A "low interest" loan shouldn't mean you have very little interest in paying it back!
United Bank of India is a state-owned financial services company headquartered in Kolkata, West Bengal, India. Presently the bank has a three-tier organizational setup consisting of its Head office in Kolkata, 35 Regional offices and 2001 branches spread all over India. After nationalisation, the bank expanded its branch network in a big way and actively participated in the developmental activities, particularly in the rural and semi-urban areas in conformity with the objectives of nationalisation. You have a wide range of choice of deposits offered by UBI.United bank of India Offer Home loan to individuals above 21 years, having regular income i.e salary/engaged in business / professionals and self-employed persons.Read on to learn about the eligibility and documentation requirements for the loan you avail.
Mr. Sharma invested in a home with a low-interest loan. What about you?Explore Home Loans
At least 21 years old
Less than 70 years old
Salaried or self-employed
with regular income
Earn more than the minimum
income required
Earn more than the minimum
income required
Loan capped @ 85% of property value
EMIs of other loans lower
your eligibility
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 | 8.45% |
| Loan Tenure | 30 years |
| Processing Fee | Nil |
| Pre-closure Charges | Nil |
Taking a loan to fulfill a housing requirement is the most preferred way of financing since it offers to fund a large chunk of the costs involved in procuring a home/plot and lets you repay in monthly installments over a term chosen by you.
In times when prices of real estate are always heading north, it would be a better option to take a loan instead of pooling personal monetary resources at one go. In India, housing loans are offered by both state owned and private sector banks/financial institutions for a wide range of housing needs. Kolkata based United Bank of India is one such lender which offers attractive housing loan schemes under its retail lending portfolio.
The United Housing Loan Scheme is available to salaried and self-employed individuals for the following purposes.
Owning a house is a smart investment and comes with great tax benefits. Explore Home Loans
Simple eligibility criteria:
This loan is available to the salaried class, businessmen and professionals who meet the monetary and other requirements, making it an easy to access loan.
High loan quantum:
The maximum permissible loan amount is determined on the basis of location of the property. For Metro area, the maximum loan is Rs.300 lakhs, Urban is Rs.75 lakhs, Semi-Urban is Rs.45 lakhs and Rural locations can get a loan of up to Rs.25 lakhs.
In addition, an additional 20% extra loan is provided for furnishing in all cases. For loans taken for carrying out repairs of an existing house, a maximum of Rs.10 lakhs is offered and the cap on loans for extension is Rs.15 lakhs. In case of loan takeovers, United Bank of India will finance the full outstanding amount from other bank/financial institution.
Loan margin:
Housing loans from United Bank of India come with least margin for the borrower, which implies lesser burden. For loans up to Rs.30 lakhs, a margin of 10% of the project cost is applicable, 20% on loans from Rs.30 lakhs to Rs.75 lakhs and 25% for above Rs.75 lakhs. With such minimal margin, you can rely upon this instrument to fund a large part of the requirement.
Repayment term:
The bank offers up to 30 years for repayment in equated installments on the basis of the age of the primary applicant. For self employed and professionals, the loan repayment term should fall within the age of 70 years.
One of the attractives benefits of this loan scheme is that there is no prepayment penalty levied by the bank in case of early repayment. You can go ahead and liquidate the loan and pay it off any time during the term without incurring additional charges.
Quick processing & no hidden charges:
Getting approval for a home loan can be a cumbersome process and the time taken for loan decision can be time consuming owing to the paperwork involved. With United Bank of India home loan, you can look forward to quick processing. Plus, there are no hidden charges and fees as everything is communicated upfront. Documentation charges are applicable at standard rates.
Unlike other products available in the market today, the interest rate is billed is the same for all types of requirements. As mandated by the RBI (Reserve Bank of India), the MCLR (Marginal Cost Based Lending Rate) system is followed to determine the applicable rate. The present rate of interest is 8.55% (MCLR-H).
The interest rate is subject to periodic revision. Check with the nearest branch before assuming this rate as final.
To be eligible for a loan, you’re required to submit details of the sanctioned plan issued by the municipal corporation and details of the construction cost issued by an engineer/architect.
No
Professionals and self-employed applicants should choose a loan term where the loan is fully paid off before attainment of 70 years of age.
Yes. You can be eligible to get a top up amount of 20% of the approved loan amount to be utilized towards home furnishing.
For repairs, you can look forward to getting up to Rs.10 lakhs, subject to the estimates provided by the Engineer or Architect.
The Union Bank of India has reportedly reduced its marginal cost of funds based lending rates by 5 basis points (bps) or 0.05% across various loan maturities. The one year MCLR on which most of bank’s retail loans such as home loans and personal loans are benchmarked has been reduced by 5 bps from 8.85% to 8.80%. In the same line, the MCLR for three-month and six-month tenures have also been reduced by 5 bps to stand at 8.50% and 8.60% respectively. The MCLR for overnight and one-month tenures have also been lowered by 5 bps each.
With the bank having lowered its lending rates, home loan borrowers can now enjoy reduced interest rates. The announcement was made after the bank’s asset-liability management committee lowered the lending rates in an official meeting held on Thursday.
23 April 2019
United Bank of India has posted a loss for the sixth consecutive quarter ending at the July - September quarter this year as there was a sharp rise in other provisions while there was a shortfall in income. In this quarter, the bank’s losses rose to Rs.8.83 billion as opposed to Rs.3.45 billion loss a year ago, and 3.89 billion recorded in the previous quarter. In December, the Reserve Bank of India had put the bank under a corrective measure for high non-performing asset, low leverage ratio and the need to inject capital. The bank’s loan slippages was 7.74 billion rupees in the reporting quarter, which is a poor number for a bank of this size. Other areas such as recoveries and upgrades were holding at 1.59 billion rupees while loans of up to 3.55 billion were written off. As a result of this, the bank’s share dropped by 2.5% in the National Stock Exchange. At the time of writing this article, the lender’s stock price was holding at Rs.12.25.
19 November 2018
The United Bank of India has announced its revised marginal cost of funds based lending rate (MCLR) across tenures with effect from 14 September 2018. The MCLR has been increased by 5 basis points (bps) or 0.05% across various tenures. In a regulatory filing, the United Bank of India announced that the one-year MCLR on which most retail loans are benchmarked has been hiked to 8.85% from the earlier 8.80%.The MCLR for three month and six month tenors have also increased by 0.05% to 8.55% and 8.65% respectively. For overnight and one month tenures have also been raise to 8.15% and 8.40% respectively.
28 September 2018
Most of the banks out there are going an extra mile to make the most of this festive season. Just like all the other Indian banks, even United Bank of India would be offering home loan, car loan, an two-wheeler loan with no processing fees to get more customer flow.
Since the market for home loan has been growing at a rapid pace, United Bank of India is offering its customers with home loans at 8.55% interest rate.
18 September 2017
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