Homebuyers are increasing in number due to a greater fall in interest rates for home loans. But how do the interest rates of different banks compare? While in this blog, we will explore the home loan eligibility criteria for a particular bank, i.e., Union Bank, it would behove us to know what are the benefits of getting a home loan in India through saying, Union Bank, under the Income Tax of India i.e., Sections 80C, 80EEA, and Section 24. More than the Union Bank home loan eligibility, it would also benefit us to know the advantage of knowing what we can do to know our borrowing ability i.e., our capability of paying off the borrowed loan amount over a specific period of years, and some tips to ensure we can maximize our eligibility chances.
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Using The Union Bank Home Loan Eligibility Calculator Online
If you want a simple and quick way to understand your Union Bank of India home loan eligibility, you can do so easily using their online calculator at https://www.unionbankofindia.co.in/english/emicalculator.aspx.
As the snapshot shows, the Union Bank of India housing loan interest rate for say 6.60%, a loan amount of INR 50 lakhs, spread over 10 years amounts to INR 57,028.72 in total EMI, INR 18,43,446.4 in average interest, and INR 15,362.05 in monthly interest.
Read: Bajaj Finance Home Loan Interest Rates – Updated in April 2024
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You can also check out NoBroker’s home loan eligibility form to check your eligibility and interest rate:
Home Loan Check Eligibility Form
If you want to know the union bank housing loan eligibility, it is simply that you:
- Must be an Indian citizen or Non-Resident Indian with proof to identify so
- Of minimum entry of 18 years and exit age of up to 75 years
- Can apply alone or jointly as eligible individuals
While there is no set limit on the amount of the loan as it can vary as per the variables of the UBI home loan eligibility, your repayment capacity, as well as the value of the property, the maximum loan allowed for any repairs or renovation is up to INR 30 lakhs. The margin of the total cost of the construction or purchase of loans of up to INR 30 lakhs is somewhere between 10 – 20%. The Union Bank of India home loan processing fee is around 0.50% of the loan amount, subject to a max. of INR 15,000, excluding GST, while the rest of the legal, stamp duty, CERSAI, memorandum, and valuation charges are as per actuals. Note that for floating-rate loans, there is no prepayment penalty if done from Union Bank’s verifiable sources. While for fixed-rate loans, there is a take-over penalty of 2% on the average outstanding balance of the preceding twelve months, in case the loan is taken over by any other financial institution.
It is also important to note that there are a few factors the Union Bank home loan interest rate depends on, including the purpose of the purchase (depending on if the purchase is of a new or an old residential unit, it needs construction or is already constructed, etc.), as well as your individual borrowing/repayment ability over the loan tenure.
Union Bank of India Home Loan Eligibility based on Value of Property
Union Bank of India sets an upper limit to the amount that you can loan based on the value of the property. This is as follows. You have to submit the legal documents associated with the property and it should be cleared by the bank’s legal team.
Union Bank of India Home Loan Eligibility for Women
The lending rate for women starts at 8.6%. The eligibility criteria for a home loan are similar for women.
Read: Plot Loan Tax Benefit: Understand How It Works
Property Value Loan-to-Value Ratio Less than 30 lakh 90% Between 30 lakh and 75 lakh 80% Above 75 lakh 75%
Union Bank of India does not finance the entire property value. The maximum home loan eligibility would depend upon
The value of the property is shown below:
Property Value:
Less than 30 Lakh
Between 30 Lakh and 75 Lakh
Above 75 Lakh
LTV
75%
Property documents: Your property’s legal documents should be satisfactory and be cleared by the Union Bank of India’s legal team.
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Union Bank of India Home Loan Documents Required
The following are the Union Bank home loan documents required for the loan amount to be eligible and the application successfully approved:
- Photo identity: Aadhaar card, voter ID card, passport, PAN card etc.
- Passport-sized photographs x3
- Identity proof: Aadhaar card, voter ID card, passport, driving license, PAN Card in case the loan amount is more than INR 10 lakhs
- Proof of address: Aadhaar card, voter ID card or registered rent agreement etc.
Factors Your Union Bank Home Loan Eligibility Depends On
While the average is more or less equal, the Union Bank home loan eligibility relies on a few factors, just like other banks. This includes your Age, Value of Property, Salary, Credit Score, and Nature of Employment.
Read: Home Loans for Salaried Person: Eligibility and Documents required
- Age: The higher your age, the lesser time you have to repay the loan, and therefore, the sanctioned amount may be less.
