PURPOSE

• Purchase of new/old residential unit (house/ flat/villa/apartment etc.)
• Construction of residential unit on exiting non agriculture plot.
• Purchase of non-agricultural plot and construction of residential unit (composite project) thereon**
• Repairs/ improvements/ extension of the existing residential property.
• Take-over of housing loan availed from another bank / FI
• Completion of under construction residential unit.
• Purchase of solar power panel along with purchase / construction of house.

ELIGIBILITY

• 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.

QUANTUM OF LOAN

• No limit on the quantum of loan.
• Loan eligibility depending on repayment capacity of the borrower and value of property
• Maximum loan amount for repairs/renovation is Rs.30 lakh.

MARGIN, I.E. YOUR SHARE

• 10% of the total cost of the purchase/ construction for loans up to Rs.30 Lakhs
• 20% of the total cost of the purchase/ construction for loans above Rs.30 lakhs and up to Rs.75 Lakhs.
• 25% of the total cost of the purchase/ construction for loans Above Rs.75 Lakhs
• 20% of total cost of the repairs/renovation.

MORATORIUM PERIOD

• Moratorium period of up to 36 months in case of purchase/ construction
• Moratorium period of to 12 months in case of repair & renovation.

REPAYMENT

• Repayment period of up to 30 years in case of purchase/ construction
• Repayment period of 15 years in case of repair & renovation

REPAYMENT METHODS

• Equated Monthly Installments (EMI)
• For borrowers engaged in agriculture or allied activities, Equated Quarterly Instalment (EQI) instead of EMI may be permitted.
• Step-Up Repayment Method: EMI is set at a value lower than the normal EMI for initial months and for the remaining tenure it is set at a level higher than the normal EMI.
• Balloon Repayment Method: lower than normal EMI at the start of the repayment tenure followed by lump sum amount expected to be available at end of repayment tenure.
• Flexible Loan installment Plan (FLIP) Method: After receipt some lumpsum amount midway the EMI for the remaining period can be at a lower value than normal EMI.
• Bullet payment: Deposit of lump sum payment during the repayment tenure and downward revision in EMIs for the remaining tenure.

SMART SAVE OPTION

• Under the Smart Save product, over and above the regular EMI for the loan, customers can deposit additional amount with an option to withdraw such excess amount at a later date as per their requirement.
• As the excess funds help in reducing the loan outstanding, a lower interest is charged in the loan account (till such excess funds are available in the account). In other words, this option helps the customers to maximize their savings on interest without sacrificing ones financial liquidity.

RATE OF INTEREST AND PROCESSING CHARGES

• Know our latest interest rates
• Valuation / Legal / Stamp Duty / CERSAI / Memorandum registration charges as per actual.

PREPAYMENT PENALTY

Floating rate loans

• There is no prepayment penalty / take-over penalty if loan is taken over by other banks/FIs.

Fixed rate loans

• There is no prepayment penalty if loan is prepaid from own verifiable sources.
• A take-over penalty of 2% is charged on the average outstanding balance of the preceding 12 months if the loan is taken over by any other bank / FI or adjusted by the borrower in lump-sum from any third party/source (except genuine sale)

SECURITY

• Simple/Equitable mortgage (E.M.) of the residential property
• In case the proposed residential unit is under construction, suitable interim security is required (till the period of its completion) However, interim security is not required if tie-up with the builder (with tripartite agreement) for the particular housing project exists.

GUARANTEE

• Third party guarantee is not required for Resident Indian
• One/two guarantors of Indian Residents, having means equivalent to that of the loan amount, is to be provided by the NRI applicant.

INSURANCE

• Property should be comprehensively insured for an amount not less than the value of the property (less cost of land), covering all risks with Bank clause.

**Conditions apply.

Union bank of India offers housing loans on floating interest rates or fixed interest rates. The floating interest rates for Union bank of India housing loan is the sum of RBI repo rate, Spread and premium.

At present (wef 01 November 2020) - RBI repo rate is 4.00%. Union bank of India spread is 2.80%

Your premium is based on the below 4 factors

Your housing loan is based on the above factors and the current interest rate in Union bank of India is given below.

