Union Bank of India offers up to 90% of the property value as home loan. Union Bank home loan interest rate starts from 9%* p.a., subject to the loan tenure, the purpose of the loan and CIBIL score of the applicant.

Union Bank home loans come with a tenure of up to 30 years; the bank sanctions up to 80% of the property value for loans above ₹30 lakh and 90% of the property value for loans below ₹30 lakh. There is no specific limit till which you can get a housing loan as the amount solely depends on your repayment capacity.

In the following sections of the article, we will give you a comprehensive idea about the housing loan interest rates in Union Bank of India and its related details.

Union Bank Home Loan Interest Rates 2023 Highlights

Different Home Loan Schemes	Interest rate
Union Home / Awas	9% p.a. onwards
Union Home-Smart Save	9.35% p.a. onwards

*Disclaimers: EBLR (external benchmark lending rate) as of 11th February 2023 is 9.30%, which includes the RBI Repo rate of 6.50% and Spread of 2.80%. The interest on a home loan is determined based on the income of the borrower and the CIBIL score.
Concession: A benefit of 5 bps will be applicable for female applicants, only if the house is jointly or singly owned.

Note
The Union Bank of India home loan interest subsidy scheme is applicable for borrowers under Pradhan Mantri Awas Yojna at the rate of 6.5%.

Union Bank Home Loan Interest Rate Calculator

Calculating your home loan EMIs before taking a loan is extremely important to assess the loan affordability. To calculate your Union Bank home loan EMI, the most convenient option is to use an online home loan EMI calculator.

Calculate Your Union Bank Home Loan EMI

Loan Amount

Rate of Interest (P.a)

Loan Tenure (Years)

Years

Interest Amount

Principal Amount

Monthly EMI

Total Interest

Total Amount

The loan EMI calculator is extremely easy to use and gives you quick and accurate results. Select the loan amount, the tenure of the loan, and the current interest rate, the online home loan calculator will give you an estimate of the EMI.

To give you a complete picture of your financial obligations, the EMI calculator will show you how much your loan repayment will cost as well as your payment schedule. Keep in mind that Flexi-rate home loans may have interest rates that fluctuate over time. However, you don’t have to worry about this since the calculator will consider a fixed rate of interest for the entire tenure of the loan.

Following is an example to show you how the current home loan interest rate of Union Bank India will affect your EMI on a specific principal amount.

Applying for a home loan of ₹30,00,000 at the rate of 9.00% and a tenure of 10 years will result in a monthly EMI of ₹38,003. The total interest payable in this tenure is ₹15,60,328, and at the end of 10 years, the total amount you will pay including interest is ₹45,60,328.

Also Read

Commercial Property Loan – Documents Required and Interest Rates

What Are Home Construction Loans and Interest Rates of House Construction Loan

Factors that Affect Union Bank Home Loan Interest Rate

Here are some of the factors that

1. External Benchmark Based Lending Rate (EBLR)

EBLR is an externally-linked interest rate system that is now the only benchmark for new flexi-rate home loans offered by various public banks. As of February 11, 2023, the EBLR of Union Bank of India is 9.30%. All the interest rates charged on different loans depend on this rate.

2. Marginal Cost of Funds Based Lending Rate (MCLR)

The benchmark interest rate used by Indian banks to determine lending rates for various loans, including home loans, is the Marginal Cost of Funds-Based Lending Rate (MCLR). As a borrower, you must keep an eye on the MCLR to stay informed of any changes that may affect the interest rate of your home loan.

Here are the current Union Bank MCLR rates applicable from 11th April 2023 to 10th May 2023.

Types	Proposed MCLR
Overnight MCLR	7.90%
1 Month MCLR	8.05%
3 Months MCLR	8.25%
6 Months MCLR	8.45%
1 Year MCLR	8.65%
2 Year MCLR	8.85%
3 Year MCLR	9.00%

Note
The Base rate w.e.f 1st April 2023 is 9.80%, and the EBLR w.e.f 11th February 2023 is 9.30%.

3. CIBIL Score

The CIBIL score of the loan applicant, which reflects his/her creditworthiness and track record of loan repayment, is a significant factor in determining the applicable interest rate. If the CIBIL score is high (or close to the maximum score of 900), the likelihood of obtaining loans at lower interest rates increases. Here is a list showing how your CIBIL score increases or decreases the home loan interest rates offered by UBI.

