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What is the maximum loan amount? The maximum amount of loan sanctioned would be minimum of A or B
Note: 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.
Who can be the co-applicants for the home loan? Permitted co-applicants for male applicant :
Following family members are also permitted subject to the property must be in the joint name :
Permitted co-applicants for unmarried female applicant :
Follwing family members are also permitted subject to the property must be in the joint name :
Permitted co-applicants for married female applicant :
What are the loan tenure options? The repayment period is 30 years, including the moratorium period of 36 months from the date of disbursal or the completion of the house, whichever is earlier. The repayment period is 15 years including the moratorium period of 12 months in case the loan is availed for repairs of the House/Flat.
What are the margin requirements? The margin requirements (i.e. the borrower’s contribution should be as follow – 10% of the total cost of the purchase/ construction of house/ flat for loans up to Rs.30 Lakhs 20% of the total cost of the purchase/ construction of house/ flat for loans Above Rs.30 lakhs to Rs.75 Lakh 25% of the total cost of the purchase/ construction of house/ flat for loans Above Rs.75 Lakh 20% of total cost of the repairs
What are the applicable rates of interest? Union Bank of India offers two different schemes (a) Fixed rate of interest (b) Floating rate of interest. Please click here for information on rate of interest.
What are the processing charges? Processing charges are 0.50% of the loan amount subject to maximum of Rs.15,000 plus GST as applicable.
How is the interest charged/calculated? 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.
What is a Monthly Reducing balance? An Equated Monthly Instalment (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.
How do I repay the home loan? The loan shall be repaid in equated monthly instalments (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)
Can I prepay my home loan? 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.
What security/ collateral do I have to provide? 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).
Is a guarantor a must? No, third party guarantee is not mandatory in most of the cases for Resident Indian. In case of NRIs guarantee of one/two local residents Indian required. Please visit our nearest branch to know further
What are the tax benefits I get from my home loan? 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.200000/- 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.200000/-. The principal repayment of up to Rs.150000/- on the home loan is allowed as a deduction from the gross total income subject to fulfilment 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.
Can I avail the Top-up loan facility on my home loan? Union Mortgage Plus is a top-up loan 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, visit the Mortgage Plus Page, or kindly contact the branch where you have availed the housing loan from
Do I need to open an account with Union Bank of India for availing and/ or servicing the home loan? Although opening of account is not mandatory for Resident Indian for availing a loan, we would recommend to bank with us in order to benefit from other value added services. For NRI opening of a NRE account with Union Bank of India is mandatory for availing a loan.
What documents do I need to submit to avail a home loan? Please see the Forms & Documents Tab above for information on the list of documents required.
How much time will it take for my home loan to be approved? It takes 5 days for your loan to be sanctioned, after you have submitted all the required documents.
What are the stages involved in taking a loan? 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
How do I approach Union Bank of India for a home loan? 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 braches. To locate a branch, click here Request for a contact online You can also contact our 24 x 7 Call Centre