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    Union Bank Home Loan Reviews

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    Home Loan BYTES FROM OUR KITCHEN

    Union Bank of India (UBI) is one of the largest government-owned banks of India (the government owns 60.13% of its share capital) founded in Mumbai . The Bank now operates through over 4000+ branches across the country.The Bank has a large clientele base of over 49 million. All the bank's branches have been networked with its 6591 ATM's. UBI offer loans with different product like Home Loan, Personal Loan, Education Loan, Loans for Pensioners, Loan for Senior Citizen.


     

    You’re probably eligible for an Union Bank Home Loan if you are

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    Union Bank Home Loan Minimum Age

    At least 21 years old

     Union Bank Home Loan Maximum Age

    Less than 65 years old

    Union Bank Home Loan Eligible Employment Type

    Salaried / Self-employed
    with regular income

    Union Bank Home Loan Minimum Income

    Eligibility based on your
    repayment capacity


     

    Your Union Bank Home Loan amount eligibility is based on these factors

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    Union Bank Home Loan Minimum Salary

    EMI limited to about 60-75%
    of monthly income

    Union Bank Home Loan Maximum Loan to property value

    Loan capped @ 80%
    of property value

    Union Bank Home Loan EMI

    EMI's of other loans lower
    your eligibility


     

    Increase your eligible Union Bank Home Loan amount by these steps

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    Union Bank Home Loan Add Spouse as Co-applicant

    Make your spouse a co-applicant,
    and her income will add
    to your eligibility

    Union Bank Home Loan Maximum Tenure

    Choose longer tenure loan up to 30 years

    Union Bank Home Loan Add parents as Co-applicant

    Alternatively add your parents


     

    Documentation needed to apply for an Union Bank Home Loan

    • 1. Signed application form with photograph
    • 2. ID and residence proof
    • 3. Processing fee cheque
    • 4. Last 6 months bank statements
    • 5. Documentation for salaried applicants:
      • Last 3 months salary-slips
      • Form 16 or Income Tax Returns
    • 6. Documentation for self-employed applicants:
      • Education qualification certificate & proof of business existence
      • Last 3 years Income Tax Returns with computation of Income
      • Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account

     

    Union Bank Home Loan Interest RatesUpdated on 03 Dec 2016

    Union Bank Home Loan Details
    Interest Rate 9.5% to 9.55%
    Processing Fees Nil
    Loan Tenure 30 years
    Pre-closure Charges Nil
    Guarantor Requirement No guarantor Required

     

    Overview:

    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.

    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:

    Loan Amount. Interest Rate Type. Interest Rate. Tenor.
    Upto Rs.5 Crores Floating 9.65% Upto 30 years
    Above Rs.5 Crores Floating 10.40% Upto 30 years
    Upto Rs.30 lakhs Fixed 11.40% Max 5 years
    Above Rs.30 lakhs to Rs.50 lakhs Fixed 12.40% Max 5 years
    Above Rs.30 lakhs to Rs.2 Crores Fixed 12.65% Max 5 years

    Frequently Asked Questions (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 including service tax.

    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.

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