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Union Bank of India Home Loan

Home Loan Bank Information

Bank Name
Interest
Tenure
Processing Fees
AMBAK
8.25%
0 - 30
YEARS
0 %
+ GST
BASIC Home Loan
8.35%
0 - 28
YEARS
Rs 999
+ GST
PNB Housing Finance Limited
8.5%
1 - 30
YEARS
Rs 999
+ GST
Canara Bank
8.4%
1 - 30
YEARS
0.5 %
+ GST

Table of Contents

 

Introduction

Union bank is one of the leading public sector banks with a legacy of almost hundred years since its establishment in 1919. UBI plays an important role in the housing sector in the country where the scope to fund construction or purchase of a house or flat is enormous.

Operating out of their headquarters in Mumbai, the commercial capital of India, the bank boasts of a robust Retail Banking business aimed at fulfilling the dreams of their customers. In keeping with their focus, UBI offers a vast array of home loan solutions to their clientele of all hues in an endeavor to bridge the funding gap in home ownership.

The products are designed to primarily make it convenient for the customers to obtain home loan of their choice through a network of 4300 branches spread across the country and 4 branches abroad.

UBI home loans are attractive as they offer flexible repayment terms and competitive rates of interest.

Union Bank of India Home Loan Interest Rates

Interest Rates are as of 2019

One of the initial concerns towards seeking funds through home loans is the cost of capital. The two primary factors that impact the cost of capital are the rate of interest and the fee which are charged upfront. As a first step, let us learn the mechanics of the interest regime in practice.

 

MCLR effective from 1st July 2019 to 31st July 2019
Tenor Rate
Six Months MCLR 8.45%
One Year MCLR 8.55%
Two Year MCLR 8.65%
Three Year MCLR 8.70%
Base Rate effective from 1st march 2019 9.00%
BPLR effective from 17th April 2018 13.40%

 

UBI offers the clients a choice of two patterns in interest regime:

  • Floating
  • Fixed

 

Rates of Interest Charged to our Home Loan Products in 2019 are
Type Rate Processing Fee
Floating 8.65% to 9.95% 0.50% of the loan amount maximum Rs.15000 + GST
Fixed 11.40% to 12.65%

Eligibility Criteria for Union Bank of India Home Loan

Eligibility criteria for Union Bank Home Loan
Purpose
  • Construction or Purchase of house/flat
  • Purchase of plot and construction later thereon
  • Improvements/ repairs/ addition of existing residence.
  • Take-over of home loan with other Financial Institutions.
Target Audience
  • Indian citizen
  • Singly or jointly with close blood relatives
  • The co-applicant can be close relatives of immediate family including siblings subject to the property in joint names. Spouse with independent source of income also is eligible.
  • Non Resident Indians
Age Minimum: 21 years
Quantum of Loan
  • Depending upon the repayment capacity of the borrower and property value.
  • Repairs: Rs.30L maximum
Tenure
  • Maximum: 30 years
  • For Repairs: 10 years.
Moratorium Maximum up to 36 months
Margin
  • 20%: Up to Rs.75L for construction / purchase
  • 25%: From Rs.75L to Rs.200L
  • 35%: Above Rs.200L
  • 20%: of the total project cost for repairs.
Security
  • Equitable Mortgage of the purchased / Constructed property with original title deeds
  • Interim security for house / flat under construction where applicable till completion
Guarantee
  • Resident Indians: Third party guarantee is not mandatory.
  • NRI: One or two as the case may by resident Indians good for the value of the property.
Insurance It is mandatory up to the value of the property.

Union Bank of India Home Loan Schemes

We have already understood that the home loan schemes are designed for different purposes and flavor. It is time to have a glimpse at the different rates of interest applied to them.

