Union Bank Of India Home Loan
Discover home loan options with Union Bank Of India, featuring competitive interest rates starting at 8.50% p.a. and repayment tenures up to 30 years. Borrow up to ₹5 crore for various property needs, including plot purchases, home construction, renovations, and extensions. Tailored solutions are available for NRIs, and those seeking top-up loans or balance transfer services for enhanced financial management.
Rate of Interest
8.50%-10.75%
Loan to Value
80% - 90%
Loan Tenure
Max 30 years
Max Loan Amount
Upto 5cr
| Rate of Interest | 8.50%-10.75% |
| Loan Tenure | Max 30 years |
| Age | Salaried/ Self Employed : 18- 75 years |
| Profession | Salaried/Self Employed |
| Income | Metro Cities : 20,000/Month & Above Other Cities : 15,000/Month & Above |
| Nationality | Resident Indian/ NRI |
| Max Loan Amount | Upto 5cr |
| Plot Purchase | |
| Independent Building | |
| Apartment | |
| Resale Property | |
| New Construction | |
| LTV | 80% - 90% |
| Home Loan | |
| Plot Cum Construction Loan | |
| Balance Transfer | |
| Overdraft Facility | |
| Top Up Facility | |
| Other Offerings | Business Loan |
| Processing Fees | 0.50% of the loan amount subject to a maximum of Rs. 15000 plus GST |
| Other Charges | Valuation/Legal/Stamp Duty/CERSAI/Memorandum registration charges as per actual. |
| Overdraft Facilities | - |
| Highlights | • Zero processing charges • Attractive interest rates • Dedicated Customer Support • Fast Approval and Disbursement • Flexible Policies |
*Disclaimer: The interest rate, maximum tenure, and other charges are subject to change, it's advisable to check with our experts for the latest information.
| Loan Amount | ₹ 50,00,000 |
| Loan Tenure | 20 years |
| Rate of Interest | 8.50%-10.75% |
| Monthly EMI | ₹ 43,391 - ₹ NaN |
Union Bank Of India Home Loan Highlights
The Union Bank Of India home loan offers flexible terms, competitive interest rates, and high loan amounts, making it an ideal choice for aspiring homeowners.
| Category | Highlights |
|---|---|
| Interest Rate | 8.50% p.a. onwards |
| Loan Amount | Maximum Amount: Rs. 5 Crores |
| Loan Tenure | 30 Years |
| Processing Charges | 0.50% of the loan amount |
| Prepayment Charges | 2.00% on average balance in last 12 months |
Union Bank Of India Home Loan Interest Rates
Union Bank Of India provides home loans with interest rates that reflect current market conditions and are influenced by factors like your CIBIL score. You can choose a fixed rate or a floating rate, according to your financial situation.
Union Bank of India Home Loan Interest Rate Based on CIBIL Score
| CIBIL Score | ROI for Salaried/ Self-Employed |
|---|---|
| 800 & above | 8.35 % onwards |
| 750 to 799 | 8.50 % onwards |
| 700 to 749 | 9.15 % onwards |
| 650 to 699 | 9.45 % onwards |
| 600 to 649 | 10.25 % onwards |
| Below 600 | 10.75 % onwards |
Compare Home Loan Interest Rate Offered by Top Banks
Comparing home loan interest rates from leading banks helps you identify affordable financing options. Get a clearer view of each lender’s terms and choose the best home loan that matches your budget and financial goals.
| Bank | Up to Rs. 30 Lakh | Above Rs. 30 Lakh to Rs. 75 Lakh | Above Rs. 75 Lakh |
|---|---|---|---|
| SBI Bank | 8.50% p.a. onwards | 8.5% p.a. onwards | 8.50% p.a. onwards |
| HDFC Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
| LIC Bank | 8.50% – 10.35% p.a. | 8.50% – 10.55% p.a. | 8.50% – 10.75% p.a. |
| ICICI Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
| Kotak Mahindra Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
| Punjab National Bank | 8.50% – 11.05% p.a. | 8.50% – 11.05% p.a. | 8.50% – 11.05% p.a. |
| Bank Of Baroda | 8.40% – 10.65% p.a. | 8.40% – 10.65% p.a. | 8.40% – 10.90% p.a. |
| Bajaj Housing Finance | 8.50% p.a. onwards | 8.50% p.a. onwards | 8.50% p.a. onwards |
| Axis Bank | 8.75%-10.30% p.a. | 8.75%-10.30% p.a. | 8.75%-10.30% p.a. |
| Bank of India | 8.40% p.a onwards | 8.40% p.a onwards | 8.40% p.a onwards |
| TATA Capital | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
Check Out: Union Bank of India vs SBI vs HDFC
Union Bank Of India Home Loan Processing Fees
Union Bank Of India takes processing fees to cover the cost of reviewing your documents and assessing your loan application.
