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Union Bank Loan Against Property

Union Bank of India Mortgage Loan Interest Rates 2021

Last Updated 13th May 2021

Union Bank of India offers Loan Against Property starting at interest rate of 9.80% which is one of the best mortgage loan rates in India. Check Best Offers

Processing Fee Upto 0.50%
Max Tenure 12 years
Lowest EMI ₹ 1,184 per lakh
Prepayment, Foreclosure Charges Allowed with nil charges for floating rate loans to individuals
Age Min 18 and Max 60 years for Salaried
Min 18 and Max 70 years for Self Employed
    Apply for Loan Against Property @ 7.20%* Get upto ₹ 1,000* Cashback

    Union Bank of India Loan Against Property Fees and Other Charges

    Union Bank charges various fees and charges when a borrower takes a loan against property:-

    • Processing Fee on Union Bank LAP Loan is 0.75%. This fee is charged by Union Bank to maintain the applicant’s loan account and to process the loan application.
    • Advocate's fee for property search and title investigation report.
    • Valuer's fee for valuation report.
    • Stamp duty payable for Loan agreement and mortgage.
    • Property insurance premium.
    • CERSAI Registration Fee of ₹ 50 + GST up to ₹ 5 Lakh limit and ₹ 100 + GST for limits above ₹ 5 Lakh.

    Mortgage Loan Interest Rates in Union Bank of India for Salaried employee

    The mortgage loan interest rates in Union Bank of India for salaried employee are listed in the table:-

    Interest Rate for Salaried for Commercial Property

    Loan Amount Rate
    Upto ₹ 25 Lakh 10.30%
    ₹ 25 Lakh - ₹ 75 Lakh 10.30%
    ₹ 75 Lakh - ₹ 3 Cr 10.30%
    Above ₹ 3 Cr 10.30%

    Interest Rate for Salaried for Residential Property

    Loan Amount Rate
    Upto ₹ 25 Lakh 9.80%
    ₹ 25 Lakh - ₹ 75 Lakh 9.80%
    ₹ 75 Lakh - ₹ 3 Cr 9.80%
    Above ₹ 3 Cr 9.80%

    Union Bank of India Property Loan Interest Rate for Business Man or Self Employed Person

    The interest rate for mortgage loans for Self-employed people are listed in the table:

    Interest Rate for Self-employed for Commercial Property

    Loan Amount Rate
    Upto ₹ 25 Lakh 10.30%
    ₹ 25 Lakh - ₹ 75 Lakh 10.30%
    ₹ 75 Lakh - ₹ 3 Cr 10.30%
    Above ₹ 3 Cr 10.30%

    Interest Rate for Self-Employed for Residential Property

    Loan Amount Rate
    Upto ₹ 25 Lakh 9.80%
    ₹ 25 Lakh - ₹ 75 Lakh 9.80%
    ₹ 75 Lakh - ₹ 3 Cr 9.80%
    Above ₹ 3 Cr 9.80%

    Steps to Apply for Union Bank of India Loan Against Property

    Loan against property in Union Bank can be availed through two ways online as well as offline. To apply online perform the following steps:-

    • Visit the official website of Union Bank of India
    • Go to products
    • Select Loan Against Property
    • Check eligibility and interest rates and fees
    • Click on Apply Now
    • Fill the application form
    • Upload the required documents
    • Bank will do the verification
    • In 10-15 days loan amount will be sanctioned in your bank account

    You can also apply offline, through the following steps:-

    • Visit the nearest Union Bank branch
    • Fill the loan against property form
    • Submit the required documents
    • Banks will do the verification and inform you if loan is approved or not
    • Once loan is approved you will receive the amount in your bank account
    Union Bank of India Floating Rate Loan Against Property lap (LAP)

    As on 18 Jun, 2021, Union Bank offers the lowest rate starting at 9.80%. Union Bank Loan against property rates have been dropped by 1.7%, from the earlier rate of 11.50% with effect from 01 Apr, 2021.

