Union Bank of India Home Loan

Home loans- simple words that define the themes of financial independence and ‘growing-up’ for many of us. Today, owning a house of your own isn’t just a statement that you have arrived, financially, but also is a prerequisite for modern living and a sensible option in these times of rising real estate/boarding costs and inflation. Many banks count their home loan products as central pillars in their assortment of offerings- Union Bank Home Loan is no different, though the service offered, the facilities promoted and the enduring faith and loyalty exhibited by its patrons, sets it apart from its immediate competition.

Home Loans from Union Bank of India (UBI) :

Founded on 11th November 1919 in the erstwhile Bombay, Union Bank had the distinction of its HQ being inaugurated by Mahatma Gandhi himself in the year 1921. Today, the bank boasts of 4000+ branches and a customer base exceeding 49 million across the country, and has consistently been a profitable venture throughout its glorious 95+ year history. Union Bank plays a very hands-on role in the development of India, extending credit to the varied sectors of the Indian economy- exports, industries, trading, infrastructure, agriculture etc.

Union Bank Home Loans have always been a favored commodity. A versatile resource, this loan can be used to purchase or construct a house or flat, buy a plot of land for future construction of the house, an assortment of repairs or extensions to an existing residential property or to take over a housing loan that was availed from another bank. Combine this with easy documentation, a customer centric approach, competitive interest rates and a widely responsive network to complete the picture.

Features of the Union Bank Home Loan:

A comprehensive bag of benefits await a prospective applicant. The Union Bank Home Loan boasts of the following features-

1. Disbursable Loan Amount- depends on the value of the property and the repayment capacity of the borrower. For repairs of an existing property, up to Rs.30 lakhs will be sanctioned.

2. Loan Repayment- The Union Bank Home Loan employs flexible repayment options including a tenure of up to 30 years. Loans taken for repair of existing property must be repaid in 10 years.

3. Applicable Guarantee- for Indian citizens, third party guarantee isn’t mandatory. However, NRI applicants must produce one/two guarantors of Indian origin, whose individual means must equal the prospective loan amount.

4. Applicable Security- Equitable mortgage (E.M.) of the residential property and if the intended property/house is still under construction or construction is yet to begin, then an interim security might be required.

5. What’s your down-payment?
   • Property costs upto Rs.75 lakhs- 20% of total cost.
   • Property costs upto Rs.75 lakhs to Rs.2 crores- 25% of total cost.
   • Property costs above Rs.2 crores- 35% of total cost.
   • Loan sought for repair of existing property- 20% of the total cost of repairs.
6. Moratorium Duration- Up to 18 months.
7. Insurance- Compulsory property insurance for the value of the property.
8. Prepayment Penalty-

   • Floating rate loans- No prepayment penalty.

   • Fixed rate loans- No prepayment penalty. However, if loan is transferred to another bank/ adjusted against a lump-sum from any thirty party, 2% on the average outstanding balance of the previous 12 months is charged.

Union Bank Of India UBI MCLR Rates :

The Union Bank of India (UBI) has set its MCLR rates for the year 2017 as follows. These rates are effective from January 1st 2017.

Eligibility Criteria for the Union Bank Home Loan:

• The applicant must be an Indian citizen, aged above 21 years.
• The loan can be applied for individually or with co-applicants. The latter could be your family members who have a regular source of income.
• The Union Bank Home Loans are also available to NRIs, however, additional requirements might be sought from them.

New Union Bank of India (UBI) Home Loan Interest Rate:

Union Bank Home Loan FAQ

1. Who can sign on as co-applicants for my home loan?

   The co-applicants could include your family members, including parents, spouse, son/daughter who have a regular source of income. Including co-applicants enhances your loan amount and capacity to repay the same.

2. What is the applicable processing charge on my Union Bank Home Loan?

   The processing charge is 0.50% of the loan amount. This applies to a maximum of Rs.15000 along with any applicable GST.

3. What are the various modes of repayment?
• Standing instruction to your Union Bank savings account to deduct EMI amount in favour of the loan account.
• Net Banking- As available with your Union Bank of India savings account.
• Electronic Clearing Service (ECS) facility.
• Post Dated Cheques (PDCs)
4. How long does it take from application to approval of the loan?

   If all the submitted documents are in order, your home loan will be approved in just 5 working days.

5. In order to avail a Union Bank home loan, must I open an account with the Union Bank of India?

   It’s not mandatory but it is recommended as you can then avail other value added services as offered by the bank in conjuncture with the loan. For NRIs however, opening an NRE account with the Union Bank is mandatory.

6. Do I get any tax breaks as a recipient of this home loan?

   As per the Income Tax Act, 1961, tax benefits apply on both the principal and interest applicable as per the home loan. As much as Rs.2, 00,000 can be claimed with regards to the total interest paid and a deduction of up to Rs.1, 50,000 is applicable on the principal repayment, as part of the gross total income, subject to the appeasement of certain set conditions.