| Category | Processing Fees |
|---|---|
| For Individuals | 0.50% of the loan amount |
Union Bank Of India: Top Home Loan Schemes
Union Bank Of India provides a variety of home loan schemes tailored to meet different needs. These include Home Loans for property purchases, Top-Up Loans for additional financial needs, loans for NRIs and HNIs, Overdraft (OD) Loans for flexible funding, and loans for Home Renovation or Extensions.
Union Bank Of India Home Loan
The Union Bank Of India Home Loan offers flexible financing and expert support to make your dream home a reality. Enjoy competitive interest rates, hassle-free paperwork, and personalized assistance throughout the process. With customized repayment options and continuous guidance, owning your dream home has never been easier.
Highlights
| Tenure | 30 years |
| Rate of Interest | 8.50% p.a. onwards |
| Moratorium Period | 36 Months |
Note: A moratorium period is a temporary pause that allows you to skip loan repayments for a set time.
Eligibility Criteria
| Age | 18 years – 75 years |
| Nationality | Indian/ NRI/ PIO |
| Profession | Individuals: Salaried/ Self EmployedNon Individuals: Association of Individuals/ HUF/ Corporates |
Note: Trust is not eligible under the scheme.
Must Read: Find Out How Much You Can Save with a Home Loan Overdraft
Union Bank Of India Green Home Loan
Encouraging sustainable living, this initiative supports housing projects certified by the Indian Green Building Council (IGBC) or other approved rating agencies, promoting eco-friendly construction practices through recognized certification standards like Certified, Silver, Gold, and Platinum.
Highlights
| Tenure | 30 years |
| Rate of Interest | 8.50% p.a. onwards |
| Moratorium Period | 36 Months |
Note: A moratorium period is a temporary pause that allows you to skip loan repayments for a set time.
Eligibility Criteria
| Age | 18 years – 75 years |
| Nationality | Indian/ NRI/ PIO |
| Profession | Individuals: Salaried/ Self Employed Non Individuals: Association of Individuals/ HUF/ Corporates |
Union Bank Of India Union Awas Home Loan
A special home loan scheme designed to facilitate the purchase, construction, repair, improvement, or extension of residential properties in semi-urban and rural areas, fostering affordable housing development in underserved regions.
Highlights
| Tenure | 30 years |
| Rate of Interest | 8.50% p.a. onwards |
| Moratorium Period | 36 Months |
Note: A moratorium period is a temporary pause that allows you to skip loan repayments for a set time.
Eligibility Criteria
| Age | 18 years – 75 years |
| Nationality | Indian/ NRI/ PIO |
| Profession | Permanent employees of schools/colleges/ Farmers having regular source of income not less than Rs.48,000 per annum. |
| Place of Residence | Residents of rural and semi urban areas |
Union Bank Of India Plot Loan
A tailored loan scheme for purchasing residential plots or sites from government development authorities, statutory bodies, or approved private entities, ensuring compliance with state approvals, RERA regulations, and eligibility for registration in both direct and resale transactions.
Highlights
| Tenure | 30 years |
| Rate of Interest | 8.50% p.a. onwards |
| Moratorium Period | 36 Months |
| Processing Fees | 0.50% of the loan amount |
Note: A moratorium period is a temporary pause that allows you to skip loan repayments for a set time.
Eligibility Criteria
| Age | 18 years – 60 years |
| Nationality | Indian/ NRI/ PIO |
| Place of Residence | Residents of rural and semi urban areas |
Union Bank Of India Smart Save (OD)
A flexible housing loan scheme where borrowers can reduce their interest burden by depositing surplus funds beyond scheduled EMIs, with the unique benefit of withdrawing the surplus amount when needed, all while maintaining a minimum outstanding balance of 10% of the scheduled amount.
