*Please note quotes shown will be from Our Partners

Home Loan

United Bank of India (UBI), headquartered in Kolkata, is a state-owned financial services company with over 35 regional offices and 2,000+ branches all over the country. It has played a significant role in bringing banking services to common masses, particularly in the eastern and north-eastern parts of India. Besides other services, United Bank of India offers loans to its customers at attractive interest rates to help them realise their dreams.

The major types of loans offered by United Bank of India are listed here:
 

  • United Housing Loan
  • United Smart Loan
  • United Housing Loan – Pensioners
  • United Housing Loan – Salaried
  • United Demand Loan
  • United Car Loan
  • United Education Loan
  • United Trade Credit
  • United Mortgage Loan
  • United Personal Loan – Pensioners
  • United Reverse Mortgage Loan
  • United Superb Education Loan
  • United Car Loan Pensioners
  • United Salary Payment Overdraft
  • United Two-wheeler Loan Scheme
  • United Affordable Housing Loan Scheme
  • United Gold Loan Scheme

United Bank of India Home Loan

Overview

People can apply for United Bank of India home loans, popularly referred to as the United Bank of India Housing Loans, whether they want to buy their first house or purchase a second, third or fourth property. The terms and conditions vary slightly depending on the type of property, its location, its price as well as the financial condition of the loan applicant. United Bank of India offers different types of housing loans to meet the needs of their customers.

Types of United Bank of India Home Loans:
 

  • United Housing Loan
  • United Smart Loan
  • United Housing Loan for Pensioners
  • United Affordable Housing Loan Scheme
1. United Housing Loan: Owning a home is a dream for many. However, given the sky-rocketing property prices, most people need financial help to afford the kind of property they want to live in. You can apply for a United Bank of India home loan for the below-mentioned purposes:
 
  • Purchase of a residential house or flat
  • Construction of a residential house or flat
  • Purchase of a land for residential purposes (followed by construction within a stipulated time)
  • Extension of an existing house or flat
  • Repair to the existing house or flat
  • Renovation of an existing house or flat
  • Furnishing a residential house
  • Purchase of a second house or flat
  • Construction of a second house or flat
  • Purchase of a third house or flat
  • For supplementary finance to complete a housing project financed by the employer
Borrowers can get a loan of up to Rs. 3 crores, Rs. 75 lakhs, Rs. 45 lakhs and Rs. 25 lakhs for property in metro, urban, semi-urban, and rural areas, respectively. The interest rate for the home loan to buy a third house or flat is higher than the rate applicable on the loan for the purchase of the first or second house or flat. The interest rate for the third unit is 0.65% plus the interest rate applicable for the first or second unit.
 
2. United Smart Loan: Similar to a top-up loan offered by a majority of banks, United Bank of India offers the United Smart Loan to its customers. Borrowers who have completed a minimum two years of the repayment schedule of the United Housing Loan are eligible to apply for the United Smart Loan. Customers can apply for a maximum of Rs. 5 lakhs under this loan scheme to purchase furniture or fixtures as well as for interior decoration of the house or flat. The maximum time to repay this loan is 5 years. The bank charges 1% processing fee (minimum Rs. 500) for this loan.
 
3. United Housing Loan – Pensioners: Most of the banks prefer to give home loans to individuals who are young and are far away from their retirement age. United Bank of India home loan dedicated to pensioners is called the United Housing Loan for Pensioners. Seniors can now secure a shelter post-retirement with the help of this loan since only a few banks and financial institutions offer home loans to people beyond the age of sixty.
 

They can apply this loan to:
 
  • Purchase a new house or flat
  • Construct a house or flat
  • Extend a self-occupied house or flat
  • Renovate a self-occupied house or flat
  • Repair a self-occupied house or flat
  • Furnish a self-occupied house or flat
The maximum age for seniors to avail this loan is 70 years and their minimum net pension must be Rs. 5,000.
 
4. United Affordable Housing Loan Scheme: If you dream of owning a home but do not have sufficient funds to make this dream a reality, you must take advantage of the United Affordable Housing Loan. United Bank of India offers this loan to borrowers from the Economically Weaker Section (EWS) or Low Income Group (LIG) of the society. However, the borrowers must not be availing any kind of loan as EWS (family income lower than Rs. 3 lakh) or LIG (family income between Rs. 3 lakh and Rs. 6 lakh) beneficiary from any other bank or financial institution before applying for the United Affordable Housing Loan.
 

