SMART SAVE OPTION

• A housing loan will be sanctioned as per terms and conditions under Union Home; disbursements will be made in the housing loan account as per extant norms and the borrower will be required to pay regular EMI/EQIs every month /quarter.
• Any surplus amount deposited by the borrower over and above the scheduled repayments, will be accepted in the account, as per current systems. Accordingly the outstanding in the housing loan account will be reduced resulting in a lower interest burden. However, unlike the normal housing loan, where excess payments made to the system are not available for withdrawal, under Smart Save option, the excess amount deposited in the account i.e. overflow in the account, will be available for withdrawal
• It is important to note that only the surplus/overflow i.e. amount which is in excess of the scheduled repayments will only be available for withdrawal
• Thus we see that the outstanding in the housing loan account will be reduced when excess funds are deposited in the account and it will increase once again when these funds are withdrawn by the borrower, within permissible overflow above scheduled outstanding
• All along the EMI payment in the housing loan will have to continue as per normal schedule
• At any point in time the borrower will not be permitted to bring the outstanding under the housing loan below 10% of the scheduled outstanding.
• However in case where the borrower wishes to close the account, credit of an amount equal to total outstanding including interest, will be permitted.

ADDITONAL SECURITY DOCUMENTATION

In addition to the security documents taken for regular housing loans, the following documents, duly stamped, will also have to be taken from borrowers availing the Smart Save option

• Union Home (Smart Save) Agreement duly stamped
• Letter of continuity (modified): AD 09M

SWITCH OVER FROM SMART SAVE TO REGULAR HOME LOAN PRODUCT & VICE-A-VERSA

• Regular home loan/ Smart Save account is permitted to be switched over to Smart Save/regular Home Loan for a maximum of two times during the tenure of the loan.
• A charge of 0.25% of outstanding loan amount+GST (maximum Rs.5000+GST), subject to change, to be levied for each conversion.
• For conversion, branch will have to open a new account under regular housing scheme/Smart Save and use the disbursement proceeds from the new account to close the existing home loan account/Smart Save account.

RATE OF INTEREST

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SMART SAVE EMI CALCULATOR

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