All You Need To Know About The Union Bank Home Loan

By Kishore Sabareeshan | October 11, 2019

A favourable interest rate, long tenure and a low processing fee – the Union Bank Home Loan has it all! Read on to find out more about this loan.

Union Bank Home Loan

Available at a reasonable interest rate of 8.30% onwards, the Union Bank Home Loan is quite a catch if you’re looking for funds to buy your dream home.

If you’re considering taking out a Home Loan, this one is a really good option. Here’s everything you need to know about this loan:

Age Criteria

The minimum age to apply for this Home Loan is 21 years.

Is There A Processing Fee Involved?

Yep! This Home Loan comes with a processing fee of 0.50% of the loan amount (max. Rs. 15,000).

What’s The Tenure Like?

You can take this loan for a maximum tenure of 30 years. Do keep in mind that the loan amount is entirely dependent on your profile.

Additional Reading: The Beginner’s Guide To Taking A Home Loan

The repayment period is limited to 30 years and cannot extend beyond that. Also, a loan taken for repairs has to be repaid within 10 years.

This Home Loan can be taken for the following purposes:

  • Construction or purchase of a house, flat or property
  • Purchase of land for house construction purposes
  • Repayment of existing Home Loan held with another bank

What About Prepayment?

This is dependent on the type of interest charged – floating or fixed.

For floating rates, there is no pre-payment penalty fee if it is prepaid from the own verifiable source. There is no fee even if the loan is taken over by another bank or financial institution.

Additional Reading: The Dos and Don’ts Of A Home Loan Prepayment

If the interest rate is fixed, the pre-payment penalty is not charged if it is paid by the own verifiable income source. However, takeover invites a 2% charge over the average outstanding balance of the previous 12 months if taken over by another bank or financial institution.

No Third-Party Guarantee

For an Indian resident, no third-party guarantee is required. For NRIs, one or two guarantors of Indian origin are required. The guarantors’ means of income should be equivalent to the loan taken.

Additional Reading: Home Loan FAQs

Can You Top Up Your Union Bank Home Loan?

Yes, you can! The top-up loan comes at an interest rate of 9.05% onwards. You can avail it once you’ve paid 24 EMIs. Also, top-up is approved only in case you need it for renovation, repair or additions for the house. The processing fee stays the same at 0.50% of the loan amount.

Please note that the minimum allowed amount for top-up is Rs. 50,000. The upper limit depends on your repayment capacity as well as the outstanding amount of the loan taken. The total of your top-up amount + outstanding loan amount must not exceed your original loan amount.

Who’s Eligible For This Loan?

  • Any individual above the age of 21 years (as mentioned earlier)
  • Any single individual. One can also add a co-applicant such as his/her mother, father, son or spouse
  • Your sibling can become an applicant if your property is a jointly held asset by both you and your sibling
  • NRIs (of course, according to the laid out terms and conditions)

Interested in Union Bank’s Home Loan? Just click the link below to get started.

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.
Category: Home Loans
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About Kishore Sabareeshan

Kishore likes watching documentaries and discovering unheard of musicians on Youtube. When he's not devouring street food in Bengaluru, he's usually in the jungles looking for big cats.

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