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.
At least 21 years old
Less than 65 years old
Salaried / Self-employed
with regular income
Eligibility based on your
EMI limited to about 60-75%
of monthly income
Loan capped @ 80%
of property value
EMI's of other loans lower
Make your spouse a co-applicant,
and her income will add
to your eligibility
Choose longer tenure loan up to 30 years
Alternatively add your parents
|Interest Rate||8.30% to 8.35%|
|Processing Fees||0.50% of the LA subject to maximum of Rs. 15,000 + ST|
|Loan Tenure||30 years|
|Guarantor Requirement||No guarantor Required|
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.
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.
A comprehensive bag of benefits await a prospective applicant. The Union Bank Home Loan boasts of the following features-
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.
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.
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.
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.
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.
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.
|LOAN TENOR||MCLR (%)|
|One month MCLR||8.35%|
|Three month MCLR||8.40%|
|Six month MCLR||8.50%|
|One year MCLR||8.40%|
|Two year MCLR||8.70%|
|Three year MCLR||8.75%|
|Time Period||Revised Interest Rate (%) < 1 CR|
|7 day – 14 day||5.00%|
|15 day – 30 day||5.00%|
|31 day – 45 day||5.00%|
|46 day – 90 day||5.50%|
|91 day- 120 day||6.25%|
|121 day to - 179 days||6.25%|
|181 day to <1 Year||7.05%|
|>1 Year - 3 Year||7.25%|
|>3 year - 5 Year||7.25%|
|>5 year - 10 Year||7.25%|
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.
The processing charge is 0.50% of the loan amount. This applies to a maximum of Rs.15000 along with any applicable GST.
If all the submitted documents are in order, your home loan will be approved in just 5 working days.
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.
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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