With Union Bank, you can get a home loan of up to ₹15 Cr starting at an interest rate of just 8.60% per annum. However, you must remember that the final interest rate will depend on factors like your status of employment, repayment history, credit score and your overall creditworthiness. On top of that, a nominal processing fee will be charged to you as well.
The charges associated with a Union Bank home loan in addition to the interest rate are:
Interest Rate |
8.60% p.a. onwards |
Processing Fee |
0.5% of the approved loan amount (subject to a maximum of ₹15,000 + 18% GST) |
Foreclosure/Prepayment charges |
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Disclaimer: The charges mentioned above are subject to constant change. You must always inquire about the latest applicable rates before applying for a Union Bank home loan.
For example, you have borrowed ₹5,00,000 as a housing loan from Union Bank at an interest rate of 8.60% p.a and your loan repayment tenor is 5 years. On the other hand, your colleague has secured the same amount, but his interest rate is 6.90% p.a. and his repayment tenor is 30 years. We will now take a look at what your EMI outflow and that of your friend will look like as per your respective repayment terms. Additionally, you will also get to see the total amount both of you will repay over your respective repayment periods
Processing Fee |
₹2,500 (0.5% of the loan amount) |
Maximum and Minimum EMI Amounts |
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Total Payable Amount |
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Union Bank has multiple home loan schemes available for people from all walks of life. The interest rate that each one of them attracts are as follows:
Union Bank Home Loan Scheme Name |
Interest Rate |
Union Home |
8.60% p.a. onwards |
Union Awas |
8.60% p.a. onwards |
Union Smart Save |
7.25% p.a. onwards |
The Union Bank home loan interest rates applicable to salaried and self-employed people are:
Type of Applicant |
Interest Rates |
Salaried |
8.60% p.a. onwards |
Self-Employed |
8.60% p.a. onwards |
The applicable Union Bank home loan interest rates are as follows:
Applicant Type |
Interest Rates |
Women |
8.60% p.a. onwards |
Government Employees |
8.60% p.a. onwards |
Balance transfer facilities permit you to pay off the remainder of your housing loan to a different lender. You should consider making a switch like that to enjoy lower interest rates at which the other lender is letting you repay your outstanding housing home loan balance. But, before you actually make the switch, take the applicable processing fees and foreclosing charges (if any) into account. As of now, the Union Bank home loan balance transfer interest rate is within the range of 6.50% p.a.- 8.20% p.a.
The interest rates at which other leading lending institutions are providing home loans are as follows:
Lender |
Interest Rate |
Union Bank of India Limited |
8.60% p.a. onwards |
Home First Finance Company (HFFC) Limited |
9.50% p.a. onwards |
PNB Housing Finance |
8.50% p.a. onwards |
ICICI Bank |
8.75% p.a. onwards |
Bajaj Housing Finance Limited |
8.60% p.a. onwards |
Some variables that could affect your Union Bank loan interest rate are:
Your CIBIL Score: Your CIBIL score is an indicator of your loan repayment capability. If your CIBIL score is 750 or above that, you can get a Union Bank loan at a favourable interest rate. If your CIBIL score is below 750, it is possible that you may still be able to get a home loan online from Union Bank, but you will do so at a higher interest rate.
Your Monthly Income: The amount of money that you make on a monthly basis will determine your ability to repay your Union Bank home loan. The higher your monthly inflow of cash is, the lower your Union Bank home loan interest rate can be and vice-versa.
Your Loan Amount: If you take a high loan amount, you may get to repay it at a higher house loan interest rate. The opposite may be true if your Union Bank home loan amount is low.
Down Payment: If you have paid a large sum of money upfront as down payment, you may get a Union Bank home loan at a low interest rate.
You can avail a Union Bank home loan of ₹25 lakh with a repayment tenor of 15 years at an interest rate starting from 8.60% per annum. However, the exact interest rate applicable to you will depend on your credit profile.
You can make the switch from fixed to floating interest rate system in the case of your Union Bank home loan. However, switching from a floating interest rate system to a fixed rate system is not possible.
The interest rate starts from 8.60% p.a. onwards.
Yes, you can get tax benefits on a home loan taken from Union Bank under Sections 80C, 80EE, and 24(b) of the Income Tax Act, 1961, as long as you meet the laid out conditions.
Part or full prepayments can help you either reduce your Union Bank Home Loan EMIs or reduce your repayment tenor. Additionally, you will also save lakhs of rupees which you would have otherwise paid as interest over the course of your repayment tenor.
Yes, as long as you meet the eligibility criteria laid out for a top up on a Union Bank home loan, you can avail the same.