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As a salaried home buyer today, you should keep in mind the overall costs of land,apartments or villas which includes the location, budget, and many other charges like stamp duty, registration charges etc. before going ahead with your plan of processing a home loan.
Union Bank of India, one of India’s largest government owned banks offers a suitable way to fulfill your dreams with Union Bank of India Home Loans.
In this article, we study all possible aspects related to Union Bank of India Home Loans.
A home loan in general is a large amount of money taken for a longer period upon which a rate of interest is levied. An important tool like Home Loan EMI calculator is therefore much needed to help you evaluate and plan your budget beforehand.
Union Bank of India Home loan interest rate starts from 8.30% which is one of the best interest rates available in the market. The rates vary depending upon certain criteria like occupation, the quantum of income, nature of home loan, etc.
|Loan Amount||United Bank of India Home Loan Interest Rate|
|Upto Rs. 30 Lakh||8.55%|
|Rs. 30 Lakh – 75 Lakh||8.55%|
|Rs. 75 Lakh – 1 crore||8.55%|
|Above 1 crore||8.55%|
You definitely want to ensure that your lender provides auto-adjusted benefits on interest rates that extends into the future. That’s the reason why you need a credible lending institution with a dedicated and experienced workforce who will guide you through the entire process.
If the answer is YES, you must be having a lot of questions in your mind like:
Let’s understand this with a simple example:
Let’s assume that your daughter is graduating in 2 years and you plan to invest in a luxurious villa for her, so that she may have a roof over her head resulting in a secure future. You go to Union bank of India to enquire about the home loan. The cost of a luxurious villa is estimated to be 75 lakhs and you want to take a loan for 5 years. The bank is offering the loan at 8.35%.
Now, you have many options since there are a number of banks offering home loan for villas. You need to calculate and check what the best fit is for you. Here, you can use the Home loan EMI calculator to check and compare.
The second obvious question is the source from where you will arrange the initial down payment?
The simplest option you have is to approach any relative or friend. But if you want to arrange it on your own then you must really think smart and be calculative in your decision. A great way to begin is ClearTax SAVE!
You have options like Savings account, RD (Recurring Deposit), SIP (Systematic Investment Plan) and many other ways to save enough for the initial down payment.
Let’s find out the best way to save your money, for down payment and for other expenses too:
|Property Value||75 lakhs|
|Time||5 yrs. (60 months)|
|Down payment||20% of Property Value = 15 lakhs|
Now, consider different methods for saving 15 lakhs down payment at Union Bank of India for the next 2 years:
|Type of Investment||Interest Rate||Maturity Amount after 2 Years|
|Savings Account||4.0%||Rs. 15,64,127 (Gains=Rs. 64,127)|
|Recurring Deposit||7.50%||Rs. 16,23,001 (Gains =Rs.1,23,001)|
|SIP||14-18%||Rs. 18,16,439 (Gains = Rs. 3,16,439)|
Hence from the above table SIP is the most logical saving’s scheme; as an SIP, will enable you to invest regularly keeping in mind your goal by diversifying your investment to get desired results. You will have a luxurious home you dreamed for you child sooner than you expected.
An EMI Calculator is a handy tool that calculates the monthly amount payable to the lender (Bank) every month. To calculate the EMI applicable on your loan amount, you need to use the sliders above to adjust the values of the Principal amount (P), Time duration (N), and Rate of interest (R).
Follow these steps to calculate your EMI Amount.
Union Bank home loan will have criteria on which interest rates will depend and vary. The loan amount you are opting for, your occupation and your salary are factors that will determine the interest rates for you. Range of interest between 8.35% – 8.35%
It is generally advantageous to take a housing loan as it would enable you to get tax exemptions. However, you must consult your CA/ income tax advisor to know the benefits/disadvantages in your specific case.
To get Union Bank’s home loan, the eligibility standard must match. That becomes an important deciding factor for your loan amount. Following points fall under the eligibility criteria:
|Interest Rate||8.55 %|
|Age||21 – 60 years|
|Job Stability in case of Salaried (in years)||2 years|
|Loan to Value Ratio||Up to 90%|
In addition to the mentioned interest rates, home loan also carries the processing fee, foreclosure charges, actual charges towards valuation fee, advocate’s fee for property search, title investigation report, stamp duty and other charges that are applicable.
Let’s discuss some charges in detail:
You can directly go to the bank or apply online by going through the bank website. You can avail the loan at low rates and low processing charge if you opt for the online mode. They will initiate the process by collecting your documents, will check your credit score, the value of your property for which you wish to take the loan and all other associated technical and legal terms. Once it is all done, you will be intimidated.
|Document Needed||Salaried||Self Employed|
|Proof of identity||Valid passport / Voter ID / Valid Driving license with photograph /Pan card /Aadhar card||Valid passport / Voter ID / Valid Driving license with photograph /Pan card /Aadhar card|
|Proof of Income||Latest 3 months salary slip/certificate for fixed salary/Latest Form 16
Last 6 months bank statement/Passbook of the salary account
|IT- returns for the last 2 years along with computation of income certified by CA
Last 6 months Bank statement for operative account both personal and business.
|Proof of Residence||Latest Electricity Bill/utility bill/ piped gas bill/ telephone bill (Not more than 2 months old)/ Passport/Aadhar card/ Voter ID/ Driving License.||Latest Electricity Bill/utility bill/ piped gas bill/ telephone bill (Not more than 2 months old)/ Passport/Aadhar card/ Voter ID/ Driving License.|
The income tax laws in India provide certain benefits for taxpayers who avail a home loan. Such taxpayers are eligible for a deduction of the interest paid on such house property to the extent of Rs 2 lakhs. In case of a self-occupied house in that particular Assessment Year (AY) they can claim the entire interest paid during the AY as a deduction without any limit, that is if they have given the property on rent.
Further, the principal component of such loan repayment can be claimed as a deduction from the total income under Section 80C, up to a maximum of Rs 1.5 lakhs.
|ICICI Bank||Kotak Bank||HDFC Bank||Axis Bank|
|PNB Bank||Andhra Bank||Corporation Bank||Central Bank of India|
|IDBI Bank||Yes Bank||Bank of India||CitiBank|
|HSBC Bank||RBL Bank||SBI||Home Loan Tax Benefit|