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United Bank Home Loan Interest Rates 2020

United Bank of India Housing Loan Interest Rate

Last Updated 01st Sep 2020

Current United Bank of India Home loan interest rates for Sep 2020 starts at 8.00% p.a. for a maximum tenure of 30 years. Processing fee on its housing loans is Upto 0.59%, Minimum ₹ 1,180 and Maximum ₹ 11,800.

Loan AmountUnited Bank Repo Rate Home Loan Rate
Upto ₹ 30 Lakh8.00%
₹ 30 Lakh - ₹ 75 Lakh8.00%
₹ 75 Lakh - ₹ 1 Cr8.15%
Above ₹ 1 Cr8.15%

United Bank of India has merged into Punjab National Bank on April 1, 2020. The interest rates of Punjab National Bank will now be applicable on United Bank of India Home Loan.

United Bank of India Home Loan Interest Rates

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

Features

  • United Bank of India Home Loan Interest Rate starts from 8.00%.
  • United Bank of India charges a processing fees of Upto 0.59%, Minimum ₹ 1,180 and Maximum ₹ 11,800.
  • Loan Tenure of Home Loan ranges from 5 years to 30 years.
  • Lowest EMI per lakh on home Loan from United Bank of India is ₹ 734 per lakh offered at the lowest interest rate of 8.00% at the longest loan tenure of 30 years.
  • United Bank of India allows prepayment of home loans with Nil charges on floating rate loans.
  • United Bank of India has an average customer rating of 3.5/5.0 from customers who have taken a home loan from the bank.

United Bank of India Home Loan Rate

Current United Bank of India home loan interest rates are in the range of 8.00% to 8.15%, with special discounted rates for specific categories of borrowers such as women borrowers for whom the bank offers the lowest interest rate of 8.00%. The table below gives the interest rates on various housing finance schemes of United Bank of India.

United Bank of India Home Loan Scheme Interest Rates
United Bank Repo Rate Home Loan8.00% - 8.15%

United Bank of India Bank Home Loan Charges

United Bank of India Home Loan Processing Fee

United Bank of India home loan processing charges are upto 0.59% of the loan amount from its home loan customers to cover its expenses of conducting credit appraisal and technical evaluation of property. The bank charges a minimum processing of ₹ 1,180 and has capped the maximum processing fees at ₹ 11,800. The processing fees is typically non-refundable and has to be paid at the time of loan application. In addition to United 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.

United Bank of India Home Loan Prepayment

United Bank of India charges Nil fees on prepayment of floating rate loans, as per RBI prepayment rules which prohibit banks from charging prepayment penalty on loans with floating rate of interest. Hence, it becomes extremely easy to balance transfer your loan from bank to another. If you decide to foreclose or transfer your housing loan to another bank, you need to apply for the same to United Bank of India for a foreclosure while processing your new home loan application with the new bank. However, if you have taken a fixed rate home loan from United Bank of India, you will need to pay a foreclosure fees to close your account or transferring it another bank as per your loan agreement with United Bank of India.

United 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 United Bank Schemes

United 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:

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 ₹ 15 Lakh to ₹ 3 Cr
  • Option to apply for a maximum ltv of 90% of value of the property
  • Housing loan for a maximum period of 30 years

United 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 United 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 United Bank of India Home Loan Interest Rate
Maximum Annual Percentage Rate (APR)8% to 8.15%
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 Lakh
  • Time period: 5 years to 30 years
  • United Bank of India Home Loan Interest Rate: 8.00% to 8.15%
  • Processing Fee payable to United Bank of India: Upto ₹ 10,000. Current offer for processing fee is Upto 0.59%
  • Fee payable to MyLoanCare: NIL
  • Total Monthly Cost – From ₹ 734 for a 30 years ₹ 1 Lakh loan at 8.00% (lowest rate, longest time period) to ₹ 2,035 for a 5 years ₹ 1 Lakh loan at 8.15% (highest rate, shortest time period). This is inclusive of principal repayment.
  • Total cost payable over loan tenure: ₹ 32,090 for 5 years loan to ₹ 1.74 Lakh for 30 years loan

United Bank of India’s terms and conditions as per loan agreement applicable. Short term loans/ pay day loans not available; minimum loan tenure: 5 years. Rate of interest depends upon income, job stability, loan amount, CIBIL score, credit profile, existing obligations, verification and other factors. Credit at sole discretion of United Bank of India.

