A "low interest" loan shouldn't mean you have very little interest in paying it back!
  • Union Smart Save

    The Union Smart Save loan product allows you to make additional payments over your EMIs (equated monthly instalments) along with the option to withdraw the amount at any time in the future. The additional funds that you deposit will lower your outstanding principal amount and subsequently the interest as long as the additional amount remains in your account.

    Union Smart Save Interest Rate

    The final interest rate that you are offered on the Union Smart Save Loan is based on your loan amount and your CIBIL Score.

    Union Bank offers floating interest rates on this loan pegged to Reserve Bank of India’s repo rate.

    Here are the interest rates charged on this home loan product:

    Loan Amount Interest Rate
    TransUnion CIBIL Score (Above 700 ) TransUnion CIBIL Score (Below 700)
    Up to Rs.30 lakh 7.05% to 7.15% p.a. 7.15% to 7.25% p.a.
    Up to Rs.75 lakh 7.25% p.a. 7.35% p.a.
    Above Rs.75 lakh 7.55% p.a. 7.65% p.a.

    Features and Benefits

    Find below the features and benefits offered on this home loan product:

    • You can apply for this loan for the purpose of:
      • Purchase or construction or a flat or a house,
      • Purchase of a plot and subsequent construction,
      • For repairs and renovations, and
      • Refinancing.
    • The loan amount offered will depend on your repayment capacity and the property value. The maximum financing is 80%.
    • The maximum financing offered for repairs is Rs.30 lakh.
    • The repayment period for this loan is up to 30 years, however, in case of repairs, the repayment period offered is up to 10 years.
    • The loan comes with a moratorium period of up to 36 months.

    Eligibility Criteria

    You need to meet certain criteria set by the bank to apply for this loan. They are as follows:

    • Nationality – Indian residents and NRIs (Non-Resident Indians).
    • Minimum age – Above 21 years.
    • Single and joint application are allowed.
    • Co-applicants can be family members such as spouse, parents, siblings, or children having a regular source of income.
    • Security – Equitable mortgage of the property to be provided.
    • Guarantee – Resident Indians do not require third-party guarantee. NRIs need to produce 1 or 2 guarantors with repayment capability to pay the loan amount.
    • Property must be insured for the entire value of the loan amount.

    Documents Required

    You need to provide the below-mentioned documents to the bank for hassle-free processing of your home loan application:

    Mandatory documents to be provided by all applicants:

    • PAN card.
    • Bank statements for the past 12 months.
    • 3 photographs.

    Identity proof documents (one of the following):

    • PAN card.
    • Passport.
    • Employee ID card.
    • Any other valid ID proof document.

    Address proof documents (one of the following):

    • Aadhaar card.
    • Telephone bill.
    • Electricity bill.
    • Any other valid address proof document.

    Income documents for salaried individuals:

    • Last year’s Income Tax Return.
    • Letter from employer or Form 16.
    • Salary slips for the last 6 months.

    Income documents for business class individuals:

    • Income Tax Return for the last 3 years.
    • Profit & Loss of account and balance sheet.

    Income documents for Agriculturists:

    • Income certificate from the Tahsildar (concerned revenue officer).
    • Proof of land holding.

    Property documents:

    • Title deed.
    • Allotment letter.
    • Advance money receipt.

    Proof of out-goes:

    • Loan repayment statements, wherever applicable.
    • LIC policies, wherever applicable.
    • Proof of other out-goes, if applicable.

    Additional documents for NRIs:

    • Latest work permit.
    • Copy of visa stamped on passport.
    • Employment contract – if not in English, then must be translated to English and stamped by the employer or the Indian Embassy.

    The bank at its discretion can request for any other document.

    Frequently Asked Questions

    1. What are the processing fees charged on this loan?

      Union Bank currently does not charge a processing fee on the Smart Save loan.

    2. What are the other charges I will have to pay on this home loan?

      You will be required to pay the CERSAI charges, stamp duty charges, valuation fees, legal fees, and memorandum registration charges.

    3. What are the prepayment charges on Union Bank Home Loans?

      There will be no prepayment charges on floating rate home loans whether the prepayment occurs through own sources or from loan takeover from another bank/financial institution. In case of fixed rate home loans, 2% will be charged on the average outstanding balance of the last 12 months in case of loan takeover or lumpsum payment through any third-party source. However, no charges will be imposed in case the loan is settled through own sources.

    4. I am an NRI. How do I apply for this home loan from Union Bank?

      You will have to contact your nearest Union Bank branch to apply for this loan.

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