Home Loan with Interest Saver Option from Union Bank of India to meet your financial needs while saving interest cost

A special home loan scheme to pare down your debts

Union Bank of India Union Smart Save Scheme

This loan helps borrowers get access to funds for the purchase or construction of a house or flat; repair, extension or renovation of an existing residential property; or takeover of home loan. In addition to being used to meet financial expenses directly related to the house, this loan can also be used as a consolidation loan to takeover a high-interest home loan.

Features of Union Smart Save (Interest Saver)

Why this Loan?

  • The Union Bank of India Union Smart Save scheme is meant for borrowers who need assistance to meet financial needs for purchase of a house or flat; construction of a house or flat; repair, extension or renovation of an existing residential property; or takeover of home loan. Being a secured loan, it can be availed as a consolidation loan for the takeover of a home loan availed from another bank
  • The biggest benefit of availing this loan is that it offers an opportunity to save the interest cost and repay the loan faster since the borrower can deposit additional amount to pay off the loan and hence reduce the interest burden

Loan Amount

  • The maximum loan amount offered under this loan scheme is decided by the bank after reviewing the application. However, the limit is capped at Rs. 30 lakh for repairs


  • The interest rate for this loan is defined as the sum of two factors: External Benchmark Lending Rate (EBLR) and Credit Risk 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 loan amount as well as CIBIL score of the borrower. The applicable interest rate to this loan ranges from 7.05% to 7.65%


  • This loan must be repaid within 30 years with a moratorium period up to 3 years

Security Needed

  • The bank asks for a simple or equitable mortgage of residential property for this loan

Margin Money (Borrowers Contribution to Total Cost)

  • Loans up to Rs. 75 lakh: The bank charges up to 20% of the total cost
  • Loans above Rs. 75 lakh up to Rs. 2 crore: The bank charges up to 25% of the total cost
  • Loans above Rs. 2 crore: The bank charges up to 35% 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 about the charges levied by the bank for processing this loan

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/Non Professionals: 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.
  • Property related documents

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