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Get answers to frequently asked questions on Union Mortgage.
What is the maximum loan amount?
The maximum amount of loan sanctioned would be minimum of A, B or C
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. The income of co-applicant can be added to that of the applicant to enhance the quantum of loan.
Who can be the co-applicants for the loan?
The following family members are permitted to join as applicants/co-applicants (in respect of property ownership norms as well as consideration of income for arriving at eligible loan amount):
The income of these co-applicants can be considered for the purpose of calculation of eligible loan amount.
What are the loan tenure options?
The repayment period is maximum of 12 years, in case of a term loan. In case, where an applicant is aged beyond 60 years, the maximum repayment period that can be allowed shall be the difference between maximum age (70years) and his present age
What are the applicable rates of interest?
Union Bank of India offers Floating rate of interestPlease click here for information on rate of interest.
What are the processing charges?
Processing charges are 0.50% of the loan amount + GST
How is the interest charged/calculated?
Interest will be applied in the account on the basis of reducing balance method at monthly rests.
What is a Monthly Reducing balance?
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.
How do I repay the loan?
The term loan shall be repaid in equated monthly installments (EMIs). You can pay the EMI in any of the following ways
Can I prepay my 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. However, a charge of 2% on the average balance of the preceding 12 months if the loan is taken over by any other Bank/ FI or adjusted by the borrower in lumpsum from any third source/party (except genuine sale).
What security/ collateral do I have to provide?
The proposed property should be in the name of the borrowers.
Is a guarantor a must?
Third party guarantee is not compulsory.
What documents do I need to submit to avail a loan?
Please see the Forms & Documents Tab above for information on the list of documents required
How much time will it take for my loan to be approved?
It takes 7 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 -
How do I approach Union Bank of India for a mortgage loan?
You can approach us in any of the following ways