Union Bank of India, one of India’s largest government-owned banks, offers a way to fulfil your dream of owning a house through Union Bank of India home loans. The bank offers several home loan schemes that suit the needs of people from various backgrounds.
In this article, all possible aspects related to Union Bank of India home loans are addressed.
Top home loan schemes of Union Bank of India
Purchase new/old residential unit (house/flat/apartment/villa, etc.), construction of residential unit on existing non-agricultural plot, and purchase on a non-agricultural plot for construction of the residential unit.
Borrow additional funds on an existing home loan that have paid 24 EMIs in the existing home loan account on time. A loan amount starting from Rs.50,000 subject to repayment capacity.
A special home loan scheme to purchase/construct houses in semi-urban and rural areas.
Union Smart Save
Option to pay an additional amount over and above the regular EMI with the facility to withdraw the excess amount when there is a need to such excess funds are available in the account.
Pradhan Mantri Awas Yojana
Interest subsidy is provided on home loans to economically backward sections, low-income groups, and middle-income groups to ensure ‘housing for all’.
Interest rates of Union Bank of India home loans
The EBLR provided in the table below is 6.80%, i.e. repo rate (4%) + spread (2.80%). The rates are effective from 1 November 2020.
Floating Rate Applicable to Union Home/Awas Scheme
Do senior citizens, and bank staff get additional interest rates? How much cost should I bear on my own while purchasing a home?
You will have to pay a share of up to 25% of the total cost based on the following scenarios:
10% of the total cost of the purchase/construction for loans up to Rs.30 lakh.
20% of the total cost of the purchase/construction for loans between Rs.30 lakh and Rs.75 lakh.
25% of the total cost of the purchase/construction for loans above Rs.75 lakh.
20% of the total cost of the repairs/renovation.
What are the different repayment options available?
The bank offers the following repayment options:
Equated monthly instalments.
Equated quarterly instalments for borrowers engaged in agriculture and allied activities.
Step-up repayment where the monthly instalment amount is set at a lower amount as compared to the normal EMI for the initial months and the instalment amount will be set at a higher level for the rest of the tenure.
Balloon repayment method where a sum lower than the EMI is set at the start of the EMI and a lump sum is expected to be paid towards the end of the tenure.
Flexible loan instalment plan offers a reduced EMI after receiving a lump-sum amount midway of the loan tenure.
Bullet payment is an option where depositing a lump sum during the repayment tenure to revisie EMIs for the remaining tenure
Can I choose a fixed rate home loan?
You may opt for a fixed rate home loan. However, stay informed that the fixed interest rate is only applicable up to a maximum of five years. A floating interest rate will be applied for the remaining loan tenure.
Should I provide a guarantor to get the loan?
If you are a Indian citizen resident in India, you don’t have to provide any guarantor. If you are an NRI, you will have to provide 1-2 guarantors who are Indian residents having assets equivalent to that of the loan amount.