Interest rates with effective from 27.10.2021

1. UNION HOME / AWAS: (From 05.09.2023 to 31.03.2024)

A. Floating rate:

The approved rate of interest will be effective for all new Union Home and Union Awas loan customers (including switchover from other Benchmark, viz. MCLR / Base Rate / BPLR to EBLR)

Loan Amount	CIC Score	LTV	Government / PSU Employees
Irrespective  of the loan amt	750 and above	<=90	EBLR – 0.90% = 8.40%

 

 

Loan amount

CIC Score

LTV

Applicable ROI category wise

 

			Salaried/ Professional		Non-Salaried
			Male	Female	Male	Female
Irrespective    of Loan amount	750      and above	As per quantum wise LTV Norms	EBLR-0.75% = 8.55%
	From    700 to 749 (Including -1 & 1 to 5)		EBLR-0.10% = 9.20%	EBLR-0.15% = 9.15%	EBLR = 9.30%	EBLR-0.05% = 9.25%
	From    650 to 699		EBLR+0.20% = 9.50%	EBLR+0.15% = 9.45%	EBLR+0.25% = 9.55%	EBLR+0.20% = 9.50%
	From    600 to 649		EBLR+1.00% = 10.30%
	Below 600		EBLR+1.50% = 10.80%

* The above benefit of 5 bps concession will be applicable, only if the house is singly/jointly owned by female borrower.

1. B. Fixed Rate (for maximum 5 years)

Loan Amount	Rate of Interest
Upto Rs.30 Lakh	11.40%
Above Rs.30 Lakh to Rs.50.00 Lakh	12.40%
Above Rs.50 lakh to Rs.200 Lakh	12.65%

2. SMART SAVE:

 

Loan Amount	CIC Score	LTV	Salaried/Professional		Non-Salaried
			Male	Female	Male	Female

 

Up to 30 Lakh	750 & Above	<=80	EBLR + 0.05% = 9.35%
		>80&<=90
	From 700 to 749	<=80	EBLR + 0.30% = 9.60%	EBLR + 0.25% = 9.55%	EBLR + 0.35% = 9.65%	EBLR + 0.30% = 9.60%
		>80&<=90	EBLR + 0.35% =9.65%	EBLR + 0.30% = 9.60%	EBLR + 0.40% = 9.70%	EBLR + 0.35% = 9.65%
	From 650 to 699	<=80	EBLR + 0.40% = 9.70%	EBLR + 0.35% = 9.65%	EBLR + 0.45% = 9.75%	EBLR + 0.40% = 9.70%
		>80&<=90	EBLR + 0.45% = 9.75%	EBLR + 0.40% = 9.70%	EBLR + 0.50% = 9.80%	EBLR + 0.45% = 9.75%
	From 600 to 649	<=80	EBLR + 0.95% = 10.25%
		>80&<=90
	Below 600	<=80	EBLR + 1.45% = 10.75%
		>80&<=9 0
Above 30 Lakh	750 & Above	<=80	EBLR + 0.05% = 9.35%
		>80&<=9 0
	From 700 to 749	<=80	EBLR + 0.40% = 9.70%	EBLR + 0.35% = 9.65%	EBLR + 0.45% = 9.75%	EBLR + 0.40% = 9.70%
		>80&<=9 0	EBLR + 0.45% = 9.75%	EBLR + 0.40% = 9.70%	EBLR + 0.50% = 9.80%	EBLR + 0.45% = 9.75%
	From 650 to 699	<=80	EBLR + 0.50% = 9.80%	EBLR + 0.45% = 9.75%	EBLR + 0.55% = 9.85%	EBLR + 0.50% = 9.80%
		>80&<=9 0	EBLR + 0.55% = 9.85%	EBLR + 0.50% = 9.80%	EBLR + 0.60% = 9.90%	EBLR + 0.55% = 9.85%
	From 600 to 649	<=80	EBLR + 1.10% = 10.40%
		>80&<=9 0
	Below 600	<=80	EBLR + 1.65% = 10.95%
		>80&<=9 0

* The above benefit of 5 bps concession will be applicable, only if the house is singly/jointly owned by female borrower.

