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Home Loan

Union Bank of India was established on 11th November 1919 is headquartered in Mumbai, India. The Union Bank has a historical and glorious past. The head quarters building was inaugurated by Mahatma Gandhi “THE FATHER OF NATION” in 1921. Mr. Tiwari, the current managing director and chairman of the bank, has made the bank one of the leading public sector players in India. The bank has more than 4200 branches across India All the branches are under the CBS system. The bank has a customer base of 5.7 crores. Union bank of India is providing a helping hand to the customers to fulfil their dreams by providing them various kinds of loans such as home loan, loans for repairs etc. The products and process of obtaining loan is designed in such a manner that the customer can avail the loan of his choice from any widespread network of branches operating across the country. The repayment of the loan is also made easier and the rate of interest is also according to the convenience of the customers.

Range of Home Loan Products

1. UNION HOME


Purpose for which the loan is taken:
 

  • For the purchase or construction of property, house, flats etc.
  • For purchasing a plot of land and construction of a house thereon.
  • For repairs/renovations or extension of the existing property.
  • For the repayment of the home loan taken from other banks.

Moratorium Period:


The suspension period for the loan cannot exceed for more than 18 months.


Repayment
 

  • The repayment period of the loan cannot exceed more than 30 years
  • The loan taken for repairs has to be repaid within 10 years.
  • The repayment of loans is made flexible by the bank.

Prepayment Penalty
 

The prepayment penalty on Union Home depends on the type of interest charged on your loan and they are as follows:


Floating rate of interest
 

  • There is no pre payment penalty for the loan if it is pre paid by the applicant from the own verifiable source or is taken over by any other bank.

Fixed rate of interest
 

  • There is no penalty on pre payment of the loan if it is paid by own verifiable income source.
  • The takeover charges of 2% is charged over the average of outstanding balance of the preceding 12 months if the loan is taken over by any other bank/or is adjusted in a lump sum if taken over by a third party.

Security
 

  • Equitable mortgage of the property for which the loan is taken.
  • If the property for which the loan is taken is incomplete or still under construction the interim security is needed to be given till the date of completion.

Guarantee
 

No third party guarantee is required if the applicant is an Indian resident. If the applicant is an NRI then one or two guarantors of Indian Origin having means of income equivalent to the loan taken would be required.


Insurance
 

The insurance of the property is compulsory under this home loan scheme.
 

2. UNION AWAS
 

The Union AWAS loan can be availed for purchase or construction of house or for purchase of plots from government agencies and can also be availed for repairs, extension or improvement of existing residential property.
 

Moratorium Period
 

The suspension period allowed for the loan is maximum of 18 months.
 

Repayment
 

The repayment period of up to 25 years with 300 EMI’s and 10 years with 120 EMI’s for repairs is allowed.
 

The method of payment is made flexible by the bank.


Security
 

  • Equitable mortgage of the property for which the loan is taken.
  • If the property for which the loan is taken is incomplete or still under construction the interim security is needed to be given till the date of completion.

Guarantee
 

A guarantee in a sufficient manner is required by the bank.


Insurance
 

The property insurance is compulsory by the bank.
 

3. UNION SMART SAVE
 

Under this loan scheme the customer above regular EMI amount can deposit an excess amount in his account which he can utilize later as per his requirements. The excess amount helps in reducing the outstanding amount and lower interest is charged by the bank on the loan amount thus customer can make savings from interest.


Purpose for which the loan is taken:
 

  • For the purchase or construction of property, house, flats etc.
  • For purchasing a plot of land and construction of a house thereon.
  • For repairs/renovations or extension of the existing property.
  • For the repayment of the home loan taken from other banks.

Margin Money
 

The bank does not sanction the total amount of loan as sought by the applicant, but it keeps a certain % of margin money i.e. the share of the customer to be paid by the customer himself.


The margin money for this home loan is as follows:
 

  • 20% of the total cost of purchase or construction of house, flat or any other residential property for the loan up to 75lacs.
  • 25% of the total cost of purchase or construction of any house, flat or any other residential property for the loan above 75lacs but less than 2 crores.
  • 35% of the total cost of purchase or construction of any house, flat or any residential property for the loan above 2 crores.
  • The margin money for repairs has been limited to 20% of the cost of repairs.

