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Union Bank Home Loan Interest Rates 2021

Union Bank of India Housing Loan Interest Rate

Last Updated 11th Mar 2021

Current Union Bank of India Home loan interest rates for Apr 2021 starts at 8.25% p.a. for a maximum tenure of 30 years. Processing fee on its housing loans is Upto 0.50%, Maximum ₹ 15,000.

Loan AmountUnion Bank Repo Home Loan Rate
Upto ₹ 75 Lakh8.25%
₹ 75 Lakh - ₹ 1 Cr8.30%
₹ 1 Cr - ₹ 3 Cr8.30%
Above ₹ 3 Cr8.30%
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Union Bank of India Home Loan Interest Rates

Union Bank of India offers various products on home loan. Union Bank of India home loan can be used for the purchase of a flat, home construction loan, extension or improvement loan.

Features

  • Union Bank of India Home Loan Interest Rate starts from 8.25%.
  • Union Bank of India charges a processing fees of Upto 0.50%, Maximum ₹ 15,000.
  • Loan Tenure of Home Loan ranges from 5 years to 30 years.
  • Lowest EMI per lakh on home Loan from Union Bank of India is ₹ 751 per lakh offered at the lowest interest rate of 8.25% at the longest loan tenure of 30 years.
  • Union Bank of India allows prepayment of home loans with Nil charges on floating rate loans.

Union Bank of India Home Loan Rate

Current Union Bank of India home loan interest rates are in the range of 8.25% to 8.35%, with special discounted rates for specific categories of borrowers such as women borrowers for whom the bank offers the lowest interest rate of 8.25%. The table below gives the interest rates on various housing finance schemes of Union Bank of India.

Union Bank of India Home Loan Scheme Interest Rates
Union Bank Repo Home Loan8.25% - 8.35%

Union Bank of India Home Loan Charges

Union Bank of India Home Loan Processing Fee

The bank charges a minimum processing of ₹ 3,000. The processing fees is typically non-refundable and has to be paid at the time of loan application. In addition to Union Bank of India housing loan processing fees, the bank also charges certain technical and legal charges which are explained to the customer during the loan process and are payable once the loan application proceeds further.

Union Bank Home Loan Documents

Documents for Salaried employees

  • Filled up loan application form
  • 2 Passport Size Photo
  • ITR of last 2 years
  • Identity Proof - Passport/ Driving Licence/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Income Documents – 6 months payslip, 2 years Form 16, 6 months bank statement showing salary credit and any EMI debit
  • Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

Documents for Self-Employed

  • Filled up loan application form
  • 2 Passport Size Photo
  • Identity Proof - Passport/ Driving License/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Business proof such as VAT/ service tax registration, incorporation details in case of companies, business address proof, profit and loss account and balance sheets certified by CA, copy of partnership deed and proof of business existence and business profile
  • Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

Home Loan Union Bank Schemes

Union Bank of India offers customized schemes for specific customer segments designed to meet their loan requirements. Some of the popular products with their basic features are as follows:

Union Bank Repo Rate Linked Home Loan

  • This loan is available for individuals who want to buy a residential property through a home loan.
  • Existing home loan borrowers can also choose to transfer their loan under this scheme.
  • As per RBI guidelines, it is mandatory for all banks to link their loan interest rates with the repo rate.
  • The scheme is available for new borrowers as well as existing borrowers.
Key Loan Terms
  • Home loan available at the age of The minimum age required to avail the loan is 18 years, while the maximum age is 60 years.
  • Loan amount that you can borrow ranges from ₹ 30 Lakh to ₹ 5 Cr
  • Option to apply for a maximum ltv of 80% of value of the property
  • Housing loan for a maximum period of 30 years

Union Bank of India Pradhan Mantri Awas Yojana

The government of India has launched many affordable housing loan schemes to facilitate availing home loan at concessional rates to lower and middle-income groups. Some of the popular schemes are:

a) PMAY or Home Loan Subsidy Scheme: Launched in 2015 to provide houses to the homeless. You can apply for PMAY at Union Bank of India if you fulfil the eligibility criteria. Know more about PMAY Scheme

b) Pradhan Mantri Gramin Awas Yojana:  It focuses on homeless families and offers pucca houses with basic amenities.

c) DDA Housing Scheme: It aims to provide houses to low, middle, and high-income groups.

d) Tamil Nadu Housing Board Scheme: It started in 1961 to provide houses to varied income groups.

e) Mhada Lottery Scheme: It's a lottery scheme launched every year for buyers of varied income groups.

f) Rajiv Awas Yojana: Launched in 2009 with the aim of bringing illegal construction under the formal system and encouraging slum-free India.

Each of these schemes has its conditions with respect to eligibility, the amount of loan that can be borrowed, and the rate of interest.