FAQs

What is United Bank Home Loan interest rate?

United Bank Home Loan interest rate ranges between 8.00% to 8.15%.

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

United Bank of India offers competitive Home Loan rates with the best EMI of ₹ 734 per lakh availed at a low-interest rate of 8.00% for a maximum tenure of 30 years. If you are paying an EMI more than ₹ 734 per lakh, you should consider the option for a loan transfer to United Bank of India from your existing bank. EMIs can be calculated through United Bank of India Home Loan EMI calculators.

Do I get tax benefits on a Home Loan from United 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 United 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 United 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.

How will United Bank of India housing loan rate of interest change in the future?

  • United Bank of India offers RBI Repo Rate linked Home Loan which starts at 8.00%. Current Repo Rate of RBI is 4.00%. Bank adds a mark up on RBI’s repo rate which is called United 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% 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 United 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 United Bank of India Repo Rate linked Home Loan rate will cut from 8.00% to 7.85%.

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

The current United Bank Home Loan rate starts from 8.00% with a processing fee of Upto 0.59%, Minimum ₹ 1,180 and Maximum ₹ 11,800

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United Bank of India Home Loan News - Sep 2020
  • 2019-07-19 : United Bank of India loans to get cheaper, as lender reduces MCLR rates by 5 basis points
    United Bank of India has cut its Marginal Cost of Funds Based Lending Rate (MCLR) by 5 basis points. The move is supposed to make customer loans like home loans and mortgage loans cheaper. The lender has reduced a one-year MCLR rate to 8.70% as against 8.75% earlier. For one-month and three months, the rate has been revised to 8.25% and 8.40% respectively, which is also down by 5 basis points from earlier rates. The rates are effective from July 17, 2019.
  • 2019-04-18 : United Bank of India cuts MCLR by 5 basis points
    United Bank of India has reduced its Marginal Cost of Funds Based Lending Rate (MCLR) by 5 basis points across all tenors for the month of April. The move is supposed to make home loans and mortgage loans cheaper. Now for 3 months, the MCLR stands at 8.45% as compared to 8.50% earlier while for 6 months, the rate has been revised to 8.55% from 8.60% respectively and for 1 year the rate now stands at 8.80% from 8.85% earlier. The revised rates are effective from April 18, 2019.
  • 2019-01-21 : United Bank of India partners with Star Health & Allied Insurance Company
    Public sector lender, United Bank of India (UBI) has announced its partnership with Star Health & Allied Insurance Company that would offer third-party health cover to its customers. In this way, the lender has become a corporate agent of the health insurer. This arrangement would help the bank boost its fee income. In addition to this, the bank is also planning to boost its home loan portfolio this year.
  • 2018-09-14 : United Bank of India shoot up Floating Home Loan rates by 5bps
    United Bank of India has increased its floating interest Rate on the home loan by 5 basis points. The new rate for the Home loan now stands at 8.65%, which was 8.60% earlier. These rates are currently effective. There is no change in the processing fees.
  • 2018-08-21 : United Bank of India reports Q1: net loss widens to Rs 389 crore
    United Bank of India announced Q1 result. Its net loss widened to Rs 389 crores in the first quarter ended June against a net loss of Rs 211 crore a year ago. Its overall profitability was affected due to a spike in mark-to-market provisioning by 195.78% year on year due to an “adverse market scenario”. Gross non-performing assets (NPAs) declined 8.35% q-o-q to Rs 15169 crore from Rs 16552 crore a year ago.
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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