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Union Bank Loan Against Property Eligibility

Union Bank Loan Against Property Calculator India Jun 2021

Last Updated 13th May 2021

Eligibility Criteria Salaried Self Employed
Age of Eligible Borrower 18 - 60 years 18 - 70 years
Maximum Loan Tenure 12 years 12 years
  • Union Bank offers Loan Against Property Rates at 9.80% p.a.
  • Union Bank of India loan against property is calculated based on your age, income, property value and repayment capacity.
  • Increase your Union Bank mortgage loan eligibility by adding earning family members, business firms and companies owned by main applicant as co-applicants or by applying for a longer tenure loan
Loan Against Property Eligibility Calculator

Union Bank of India Loan Against Property Eligibility Based on Age

  • Age: Union Bank of India considers your age as one of the important parameters to calculate your eligibility of a mortgage loan. To be eligible for availing a loan from Union Bank of India, one has to be of atleast 18 years of age. The maximum age for loan from Union Bank can be 60 years for salaried and 70 years for self employed. Union Bank of India eligibility calculator takes age as an input to calculate your maximum loan tenure, loan EMI and hence, your loan amount eligibility. The maximum tenure of loan that you may be eligible based on your current age will be as follows:
Your Current Age Max tenure for salaried Max tenure for self employed
25 Years 12 Years 12 Years
30 Years 12 Years 12 Years
40 Years 12 Years 12 Years
50 Years 10 Years 12 Years
60 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. Union Bank of India typically applies a multiplier of up to 60 times on monthly net income of the borrower to calculate the mortgage loan eligibility. For example, if your net monthly income is ₹ 70,000 and you take a mortgage loan of ₹ 50 Lakh at 8.00% 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 (₹)
    50,000 75,000 100,000
    25 years 34.01 Lakh 51.01 Lakh 68.02 Lakh
    30 years 34.01 Lakh 51.01 Lakh 68.02 Lakh
    35 years 34.01 Lakh 51.01 Lakh 68.02 Lakh
    40 years 34.01 Lakh 51.01 Lakh 68.02 Lakh
    50 years 26.79 Lakh 40.18 Lakh 53.57 Lakh

    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 does 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 ₹ 20 Lakh. The amount of loan you will be eligible for will vary with the nature of property. A residential property worth ₹ 20 Lakh will fetch the highest loan amount of ₹ 10 Lakh.
    Property Type LTV Property Value Maximum Loan Amount
    Commercial Property 50% ₹ 20 Lakh ₹ 10 Lakh
    Residential Property 50% ₹ 20 Lakh ₹ 10 Lakh
  • Co-Applicant: In order to enhance the eligibility of a loan with Union Bank of India, 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 legal team of Union Bank of India.

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 650 to be eligible for a property loan.

There are few factors which affect your credit score and in turn impact your chances of getting of loan from Union Bank of India.

  • 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

Union Bank of India calculates FOIR (Fixed Obligation to Income Ratio) to estimate the amount of loan against property you can avail. Union Bank of India will calculate the percentage of fixed obligations (Rent and EMIs) to your net monthly income. Your fixed obligations to monthly income ratio should not be more than 65% to get a mortgage loan from Union Bank of India. Always calculate your eligibility with Union Bank of India mortgage loan calculator to estimate your eligible loan amount before applying for a loan to reduce the chances of getting your loan application rejected.

FAQs

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 ₹ 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.

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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.
*Terms and conditions apply. Credit at sole discretion of lender, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
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