Highlights
| Tenure | 30 years |
| Rate of Interest | 8.50% p.a. onwards |
| Moratorium Period | 36 Months |
| Processing Fees | 0.50% of the loan amount |
Note: A moratorium period is a temporary pause that allows you to skip loan repayments for a set time.
Eligibility Criteria
| Age | 18 years – 60 years |
| Nationality | Indian/ NRI/ PIO |
| Place of Residence | Residents of rural and semi urban areas |
Union Bank Of India Home Loan EMI Calculator
EMI is a fixed monthly amount that you are required to pay to the bank until your home loan is fully repaid.
Calculate your home loan EMI and estimate your monthly repayments. You can adjust loan amounts and tenures, and make well-informed decisions before committing to the bank.
How to Calculate Union Bank Of India Home Loan EMI?
Home loan EMI is calculated using a mathematical equation:
EMI = [P*r*(1+r)^n]/ [(1+r)^n -1]
Where:
P = Principal (loan amount borrowed)
r = Interest rate
n = Total number of monthly installments (loan tenure in years*12)
Example: Case Study | Home Loan EMI 20 vs 30 Years
Aman, a young professional living in Mumbai, has just found his dream home – a spacious 3BHK apartment near his workplace. He decides to take a home loan from the Union Bank Of India to finance the purchase.
Before signing the loan agreement, Aman wants a clear picture of how much he’ll need to pay every month. To figure this out, he calculates his EMI using the loan’s details.
Home Loan Amount: ₹50,00,000 (₹50 lakh)
Rate of Interest: 8.35% p.a.
But, he is considering two options:
- A 20-Year Loan (240 months)
- A 30-Year Loan (360 months)
Longer Tenure = Lower EMI = Higher Interest Payments
Let’s apply the EMI formula to both scenarios:
| Home Loan Amount | Interest Rate | Tenure | EMI | Interest Payment | Total Payment | |
|---|---|---|---|---|---|---|
| Scenario 1 | ₹50,00,000 | 8.35% p.a. | 20 years | ₹42,918 | ₹53,00,236 | ₹ 1,03,00,236 |
| Scenario 2 | ₹50,00,000 | 8.35% p.a. | 30 years | ₹37,915 | ₹86,49,548 | ₹ 1,36,49,548 |
Which Option Is Better and Why?
If Your Goal Is Long-Term Savings: Opt for the 20-year loan.
- Although the monthly EMI is higher, your total interest outflow is much lower.
- Over time, you save more than ₹33 lakh in interest compared to the 30-year option.
If Your Goal Is Immediate Affordability: Choose the 30-year loan.
- However, this comes at a significant long-term cost, as you’ll end up paying much more in total interest over the life of the loan.
- You’ll pay a lower EMI each month, easing short-term financial burden.
Get the best Home Loan interest rates tailored for you
If you’re looking to choose the right home loan perfectly made according to your needs, then book a call with our experts here.
Union Bank Of India Home Loan Eligibility Criteria
Before applying for a home loan, it’s essential to understand the eligibility criteria. Here’s the essential eligibility checklist set by Union Bank Of India:
| Criteria | Requirements |
|---|---|
| Age | 18 years – 75 years |
| Nationality | Indian/ NRI/ PIO |
Note: Trust is not eligible under the scheme.
