Union Bank Green Home Loan – Your Path to Sustainable Living
Union Bank has a Green Home Loan to help you finance your environment-friendly home at attractive interest rates and faster processing, with prizes for being green. Make a positive change in the environment while securing your dream green home.
Union Bank Green Home Loan – Your Path to Sustainable Living
As the world shifts toward environmental consciousness, the idea of a sustainable home has evolved from a luxury into a necessity. Union Bank understands the need for responsible homeownership—and that’s why it brings you Union Green Home, a unique housing loan that supports your dream of living sustainably.
This isn’t just another home loan. It’s a step toward a cleaner, healthier planet and a better lifestyle for you and your family.
What is Union Green Home?
Union Green Home is a dedicated housing loan product tailored specifically for individuals investing in green-certified homes. These homes are evaluated and rated by the Indian Green Building Council (IGBC) or any other recognized green certification agency.
Green homes are designed to minimize environmental impact through eco-friendly materials, energy-efficient appliances, water conservation systems, and smart designs. Union Bank not only supports these initiatives—it rewards you for choosing them.
Key Highlights of Union Bank Green Home Loan
| Feature | Details |
| Purpose | Purchase, construction, or takeover of certified green homes |
| Eligibility | Indian citizens and NRIs (18–75 years), singly or jointly |
| Loan Amount | No upper limit; based on income and property value |
| Interest Rate | 10 bps concession upon submission of green certification |
| Loan Tenure | Up to 30 years |
| Processing Fee | 0.50% of the loan amount (max ₹15,000) + GST |
| Repayment Methods | EMI, EQI, Step-Up, Balloon, FLIP, Bullet |
| Security | Mortgage of the residential unit |
| Certification Required | IGBC or equivalent approved green rating agency |
| Moratorium Period | Up to 36 months (purchase/construction); 48 months (composite loans) |
| Prepayment Charges | Nil |
Why Choose a Green Home?
Energy Efficiency
Green-certified homes come equipped with features like solar panels, advanced insulation, and LED lighting—all of which lower your electricity bills while reducing your carbon footprint.
Better Health
These homes are built using non-toxic materials and ensure superior indoor air quality. It may indicate less health worries as well as a safer environment for kids or elderly relatives.
Long-Term Savings
Admittedly, green homes come at a higher initial price; however, the benevolent savings on maintenance and utilities, as well as the future high resale value, make these up-front costs worthwhile.
Environmental Impact
Buying a certified greenhouse means you are joining hands in conserving as well as having an impact on limiting waste little bit counts towards the difference.
Who is Qualified for Union Green Home Loans?
Union Green Home will be made available to:
- Resident Indian citizens
- NRIs (Non-resident Indians)
Eligibility Criteria Age Minimum:
- 18 Years Maximum: 75 Years at Brew Loan
- Maturity: Applicant Single or Joint Application Allowable
Loan Purpose
You can apply for this loan to:
- Purchase or construct an abode under green building certification;
- Buy a ready-to-move-in green-certified property through resale or from a developer;
- Buy a green home under construction;
- Transfer your running housing loan (from another bank) for a certified green housing project.
Note: The property should be clear of all statutory approvals and green certifications valid from before the loan grant.
Loan Amount & Interest Rate
- Loan Quantum: No upper limit; depends on income and property value
- Interest Rate Benefit: Get 10 basis points (bps) concession once the green certification is submitted to the bank
Processing Charges & Other Fees
| Fee Type | Amount |
| Processing Fee | 0.50% of the loan amount (max ₹15,000) + GST |
| Legal/Valuation/Stamp Charges | As per actuals |
| CERSAI & Registration Charges | As applicable |
Loan-to-Value (LTV) & Margin Requirements
| Loan Amount | Margin Required | Maximum LTV |
| Up to ₹30 lakh | 10% | 90% |
| ₹30 lakh to ₹75 lakh | 20% | 80% |
| Above ₹75 lakh | 25% | 75% |
Repayment & Moratorium Options
Moratorium Period
- Up to 36 months for purchase or construction
- Up to 48 months for composite home loans
Repayment Period
- Tenure of up to 30 years
Repayment Methods Available
- EMI (Equated Monthly Instalments)
- EQI (Equated Quarterly Instalments) – for farmers
- Step-Up Repayment – lower EMI at the start, higher later
- Balloon Repayment – EMI followed by lump sum payment
- FLIP Method – lower EMI in the second half of tenure
- Bullet Payment – lump sum mid-tenure to reduce future EMIs
Security & Guarantee
- Security: Mortgage of the green-certified residential property
- For under-construction properties: Interim security may be required unless the builder has a tie-up with Union Bank (tripartite agreement)
- Guarantor Requirement:
- Resident Indians: No third-party guarantee is required
- NRIs: Need 1–2 resident Indian guarantors (unless co-applicant is eligible)
Insurance
The property must be comprehensively insured (excluding land cost) to cover all construction risks, with Union Bank as a beneficiary.
Green Certification Requirement
The home you plan to buy or build must be certified by:
- Indian Green Building Council (IGBC)
- Levels include: Certified, Silver, Gold, Platinum
- Other Approved Rating Agencies (subject to Union Bank’s acceptance)
Final Word: A Smart Choice for You and the Planet
Choosing Union Bank Green Home Loan is more than just a financial decision—it’s a commitment to sustainable living and responsible citizenship. You’re not just buying a house; you’re creating a home that stands for health, savings, and a better tomorrow.