3. COMMERCIAL REAL ESTATE –
4. Residential Housing (CRE-RH) 3rd House: (From 09.2023 to 31.03.2024)

 

Loan Amount

CIC Score

LTV

Government / PSU Employees

 

Irrespective of the loan amt

750 and above

<=90

EBLR – 0.65% = 8.65%

 

 

Loan amount

CIC Score

LTV

Applicable ROI category wise

 

			Salaried/ Professional	Non-Salaried
Irrespective of Loan amount	750       and above	As         per quantum wise      LTV Norms	EBLR-0.50% = 8.80%
	From     700 to 749 (Including -1 & 1 to 5)		EBLR+0.15%= 9.45%	EBLR+0.25%= 9.55%
	From     650 to 699		EBLR+0.45% = 9.75%	EBLR+0.50% = 9.80%
	From     600 to 649		EBLR+1.25% = 10.55%
	Below 600		EBLR+1.75% = 11.05%

 

5. Residential Housing (CRE-RH) 4th House onwards: (From 09.2023 to 31.03.2024)

 

Loan Amount	CIC Score	LTV	Government / PSU Employees
Irrespective of the loan amt	750 and above	<=90	EBLR – 0.15% = 9.15%

 

 

Loan amount

CIC Score

LTV

Applicable ROI category wise

 

			Salaried/ Professional	Non-Salaried
Irrespective    of Loan amount	750      and above	As per quantum wise LTV Norms	EBLR% = 9.30%
	From    700 to 749 (Including -1 & 1 to 5)		EBLR+0.65%= 9.95%	EBLR+0.75%= 10.05%
	From    650 to 699		EBLR+0.95% = 10.25%	EBLR+1.00% = 10.30%
	From    600 to 649		EBLR+1.75% = 11.05%
	Below 600		EBLR+2.25% = 11.55%

LIST OF DOCUMENTS

• 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
  • Aadhar
  • Any other valid proof
• PAN Card
• Last 12 months bank statement
• Proof of income
  • For salaried class
    • Last one year ITR
    • Form-16/ letter from Employer
    • Last 6 months salary slip
  • For business class
    • Last three years ITR
    • P and L Balance sheet
  • Agriculturists
    • Income certificate from concerned revenue officer (Tahsildar)
    • Proof of land holding
• 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)

APPLICATION FORM

Proof of identity (any of the following)

What is the maximum loan amount?
The maximum amount of loan sanctioned would be minimum of A or B
A. 90% for up to Rs.30 lakh, 80% for above Rs.30 lakh to up to Rs.75 Lakh & 75% for above Rs.75 lakh of the total cost of the house (which excludes stamp duty, registration fee, transfer fee, cost of furnishing, etc. if any)
B. Loan amount as per our eligibility calculations based on repayment capacity of the borrowers

Note: The maximum loan amount would be decided by the repayment capacity of the borrower, which is determined mainly with reference to the present income. However, it should be borne in mind that besides present income, several factors like age, qualifications, spouse's income, present outgoing towards rent, future potential for earning higher income, present level of assets and liabilities of the borrowers, etc. will have a bearing on the repayment capacity of the borrower. In case the net take home income after all deductions (such as proposed EMI, taxes, Insurance premium and other out go) is not sufficient, the eligible amount of loan would then be reduced. The income of co-applicant can be added to that of the applicant to improve the repayment capacity.

Who can be the co-applicants for the home loan?
Permitted co-applicants for male applicant :

• Spouse
• Father
• Mother
• Son
• Daughter in law
• Unmarried-daughter

Following family members are also permitted subject to the property must be in the joint name :

• Brother
• Unmarried-sister
• Grand children from son
• Grand parents

Permitted co-applicants for unmarried female applicant :

• Father
• Mother

Follwing family members are also permitted subject to the property must be in the joint name :

• Brother
• Un married sister
• Grand parent

Permitted co-applicants for married female applicant :

• Husband
• Son
• Daughter in law
• Unmarried-daughter
• Father in law
• Mother in law

Following family members are also permitted subject to the property must be in the joint name :

• Brother in law
• Grand children from son

What are the loan tenure options?
The repayment period is 30 years, including the moratorium period of 36 months from the date of disbursal or the completion of the house, whichever is earlier. The repayment period is 15 years including the moratorium period of 12 months in case the loan is availed for repairs of the House/Flat.