Check Out: Union Bank Of India EMI Calculator
Documents Required For Union Bank Of India Home Loans
When applying for a home loan with the Union Bank Of India, you will need to provide specific documents that verify your identity, income, and property details. Below is a detailed list:
General Documents
| Category | Documents Required |
|---|---|
| Proof of Identity | PAN Card/ Driver’s License / Voter ID / Passport / Aadhar Card |
| Proof of Address | Driver’s License / Ration Card / Voter ID / Passport / Aadhar Card / Registered Rent Agreement |
Based on Employment Type
| Employment Type | Required Documents |
|---|---|
| Salaried Individuals | – Latest 3 months salary slips and Form 16. |
| – Appointment/promotion letters. | |
| – Employee Identity Card. | |
| – 6 months bank account statement. | |
| Self-Employed Individuals | – Balance Sheet & Profit & Loss Account for the last 2 years. |
| – Income Tax Returns for the last 2 years. | |
| – Business proof (licenses/registrations). | |
| – 12 months individual bank account statement. | |
| Farmers/Agriculturist | – Income proof from local authorities (Talati’s/Gram Sevak). |
| – Land revenue records (Form 6, 7/12, 8A). |
Union Bank Of India Home Loan Tenure
Home loan tenure refers to the duration over which the borrower agrees to repay the loan amount along with interest. Union Bank Of India offers flexible tenure options to accommodate varying financial situations and preferences. Here’s an overview:
- Minimum Tenure: 5 years
- Maximum Tenure: 30 years
Read More: How to Reduce Your Home Loan Tenure?
Impact of Home Loan Tenure on EMIs
- EMI: Longer tenure results in lower monthly EMIs; shorter tenure leads to higher EMIs.
- Interest Payments: Extended tenure increases the total interest, while a reduced tenure decreases it.
- Budget: Longer tenure eases monthly budget strain, whereas shorter tenure requires higher income stability
- Cash Flow: Longer tenure frees up cash for other investments, while shorter tenure ties up more funds in EMIs.
How to Choose the Best Union Bank Of India Home Loan Tenure?
- Assess income, expenses, and job security for consistent repayments.
- Opt for shorter tenures to reduce overall interest costs.
- Choose EMIs that fit comfortably within your budget.
- Calculate total interest to minimize long-term costs.
- Check for prepayment options without heavy penalties.
- Align tenure with long-term financial goals.
- Plan to settle the loan before retirement.
- Factor in potential salary growth for shorter tenures.
- Balance EMI affordability with loan tenure.
How To Apply For a Home Loan From Union Bank Of India ?
- Check Eligibility Criteria: Verify age, income, credit score, and employment status.
- Calculate Loan Amount and EMI: Use Union Bank Of India’s online calculator to determine affordable loan amounts and monthly installments.
- Gather Required Documents: Collect identity proof, address proof, income statements, and property-related documents.
- Choose Application Method: Apply online through Union Bank Of India’s website or visit a nearby branch in person.
- Submit the Application: Complete the application form accurately and attach all necessary documents.
- Loan Processing and Verification: The bank reviews your application, verifies documents, and conducts a credit appraisal.
- Property Valuation and Legal Checks: Union Bank Of India assesses the property’s market value and performs legal due diligence.
- Receive Approval and Sanction Letter: Upon successful verification, you receive a loan approval and sanction letter detailing terms.
- Sign the Agreement: Review and sign the loan agreement, agreeing to the specified terms and conditions.
- Disbursement of Funds: The approved loan amount is transferred to your account or directly to the property seller.
- Complete Post-Disbursement Formalities: Finalize any remaining documentation and set up repayment methods for EMIs.
Read More: Home Loans in Bangalore
Union Bank Of India Home Loan: Minimum and Maximum Loan Amount
Union Bank Of India offers home loans that cater to various financial situations. From first-time buyers needing a smaller loan to those looking to invest in premium real estate, knowing the minimum and maximum amounts available can simplify your search.
| Home Loan Types | Maximum and Minimum Loan Amount |
|---|---|
| Union Home Loan | 90% of the property value |
| Union Green Home Loan | 90% of the property value |
| Union Awas | 10% of the total cost of the purchase/ construction. 20% of total cost of the repairs/improvement. |
| Union Plot Loan | Up to 80% of the property value |
| Union Smart Save | 90% of the property value |
Union Bank Of India Customer Care Details
To facilitate effective communication with customers, Union Bank Of India offers various channels for support.
| Contact Method | Details |
|---|---|
| Toll Free Number | 1800 208 2244 / 1800 425 1515 /1800 425 3555 |
| Call back Facility for NRI Customers | +91848484845 |
| Dedicated Helpline for reporting fraud/disputed transactions | Dedicated Helpline for reporting fraud/disputed transactions |
| Website | Union Bank Of India Home Loan |
Union Bank Of India Home Loan Centers Near You
Finding the right support when applying for a home loan is crucial to making your homeownership dreams a reality. Union Bank Of India has multiple home loan centers nationwide to provide you with convenient access to expert advice and personalized services.