 

Floating Rates of Interest Charged to UBI Home Loan Products in 2019 are
Scheme Amount Credit Score Rate of Interest
Union Home Up to Rs.75L 700 and above 8.65%
Below 700 8.75%
Above Rs.75L 700 and above 8.70%
Below 700 8.80%
Union Home for BSNL Employees Up to Rs.75L 700 and above 8.65%
Below 700 8.75%
Above Rs.75L 700 and above 8.70%
Below 700 8.80%
Union Awas / Paradise Up to Rs.75L 700 and above 8.65%
Below 700 8.75%
Above Rs.75L 700 and above 8.70%
Below 700 8.80%
Union Smart Save Up to Rs.75L 700 and above 8.90%
Below 700 9.00%
Above Rs.75L 700 and above 9.20%
Below 700 9.30%
Union Top Up Up to Rs.30L 9.70%
Above Rs.30L 9.95%

 

Fixed rate of Interest for a period of maximum 5 years
Up to Rs.30L 11.40%
From Rs.30L to Rs.50L 12.40%
From Rs.50L to Rs.200L 12.65

Union Bank of India Home Loan Types

So far we have seen that the home loans of different hues are mostly in the form of term credit attracting either floating or fixed rate of interest. Let us have a glance at the different types of home loans and what they stand for.

 

Main Home Loan by Union Bank:

By far the common home loan covering the whole gamut of possibilities is the Union Home Loan.

  • Union Home Loan: It is the loan which covers for purchase, construction, improvement, extension and even take-over of loans. The normal applicable processing charge is 0.50 % of the loan amount subject to a maximum of Rs.15K plus GST. However, the special feature of this loan is that there is a 50 % reduction in the processing charges based on CIBIL score.
  • Union Home for BSNL Employees: This loan is specifically meant for permanent BSNL employees as the name suggests and those who are on deputation from DOT to BSNL. Additionally their salary accounts are mandatory with the bank. All other terms are similar to the Union Home Loan. For them the processing charges are waived and third party guarantee is not mandatory.
  • Union Awas: It is a special scheme with certain limits in the quantum of loan like the maximum in Semi-urban areas is Rs.7L, and Rs.5L in rural areas. For repairs and renovation the amount is Rs.3L and Rs.2L respectively. Further the margin is 20% for all categories. Purchase of plot is required to be from government agencies only.
  • Union Smart Save: It is again a special scheme where you are allowed park your excess funds, thus reducing the interest accruals. The best part is you can withdraw the fund in case of need. In other words, you can maximize your savings without any impact on your liquidity. All the terms of Union Home Loan are applicable to this loan.
  • Union Top-up: It is a special scheme designed for existing home loan borrowers who are in need of additional funds after completion of the repayment of 24 EMIs. The minimum amount is Rs.0.50L and the maximum is dependent upon your paying capacity and the status of your loan.

Union Bank of India Home Loan for NRI or PIO

An NRI is an Indian citizen holding an Indian passport but residing in a foreign country for an uncertain period for primary reasons of:

  • Employment.
  • Business or any other vocation.
  • On deputation with international agencies, employers or our embassies spread across the world.

The NRI community is offered a host of services by the bank suiting their needs under the provisions of RBI and FERA regulations. Among these, the Union Paradise Home Loan specially designed for the NRIs are in high demand. As far as the scheme goes, it is very much like the Union Home Loan Scheme in its features and facilities. However, being a NRI, you will have to comply with additional documentation typically relevant in your case. Additionally, you will need to assign a close blood relative co-applicant and a suitable Power of Attorney in his /her favor.

 

Housing Loan for High-net-worth Individuals

Union bank lays great emphasis on the credit score and it acts as the benchmark for application of rate of interest as well as the quantum of loan eligibility. In such an eco-system the importance of a high-net-worth individual cannot be discounted. On the flipside, there is no definite measure to define who a high-net-worth individual is. In layman’s terms the individual can be classified as such if he has abundant liquid assets as compared to meager liabilities. But then, this is bound in geographical countries based on economy. However, the bank does not offer any special scheme for them but do admit that the features in the home loan products are so designed that the high-net-individual is sure to get the best deal.

