Union Bank of India is one of the largest PSU banks in the country. The bank offers home loans at affordable interest rates starting from just 8.60% p.a. for a tenure of up to 30 years. The bank uses a set of criteria to determine the eligibility of an applicant for a home loan offer. In this article, we are going to discuss the various criteria used by the Union Bank of India to determine the eligibility of an individual for a home loan.
You must fulfil the following eligibility criteria in order to avail a Union Bank home loan:
Nationality: The applicant must be a citizen of India.
Age: The applicant must be between 18 and 75 years of age to be eligible for a home loan from Union Bank of India.
Salary and Employment: In order to be eligible for a home loan from the Union Bank of India, the applicant must have a regular source of income. The applicant can be either a salaried government employee or an employee of a private company or a self-employed individual.
Credit Score: As is the case with most other loans, Union Bank of India grants home loans to applicants with stable credit history and at least a decent credit score- preferably 750 or above.
Loan to Value (LTV) Ratio: It refers to the ratio of the amount of loan granted to the value of the property for which the loan is availed. LTV is often expressed in percentage. Union Bank of India offers an LTV of up to 90%, which means, an amount equal to up to 90% of the property value can be availed as a home loan from the bank.
Union Bank uses a set of metrics to determine the eligibility of a home loan applicant. Some of the factors that impact the home loan eligibility of a borrower include their monthly income, credit score, age, and financial obligations.
The salary of an applicant is one of the key factors that determine the amount of home loan the applicant is eligible for. The following table provides an estimate of the loan amount an applicant is eligible for based on their monthly salary taking into consideration a repayment tenure of 30 years and an interest rate of 6.90% per annum (which is the starting interest rate for Union Bank of India home loans:
Monthly Salary of the Applicant |
Loan Amount |
₹25,000 |
₹15,26,114 |
₹30,000 |
₹20,60,253 |
₹35,000 |
₹24,03,629 |
₹45,000 |
₹30,90,380 |
₹50,000 |
₹34,33,756 |
₹55,000 |
₹41,96,812 |
₹60,000 |
₹45,78,341 |
₹65,000 |
₹49,59,869 |
₹70,000 |
₹53,41,398 |
₹75,000 |
₹57,22,926 |
Since the repayment tenure of a home loan can go up to 30 years, the age of the applicant impacts the tenure of the home loan- the time during which the borrower is supposed to pay back the entire loan amount along with the applicable interest. The younger the borrower, the more time they have to pay back the loan. The table below gives an estimate of the age of the applicant and the maximum loan tenure they are eligible for:
Age of the Applicant |
Maximum Eligible Tenure |
21 years to 45 years |
30 years |
46 years |
29 years |
47 years |
28 years |
48 years |
27 years |
49 years |
26 years |
50 years |
25 years |
51 years |
24 years |
52 years |
23 years |
53 years |
22 years |
54 years |
21 years |
55 years |
20 years |
56 years |
19 years |
57 years |
18 years |
58 years |
17 years |
59 years |
16 years |
60 years |
15 years |
You may refer to the table below to get an idea of the home loan amount you are eligible for based on the LTV ratio of the property:
Loan Amount |
LTV Ratio |
Up to ₹30 Lakhs |
Upto 90% |
Loans above ₹30 Lakhs |
Upto 80% |
The eligibility criteria for home loans is the same for all applicants irrespective of their gender. However, the Union Bank of India does offer a rebate of 0.5% on the rate of interest to female applicants.
Credit score is considered to be a standard and reliable way of assessing the creditworthiness of a borrower. In order to ensure that you meet the eligibility criteria for a home loan from Union Bank of India, you must have a CIBIL score of at least 600. The bank, however, would always prefer borrowers with a score upwards of 750.
There are a number of factors that play a part in whether the loan application gets approved as well as how much loan amount will be sanctioned. Hence, it is best to be aware of these factors beforehand:
Income: The income of the applicant is the most important criterion that decides the amount of home loan they are eligible for as the income is a good indicator of the loan repayment capability.
Employment Status: Employment status is another important factor that influences the eligibility of an applicant for a housing loan. It means that they must have a stable source of income and are, therefore, in a better position to pay off the entire loan amount.
Financial Obligations: If you already have too many financial obligations, your chances of getting a home loan approval from Union Bank are affected negatively.
The applicant should be aged between 18 years and 75 years. Salaried individuals must have a net monthly income of at least ₹15,000 to apply for a home loan. Self-employed individuals should have a minimum profit-after-tax of ₹12,500 per month.
Your take-home salary after all deductions like PF, ESI, and gratuity determines your home loan servicing capacity. For instance, if your salary is ₹25,000 then at an interest rate of 6.90% offered by Union Bank of India, the loan amount that you will be eligible for (assuming you have no other EMI’s due) would be ₹28,24,114 to ₹49,85,235 depending on your age.
You must have a minimum salary of ₹15,000 per month to be eligible for a home loan from the Union Bank of India.
Yes, the Union Bank of India is a good financial institution for availing a home loan. UBI has a strong presence in Indian banking today with over 49 million trusted clients. The bank operates out of 4,078 branches, 61% of which are in rural/semi-urban markets.
If you have a regular salary, a good CIBIL score, work in a reputable firm and have almost no debt, you can negotiate for a better loan offer with the bank. Alternatively, you can also get a co-borrower on board. In this case, the combined salary of both the co-applicants can allow you to avail of a higher loan limit.