What are the margin requirements?
The margin requirements (i.e. the borrower’s contribution should be as follow –
10% of the total cost of the purchase/ construction of house/ flat for loans up to Rs.30 Lakhs
20% of the total cost of the purchase/ construction of house/ flat for loans Above Rs.30 lakhs to Rs.75 Lakh
25% of the total cost of the purchase/ construction of house/ flat for loans Above Rs.75 Lakh
20% of total cost of the repairs

What are the applicable rates of interest?
Union Bank of India offers two different schemes (a) Fixed rate of interest (b) Floating rate of interest. Please click here for information on rate of interest.

What are the applicable rates of interest?
Union Bank of India offers two different schemes (a) Fixed rate of interest (b) Floating rate of interest. Please click here for information on rate of interest.

What are the processing charges?
Processing charges are 0.50% of the loan amount subject to maximum of Rs.15,000 plus GST as applicable.

How is the interest charged/calculated?
Interest will be applied in the account on the basis of reducing balance method at monthly rests. During moratorium period compounding interest would be charged.

What is a Monthly Reducing balance?
An Equated Monthly Instalment (EMI) has 2 components, interest and principal. When the interest is calculated on monthly rests, the principal on which the interest is charged goes down every month. This results in a significant saving for the customer over the tenure of the loan.

How do I repay the home loan?
The loan shall be repaid in equated monthly instalments (EMIs).

You can pay the EMI in any of the following ways
Through standing instruction to your Union Bank of India savings account to directly remit the EMI amount to your loan account
Through internet banking facility available on your Union Bank of India savings account ECS (Debit) facility
Post Dated Cheques (PDCs)

Can I prepay my home loan?
Yes, you can make your prepayment. There is no charge on pre-payment if the loan is adjusted by the borrower from his own verifiable legitimate sources.

What security/ collateral do I have to provide?
Equitable mortgage (EM) of the residential property, proposed to be purchased from Bank's finance, is required. If the house/ flat proposed to be purchased is yet to be constructed or is under construction, interim security may be required (till the period of its completion).

Is a guarantor a must?
No, third party guarantee is not mandatory in most of the cases for Resident Indian. In case of NRIs guarantee of one/two local residents Indian required. Please visit our nearest branch to know further

What are the tax benefits I get from my home loan?
Tax benefits can be claimed on both the principal and interest components of the home loan as per the Income Tax Act, 1961. A deduction of up to Rs.200000/- can be claimed towards the total interest that one would pay on the home loan. The interest on home loans taken for repairs, renewals or reconstruction, also qualifies for the deduction of Rs.200000/-. The principal repayment of up to Rs.150000/- on the home loan is allowed as a deduction from the gross total income subject to fulfilment of prescribed conditions. These benefits on interest on housing loans are allowable only for the original loan and for a second loan taken to repay the first loan and not for subsequent loans.

Can I avail the Top-up loan facility on my home loan?
Union Mortgage Plus is a top-up loan facility for the existing home loan borrowers, who have a good repayment track record, for the purpose of repairs, renovations, furnishings, etc. To know more on the Top Up loan, visit the Mortgage Plus Page, or kindly contact the branch where you have availed the housing loan from

Do I need to open an account with Union Bank of India for availing and/ or servicing the home loan?
Although opening of account is not mandatory for Resident Indian for availing a loan, we would recommend to bank with us in order to benefit from other value added services.
For NRI opening of a NRE account with Union Bank of India is mandatory for availing a loan.

What documents do I need to submit to avail a home loan?
Please see the Forms & Documents Tab above for information on the list of documents required.

How much time will it take for my home loan to be approved?
It takes 5 days for your loan to be sanctioned, after you have submitted all the required documents.

What are the stages involved in taking a loan?
There are three main stages -
Application - Whereby you submit a completely filled in application with all necessary documents
Sanction - Whereby you get an approval for a specific loan amount based on the value of your property and repayment capabilities
Disbursement - Whereby the loan amount is disbursed