 

Maximum Amount of Loan permitted in this scheme

The parameters at UBI to determine the maximum quantum of loan is well defined by the fact that the bank offers generous funding of 65% for loan amounts in excess of Rs.200L excluding the stamp duty, registration, transfer fee and the like. The other factor employed depends on the repayment capacity of the borrower subject to several parameters in play, but still there is no defined upper limit.

 

Union Bank Home Loan for NRI

The Union Paradise Home Loan is ideally suited for NRI borrowers for the wide coverage of needs that it offers. However, the NRI needs to comply with additional documentation in tune with the character of his residence.

 

Eligibility criteria for Union Bank Home Paradise
Purpose
  • Construction or Purchase of house/flat
  • Purchase of plot and construction later thereon
  • Improvements/ repairs/ addition of existing residence.
  • Take-over of home loan with other FI.
Target Audience
  • Non Resident Indians
  • Indian citizen
  • Salaried or Self Employed
  • Singly or jointly with close blood relatives.
  • The co-applicant can be close relatives including siblings and immediate family members subject to the property in joint names
Age Minimum: 21 years
Quantum of Loan

Depending upon the repayment capacity of the borrower and property value, UBI funds up to the following ratio of the project cost.

  • 20%: Up to Rs.75L for purchase or construction
  • 25%: From Rs.75L to Rs.200L for purchase or construction
  • 35%: Above Rs.200L for purchase or construction

For repairs and renovation the amount is limited to  Rs.30L maximum

Tenure
  • Maximum: 30 years
  • For Repairs: 10 years.
Repayment Mode

Opening a NRE account is mandatory. Repayment is in the form of defined EMIs through the following modes:

  • Direct Remittance
  • Transfer from NRE account.
Moratorium Maximum up to 36 months
Margin
  • 20%: Up to Rs.75L for construction / purchase
  • 25%: From Rs.75L to Rs.200L
  • 35%: Above Rs.200L
  • 20%: of the total project cost for repairs.
Security
  • Equitable Mortgage of the purchased / Constructed property with original title deeds
  • Interim security for house / flat under construction till completion
Guarantee One or two as the case may by resident Indians good for the value of the property.
Insurance It is mandatory up to the value of the property.

How to Apply for Union Bank of India Home Loan

You are free to apply online to express your interest in the bank’s Home Loan. Alternatively you can visit any Union Local Points for Retail Loans or branches in your vicinity. The application process can be broken up into 3 major steps.

  1. Submission of a fully complete form along with the requisite documents.
  2. Evaluation and sanction of the loan based on the submitted documents.
  3. Disbursement after you have fulfilled your commitment related to the margin money and other post-sanction formalities.

The entire procedure and sanction of your loan takes as much as 5 days time after the completion of documentation.

Document Checklist for Union Bank of India Home Loan

You must remember that the list is not exhaustive and the bank may ask for additional documents, depending on the requirements.

 

Type Details
Proof of Identity Passport, Employee ID card, PAN, Aadhaar, EPIC or any valid proof
Proof of Address Any of the above with address printed or any latest utility bill like Electricity, Telephone etc.
Bank Statement Of the preceding 12 months of the relevant account
Proof of Income

Salaried:

  • Salary slips for the last 6 months.
  • Form 16
  • Latest ITR

Businessmen:

  • ITR of the previous 3 years.
  • Balance Sheet and P&L account statement duly audited

Agriculturist:

  • Income certificate from the appropriate revenue officer.
  • Proof of land holding
Miscellaneous
  • 3 photographs
  • Loan repayment statement.
  • Proof of outgo.
Property Papers
  • Title deed
  • Allotment letter
  • Sanctioned plan
  • Location map
  • Tax clearance receipts
  • Advance money receipt
NRI Documents
  • Copy of Visa Stamped Passport
  • Copy of latest work permit
  • Copy of employment contract in English attested by the embassy in the country of residence
  • Any other document deemed necessary during the application process

 

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