Loan Amount	CIBIL Score	Male	Female
Up to 30 Lakh	800 and above	EBLR – 0.30% = 9.00%	EBLR – 0.30% = 9.00%
	From 750 to 799	EBLR – 0.20% = 9.10%	EBLR – 0.20% = 9.10%
	From 700 to 749 & -1 & 1 to 5	EBLR + 0.05% = 9.35%	EBLR = 9.30%
	From 700 to 749 & -1 & 1 to 5	EBLR + 0.10% = 9.40%	EBLR + 0.05% = 9.35%
	From 650 to 699	EBLR + 0.15% = 9.45%	EBLR + 0.10% = 9.40%
	From 650 to 699	EBLR + 0.20% = 9.50%	EBLR + 0.15% = 9.45%
	From 600 to 649	EBLR + 0.70% = 10.00%	EBLR + 0.70% = 10.00%
	Below 600	EBLR + 1.20% = 10.50%	EBLR + 1.20% = 10.50%
Above 30 Lakh	800 and above	EBLR – 0.30% = 9.00%	EBLR – 0.30% = 9.00%
	From 750 to 799	EBLR – 0.20% = 9.10%	EBLR – 0.20% = 9.10%
	From 700 to 749 & -1 & 1 to 5	EBLR + 0.15% = 9.45%	EBLR + 0.10% = 9.40%
	From 700 to 749 & -1 & 1 to 5	EBLR + 0.20% = 9.50%	EBLR + 0.15% = 9.45%
	From 650 to 699	EBLR + 0.25% = 9.55%	EBLR + 0.20% = 9.50%
		EBLR + 0.30% = 9.60%	EBLR + 0.25% = 9.55%
	From 600 to 649	EBLR + 0.85% = 10.15%	EBLR + 0.85% = 10.15%
	Below 600	EBLR + 1.40% = 10.70%	EBLR + 1.40% = 10.70%

4. Loan-to-Value Ratio (LTV)

LTV denotes the proportion of the loan amount to the appraised value of the property. This ratio plays a crucial role when it comes to determining the interest rate offered to borrowers. For example, if you are offered a loan amount of ₹90 lakh for a ₹1 crore property, it means that the LTV ratio is 90%. A higher LTV generally results in a higher interest rate and vice versa.

Here are the current LTV norms followed by Union Bank for implementing home loan interest rates:

Loan Amount	Maximum Permissible LTV
Up to ₹30 Lakh	90%
> ₹30 Lakh <= ₹75 Lakh	80%
> ₹75 Lakh	75%

5. Loan Amount

The amount of loan that you are applying for is also a key factor that determines the interest rate applicable and chances of approval. A lower loan amount can result in a lower interest rate, as well as quick approval and vice versa.

6. Loan Tenure

The interest rate applicable on the home loan will largely depend on the loan tenure. Union Bank of India provides a lower interest rate to home loans taken for short tenure than the ones taken for long periods.

7. Income

Your monthly income is a crucial factor in determining the eligibility for a home loan and the interest rate applicable. Having multiple earning members in the immediate family or having several income sources increases the monthly household income, which increases the chances of getting a home loan at attractive terms.

8. Gender

UBI housing loan interest rate applicable for women borrowers is different from that of men. An interest benefit of 5 bps applies to female applicants if the house is jointly or singly owned by them.

9. Property Location

The location of your chosen property, whether it is an urban city or a small town, may also affect loan eligibility and interest rates. Based on your eligibility, you may be able to obtain a higher loan amount for a property in a big city.

Union Bank Home Loan Interest Rate and Benefits for Women

The Union Bank of India offers special interest rates on home loans to women applicants. A concession of 5 bps is offered to female borrowers for singly/jointly owned properties. The applicable interest rate as per credit score for women borrowers is stated below:

Loan Amount	Credit Score	Salaried	Non-Salaried
Up to 30 lakh	800 and above	EBLR – 0.30% = 9.00%
	From 750 to 799	EBLR – 0.20% = 9.10%
	From 700 to 749	EBLR = 9.30%	EBLR + 0.05% = 9.35%
	From 650 to 699	EBLR + 0.10% = 9.40%	EBLR + 0.15% = 9.45%
	From 600 to 649	EBLR + 0.70% = 10.00%
	Below 600	EBLR + 1.20% = 10.50%
Above 30 lakh	800 and above	EBLR – 0.30% = 9.00%
	From 750 to 799	EBLR – 0.20% = 9.10%
	From 700 to 749	EBLR + 0.10% = 9.40%	EBLR + 0.15% = 9.45%
	From 650 to 699	EBLR + 0.20% = 9.50%	EBLR + 0.25% = 9.55%
	From 600 to 649	EBLR + 0.85% = 10.15%
	Below 600	EBLR + 1.40% = 10.70%

Union Bank Home Loan Interest Rate for NRIs

Union Bank offers NRI customers, whether salaried or self-employed, attractive interest rates on home loans. Changes in the CIBIL score of NRI applicants will change the offered interest rates as well.