Moratorium Period:
 

The suspension period for the loan cannot exceed for more than 18 months.


Repayment
 

  • The repayment period of the loan cannot exceed more than 30 years
  • The loan taken for repairs has to be repaid within 10 years.
  • The repayments of loans are made flexible by the bank.

Processing charges
 

  • The processing fees for the loan amount up to Rs.15000 are 0.50% plus service tax as applicable.
  • The other charges like Valuation/legal/stamp duty/CERSAI/Memorandum registration charges as per regulations.

Prepayment Penalty
 

Floating rate of interest
 

There is no pre payment penalty for the loan if it is pre paid by the applicant from the own verifiable source or is taken over by any other bank.


Fixed rate of interest
 

There is no penalty on pre payment of the loan if paid by own verifiable source.


The takeover charges of 2% is charged over the average of outstanding balance of the preceding 12 months if the loan is taken over by any other bank/or is adjusted in a lump sum if taken over by a third party.


Security
 

  • Equitable mortgage of the property for which the loan is taken.
  • If the property for which the loan is taken is incomplete or still under construction the interim security is needed to be given till the date of completion.

Guarantee
 

No third party guarantee is required if the applicant is an Indian resident. But if the applicant is an NRI then one or two guarantors of Indian Origin having means of income equivalent to the loan taken would be required.


Insurance
 

The insurance of the property is compulsory.
 

4. UNION TOP-UP
 

The applicant avail this loan as a top-up on the existing loan with a condition that 24 EMI”s have already been paid and the loan required is for repairs, renovations, extension or furnishing of the house.


The security given as mortgage to the bank is extended for the period of top-up loan.


The repayment tenure is 5 years or the remaining tenure of the loan whichever is earlier.
 

5. UNION PARADISE


This is a home loan scheme which is designed for NRIs. The features include:
 

  • The loan can be taken for purchase or construction of a house, purchase of plot, repairs or extensions to an existing home and for balance transfer of existing home loans
  • A moratorium period of 12 months is allowed after which the loan taken for construction or purchasing of a house should be repaid within a maximum of 30 years. If the loan is taken for repair purposes, the repayment tenure is a maximum of 10 years
  • The loan can be taken as either floating rate loan or fixed rate loan.
  • A third party guarantee is required. Moreover, one or two guarantors who are resident Indians and have a net worth equivalent to the loan amount would have to be provided.
  • Property insurance on the property purchased or built using the home loan would be mandatory. The insurance value of such an insurance policy should be equivalent to the value of the property.
  • For security requirements, an equitable mortgage of the residential property purchased or built would be required. If the property is yet to be purchased or if the construction has not yet begun or if the property is under-construction, an interim security would also be required.
  • Floating rate loans attract no penalty if the loan account is prepaid and foreclosed.
  • In case of fixed rate home loans, no prepayment penalty would be applicable if the loan is paid from own source of funds which is verifiable. A penalty of 2% on the average outstanding balance over the preceding 12 months would be charged if the loan is taken over by another bank or financial institution or if it is adjusted by the borrower in one lump sum from any other third party or source other than in the case of a genuine sale.

Loan Amount and Eligibility criteria

Quantum of loan for Union Home and Union Smart Save:
 

  • The loan amount totally depends upon the repayment capacity of the borrower as assessed by the bank and also upon the actual value of the property.
  • The loan amount sanctioned by the bank for repairs cannot exceed the amount of Rs. 30 lakhs.

Union Awas Loan Quantum
 

  • For the purchase or construction of a house a house in semi-urban area loan allowed is up to Rs.7 lakhs and for rural areas it is Rs.5 lakhs.
  • For repairs of flat or a house in semi-urban area is Rs.3 lakhs and for the rural areas it is Rs.2 lacs.

Maximum Loan Amount for Union Top Up:
 

  • Minimum of Rs.50000 is allowed  and maximum of the loan depends upon the repayment capacity of the borrower based on the outstanding amount of the loan taken but the top-up amount along with the outstanding amount should not exceed the original amount.

