UNION ASHIYANA OVERDRAFT SCHEME

1. PURPOSE

• For personal or business needs.
• Repayment of high cost loans.

2. ELIGIBILITY

• Applicant should be an existing or a new home loan borrower
• Borrowers whose Home Loan is taken over from other Bank/FI. In such a case, the loan can be sanctioned simultaneously along with housing loan.
• Housing loan availed by staff under Union Home Scheme. The facility is over and above the “Staff OD” Facility.
• Eligible applicant / co-applicant norms are as per Union Home scheme.
• Minimum entry age of the applicant should be 18 years.
• Maximum exit age of the applicant should be retirement age for salaried individuals and 65 years for non-salaried individuals.

3. QUANTUM OF LOAN

• Up to 20.00 Lakhs

4. REPAYMENT

• No moratorium period is allowed.
• The Union Ashiyana Overdraft facility will be co-terminus with the Home Loan facility.
• The maximum permissible exit age is the retirement age for salaried customers, and 65 years of age for non-salaried customers.
• Hence, the Borrower to reduce the Overdraft sanctioned limit by 20% every year during the last 5 years of his exit age or due date of the Home Loan whichever is earlier.
• It has to be ensured that at the time of closure of Housing Loan facility the overdraft account stands closed.

5. RATE OF INTEREST

• Please click here to know our latest interest rates

6. PREPAYMENT PENALTY

• There is NO prepayment penalty

7. SECURITY

• Extension of mortgage of residential property obtained for Home Loan.
• No other similar type of loans i.e. Mortgage Loan / Mortgage Plus can be sanctioned. However, this property can be extended to other loans as collateral duly following the extant guidelines.
• Loans for repair and renovation can be sanctioned as per Union Home Scheme.
• The House property will not be released till both the Housing Loan and Overdraft liabilities are fully repaid / adjusted. A condition to this effect has to be inserted in the sanction letter and the same has to be duly acknowledged by the borrowers / co-applicants.

8. GUARANTOR

• The co-applicant / guarantor of the Home Loan will continue.
• In case of NRIs, guarantee of a local resident Indian acceptable to the bank and having means equivalent to the loan amount to be obtained.