Type of residents	Non Resident Indians (NRIs)
Age	18 to 75 years
Loan Tenure	Up to 30 years
Interest Rate	9% p.a. onwards (based on loan amount and credit score)
Other benefits	Interest rate and processing fee charged same as Indian residentsNo prepayment penaltyNo limit on loan quantumConcessional rates for women borrowers

Union Bank Home Loan Interest Rate for Salaried

For salaried individuals, the home loan interest rate differs based on both the credit score and the LTV ratio. The Union Bank home loan interest rates based on the credit score and loan amount have been discussed below:

Loan Amount	Credit Score	LTV	Salaried
Up to 30 lakh	800 and above	<=80	EBLR – 0.30% = 9.00%
		>80 & <=90
	From 750 to 799	<=80	EBLR – 0.20% = 9.10%
		>80 & <=90
	From 700 to 749& -1 & 1 to 5	<=80	EBLR + 0.05% = 9.35%
		>80 & <=90	EBLR + 0.10% = 9.40%
	From 650 to 699	<=80	EBLR + 0.15% = 9.45%
		>80 & <=90	EBLR + 0.20% = 9.50%
	From 600 to 649	<=80	EBLR + 0.70% = 10.00%
		>80 & <=90
	Below 600	<=80	EBLR + 1.20% = 10.50%
		>80 & <=90
Above 30 lakh	800 and above	<=80	EBLR – 0.30% = 9.00%
		>80 & <=90
	From 750 to 799	<=80	EBLR – 0.20% = 9.10%
		>80 & <=90
	From 700 to 749& -1 & 1 to 5	<=80	EBLR + 0.15% = 9.45%
		>80 & <=90	EBLR + 0.20% = 9.50%
	From 650 to 699	<=80	EBLR + 0.25% = 9.55%
		>80 & <=90	EBLR + 0.30% = 9.60%
	From 600 to 649	<=80	EBLR + 0.85% = 10.15%
		>80 & <=90
	Below 600	<=80	EBLR + 1.40% = 10.70%
		>80 & <=90

Union Bank Home Loan Interest Rate for Self Employed

Similarly, for self-employed individuals, the home loan interest rate differs based on the credit score and the LTV. The interest rates offered to self-employed borrowers are as follows:

Loan Amount	Credit Score	LTV	Non -Salaried
Up to 30 lakh	800 and above	<=80	EBLR – 0.30% = 9.00%
		>80 & <=90
	From 750 to 799	<=80	EBLR – 0.20% = 9.10%
		>80 & <=90
	From 700 to 749& -1 & 1 to 5	<=80	EBLR + 0.10% = 9.40%
		>80 & <=90	EBLR + 0.15% = 9.45%
	From 650 to 699	<=80	EBLR + 0.20% = 9.50%
		>80 & <=90	EBLR + 0.25% = 9.55%
	From 600 to 649	<=80	EBLR + 0.70% = 10.00%
		>80 & <=90
	Below 600	<=80	EBLR + 1.20% = 10.50%
		>80 & <=90
Above 30 lakh	800 and above	<=80	EBLR – 0.30% = 9.00%
		>80 & <=90
	From 750 to 799	<=80	EBLR – 0.20% = 9.10%
		>80 & <=90
	From 700 to 749& -1 & 1 to 5	<=80	EBLR + 0.20% = 9.50%
		>80 & <=90	EBLR + 0.25% = 9.55%
	From 650 to 699	<=80	EBLR + 0.30% = 9.60%
		>80 & <=90	EBLR + 0.35% = 9.65%
	From 600 to 649	<=80	EBLR + 0.85% = 10.15%
		>80 & <=90
	Below 600	<=80	EBLR + 1.40% = 10.70%
		>80 & <=90

Union Bank Home Loan Interest Rate Comparison with Other Banks

Even though the Union Bank of India housing loan interest rate is quite lucrative, the home loan market in India is filled with competitive offers from other financial institutions and banks. This table will give you a detailed comparison of the same.