- Income: Depending on your monthly income and other ongoing loan repayments, your loan amount eligibility may vary. The higher your salary the higher the sanctioned loan amount.
- CIBIL score: The higher the score, the better your credit history is, and thus, the more you are worthy of a higher credit amount.
Tips To Ensure High Union Bank Home Loan Eligibility
Here are a few ways you can enhance your chances of maximizing your Union Bank home loan eligibility:
- Include an earning family member as a co-applicant for the loan
- Explore structured repayment plans
- Ensure a steady flow of income and regular savings
- Add details of additional income sources such as rental income or any income sources apart from your primary employment
- Have a record of different salary components including commissions, overtime, performance bonuses etc.
- Take any necessary actions to improve your credit score if it is poor before availing the loan and avoid rejection
Mistakes To Avoid Before Getting A Home Loan From Any Bank
Home loans are a long-term commitment, and therefore proper research is necessary. Some common mistakes that homebuyers tend to make can end up being a huge pain later in their lives. This is why we thought it best to list them out before you settle on the final loan amount and interest rate from any bank:
Read: UCO Bank Home Loan EMI Calculator
- Not researching hidden charges and conditions: While home loans are common and accessible affordably, there are several schemes, hidden rates, flexible repayment options, terms, and conditions that you shouldn’t just gloss over, but rather go over with a minute analysis. Don’t end up paying the price of high EMIs due to inadequate research.
- Don’t opt for shorter loan tenures: As much as possible, try to avoid going for short home loan tenures as smaller tenures mean more pressure on your monthly instalments and therefore more chances of defaulting on them. Short tenures can also lead to smaller loan amounts as a result.
- Overestimating your repaying capability: When we calculate the monthly EMIs, we tend to ignore the chances that any emergency financial situation can make you default on EMIs. It is therefore always assigning the EMI as 25-30% of your monthly income in addition to other saving instruments so that you don’t end up overestimating your repayment capacity.
- Not taking a home insurance cover: You shouldalways protect your assets from any unpredictable losses such as floods, robberies etc. Taking a home insurance cover is always beneficial as it not only assures a sum in case of any financial exigency takes place, but it also is exempt from the Income Tax of India under Section 80D.
Maximize Your Union Bank Home Loan Eligibility with NoBroker
A home loan is a long-term commitment but can become a confusing and frustrating one if you are new to the process. Even experienced home buyers must keep up with the latest home loan guidelines and types of projects available under their eligibility. Furthermore, any small mistakes can roll into becoming bigger financial trouble later on during the repayment period. This is why it is best to have experts by your side. At NoBroker, we pride ourselves on being the best in the real estate industry. You can not only take the help of our dedicated relationship manager to get the best property or plot at the best price in the market, at the lowest home loan interest rates, but also maximize your chances of Union Bank home loan eligibility with our home loan experts. We will guide you through the entire paperwork and repayment process while ensuring that the home you buy, matches your expectations and dreams. Be sure to click the link below and explore our services.
Top Indian Bank Home Loan Intrest Rates
Frequently Asked Questions
Q1.What is the benefit of getting a home loan?
Ans- Not only do they help realise the dream of affordable housing by breaking your purchase amount into small instalments, but also are a huge tax saving instrument, thanks to the available deductions under the Income Tax of India including Sections 24, 80C, and 80EEA.
Q2. What factors does the Union Bank Home Loan eligibility depend on?
Ans- Union Bank of India offers several home loan schemes, discounts, and offers for customers depending on a few sets of parameters that define your creditworthiness and your borrowing ability. You can also do a Union Bank housing loan interest rate check online, and even an eligibility check using their EMI calculator at https://www.unionbankofindia.co.in/english/emicalculator.aspx.
Q3.What is the age limit for Union Bank home loan eligibility?
Ans- The minimum Union Bank home loan age limit is 18 years when the loan is to commence, and the maximum is 75 years.
Q4. Is there a prepayment penalty for floating rates in Union Bank?
Ans- For floating housing loan interest rate in Union Bank of India there is zero prepayment penalty, or even take over a penalty in case the loan is taken over by any other financial institution or bank.
Q5. How can I ensure minimum interest rates on Union Bank home loans?
Ans- Adding additional income sources, earning family members as co-applicant and improving credit scores can help lower Union Bank home loan interest rates.
Q6. What is the Credit score required to become eligible for Union Bank Home Loan?
A higher credit score always increases your chances of loan approval. The minimum credit score for a Home loan from Union Bank is 650.
