Ujjivan Small Finance Bank Limited

Apply Ujjivan Small Finance Bank Limited Home Loan

About Ujjivan Bank

Ujjivan Small Finance Bank is among the latest entrants into the banking system in India. Its parent organisation, Ujjivan Financial Services Limited (UFSL) started operations in 2005 as a non-banking finance company. The objective of this company was to provide financial services to the segments of the people not having proper access to financial institutions.

October 7, 2015, was a significant day in the history of UFSL, as it received the in-principle approval from RBI to set up a small finance bank. On receiving the final approval from RBI on November 11, 2016, it set up Ujjivan Small Finance Bank. The bank started its operations on February 01, 2017.

Ujjivan Small Finance Bank has an extensive presence in 24 states across the country with access to a customer base of 5.1 million. It comprises the customers of the erstwhile Ujjivan Financial Services Limited and new customers, as well. Besides its extensive network of branches, the bank has ATMs and Automated Cash Recyclers spread across the country. It also has a phone banking unit that serves customers in nine languages. Apart from these services, Ujjivan Small Finance Bank offers mobile banking and internet banking facilities to its individual and corporate customers.

Ujjivan Bank Products

Ujjivan Small Finance Bank (Ujjivan Bank) offers a range of products that include savings accounts, fixed deposits, loans, and insurance services. The loan portfolio comprises home loans, personal loans, vehicle loans, and microloans for small businesses. It also offers facilities like current accounts and business loans for the business and corporate sector. Ujjivan Bank also provides a range of loan products specifically tailored for the agricultural community.

Ujjivan Bank Home Loans

Ujjivan Bank offers three different types of home loans to its customer base situated across the country. Apart from the three home loan products, the bank provides a non-home loan product known as Home Equity Loan.

Ujjivan Bank Home Loans are available for meeting almost all housing requirements.

Loan product Ideal for Maximum amount ROI Tenure

Construction and Purchase Loan

Purchasing or constructing houses/flats

75 Lakhs

13.75% to 15.75%

240 months

Composite Home Loan

Purchase a plot of land and build a house on it

30 Lakhs

13.75% to 15.75%

240 months

Home Improvement Loan

Home repairs and renovations

25 Lakhs

15.75%

144 months

Home Equity Loan

Debt consolidation

35 Lakhs

15.75% to 17.75%

180 months

Ujjivan Bank Home Loan Features and Benefits

  • Home loans are available to meet all housing requirements.
  • Loans are available for purchase or construction of houses or flats.
  • Ujjivan Bank provides loans for the purchase of a plot of land and construct your house subsequently.
  • The bank offers home loans for renovations and repairs to existing homes.
  • The rates of interest are competitive when compared to its peer banks.
  • The bank offers extended repayment tenures up to 240 months.
  • Ujjivan Bank has a transparent service charge structure.
  • The bank has one of the most simplified eligibility norms for home loans.
  • Ujjivan Bank provides loans to eligible borrowers under the Pradhan Mantri Awas Yojana.

Ujjivan Bank Home Loan How to Apply?

Ujjivan Bank offers the facility of applying for home loans online. The bank has an extended network of more than 550 touchpoints through which customers can apply for loans in person.

Ujjivan Bank Home Loan Details

Construction and Purchase Loan

Purpose of the loan

  • Development and purchase of house or apartments

Loan Amount

  • Minimum 2 lakhs
  • Maximum 75 lakhs

Rate of Interest

  • 13.75% to 15.75%

Login Fee

  • 3,000

Loan repayment Tenure

  • Minimum 36 months
  • Maximum 240 months

Other Charges

  • 1% to 2% of the loan amount
Composite Home Loan

Purpose of the loan

  • Purchase a vacant plot of residential land and construct house thereon

Loan Amount

  • Minimum 2 lakhs
  • Maximum 30 lakhs

Rate of Interest

  • 13.75% to 15.75%

Login Fee

  • 3,000

Repayment tenure

  • Minimum 36 months
  • Maximum 240 months

Other charges

  • 1.50% to 2% of the loan amount
Home Improvement Loan

Purpose

  • Repairs and renovations to existing homes

Loan Amount

  • Minimum  2 lakhs
  • Maximum  25 lakhs

Rate of Interest

  • 15.75%

Login Fee

  • 3,000

Repayment tenure

  • Minimum 36 months
  • Maximum 144 months

Other charges

  • 2% of the loan amount
Home Equity Loan (Non-housing loan)

Purpose

  • Debt Consolidation
  • Refinance for constructed or purchased building
  • Mixed usage of loans
  • Funding of mixed properties

Loan amount

  • Minimum 2 lakhs
  • Maximum 35 lakhs

Rate of Interest

  • 15.75% to 17.75%

Login Fee

  • 3,000

Repayment Tenure

  • Minimum 36 months
  • Maximum 180 months

Other Charges

  • 2% of the loan amount

Ujjivan Bank Home Loan Documents Required

The applicants should provide the following documents at the time of applying for the home loan.

  • Home Loan Application Form duly filled in all respects
  • Application Form Annexure completed
  • 2nd co-borrower and Guarantor sheet If applicable
  • Identity proof for the applicant and all co-applicants Two copies (One for insurance)
  • Residence Proof for all applicants and guarantor Two copies (One for insurance)
  • Signature Proof for all applicants and guarantor
  • Passport-sized photograph for all applicants and guarantor
  • Business address proof if applicable
  • Bank passbook for the last six months of all applicants
  • Income proof  Business or salary  for applicants and guarantor
  • Photograph of the borrower with the business unit in the background
  • Photograph of the applicant with the property in the background
  • Photocopies of all title-related documents
  • Cost estimate in the case of self-construction and home improvement loans
  • All KYC details of the guarantor
  • Product Feature Slip

Ujjivan Bank Other Products and Services

Ujjivan Small Finance Bank offers a range of products and services to its customers. These products include home loans, loans for small and micro businesses, and agricultural loans, among others.