Banks	Home Loan Interest Rate (p.a.)
Union Bank of India	9.00% – 10.70%
IDFC FIRST Bank Home Loan	8.85% onwards
SBI Home Loan	9.15% – 10.05%
Punjab National Bank home loan	8.50% – 10.85%
Indian Overseas Bank	9.55% onwards
HDFC Bank home loan	8.45% – 9.85%
IDBI Bank	9.10% to 12.25%
ICICI Bank home loan	9.00% – 10.05%
Bank of Baroda	9.15% to 10.60%
Axis Bank	8.75% to 9.15%

Also Read

Home Loan Interest Rates in India 2023 – EMI and Charges

Loan Against Securities – Interest Rates, Eligibility and How to Apply

Features and Benefits of Union Bank Home Loan

Here are some of the features and benefits of Union Bank Home Loan:

1. No Upper Limit

A crucial benefit you can get as a borrower of UBI’s home loan is that there is no upper limit on the loan amount. If you have an excellent credit score and fulfil all eligibility criteria, then you can get the maximum loan amount as per your requirement.

2. Long Tenure

Union Bank home loan interest rate also depends on the tenure of the home loan. Nonetheless, based on your financial goals, you can avail a home loan for a long tenure (maximum 30 years) and decrease the applicable interest rate.

3. Take-over Facility

You can avail the feature of balance transfer on your UBI home loan and vice versa. Nonetheless, a take-over penalty of 2% is charged if the loan is taken over by other banks from UBI.

4. Different Repayment Methods

Union Bank offers you different repayment options for your loan. It includes EMI, equated quarterly instalment (EQI), balloon repayment method, step-up repayment method, bullet payment, and flexible loan instalment pan (FLIP) method.

5. Guarantor

Indian resident home loan applicants do not need to provide any third-party guarantor to avail UBI home loans. However, NRI applicants have to produce one or two guarantors, depending on the loan amount applied for.

Different Types of Home Loans Offered by Union Bank

UBI presents its customers with three different types of home loans based on their eligibility criteria, purpose and loan amount. They are as follows:

1. Union Home Loan

You can avail this standard type of home loan to buy a new house or old dwelling unit. You can also use this loan for the construction of a flat or house along with purchasing a plot for construction. Also, renovation, repair, addition and extension facilities can be availed with this type of loan.

Type of applicant: Indian citizens and NRIs
Interest rate: 9.00% onwards
Eligibility: Must be between the ages of 18 and 75 years
Loan tenure: Maximum 30 years
Loan amount: No upper limit
CIBIL score: 600 and above (applicants with no CIBIL score are also eligible)
Processing fees: 0.50% of the loan amount to a maximum of ₹15,000 + GST

2. Union Home-Smart Save

This scheme aims to provide you with an overdraft facility to construct or buy a house or flat. The amount of the loan sanctioned depends on the applicant’s eligibility. Any additional repaid amount over and above the scheduled repayments will reduce the outstanding loan amount and the applicable interest burden.

Type of applicant: Indian citizens and NRIs
Interest rate: 9.35% onwards
Eligibility: Must be between the ages of 18 and 75 years. Additional documents of letter of continuity – AD 09M and Union Home Agreement duly stamped must be produced.
Loan tenure: Maximum 30 years
Loan amount: No upper limit
CIBIL score: 600 and above (applicants with no CIBIL score are also eligible)
Processing fees: 0.50% of the loan amount to a maximum of ₹15,000 + GST

3. Union Awas

This scheme is available for constructing or purchasing houses in rural or semi-urban areas. Improvement, repair or extension of any existing property in the rural or semi-urban area can also be availed with this loan.

Type of applicant: Residents of rural and semi-urban areas
Interest rate: 9.00% onwards
Eligibility: Must be between the ages of 18 and 75 years
Loan tenure: Maximum 30 years
Loan amount: Maximum ₹10 lakh for the semi-urban area and ₹7 lakh for rural area
CIBIL score: 600 and above (applicants with no CIBIL score are also eligible)
Processing fees: 0.50% of the loan amount

How to Apply for a Union Bank Home Loan?

You can apply for a Union Bank Home Loan online by following the steps below:

Step 1: Go to the Union Bank Official Website

Step 2: Navigate to the ‘Apply Now’ section

Step 3: Fill out the necessary details as given

Step 4: Once done, click on ‘submit’ to complete your application

Union Bank Home Loan Eligibility

Union Bank of India’s home loan interest rate significantly depends on the eligibility criteria of the applicant. Check this section to understand more about the eligibility criteria to apply for a home loan.

