Union Bank Home Loan in 2015 Eligibility and Features
Union Bank of India (UBI) was established in 1919 as a premier banking institution and is headquartered in Mumbai. Over the decades, the bank has seen significant growth and is widespread with 43 branches and a large clientele of over 49 million across India. UBI offers a vast range of banking products including corporate accounts, deposits and retail banking. The bank’s Core Banking Solutions provide computerized and state of art banking services to clients and better connectivity between all its branches.
Union Bank of India provides a wide variety of personal banking products namely accounts, deposits, loans, cards, insurance, etc. With the commencement of the New Year, UBI has introduced a comprehensive home loan scheme having the lowest interest rate in the industry.
Features of the Union Bank of India Home Loan — 2015
Interest Rates
Union Bank of India offers home loans with two types of rates of interests — Fixed rates, where the applicable rate remains the same throughout the tenure of the loan. Floating interest rates, where the bank varies its rates as per changing market and base rates. UBI currently charges a base rate of 10.00% with an interest rate of 10.25% for home loans availed up to a value of 75 lakhs. For loans between 75 lakhs to 5 Crores and above, an interest rate of 11.00% is charged.
Loan Tenure
UBI offers home loans with a repayment period of up to 30 years for new purchases and up to 10 years in cases of home repairs.
Maximum Loan Amount
The bank sanctions up to 80% of the total purchase value of the property. The loan amount also depends on the repayment capability of the individual and the eligibility criteria. For loans taken for repairs, the bank has a cap of Rs 30 lakhs.
Margin Requirements
A loan borrower must be able to contribute as follows in terms of loan margins.
- For loans up to 75 lakhs, he should be able to provide up to 20% of the total cost of the purchased property
- For loans amounts between 75 lakhs to Rs 2 Crores, he should be able to provide up to 25% of the total cost of the purchased property
- For loans above Rs. 2 Crores, he should be able to provide up to 35% of the total cost of the purchased property
- In terms of repairs, a borrower should be able to finance 20% of total cost of the repairs
Other Charges / Fees
A processing fee of 0.50% of the total loan amount to a maximum of Rs 15,000 plus the service tax is charged initially. UBI does not levy any pre closure penalty if the loan is closed from reliable sources. If the home loan is taken over, then the bank charges a penalty of 2% of the balance loan amount of the previous twelve months. Property owners have to mandatorily take insurance for their properties while availing a home loan.
Eligibility
- Indian citizens should be aged 21 years and above
- Loans can be availed with a single applicant or as joint applications with all applicants having a regular source of income
- Non Resident Indians are also eligible to avail a UBI home loan
Union Bank of India processes home loans in three stages:
Application — All applicants are required to submit all the necessary documents with the completed application form at the bank.
Sanction — After checking the eligibility requirements, the bank approves a specific amount of the loan based on the customer’s repayment abilities and the property value.
Disbursement — On sanctioning the home loan, UBI disburses the home loan for a specific customer within a time period of 5 business days.
