Union Bank Awas Home Loan
The Union Bank Awas Home Loan is specially tailored for individuals residing in rural and semi-urban areas, offering readily available financing for the purchase, construction, and renovation of homes, thereby providing a comfortable and dignified environment for all.
Union Bank Awas Home Loan
In India’s fast-evolving housing ecosystem, rural and semi-urban regions often remain underserved. Union Bank of India addresses this gap with a thoughtfully designed product — the Union Awas Home Loan Scheme, a tailored financial solution aimed at empowering rural and semi-urban residents to own, construct, or improve their homes.
Whether you’re a salaried employee in a small-town school or a progressive farmer with a steady income, Union Bank Awas offers you the financial support to build a safe and dignified living space.
Union Awas Home Loan Summary
| Feature | Details |
| Purpose | Purchase, construction, repair, or extension of homes in rural/semi-urban areas |
| Target Audience | Residents of rural/semi-urban areas; salaried & agriculturists with minimum ₹48,000 annual income |
| Loan Amount | Up to ₹20 lakh (semi-urban), ₹15 lakh (rural); ₹10 lakh for repairs |
| Tenure | Up to 30 years (purchase/construction), 15 years (repair) |
| Processing Fee | As per standard home loan rates; up to 0.50% + GST |
| Moratorium Period | 12 to 48 months depending on the loan type |
| Security | Simple or equitable mortgage of residential property |
| Prepayment Charges | Nil |
| Repayment Mode | EMI, or seasonal payments (for agricultural borrowers) |
Purpose of the Scheme
The Union Awas Home Loan is tailored to meet the needs of individuals in rural and semi-urban areas who are looking to:
- Purchase or construct a residential property
- Repair, renovate, or extend their existing house
This scheme supports the vision of inclusive development by making housing finance accessible in India’s heartlands.
Eligibility Criteria
To be eligible, applicants must meet the following:
- A resident of a rural or semi-urban area
- Permanent employee of an educational institution or establishment, or a farmer with regular income (minimum ₹48,000 annually)
- Minimum age: 18 years
- Maximum age at loan maturity: 75 years
- Can apply singly or jointly with other eligible individuals
Repayment capacity is assessed based on an income certificate issued by the Tehsildar or Mandal Revenue Officer.
Loan Amount and Margin Requirements
| Loan Purpose | Area Type | Max Loan Amount | Margin Required |
| Purchase/Construction | Semi-Urban | ₹20 lakh | 10% |
| Purchase/Construction | Rural | ₹15 lakh | 10% |
| Repairs/Improvements | Both | ₹10 lakh | 20% |
The actual eligibility depends on the applicant’s repayment capacity and property value.
Moratorium and Repayment
- Moratorium Period:
- Up to 36 months for purchase or construction
- Up to 12 months for repairs
- Up to 48 months for composite loans (plot + construction)
- Repayment Tenure:
- Up to 30 years for purchase/construction
- Up to 15 years for repairs
- Repayment Modes:
- Equated Monthly Instalments (EMI)
- Quarterly, Half-Yearly, or Annual Instalments (for borrowers engaged in agriculture or allied activities)
Interest Rates
As per Union Bank’s official rate sheet (effective from 01.01.2024), the interest rates vary by credit score:
| Credit Score Range | Male Borrower ROI | Female Borrower ROI |
| 800 & above | 8.35% | 8.35% |
| 750 to 799 | 8.50% | 8.50% |
| 700 to 749 | 9.15% | 9.10% |
| 650 to 699 | 9.45% | 9.40% |
| 600 to 649 | 10.25% | 10.25% |
| Below 600 | 10.75% | 10.75% |
Security and Guarantee
- The primary security is a simple or equitable mortgage of the financed property.
- Interim security may be required if the property is under construction and not part of a project with an approved builder tie-up.
- One or two guarantors with financial worth equivalent to the loan amount are required.
Insurance Requirement
The financed property must be comprehensively insured (excluding the land value) against all construction-related risks, with the insurance policy endorsed in favor of Union Bank.