Resident Type: Indian residents and NRIs
Age: Minimum age of 18 years and a maximum of 75 years
CIBIL score: Above 600 preferred (applicants with a CIBIL score lower than 600 are also eligible for a home but with a higher interest rate)
Loan Amount: No limit on loan quantum (maximum ₹30 lakh for renovation or repair purposes)
Type of Occupation: Salaried and self-employed individuals
Income: Depends on the applicant’s eligibility and loan type

Union Bank Home Loan Charges

The processing fees and other charges applicable to UBI’s home loan are:

Processing fees: 0.50% of processing fees will be charged, which can be a maximum of ₹15,000 + GST.
Stamp duty/valuation / CERSEI / legal / memorandum registration fees will be applied per actuals

Documents Required for a Union Bank Home Loan

To successfully apply for a home loan with UBI, there are some documents that you need to provide. The details are stated below:

Properly filled out home loan application form with all credit information
KYC documents of the applicant and guarantor or co-applicant:
- Address proof (Passport / Aadhaar card / Driving licence)
- Identity proof (Aadhaar card / Passport / Voter ID card / PAN card)
- 2 current passport-size photographs
For salaried applicants – Income proof (last 2 years Form 16 or ITR), 3 latest salary slips, last 6 month’s bank statement
For self-employed applicants – Income proof (last 3 years ITR), proof of income from other sources, last 6 month’s bank statement
Property documents of the proposed house / flat / plot
Allotment letter or agreement to sell the property
Own contribution or advance payment receipts
NOC from the developer / society / builder
Copy of document for property ownership
Regulatory and statutory approval to construct the proposed residential unit
Copy of the approved plan by local body
In cases of extension, construction, renovations or repairs, documents highlighting the estimated cost of the extension, renovation, construction or repairs.
Additional documents, in case of take over from other financial institutions or banks
Last 12 month’s account statement
Sanction letter
An authority letter from the borrower authorises the financial institution or bank, to directly hand over security documents to UBI’s authorised officials
List of documents held with financial institutions or banks
Additional documents for NRIs in case of co-applicant or case applicant
Offer letter or contract of employment
Visa stamped on the passport
Current work permit
Copy of the passport
ID card issued by the current employer
Local address proof

Tips to Avail Union Bank Home Loan at a Lower Interest Rate

1. Maintain a Good Credit Score

Having a good credit score increases the chances of getting a lower interest rate. Paying credit card bills on time, reducing outstanding debt and maintaining a healthy credit history can help to improve your credit score and avail attractive interest rates on home loans.

2. Opt for a Lower Loan Amount

Borrowing a lower amount reduces the risk of default and can help to get a lower interest rate.

3. Research and Comparison

Researching and comparing home loans offered by different lenders can help you find the best deal. Comparing interest rates, processing fees, and other charges can help to choose the right lender..

4. Apply with a Co-applicant

Applying for a home loan with a co-applicant with a good credit score and a stable income can improve the chances of getting a lower interest rate on home loans.

Final Word

Consider the Union Bank home loan interest rate before applying. Use a home loan EMI calculator to check your repayment obligations and plan the loan amount you want to apply for and tenure accordingly.

Navi Home Loan offers up to 90% financing of your house in a 100% paperless manner. Get instant approval along with a sanction letter within minutes. Download the Navi app and apply today!

FAQs

How much time does it take to get a home loan approved?

After successful verification, it can take up to 7-10 days working days to get your home loan approved.

What does the market value of a property mean?

The market value of your property is the estimated amount for which the property can be sold to a buyer. You can know the market value of your property by availing the services of an independent valuer who understands prevailing property rates in the market.

I am already a UBI home loan customer and need additional urgent funds. How do I avail it?

You can avail additional loans on your existing home loan amount by opting for special personal loan schemes such as Union Ashiyan personal loan scheme and Union Ashiyana overdraft scheme.

How will Union Bank of India decide the loan amount I am eligible for?

The amount of loan you are eligible for hugely depends on your income and repayment capacity. Some other factors that also play an important role are your age, margin offered by you, credit report, etc.

What is the margin amount of a home loan?

The margin amount of a home loan denotes your own contribution. In simpler words, it is the total cost of the property minus the home loan amount. For example, if the value of a property is ₹10 lakh, and you avail a home loan of ₹8 lakh, the margin amount would be ₹2 lakh which needs to be paid out of your pocket.

Disclaimer

This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.

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Navi Team

We are a diverse group of writers, editors and Subject Matter Experts striving to bring the most accurate, authentic and trustworthy finance and finance-related information to our readers. Our mission is to simplify jargon and industry lingo. We believe sharing knowledge through relatable content is a powerful medium to empower, guide and shape the mindset of a billion people of this country.