Union Bank Loan Against Property Eligibility

Last Updated 10th Feb 2018

Union Bank of India Loan Against Property Calculator India Feb 2018

Eligibility Criteria Salaried Self Employed
Age of Eligible Borrower 18 - 60 years 18 - 70 years
Maximum Loan Tenure 12 years 12 years
Loan as percent of Property Value Upto 50% Upto 50%
Eligible property Self occupied/ rented/ vacant Residential Property, Commercial Property Self occupied/ rented/ vacant Residential Property, Commercial Property
Loan Against Property Eligibility Calculator
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Union Bank of India loan against property eligibility based on age
  • Age: Age plays a crucial role in determining your eligibility for a mortgage loan. One has to be of atleast 21 years of age to apply for a property loan. The maximum age may vary from 65 years to 70 years depending on your source of income. Age also determines the tenure and EMI of the loan. The longer the tenure, the lower will be the EMIs. However, the longer the tenure, you end up paying more interest in absolute terms. The maximum tenure of loan that you may be eligible for will be as follows:
Your current age Max tenure for salaried Max tenure for self employed
25 Years 15 Years 15 Years
30 Years 15 Years 15 Years
35 Years 15 Years 15 Years
40 Years 15 Years 15 Years
45 Years 15 Years 15 Years
50 Years 15 Years 15 Years
60 years 10 years 10 years

Union Bank of India Mortgage loan eligibility based on income

  • Net Income: The amount of loan you can avail is a function of your net income. Bank, typically apply a multiplier of up to 60 times on monthly net income of the borrower to calculate the mortgage loan eligibility. For e.g. if your net monthly income is Rs. 70,000 and you take a mortgage loan of Rs. 50 lakh at 8.50% interest rate offered by bank, the maximum loan amount that you will be eligible for (assuming you have no other EMI’s to pay) would be as follows:
    Age Net Monthly Income (Rs.)
    50,000 75,000 100,000
    25 years 25.80 Lakh 38.71 Lakh 51.61 Lakh
    30 years 25.80 Lakh 38.71 Lakh 51.61 Lakh
    35 years 25.80 Lakh 38.71 Lakh 51.61 Lakh
    40 years 25.80 Lakh 38.71 Lakh 51.61 Lakh
    50 years 23.50 Lakh 35.25 Lakh 46.99 Lakh
    60 years 0 0 0

    You may consider repaying any loans with short tenure and high EMI in order to increase your Union Bank of India loan against property eligibility.

  • Nature of Employment: Union Bank of India will check whether you are salaried or self employed. It also looks at your years of experience to check for job and income stability. Union Bank of India requires minimum income history and job stability of more than 0 years for salaried individuals and of 0 years for self employed individuals.

Union Bank of India Loan against property eligibility based on value of property

  • Value of property: Union Bank of India will not finance the entire property value. The maximum Loan against property eligibility would depend upon the value of the property. Suppose you intend to take a loan on a property worth Rs. 20 lakh. The amount of loan you will be eligible for, will vary by the nature of property. A residential property worth Rs. 20 lakh will fetch the highest loan amount of Rs. 10 Lakh.
    Property Type LTV Property Value Maximum Loan Amount
    Commercial Property 50% Rs. 20 Lakh Rs. 10 Lakh
    Residential Property 50% Rs. 20 Lakh Rs. 10 Lakh
  • Co-applicant: In order to enhance the eligibility for having a loan, one can apply with a co-applicant such as a spouse or parents. This increases the total eligible income for availing a property loan and enhance the amount of eligible loans. As mentioned earlier, every bank has its own set of eligibility criteria. In case of NBFCs, customers can expect higher eligibility
  • Property documents: Your property’s legal documents should be satisfactory and be cleared by the bank’s legal team

Union Bank of India property loan eligibility based on CIBIL score

CIBIL Score: The credit history of an individual plays an important role in deciding the amount of the loan. Credit history is basically the credit report of an individual based on credit information recorded by CIBIL for all your past and current loan transactions. Based on your credit score, a bank or any other financial institution decides whether an individual is eligible for a loan or not. Regular payment on secured loans can also increase your CIBIL score. Union Bank of India requires a minimum credit score of Union Bank of India credit score to be eligible for a property loan

There are few factors which affect your credit score -

Late payments – If have delayed in repaying your existing or past loans, it negatively affects your CIBIL score and reduces your chances of getting a loan from Union Bank of India

High number of unsecured loans – Always keep a balance between secured and unsecured loans. Unsecured loans are riskier and more number of unsecured loans can adversely affect your credit score

Usage of credit limit – Credit card bills and use of credit limit shows your credit behaviour. Frequent usage or withdrawals of large amounts up to the credit card limit reflects a potential financial stress, indiscipline on your part and may adversely impact your credit score

Multiple loan applications – If you apply for loan in multiple banks at one time, it can affect your score negatively and reduce your CIBIL score. In case of application rejection from Union Bank of India, improve your credit worthiness to get a good score before putting in an application in another bank

Union Bank of India Mortgage loan eligibility based on FOIR

FOIR (Fixed Obligation to Income Ratio) is one of the important parameter that Union Bank of India uses to determine your loan against property eligibility. Union Bank of India will consider all your fixed obligations (like rent or current EMIs) for analyzing your eligibility. Minimum FOIR required to be eligible for mortgage loan from Union Bank of India is 0.65. Calculate your eligibility with Union Bank of India mortgage loan calculator and apply for eligible loan amount easily

Frequently Asked Questions

What factors determine the eligibility criteria of property loan from Union Bank ?

The factors that determine the eligibility criteria of Union Bank of India property loan are:-

  • Age of the applicant
  • Monthly income
  • Existing liabilities
  • CIBIL Score
  • Value of the property to be mortgaged
What should be the minimum net monthly income of the customer to get Union Bank of India mortgage loan?

The minimum income for salaried employee to get loan against property should be Rs. 0 per month.

What is the minimum and maximum age required for Union Bank of India loan against property?

The minimum age of the applicant should be 18 years and maximum should be 60 years for loan against property from Union Bank.

What is the tenure of Union Bank property loan?

Union Bank of India offers property loan for a tenure upto 12 years. However, longer the loan tenure, higher will be the eligibility.

How much mortgage loan can be availed by the applicant?

An applicant can avail mortgage loan from Union Bank of India up to 50% of the market value of the property.

Compare Property Loan Eligibility of All Banks

Union Bank Loan Against Property News - Feb 2018
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