| What is the maximum loan amount? |
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| The maximum amount of loan sanctioned would be minimum of A, B or C |
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- 80% of the total cost of the house (which includes cost of the house, stamp duty, registration fee, transfer fee, cost of furnishing, etc. if any)
- Maximum Amount as per our latest eligibility calculations
- Rs. 7 Lakhs, in case of semi-urban areas, and Rs. 5 Lakhs in case of rural areas
The maximum loan amount would be decided by the repayment capacity of the borrower, which is determined mainly with reference to the present income. However, it should be borne in mind that besides present income, several factors like age, qualifications, spouse's income, present outgoing towards rent, future potential for earning higher income, present level of assets and liabilities of the borrowers, etc. will have a bearing on the repayment capacity of the borrower. In case the net take home income after all deductions (such as proposed EMI, taxes, Insurance premium and other out go) is not sufficient, the eligible amount of loan would then be reduced. The income of co-applicant can be added to that of the applicant to improve the repayment capacity. |
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| Who can be the co-applicants for the home loan? |
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| You can avail loan either singly or jointly with other family members viz. father, mother, son and/or spouse, who have regular sources of income as co-applicants. This will help in enhancing your loan amount and repayment capacity. In case there are any other co-owners of the house/ flat, they also need to be co-applicants. |
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| What are the loan tenure options? |
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| The repayment period is maximum of 25 years (300 EMIs), including the moratorium period of 18 months from the date of disbursal or the completion of the house, whichever is earlier. The repayment period is 10 years (120 EMIs) in case the loan is availed for repairs of the house. |
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| What are the applicable rates of interest? |
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| Union Bank of India offers two different schemes - (a) Fixed rate of interest (b) Floating rate of interest. Under the fixed rate, the rate applicable during the date of sanction would be applicable throughout the entire duration of the loan. Under the floating rate, the interest rate would vary with the Base Rate of the bank.Please click here for information on rate of interest. |
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| What are the processing charges? |
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The applicable processing charges are 0.50% of loan amount subject to a maximum of Rs.15,000/- plus service tax as applicable.
- 50% of the processing charges plus service tax as applicable at the time of application
- 50% of the processing charges plus service tax as applicable on acceptance of sanction
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| How is the interest charged/calculated? |
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| Interest will be applied in the account on the basis of reducing balance method at monthly rests. During moratorium period compounding interest would be charged. |
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| What is a Monthly Reducing balance? |
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| An Equated Monthly Installment (EMI) has 2 components, interest and principal. When the interest is calculated on monthly rests, the principal on which the interest is charged goes down every month. This results in a significant saving for the customer over the tenure of the loan. |
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| How do I repay the home loan? |
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The loan shall be repaid in equated monthly installments (EMIs).
You can pay the EMI in any of the following ways
- Through standing instruction to your Union Bank of India savings account to directly remit the EMI amount to your loan account
- Through internet banking facility available on your Union Bank of India savings account
- ECS (Debit) facility
- Post Dated Cheques (PDCs)
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| Can I prepay my home loan? |
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| Yes, you can make your prepayment. There is no charge on pre payment if the loan is adjusted by the borrower from his own verifiable legitimate sources. However, a charge of 2% on the average balance of the preceding 12 months if the loan is taken over. |
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| What security/ collateral do I have to provide? |
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| Equitable mortgage (EM) of the residential property, proposed to be purchased from Bank�s finance, is required. If the house/ flat proposed to be purchased is yet to be constructed or is under construction, interim security may be required (till the period of its completion). |
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| Is a guarantor a must? |
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| A guarantor having sufficient means is required. Please visit our nearest branch to know further. |
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| What are the tax benefits I get from my home loan? |
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| Tax benefits can be claimed on both the principal and interest components of the home loan as per the Income Tax Act, 1961. A deduction of up to Rs. 1,50,000 can be claimed towards the total interest that one would pay on the home loan. The interest on home loans taken for repairs, renewals or reconstruction, also qualifies for the deduction of Rs. 1,50,000. The principal repayment of up to Rs. 1,00,000 on the home loan is allowed as a deduction from the gross total income subject to fulfillment of prescribed conditions. These benefits on interest on housing loans are allowable only for the original loan and for a second loan taken to repay the first loan and not for subsequent loans. |
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| Can I avail the Top-up loan facility on my home loan? |
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| A top-up loan is a facility for the existing home loan borrowers, who have a good repayment track record, for the purpose of repairs, renovations, furnishings, etc. To know more on the Top Up loan, please see the Special Offers Tab above for information , or kindly contact the branch where you have availed the housing loan from. |
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| Do I need to open an account with Union Bank of India for availing and/ or servicing the home loan? |
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| Although opening of account is not mandatory for availing a loan, we would recommend to bank with us in order to benefit from other value added services. |
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| What documents do I need to submit to avail a home loan? |
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| Please see the Forms & Documents Tab above for information on the list of documents required. |
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| How much time will it take for my home loan to be approved? |
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| It takes 5 days for your loan to be sanctioned, after you have submitted all the required documents. |
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| What are the stages involved in taking a loan? |
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There are three main stages -
- Application - Whereby you submit a completely filled in application with all necessary documents
- Sanction - Whereby you get an approval for a specific loan amount based on the value of your property and repayment capabilities
- Disbursement - Whereby the loan amount is disbursed
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| How do I approach Union Bank of India for a home loan? |
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You can approach us in any of the following ways
- You can visit any of our special retail lending branches called Union Loan Points (ULPs). To locate a ULP, click here
- You can visit any of our branches. To locate a branch, click here
- Request for a contact online
- You can also contact our 24 x 7 Call Centre
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