Search
Get answers to frequently asked questions on Union Mortgage.
Note: Loan amount as per our eligibility calculations based on repayment capacity of the borrowers. 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? Permitted co-applicants for male applicant :
What are the loan tenure options? The maximum repayment period is of 15 years or till the borrower attains the age of 75 years. In all cases, loan must end before 5 years of the residual age of the property
What are the applicable rates of interest? Union Bank of India offers Floating rate of interest for the loans under the scheme. Please click here for information on rate of interest.
What are the processing charges? Processing charges are 1.00% of the loan amount + GST with minimum of Rs.5,000/- and maximum of Rs.1,00,000/- (exclusive of 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 Instalment (EMI) has 2 components, interest and principal. When the interest is calculated on monthly rests, the principal on whom 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 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 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.
Are 3rd party securities acceptable? No, 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
My property is already mortgage with Union Bank for an existing Mortgage Loan. Will I get additional loan on the same property? Yes, additional loan can be sanctioned on the same property provided the margin norms are maintained, edibility of the borrower is ascertained and repayment of the existing loan is regular.
Does Bank accept tenanted properties for the sanction of mortgage loan? Bank as far as possible; avoid taking tenanted properties as collateral security for sanction of mortgage loan. However when the nature of tenancy is “Leave & License”, contract does not fall within the provisions of Rent Control Act and tenant has undertaken to surrender the tenancy on the demand by the bank then Bank may take call on such properties for sanction of loan. However, the sanction of loan on such properties is at sole discretion of the Bank.
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 - 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 mortgage 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 branches. To locate a branch, click here Request for a contact online You can also contact our 24 x 7 Call Centre