Union Bank of India Home Loan

Table of Contents

• Union Bank of India Home Loan Interest Rates
• Eligibility Criteria for Union Bank of India Home Loan
• Union Bank of India Home Loan Schemes
• Union Bank of India Home Loan Types
• Union Bank of India Home Loan for NRI or PIO
• How to Apply for Union Bank of India Home Loan
• Document Checklist for Union Bank of India Home Loan

Introduction

Union bank is one of the leading public sector banks with a legacy of almost hundred years since its establishment in 1919. UBI plays an important role in the housing sector in the country where the scope to fund construction or purchase of a house or flat is enormous.

Operating out of their headquarters in Mumbai, the commercial capital of India, the bank boasts of a robust Retail Banking business aimed at fulfilling the dreams of their customers. In keeping with their focus, UBI offers a vast array of home loan solutions to their clientele of all hues in an endeavor to bridge the funding gap in home ownership.

The products are designed to primarily make it convenient for the customers to obtain home loan of their choice through a network of 4300 branches spread across the country and 4 branches abroad.

UBI home loans are attractive as they offer flexible repayment terms and competitive rates of interest.

Union Bank of India Home Loan Interest Rates

Interest Rates are as of 2019

One of the initial concerns towards seeking funds through home loans is the cost of capital. The two primary factors that impact the cost of capital are the rate of interest and the fee which are charged upfront. As a first step, let us learn the mechanics of the interest regime in practice.

UBI offers the clients a choice of two patterns in interest regime:

• Floating
• Fixed

Eligibility Criteria for Union Bank of India Home Loan

Union Bank of India Home Loan Schemes

We have already understood that the home loan schemes are designed for different purposes and flavor. It is time to have a glimpse at the different rates of interest applied to them.

Union Bank of India Home Loan Types

So far we have seen that the home loans of different hues are mostly in the form of term credit attracting either floating or fixed rate of interest. Let us have a glance at the different types of home loans and what they stand for.

Main Home Loan by Union Bank:

By far the common home loan covering the whole gamut of possibilities is the Union Home Loan.

• Union Home Loan: It is the loan which covers for purchase, construction, improvement, extension and even take-over of loans. The normal applicable processing charge is 0.50 % of the loan amount subject to a maximum of Rs.15K plus GST. However, the special feature of this loan is that there is a 50 % reduction in the processing charges based on CIBIL score.
• Union Home for BSNL Employees: This loan is specifically meant for permanent BSNL employees as the name suggests and those who are on deputation from DOT to BSNL. Additionally their salary accounts are mandatory with the bank. All other terms are similar to the Union Home Loan. For them the processing charges are waived and third party guarantee is not mandatory.
• Union Awas: It is a special scheme with certain limits in the quantum of loan like the maximum in Semi-urban areas is Rs.7L, and Rs.5L in rural areas. For repairs and renovation the amount is Rs.3L and Rs.2L respectively. Further the margin is 20% for all categories. Purchase of plot is required to be from government agencies only.
• Union Smart Save: It is again a special scheme where you are allowed park your excess funds, thus reducing the interest accruals. The best part is you can withdraw the fund in case of need. In other words, you can maximize your savings without any impact on your liquidity. All the terms of Union Home Loan are applicable to this loan.
• Union Top-up: It is a special scheme designed for existing home loan borrowers who are in need of additional funds after completion of the repayment of 24 EMIs. The minimum amount is Rs.0.50L and the maximum is dependent upon your paying capacity and the status of your loan.

Union Bank of India Home Loan for NRI or PIO

An NRI is an Indian citizen holding an Indian passport but residing in a foreign country for an uncertain period for primary reasons of:

• Employment.
• Business or any other vocation.
• On deputation with international agencies, employers or our embassies spread across the world.

The NRI community is offered a host of services by the bank suiting their needs under the provisions of RBI and FERA regulations. Among these, the Union Paradise Home Loan specially designed for the NRIs are in high demand. As far as the scheme goes, it is very much like the Union Home Loan Scheme in its features and facilities. However, being a NRI, you will have to comply with additional documentation typically relevant in your case. Additionally, you will need to assign a close blood relative co-applicant and a suitable Power of Attorney in his /her favor.

Housing Loan for High-net-worth Individuals

Union bank lays great emphasis on the credit score and it acts as the benchmark for application of rate of interest as well as the quantum of loan eligibility. In such an eco-system the importance of a high-net-worth individual cannot be discounted. On the flipside, there is no definite measure to define who a high-net-worth individual is. In layman’s terms the individual can be classified as such if he has abundant liquid assets as compared to meager liabilities. But then, this is bound in geographical countries based on economy. However, the bank does not offer any special scheme for them but do admit that the features in the home loan products are so designed that the high-net-individual is sure to get the best deal.

Maximum Amount of Loan permitted in this scheme

The parameters at UBI to determine the maximum quantum of loan is well defined by the fact that the bank offers generous funding of 65% for loan amounts in excess of Rs.200L excluding the stamp duty, registration, transfer fee and the like. The other factor employed depends on the repayment capacity of the borrower subject to several parameters in play, but still there is no defined upper limit.

Union Bank Home Loan for NRI

The Union Paradise Home Loan is ideally suited for NRI borrowers for the wide coverage of needs that it offers. However, the NRI needs to comply with additional documentation in tune with the character of his residence.

How to Apply for Union Bank of India Home Loan

You are free to apply online to express your interest in the bank’s Home Loan. Alternatively you can visit any Union Local Points for Retail Loans or branches in your vicinity. The application process can be broken up into 3 major steps.

1. Submission of a fully complete form along with the requisite documents.
2. Evaluation and sanction of the loan based on the submitted documents.
3. Disbursement after you have fulfilled your commitment related to the margin money and other post-sanction formalities.

The entire procedure and sanction of your loan takes as much as 5 days time after the completion of documentation.

Document Checklist for Union Bank of India Home Loan

You must remember that the list is not exhaustive and the bank may ask for additional documents, depending on the requirements.