They can apply for this housing loan to:
 
  • Construct a house (carpet area less than 30 and 60 square metres for EWS and LIG individuals respectively)
  • Construct a toilet, kitchen or extra room in their existing home
  • Repair or renovate their existing house (carpet area less than 30 and 60 square metres for EWS and LIG individuals respectively)
The United Affordable Housing Loan scheme applicants must also not own a house before applying for this loan.

United Bank of India Home Loan (United Housing Loan) Features

Salaried and self-employed individuals can avail United Housing Loan scheme to build their dream home whether they already own a home or not. In fact, the bank also provides loans to property owners who want to have multiple houses or flats at a great interest rate. A few of the important features of the United Bank of India home loans are listed here.
 

  • Loan Amount: For property buyers, United Bank of India offers a loan amount of up to Rs. 3 crore in metro areas, Rs. 75 lakhs in urban areas, Rs. 45 lakhs in semi-urban areas, and Rs. 25 lakhs in rural areas. Once the borrowers get the housing loan, they can also apply for a 20% top-up loan for furnishing. The maximum loan amount offered under this scheme to repair and extend the existing house is Rs. 15 lakhs and Rs. 10 lakhs, respectively.
     
  • Loan Tenure: Borrowers can repay their loans in up to 30 years or until they turn 70, whichever is earlier. In the case of a group or co-applicants, the tenure is decided on the basis of the age of the primary applicant.
     
  • Interest Rate: United Bank of India offers housing loan at Marginal Cost-based Lending Rate (MCLR) + 0.15%. The current rate is 9.60%.
     
  • Loan Margin: One of the biggest advantages of getting a United Bank of India home loan is the loan margin rate. It is one of the least margins that the banks and other financial institutions offer in the market and reduce the burden on the home loan borrower. For loans of Rs. 30 lakhs and below, the borrower has to pay only 10% of the total project cost and for Rs. 30 lakhs to Rs. 75 lakhs home loan, the borrower has to pay 20% while for loans above Rs. 75 lakhs, the borrower has to pay 25% of the total cost of the project.

United Bank of India Home Loan: Own Contribution Percentage for Borrowers
 

Loan Amount Loan Margin
Up to Rs. 30 lakhs 10%
Rs. 30 lakhs - Rs. 75 lakhs 20%
Above Rs. 75 lakhs 25%

 

  • Prepayment Charges: A lot of people take home loans when they want to buy a property and yet like to pay if off as fast as they can. It is only fair that banks and financial institutions offer the facility for the borrower to prepay their home loan without charging any extra fee. United Bank of India gives you the freedom to liquidate off your loan without levying any additional charges.
     
  • Eligibility Criteria: It is easy to get the United Housing Loan if you meet the simple eligibility criteria set by United Bank of India.
     
  • Applicants have to be in the age group of 21 to 58 years
  • Salaried individuals must be in permanent roles, and have been working for at least 2 years
  • Self-employed individuals should have a regular source of monthly income and the business should have been operational for at least 2 years
  • Individuals should have earnings more than the minimum income required for the loan
  • Applicants with a good credit score have more chance of getting the loan
     
  • Required Documents: For the United Bank of India Home Loan, you need to submit a few standard documents in addition to the signed and completely filled application form. These are:
     
  • ID Proof
  • Address Proof
  • Income Proof
  • Latest Bank Statement
  • Latest Income Tax Returns (ITR)

United Bank of India Home Loan: Features in Brief

Loan Amount Rs. 3 crores in metro locations
Rs. 75 lakhs in urban locations
Rs. 45 lakhs in semi-urban locations
Rs. 25 lakhs in rural locations
Interest Rate MCLR + 0.15%
Loan Tenure Up to 30 years or until the borrower turns 70, whichever is earlier
Loan Margin 10 % for loan up to Rs. 30 lakhs
20 % for loan of Rs. 30 lakhs to Rs. 75 lakhs
25 % for loan above Rs. 75 lakhs
Prepayment Charges Nil
Co-applicants Allowed
Processing Charges Nil