal cost of funds-based lending rates, or MCLR, represent the lowest interest rates banks can charge for a loan. These rates are subject to change based on factors such as tenure premium, CRR, and operational costs. 

Banks usually conduct an annual assessment on a specified reset date to review and adjust the current home loan interest rate.

• Women's Interest Rate Concession

Female borrowers can receive a 0.05% reduction in interest rates from certain lenders. Couples can enhance their loan eligibility and benefit from tax advantages by applying for a joint home loan with the spouse as the principal applicant.

• Location of the Property

The location of your property significantly impacts your home loan interest rate. Homes in desirable areas with adequate facilities generally attract lower interest rates. Properties in less sought-after neighbourhoods may incur higher rates. 

Lenders prefer homes with high resale values, which influences the mortgage rates they offer.

Here are some helpful tips to get a Union Bank of India home loan at lower interest:

• Good Credit Score

You need to pay all payments on time to avoid low scores. Maintaining a good credit score increases your chances of securing a lower interest rate.

• Evaluate Interest Rates and Schemes

Thoroughly investigate and compare the various home loan programmes and interest rates that Union Bank of India offers. This enables you to choose the most suitable option for your needs.

• Apply for Short Tenures

You have to select a short-term loan tenure to secure low interest rates. Shorter tenures also help you repay the loan faster, reducing overall interest costs.

• Increasing the Down Payment

Increasing the down payment lowers the loan balance and reduces the associated interest cost. A higher upfront payment reflects strong financial stability to the bank.

• Accurate Documentation

You have to ensure that all necessary documentation is accurate and complete to prevent delays. Proper documentation also improves your chances of obtaining a reduced interest rate.

• Develop a Relationship with the Bank

Maintaining investments or accounts with the bank helps you build a strong relationship. A good relationship with the bank could assist you in negotiating better interest rates.

To reach out to the Union Bank of India you can contact them through the given numbers and E-mail:

• Toll-Free Numbers: 1800-2333 / 1800 208 2244 / 1800 425 1515 /1800 425 3555

• Contact Number (Chargeable): 080-61817110

• Helpline for Reporting Fraud/Disputed Transactions: 1800 2222 43

• Email - customercare@unionbankofindia.com 

• NRI Helpline: +918061817110

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