    Union Bank of India Mortgage Loan Interest Rates
    Union Bank of India Loan Against Property Floating 9.80%
    Union Bank of India Loan Against Property Floating
    Loan AmountCurrent LAP Rates
    Upto ₹ 25 Lakh 9.80%
    ₹ 25 Lakh - ₹ 75 Lakh9.80%
    ₹ 75 Lakh - ₹ 3 Cr9.80%
    Above ₹ 3 Cr 9.80%

    Union Bank Loan Against Property Rate Trends of Last 1 Year

    Last Updated Date Interest Rates
    01 Apr, 2021 9.80%
    31 Mar, 2021 9.80%
    26 Mar, 2021 9.80%

    Factors Affecting Property Loan Interest Rate Union Bank

    Some of the factors that impact Union Bank Loan Against Property rates are listed as follows:

    • Loan amount: Property loan rates in Union Bank depend upon the loan amount you apply for. You can get a minimum loan of ₹ 10 Lakh from Union Bank.
    • Your Net Monthly Income: Income helps you in identifying your rate of interest. Higher the income, higher will be your repayment capacity which will increase your eligibility for higher loan amount.
    • Type of loan opted for: Union Bank offers differential rates for different profiles of customers and also fixed and floating rate schemes. Loan against property interest rates may be higher or lower for special loan products.
    • Type of property: Typically, loans against prime residential properties are easier to get and can be availed at the lowest rates compared to loans against commercial and industry properties.
    • Your profession: Union Bank may charge a higher interest rate on a mortgage loan by a salaried person as compared to a self-employed professional or a businessman. A self employed professional or businessman is expected to deploy loan proceeds for productive purposes in his occupation or business compared to salaried people who who will most likely take a mortgage loan for his personal purposes.

    Union Bank Loan Against Property lap Eligibility

    Union Bank has detailed criteria to determine a potential borrower’s eligibility for mortgage loans. Some of the key criteria are:

    Eligibility Criteria Details
    Age 18 to 60 years
    Loan Amount ₹ 10 Lakh to ₹ 10 Cr
    Minimum Credit Score 650 and above
    Loan to Value Ratio Upto 50%
    FOIR (Fixed Obligations to Income Ratio) 0.65

    • Age: Age is one of the important factors to examine your eligibility. Union Bank of India offers loans to salaried and self employed from the age of 18 years. Any person taking a loan at the age of 18, can get a loan of up to 15 years, thus reducing the burden on existing income and hence, improving loan amount eligibility.
    • Income: Property loan is mostly taken by self employed individuals primarily to meet their business requirements. However, in order to increase the loan amount you may club the income of family members like your spouse, parents, children and siblings.
    • Business Stability: Union Bank of India will ask for ITRs of 3 years to consider you as eligible for LAP.
    • CIBIL Score: Past CIBIL history and repayment record of existing loans and credit cards has adverse impact on your loan eligibility. If you have a poor repayment record, then you may find it difficult to get a loan. A regular repayment record not only improves your chances of getting a loan, but also increases your loan eligibility. Union Bank of India grants loans to borrowers with a CIBIL score of 650 and above.
    • Loan Amount: Union Bank of India gives you an amount ranging from ₹ 10 Lakh to ₹ 10 Cr. To improve chances of approval, apply for a loan amount that you can comfortably service.
    • Property Value: The value of the property to be mortgaged is used to calculate maximum loan eligibility based on the maximum permissible LTV ratio which can range upto 50% depending on the type of property. Union Bank of India will conduct a detailed property assessment to establish that all legal titles are in place, assess the market value of the property, and its sale ability. LTV is calculated based on the estimated fair market value or registered value, whichever is lower.
    • Fixed Obligations to Income Ratio (FOIR): The bank will also calculate the proportion of your fixed obligations to your income to calculate the Fixed Obligations to Income Ratio, known as FOIR. Fixed obligations include estimated average monthly expenses and EMIs you are paying on other existing loans. Minimum FOIR to be eligible for a Union Bank of India mortgage loan is 0.65.

    Union Bank of India Mortgage Loan Eligibility Calculator

    Union Bank of India Property Loan Eligibility is the amount of loan you can avail based on an assessment of your repayment capacity as well as the value of property. You can use Union Bank of India LAP eligibility calculator to get a fairly accurate estimate of your potential eligibility subject to the information provided by you.