Check out the nearest Union Bank Of India branch using our branch locator tool.
Union Bank Of India Home Loan Approval and Disbursal
Union Bank Of India is committed to processing home loan applications with utmost efficiency. Typically, the entire approval process is completed within 15 to 30 working days from the date of application submission.
However, this timeline may vary based on several key factors:
- Completeness of documents
- Property type and location
- Applicant’s financial profile and credit score
Union Bank Of India Home Loan Disbursement Process
Union Bank Of India ensures a compliant and efficient home loan disbursement through a three-stage process: Application, Sanction, and Disbursement.
1. Application for Home Loan
Applicants are required to complete the home loan application form, providing necessary personal, income, and property documents and details.
2. Home Loan Sanction
Upon submission, Union Bank Of India reviews the application and documents. Legal and technical experts assess the property’s compliance and condition.
3. Home Loan Disbursement
After receiving the sanction letter, the borrower is required to complete the down payment and submit final property documents for loan disbursement.
Types of Disbursement
- Full Disbursement: Entire loan amount released if the property is fully constructed
- Partial Disbursement: Loan disbursed in stages based on construction progress for under-construction properties
How to Maximize the Chances of Union Bank Of India Home Loan Approval?
- Maintain a high credit score
- Showcase strong financial stability
- Reduce existing debt obligations
- Provide complete and accurate documentation
- Pay sufficient down payment
- Choose property in approved locations
- Maintain consistent employment history
- Avoid multiple loan applications simultaneously
- Submit clear and legal property documents
- Ensure proper property valuation
- Keep income tax returns up to date
- Maintain low credit utilization ratio
Union Bank Of India Home Loan Insurance
Union Bank Of India offers home loan insurance to protect you and your family from unexpected events. This insurance is included in your home loan package and is considered as a home loan component.
Is Home Loan Insurance Mandatory?
Although not legally mandated, Union Bank Of India makes it mandatory for its customers to obtain a home loan insurance.
Benefits of Opting a Home Loan Insurance Premium
- Financial Security: Ensures loan repayment during unforeseen events.
- Comprehensive Protection: Covers critical illness, accidents, and death.
- Joint Borrower Coverage: Protects both borrowers under one policy.
- Reduced Financial Stress: Lessens financial burden on dependents.
- Tax Benefits: Possible tax deductions on premium payments.
- Peace of Mind: Guarantees loan liability coverage in emergencies.
Union Bank Of India Home Loan Tax Benefits
Home loans offer significant tax benefits under the Income Tax Act, 1961. These benefits apply to both the principal amount and interest paid, making home loans more cost-effective.
| Section | Deduction Type | Maximum Deduction Amount | Conditions |
|---|---|---|---|
| 80C | Principal Repayment of Home Loan | ₹1.5 Lakh per annum | The house property must not be sold within five years of possession. |
| 80C | Payment of Stamp Duty | ₹1.5 Lakh per annum | These expenses can only be claimed in the year they are incurred. |
| 24b | Interest Payment on Home Loan | ₹2 Lakh per annum | The loan must be taken for purchasing or constructing a house. If constructing a house, the construction must be completed within five years from the end of the financial year in which the loan was taken. If the property is let out (rented), there is no cap on the interest deduction under Section 24(b). This allows property owners renting out their property to claim full interest payments as a deduction. |
Note: Section 80C also covers other investments like Public Provident Fund (PPF), Equity-Linked Savings Scheme (ELSS), and more, up to a combined total limit of ₹1.5 lakh.
1. Section 24B – Deduction on Home Loan Interest
What It Is:
- Allows you to claim a deduction on the interest paid on your home loan.
Benefits:
- Self-Occupied Property: Deduct up to ₹2 lakh per year on interest payments.
- Rented Property: No upper limit on the interest amount you can claim.
