Union Bank of India Home Loan Interest Rates
Updated on: Jun 7th, 2024
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5 min read
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
| Union Home | 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. |
| Union Top-Up | 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. |
| Union Awas | 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
Loan Amount
| CIBIL Score
| LTV Ratio (%)
| Interest Rate for Salaried Applicants
| Interest Rate for Non-Salaried Applicants
| ||
Male
| Female | Male | Female | |||
Up to Rs.30 lakh
| >=700
| <=80
| EBLR + 0.05%
| EBLR%
| EBLR + 0.10%
| EBLR + 0.05%
|
| >80 and <=90 | EBLR + 0.10%
| EBLR + 0.5%
| EBLR + 0.20% | EBLR + 0.15% | ||
>=600 and <700
| <=80 | EBLR + 0.10%
| EBLR + 0.5%
| EBLR + 0.30%
| EBLR + 0.25% | |
| >80 and <=90 | EBLR + 0.20%
| EBLR + 0.15%
| EBLR + 0.45% | EBLR + 0.40% | ||
| <600 | <=80 | EBLR + 0.35%
| EBLR + 0.30%
| EBLR + 0.55%
| EBLR + 0.50% | |
| >80 and <=90 | EBLR + 0.45%
| EBLR + 0.40%
| EBLR + 0.20% | EBLR + 0.15% | ||
Above Rs.30 lakh
| >=700
| <=80
| EBLR + 0.15%
| EBLR + 0.10%
| EBLR + 0.25%
| EBLR + 0.20%
|
| >80 and <=90 | EBLR + 0.20%
| EBLR + 0.15%
| EBLR + 0.30% | EBLR + 0.25% | ||
>=600 and <700
| <=80 | EBLR + 0.25%
| EBLR + 0.20%
| EBLR + 0.35%
| EBLR + 0.30% | |
>80 and <=90
| EBLR + 0.30%
| EBLR + 0.25%
| EBLR + 0.55% | EBLR + 0.50% | ||
<600
| <=80 | EBLR + 0.50%
| EBLR + 0.45%
| EBLR + 0.50%
| EBLR + 0.45% | |
| >80 and <=90 | EBLR + 0.55%
| EBLR + 0.50%
| EBLR + 0.60% | EBLR + 0.55% | ||
Fixed-Rate Applicable to Union Home/Awas (maximum for five years)
| Loan Amount | Interest Rate |
| Up to Rs.30 lakh | 11.40% p.a. |
| Rs.30 lakh to Rs.50.00 lakh | 12.40% p.a. |
| Rs.50 lakh to Rs.200 lakh | 12.65% p.a. |
Features and benefits of Union Bank of India home loan
- Get competitive interest rates on Union Bank of India home loans.
- Apply for a home loan either offline at the branch office or online.
- No specific limit on the loan quantum.
- Transfer home loan from a different bank to Union Bank of India to save on repayments.
- Repayment tenure of 30 years in the case of purchase or construction and 15 years for repair and renovation.
- Multiple repayment options to suit your needs.
- Moratorium period of up to 36 months is available.
Who is eligible for Union Bank of India home loans?
- Indian citizens and NRIs.
- Minimum entry age is 18 years and maximum exit age up to 75 years.
- Individuals may apply singly or jointly with other eligible individuals.
Union Smart Save
- Indian citizen above 21 years
- Individual, either singly or jointly with other family members, i.e. father, mother, son and/or spouse, who have regular sources of income as co-applicants.
- Siblings, i.e. brother-sister, brother- brother, sister-sister can be permitted as applicants/co-applicants subject to the property must be in the joint names of the siblings.
- NRIs are also eligible for the home loan.
Union Awas
- Residents of rural and semi-urban areas are the target group.
- Permanent employees of schools/colleges/other establishments and also good farmers having a regular source of income not less than Rs.48,000 per annum.
- Minimum entry age is 18 years and maximum age up to 75 years.
- Individuals may apply singly or jointly with other eligible individuals.
- Repayment capacity is to be assessed based on the income certificate issued by Tehsildar/Mandal Revenue Officer.
Documents required for Union Bank of India home loans
- Duly filled application form
- Proof of Identity (any of the following)
- Passport
- PAN card
- Employee identity card
- Any other valid proof
- Proof of Address (any of the following)
- Electricity bill
- Telephone bill
- Aadhaar
- Any other valid proof
- PAN card
- Last 12 months’ bank statement
- Proof of Income
- For salaried class
- Latest ITR
- Form-16/Letter from Employer
- Last 6 months’ salary slip
- For business class
- Last three years’ ITR
- Profit and loss balance sheet
- Agriculturists
- Income certificate from concerned revenue officer (Tahsildar)
- Proof of landholding
- For salaried class
- Property papers
- Allotment letter
- Advance money receipt
- Title Deed
- 3 photographs
- Proof of out-goes
- Loan repayment statement, if any
- LIC Policies, if any
- Valid proof of any other out-go
- Additional document required for NRI
- Copy of Visa stamped on the passport
- Latest work permit
- Employment contract (if the contract is in any language other than English, the same has to be translated into English and attested by Employer/Indian Embassy)
- Any other document required as per the application form)
Fees and charges
- Processing charge – 0.50% of the loan amount
Union Bank of India home loan EMI calculator
Our home loan calculator can help you evaluate and plan your budget for a home loan.
Frequently Asked Questions
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.
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Quick Summary
Union Bank of India offers various home loan schemes for buying houses, including Union Home, Union Top-Up, Union Awas, Union Smart Save, and Pradhan Mantri Awas Yojana. The bank provides features such as competitive interest rates, loan transfer, up to 30-year repayment tenure, and multiple repayment options. Eligibility criteria include being an Indian citizen or NRI, minimum age of 18, and regular income sources. Required documents include identity proof, address proof, income proof, and property documents.
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