    Union Bank of India Mortgage Loan Interest Rate and EMI Calculator

    You can also use online Union Bank of India Loan against property EMI Calculator to calculate loan EMIs. EMI is a fixed amount that you are required to pay each month towards the repayment of your loan till the end of tenure

    • EMI calculator of Union Bank of India helps you to calculate your monthly EMI at different rates of interest and also check and compare lowest EMI per lakh on LAP.
    • Higher the loan amount, higher the EMI. You can compare the estimated EMI with your monthly repayment capacity to decide on a level of EMI you can comfortably service without creating financial burden.
    • Loan tenure matters equally as higher loan tenure reduces your EMI.
    • Another factor which affects your EMI is the interest rate on the loan. Higher the interest rate, higher will be the EMI. However, your cumulative interest outgo will be significantly high in a longer tenure loan compared to a short tenure loan. Loan against property interest rate comparison of different banks will allow you to choose the cheapest loan and hence, improve your eligibility.

    What are the Benefits of Calculating Union Bank of India Mortgage Loan EMI?

    • EMI calculator helps you to calculate your monthly EMI at different rate of interest
    • Union Bank of India Mortgage loan EMI calculator helps you to know your capacity to repay the loan after maintaining your standard of living
    • Getting an EMI estimate will help you ascertain the monthly EMI you can comfortably service, thus allowing you to choose the right combination of loan amount and loan tenure.
    Loan Against Property Top up, Transfer in Union Bank of India

    Union Bank of India offers mortgage loan balance transfer from another bank. This is subject to your meeting other eligibility criteria of Union Bank of India.You can avail additional top-up loan against property from Union Bank of India, subject to your eligibility.With Union Bank of India Top up LAP loan, you can continue with your existing LAP loan at affordable interest rate, higher loan amount and convenient loan tenure.

    Loan Against Property Union Bank of India Products

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

    Union Mortgage

    Description:
    • Union Bank of India offers mortgage loan against all non-agricultural properties such as agricultural, commercial or industrial property. The loan allows borrowing of a minimum of Rs 5 lakhs and maximum of Rs 10 crores. The loan allows term loan and overdraft facility.
    • The loan can be taken to fulfil personal needs such as marriage, business travel, education, medical emergencies, or to fulfil unplanned expenses.
    Who is Eligible?
    • The loan can be taken by all Indian citizens who have a regular source of income and who own a property.

      Union Reverse Mortgage

      Description:
      • Union reverse mortgage allows a regular source of income for senior citizens who own a self-occupied house. The loan allows a minimum borrowing of Rs 1 lakh while a maximum of Rs 100 lakhs is allowed.
      • The loan is taken to earn a regular income in the form of monthly payout or a combination of monthly payout and lump sum.
      Who is Eligible?
      • The loan can be taken by senior citizens who own residential properties in India.

        Union Bank of India Loan Against Property Documents Required

        For Self-Employed

        • Filled up loan application form
        • 2 Passport Size Photo
        • ITR of last 3 years
        • Identity Proof - Passport/ Driving License/ Voter ID/ PAN
        • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (up to 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
        For Salaried employee
        • Filled up loan application form
        • 2 Passport Size Photo
        • ITR of last 1 years
        • Identity Proof - Passport/ Driving License/ Voter ID/ PAN
        • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (up to 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
        • Registered Sale Deed/ Conveyance/ Lease Deed
        • Past Sale Deeds Chain (each transaction in respect of this property since first allotment
        • Latest House Tax Return/ Receipt
        • Approved Building Plan from Municipal Corporation

        FAQs

        What is Union Bank of Indias loan against property interest rate?

        Union Bank of India offers loan against property at a rate of 9.80% with the lowest EMI of ₹ 1,184. If you are currently paying a higher interest rate than Union Bank of India rate, you can opt for balance transfer of loan to Union Bank of India.

        Did Union Bank of India Loan against property rates drop?

        Yes, Union Bank of India loan against property rates has been decreased by 1.7% from the previous rate of 11.50% to 9.80%. The lowest mortgage rates of Union Bank of India is effective from 01 Apr, 2021.

        How to increase my eligibility on Union Bank of India Mortgage 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.

        Do I get tax benefit on Loan against property from Union Bank of India?

        There are no tax benefits available for loan against property.

        • Union Bank of India offers RBI Repo Rate linked mortgage loan which starts at 9.80%. Current Repo Rate of RBI is 4.00%. Banks 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 5.8% to the Repo Rate to arrive at this rate.
        • When RBI increases rates, the bank may increase its Repo Rate linked property loan rates by the same basis points for all existing and new mortgage loans. When RBI cuts interest rates, the Union Bank of India loan against property interest rates will reduce the interest rates by the same basis points, which will be effective from the 1st day of the following month.