Eligibility Criteria for Union Bank Home Loans:
 

  • Any individual who is above 21 years of age can apply for the loan. For Union AWAS, the minimum annual income is fixed at Rs. 48,000.
  • Any individual either single or jointly with his family members like father, mother, son or spouse having a regular source of income can become a co-applicant.
  • Siblings like brother - brother, brother-sister or sister-sister can become applicants if the property is in the joint names of the applicants.
  • NRIs can also apply for the home loan but are subject to the terms and condition.

Interest Rates and Margin

Margin Money for Union Home Loan
 

The bank does not sanction the total amount of loan as sought by the applicant, but it keeps a certain % of margin money i.e. the share of the customer to be paid by the customer himself.


The margin money for this home loan is as follows:
 

  • 20% of the total cost of purchase or construction of house, flat or any other residential property for the loan up to 75lacs.
  • 25% of the total cost of purchase or construction of any house, flat or any other residential property for the loan above 75lacs but less than 2 crores.
  • 35% of the total cost of purchase or construction of any house, flat or any residential property for the loan above 2 crores.

The margin money for repairs has been limited to 20% of the cost of repairs.


Margin Money for Union AWAS
 

  • The margin money for the purchase or construction of the house is 20%.
  • The margin money for the total cost of plot is 20%.

The margin money for the repairs and renovations is 20%.


Margin In case of Union Paradise
 

  • A margin of 20% to 35% is retained by the bank depending on the purpose for which the loan has been taken.
  • For all other home loan variants, visiting a bank branch is essential and minimum margin money is 20% of home value.  


Rates of Interest and processing fees
 

UNION HOME / UNION AWAS / UNION PARADISE
 

Current MCLR rate is 9.40%
the base rate of the union bank is 9.60%.
 

FLOATING RATE (For up to 30 years)

Up to ` 75 Lakh

MCLR + 0.10 % = 9.50%

Above ` 75 Lakh

MCLR + 0.15 % = 9.55%

FIXED RATE (For maximum 5 years)

Loan Amount

Rate of Interest

Up to ` 30 Lakh

11.40%

> ` 30 Lakh to ` 50 Lakh

12.40%

> ` 50 Lakh to ` 200 Lakh

Lakh 12.65%

 

UNION HOME – SMART SAVE

Loan Amount

Floating Rate of Interest

Up to ` 75 Lakh

9.75%

Above ` 75 Lakh

10.05%

 

UNION TOP-UP

Original housing limit

Rate of Interest

Up to ` 30 Lakh

MCLR + 1.15 % = 10.55%

Above ` 30 Lakh

MCLR + 1.40 % = 10.80%

 

  • The processing fee for the loan amount up to Rs.15000 is 0.50% plus service tax as applicable.
  • The other charges like Valuation/legal/stamp duty/CERSAI/Memorandum registration charges as per regulations.

Fees and Charges


The fees and charges applicable to Union Bank home loan variants vary from one type of loan to another. The following are some key variants:


Processing charges for Union Home
 

  • The processing fees for the loan amount up to Rs.15000 are 0.50% plus service tax as applicable.

Processing Fees for Union AWAS
 

  • The processing fees for the loan amount up to Rs.15000 are 0.50% plus service tax as applicable.

Processing Fees for Union Paradise
 

  • A processing fee of 0.50% of the loan amount would be charged subject to a maximum of Rs.15000 including taxes.

All the additional charges like Valuation/legal costs/stamp duty/CERSAI/Memorandum registration charges as charged as per regulations. Other home loan variant feature processing charges can be confirmed with the nearby bank branch.

Home Loan EMI Calculator

The home loan EMI calculator is available on the Paisabazaar.com site so that the customers can easily calculate their EMIs for the loan they are willing to take from the bank. The tool is free is to use and provides you the monthly EMI amount in seconds after input of 3 key criteria – loan principal, loan tenure and applicable interest rate.

Why Union Bank of India Home Loan

Union Bank of India is a preferred banking partner among many Indians because of their unmatched customer service who can be reached for any queries either via phone or online through email.


Apply for Union Bank of India Home Loan Online
 

Interested customers willing to avail of any variant of the home loan offered by Union Bank can visit the Paisabazaar.com website and apply for the loan. The website is an online aggregator which also provides the means to apply for a home loan from Union Bank of India.