A Takeover Loan for Home Loan Borrowers to Help Consolidate Their Debts.

A loan scheme for the takeover of your existing housing loan.

Union Bank of India Union Home Loan

This loan scheme helps people looking for funds to realise their dream of purchasing a house. This loan can also be availed for construction on an owned piece of non-agricultural piece of land, repair/extension/renovation of house or transfer of housing loan to Union Bank of India from other banks.

Features of Union Bank of India Home Loan

Why this Loan?

  • The Union Bank of India Home Loan is meant for borrowers who need funds for the purchase/construction/extension/furnishing of a residential property
  • Borrowers can also avail this scheme for reducing their debt burden by transferring their existing housing loan to Union Bank of India
  • There are no pre-payment charges on this loan

Loan Amount

  • The maximum loan amount offered by Union Bank of India under this loan depends on a case-to-case basis. However, the maximum loan amount limit for repair/renovation is Rs. 30 lakh

Interest

  • The interest rate for this loan is defined as the sum of two factors: External Benchmark Lending Rate (EBLR) and Spread. As of October 2020, the EBLR of Union Bank of India is 6.80% and the Credit Risk Spread for this loan depends on the CIBIL score of the borrower. The applicable interest rate to this loan ranges from 6.80% to 7.05%

Repayment

  • This loan must be repaid within 15 years if the loan is availed for repair/renovation and 30 years if the loan is availed for other purposes

Security Needed

  • The bank may ask for the first charge of property financed by the bank

Margin Money (Borrowers Contribution to Total Cost)

  • Loans up to Rs. 30 lakh: The bank charges up to 10% of the total cost
  • Loans above Rs. 30 lakh up to Rs. 75 lakh: The bank charges up to 20% of the total cost
  • Loans above Rs. 75 lakh: The bank charges up to 25% of the total cost
  • Loans for Repair/Renovation: The bank charges up to 20% of the total cost

Note: Margin money refers to the amount the borrower contributes to the overall amount required. The bank will cover the rest. So, if the total amount needed is Rs. 20 lakh, a 20% margin means you will have to contribute Rs. 4 lakh. The bank will provide the balance of Rs. 16 lakh.

Processing Charges

  • As of October 2020, this information is not mentioned on the bank’s website. Please talk to a bank representative if you want more details

Documents Needed for Individuals (Salaried and Self-employed)

  • Loan Application Form duly filled and signed by the applicant and co-applicant, if any
  • Two Passport Size Photographs of applicant and co-applicant
  • Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card / PAN Card Issuing Letter is must
  • Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
  • Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Income/Banking Proof for Salaried Professionals: Last 3 months’ salary slip, Form 16 or income tax returns
  • Income/Banking Proof for Self-employed Professionals/Insurance Agents: Computation of income of last 2 years, Balance Sheet, Profit and Loss Account, Registration Certificate, GST Return, Income Tax Challan/ Form 26AS/TDS Certificate, IT Assessment, etc.

Reference Facts:

  • Union Bank of India Website: www.unionbankofindia.co.in and www.unionbankonline.co.in (net banking)
  • Headquarters: Mumbai, Maharashtra
  • Call Centre Toll-Free Number: 1800 2222 44, 1800 208 2244