Example
| Category | Amount |
|---|---|
| Loan Amount | Rs. 70,00,000 |
| Interest Payable Per Year | Rs. 4 Lakhs |
| Tax Deduction | Rs. 2 Lakhs/ Year |
| Tax Bracket | 30% |
| Tax Benefits per Year | Rs. 66,000 |
2. Section 80C – Deduction on Principal Repayment
What It Is:
- Allows deduction on the principal portion of your home loan repayments, up to ₹1.5 lakh per year.
Benefits:
- Reduces your taxable income by the principal amount repaid.
- Also includes stamp duty and registration charges (one-time claim in the year incurred).
Example
| Category | Amount |
|---|---|
| Loan Amount | Rs. 75,00,000 |
| Principal Payable Per Year | Rs. 3.5 Lakhs |
| Tax Deduction | Rs. 1.5 Lakhs per Year |
| Tax Bracket | 30% |
| Tax Benefits per Year | 50,000 |
Total Tax Benefits (Section 24B + Section 80C = Rs. 1.16 Lakhs/ Year
3. Joint Home Loans – Double the Benefits
What It Is:
- When two or more people take a joint home loan and are co-owners of the property.
Benefits:
- Section 24B: Each co-borrower can claim up to ₹2 lakh on interest.
- Section 80C: Each can claim up to ₹1.5 lakh on principal repayment.
- Total Tax Savings: Potentially ₹1.05 lakh per person per year (at 30% tax rate).
Who is Eligible to be a Co-Applicant?
- Father/ Mother
- Unmarried Daughter
- Siblings
- Husband/ Wife
(Minors cannot be considered as co-applicants for a Home Loan)
Example
| Category | Co Applicant 1 | Co Applicant 2 |
|---|---|---|
| Tax Deduction under 24B | Rs. 2 Lakhs/ Year | Rs. 2 Lakhs/ Year |
| Tax Deduction under 80C | Rs. 1.5 Lakhs/ Year | Rs. 1.5 Lakhs/ Year |
| Tax Deductions/ Year | Rs. 3.5 Lakhs/ Year | Rs. 3.5 Lakhs/ Year |
| Tax Bracket | 30% | 30% |
| Tax Benefits | Rs. 1.16 Lakhs/ Year | Rs. 1.16 Lakhs/ Year |
When you opt for a co-applicant on your home loan, the savings can be substantial due to the ability to claim tax deductions separately. For example, with a co-applicant, the total tax savings can amount to ₹2.32 lakhs annually. Here’s how it works:
- EMI Paid per Year: ₹60,000 x 12 = ₹7,20,000
- Money Saved through Tax Deductions: ₹2,32,000
- Net Money Paid after Deductions: ₹7,20,000 – ₹2,32,000 = ₹4.88 lakhs
By utilising this tax benefit, you effectively lower your financial outflow, paying only ₹4.88 lakhs per year instead of the full ₹7.20 lakhs.
Read More: Stamp Duty and Registration Charges in Bihar
Why Should You Choose Union Bank Of India For Your Home Loan?
- Benefit from the lowest home loan interest rates in the market, ensuring affordable repayments.
- Access Overdraft facility on your entire loan or outstanding balance at your home loan rate.
- Free accidental insurance coverage up to ₹5 Crores.
- Get instant Top-Up Loans without a separate application.
- Option to adjust your EMI to match your financial situation, if you need lower initial payments.
- Simplified paperwork for a swift approval process.
- Transparent terms with no hidden charges.
How Credit Dharma Simplifies The Home Loan Journey?
Buying a home is a big step. Getting a home loan can be hard, but we make it easy. At Credit Dharma, we make this possible by offering lowest guaranteed interest rates that keep your monthly payments manageable, allowing you to enjoy more of what truly matters.
But that is not it. We offer:
- Guaranteed up to 100% funding
- Receive lifetime assistance and expert guidance long after your loan is approved.
- Enjoy a fully digital process with minimal paperwork
- Get your loan approved within just 1-2 weeks.
Frequently Asked Questions
Union Bank of India’s home loan interest rates start from 8.50% per annum, varying based on factors like credit score, loan amount, and loan-to-value ratio.
Union Bank of India’s home loan interest rates start from 8.50% per annum, varying based on factors like credit score, loan amount, and loan-to-value ratio.
Union Bank of India is a government-owned bank, established in 1919, and is among India’s leading public sector banks.