        Can I foreclose my Mortgage loan? What are the charges applicable?

        Yes, you can foreclose your loan anytime you want with Own sources- Nil, Refinance- 2% foreclosure charges.

        What is the maximum loan tenure I can opt under Union Bank of India Property loan?

        Union Bank of India offers a maximum tenure of 12 years to repay your loan.You can choose the tenure for your LAP loan as per your convenience and repayment ability.

        What is the benchmark rate applicable for Mortgage loan?

        The benchmark rate applicable for property loans in Union Bank of India is RLLR

        Can I transfer my LAP from another bank to Union Bank of India?

        Yes, Bank gives you the facility to transfer your existing loan with a hassle free process. Loan balance transfer to Union Bank of India offers you to pay lower EMIs and save money.

        Can I club the income of my spouse with mine and apply for joint Property loan?

        Yes, you can club the income of your spouse to increase your loan eligibility.You can bring in your spouse as a co-owner of the property or guarantor of the loan.

        What is Union Bank of India mortgage loan processing fees?

        The loan processing fee charged is 0.50% of the total loan amount.

        What is Union Bank of India property loan procedure?

        You can apply for a Union Bank of India property loan by contacting the bank directly or by approaching them through online marketplaces like MyLoanCare. Approaching the bank through an online marketplace improves the chances of getting best loan rates, low processing fees and special offers in the form of cash backs. Once you approach the bank, they will collect your documents and initiate the loan process which includes checking your CIBIL score, property valuation, technical and legal checks on property, eligibility calculation. The bank will give a decision on your loan based on the evaluation results.

        What security do I need to provide for Union Bank of India Mortgage Loan?

        Union Bank of India requires a registered mortgage of the property against which the bank will provide you a loan.

        • Property on which you intend to take loan is not vacant land, has an approved map plan and is in a municipal area. You must attach the entire chain of title documents of the property and its approved building plan with the loan application.
        • Your total EMIs on all loans and credit cards (from Union Bank of India and other banks) are no more than 60 - 70% of your net monthly income.
        • You have not defaulted on loans or credit card dues to Union Bank of India and other banks and all EMI's have been paid. Note that Union Bank of India can see the record or status of your EMI defaults to all banks and NBFC’s in India and not just to Union Bank of India in your CIBIL report. Estimate your CIBIL score for free for free by using CIBIL score estimate calculator
        • If you are salaried, ensure that you attach your recent salary slips, bank statements and last 3 years' Form 16 with the loan application
        • If you are self employed, your business must have been in existence for at least three years and last three income tax returns with audited financial must be available

        Are prepayment or foreclosure charges applicable on Union Bank of India loan against property?

        You can prepay loan against property (LAP) without any penalty or charges in case:

        • Your loan is at a floating rate of interest and not at a fixed rate. Almost all loans against property are at floating rates and it is unlikely that yours is at a fixed rate of interest
        • The loan is in the name of one or more individual borrowers and none of the applicants and co-applicants is a business entity like a company or a firm or partnership or AOP

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        Union Bank Loan Against Property News - Jun 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.
        • 2020-08-24 : 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.
        • 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.
        • 2019-07-31 : Union Bank of India loans to become cheaper, the lender cuts MCLR rates by up to 20 bps
          The loans offered by the Union Bank of India will become cheaper now as the lender ahas reduced its MCLR rate by up to 20 basis points (bps) across various tenors, effective August 1. One-year MCLR will now come down from 8.55% to 8.50%. The overnight tenor and one-month MCLR are down to 8.10% each as compared with the earlier rates of 8.25% and 8.30%, respectively while the three-month and six-month rates have been reduced by 10 bps each, to 8.25% and 8.35%.
        • 2019-05-03 : Union Bank of India revises MCLR rates across loan tenure
          Union Bank of India has revised its Marginal Cost of Funds Based Lending Rate (MCLR) across all tenors for the month of May. The move is supposed to make home loans and mortgage loans cheaper. Now for overnight and 1 month, the rate stands at 8.30% and 8.35% respectively. While for 3 months, the rate has been revised to 8.40% and for 1 year the rate now stands at 8.60%. The revised rates are effective from May 1, 2019.
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