Illustration on Union Bank of India Home Loan Interest Rate
Maximum Annual Percentage Rate (APR) 8.27% to 8.37%
Representative example of the total cost of the loan, including all applicable fees
Here is an illustration of the total cost of the loan:
  • Total amount borrowed: ₹ 1,00,000
  • Time period: 5 Years to 30 Years
  • Union Bank of India Home Loan Interest Rate: 8.25% to 8.35%
  • Processing Fee payable to: Upto ₹ 500
  • Fee payable to MyLoanCare: NIL
  • Total Monthly Cost – From ₹ 751 for 30 Years ₹ 1,00,000 loan at 8.25% (lowest rate, longest time period) to ₹ 2,044 for 5 Years ₹ 1,00,000 loan at 8.35% (highest rate, shortest time period). This is inclusive of principal repayment.
  • Annual Percentage Rate (APR) of charge including all applicable fees: 8.27% to 8.37%
  • Total cost payable over loan tenure: ₹ 22,878 for 5 Years loan to ₹ 1,70,957 for 30 Years loan

FAQs

What is Union Bank Home Loan interest rate?

Union Bank Home Loan interest rate ranges between 8.25% to 8.35%.Union Bank of India cuts Home Loan rates by 8.25% from 8.35%.

Why should I opt for balance transfer to Union Bank of India?

Union Bank of India offers competitive Home Loan rates with the best EMI of ₹ 751 per lakh availed at a low-interest rate of 8.25% for a maximum tenure of 30 years. If you are paying an EMI more than ₹ 751 per lakh, you should consider the option for a loan transfer to Union Bank of India from your existing bank. EMIs can be calculated through Union Bank of India Home Loan EMI calculators.

Do I get tax benefits on a Home Loan from Union Bank of India?

As per the Indian Income Tax Act of 1961, residents of India are eligible for tax benefits on the principal amount and interest components of a house finance under section 24 and section 80C of Income Tax Act.

What is the effect of part prepayments on Union Bank of India housing finance EMI ?

Part prepayments help you in reducing the outstanding amount of loan, which in turn will reduce the interest amount due. After making part payments, paying the same Home Loan EMI will increase your involvement towards the principal amount, which will help you in repaying the loan faster.

How to increase my eligibility on Union Bank of India housing loan?

If your spouse or family member is earning well, you can make your spouse or family member the co-applicant for your loan. The combination of both of your income will help you in increasing your eligibility to get a loan.

  • Union Bank of India offers RBI Repo Rate linked Home Loan which starts at 8.25%. Current Repo Rate of RBI is 4.00%. Bank adds a mark up on RBI’s repo rate which is called Union Bank of India Repo Rate Linked Lending Rate (RLLR). RLLR can change with change in Repo Rate. An additional spread is applied on RLLR which remains the same throughout the tenure. Bank applies a premium of 4.25% to the Repo Rate to arrive at this rate.
  • When RBI increases rates, the bank may increase its Repo Rate linked Home Loan rates by the same basis points for all existing and new Home Loans. When RBI cuts interest rates, the Union Bank Home Loan interest rates will reduce the interest rates by the same basis points, which will be effective from 1st day of the following month.
  • For instance, if RBI slashes Repo Rate by 0.15%, then Union Bank of India Repo Rate linked Home Loan rate will cut from 8.25% to 8.1%.

What is the current Union Bank of India Home Loan rate?

The current Union Bank Home Loan rate starts from 8.25% with a processing fee of Upto 0.50%, Maximum ₹ 15,000


Union Bank Home Loan News - Apr 2021
  • 2020-12-03 : Union Bank completes integration of all branches of Corporation Bank
    Union Bank of India has completed the IT integration after which all the branches of former Corporation Bank have come fully under its fold as part of the amalgamation exercise. Union Bank offers retail loans like home, personal, car, two-wheeler, gold loan along with business and mudra loans.
  • 2020-11-10 : Union Bank of India net profit ₹517 cr in Q2
    Union Bank of India reported a net profit of Rs 517 crore in the September quarter as against a loss of Rs 994 crore in the same period last year. The net interest income (NII) rose 6.05% to Rs 6,293 crore on the back of retail loans like home, personal, gold, two-wheeler and car loan along with business and mudra loans. Further, the net interest margin (NIM) dipped to 2.51% in Q2FY21 from 2.68% in the year-ago quarter.
  • 2020-08-24 : Union Bank of India posted Rs. 340.95 crore net profit in Q1FY21
    Union Bank of India posted a net profit of Rs.340.95 crores for the period ended June 30, 2020, as against a net loss of Rs.2713.03 crores for the period ended March 31, 2020. Further, the Bank reported total income of Rs.20487.01 crores bolstered by retail loans like home, personal, car, two-wheeler and gold loan along with business and mudra loans.
  • 2020-02-12 : Union Bank posted a Q3 profit of Rs. 575 Crores
    Union Bank reported an increase in Q3 profit to Rs. 575 crores on the back of higher recoveries. Net interest income grew by 23% year-on-year basis at Rs. 3,134 crores against Rs. 2,493 crores in the year-ago period driven by an increase in Home Loan and Personal Loan.
  • 2019-12-12 : Union Bank of India cuts MCLR by up to 10 bps
    Union Bank of India has revised its Marginal Cost of Funds Based Lending Rate (MCLR) for December month. For 6-months, the MCLR stands at 8.05% as compared to 8.10% earlier. For 1 year, the rate has been revised to 8.20% from 8.25% earlier. The cut in rates is supposed to make home loan and mortgage loan rates cheaper. The revised rates have been in effect from December 11, 2019.
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