Loan Product Principal features

Group Loan Business Loan

  • Self-employment opportunities to women
  • Amount 6,000 to 50,000
  • Interest rate 21.25%
  • Repayment tenure One year to Two years
  • Processing fee 1% of the approved loan amount

Family Loan

  • Mett family expenses of women with low income
  • Amount 6,000 to 35,000
  • Interest rate 21.25%
  • Repayment One to two years
  • Processing fee  1% of the sanctioned loan amount

Agriculture and Allied Loan

  • Financial assistance to women for cultivating crops and meet other working capital requirements for farming and allied activities
  • Amount 6,000 to 50,000
  • Interest rate 21.25%
  • Repayment tenure One to two years
  • Processing fee 1% of the advanced loan amount

Business Top-up Loan

  • Additional finance to meet business requirements
  • Amount 3,000 to 6,000
  • Rate of interest 21.25%
  • Repayment 9 months
  • Processing fee 1% of the stipulated loan amount

Emergency Loan

  • Meet unforeseen emergencies of customers
  • Disbursement with 24 hours
  • 2,000 to 5,000
  • Interest rate 21.25%
  • Repayment tenure Six months
  • No processing fee

Education Loan

  • Finance education expenses from nursery to degree/diploma and vocational training
  • 5,000 to 15,000
  • Interest rate 21.25%
  • Repayment 12 months
  • Processing fee 1% of the loan

Individual Business Loan

  • Meet business requirements of individual micro-entrepreneurs
  • 51,000 to 1.50 lakhs
  • Rate of Interest 23.25%
  • Repayment tenure six to 24 months
  • Processing fee 2% of the loan amount

Individual Livestock Loan

  • Meet the finance requirements of farmers engaged in the livestock business
  • 51,000 to 1.50 lakhs
  • Interest rate 23.25%
  • Repayment 6 to 24 months
  • Processing fee  1% of the sanctioned loan amount

Higher Education Loan

  • Meet the finance needs of customers pursuing higher education
  • 51,000 to 1.50 lakhs
  • Interest 23.25%
  • Repayment 6 to 24 months
  • Processing fees 1% of the loan amount

Individual Agriculture Loan

  • Meet the needs of marginal and tenant farmers
  • 31,000 to 80,000
  • Interest Rate 23.25%
  • Repayment 4 to 12 months
  • Processing fee 1% of the approved loan amount

Secured Business Loan

  • Business needs of micro and small entrepreneurs
  • Land and building as collateral
  • 2 lakhs to 10 lakhs
  • Interest Rate 20%
  • Repayment tenure 24 to 84 months
  • Processing fees 2.2% of the loan amount
  • Collateral Minimum of 150% of the loan amount

Unsecured Business Loan

  • Collateral free business loan
  • Meet the investment needs of micro and small enterprises
  • 1.50 lakhs to 3 lakhs
  • Interest rate 24%
  • Repayment tenure 12 to 36 months
  • Processing fee 2.25% of the loan amount

Pragati Individual Loan

  • Individual loans to Ujjivan Bank customers to meet business and personal requirements
  • 51,000 to 1 lakh
  • Interest rate 22.25%
  • Repayment 24 to 36 months
  • Processing fees 1% of the loan amount
  • Life Insurance Premium  As applicable

Pragati Medical Emergency Loan

  • Meet the medical emergencies of individuals
  • 5,000 to 50,000
  • For loans between 5,000 and 15,000, the tenure is 6 to 24 months

 

Ujjivan Bank Home Loan Schedule of Charges

Particulars Charges

Login Fees

3,000

Other Charges  CLADUM Charges

  • 2% of the loan amount for formal loans
  • 1.50% for informal loans up to 25 lakhs
  • 1% for informal loans above 25 lakhs

Life Insurance and Property Insurance

Premium to be paid by borrower and deducted by a netting of the loan amount

Prepayment charges - only during fixed-rate of interest period

Own source of funds No charges

Other sources 2% of the outstanding amount

CERSAI charges

Loans up to an amount of 5 lakhs 50

Loans more than 5 lakhs  100

Bounce charges

250

Late payment EMI

2.50% of the overdue amount

Stamp Duty and Registration

As per actuals

Duplicate statement issuance charges

100 per instance

Duplicate amortisation schedule issuance charges

100 per instance

Issuance of photocopies of documents

500 per instance

Ujjivan Bank Home Loan Customer Care

Ujjivan Bank Home Loan Frequently Asked Questions

When is the login fee payable in an Ujjivan Bank Home Loan?

The Login fee is upfront and non-refundable fee payable at the time of applying for the home loan. The login fee amount is 3,000 plus GST. In the case of approval of the loan, the login fee is adjusted against the processing fee.

What are CLADUM charges?

CLADUM charges are additional fees payable by the borrower when applying for a home loan. The CLADUM charges comprise the following.

  • Credit fees
  • Legal fees
  • Administrative fees
  • Documentation fees
  • Upkeep of documents fees
  • Maintenance fees

Usually, it is in the range of 1% to 2% of the loan amount plus applicable GST.

What is the margin amount on home loans?

Ujjivan Bank stipulates a margin of 10% to 25% of the loan amount depending on the loan amount. The LTV ratio is ideally between 75% to 90% of the value of the property.

Why is the rate of interest high in the case of Ujjivan Bank Home Loans?

Ujjivan Bank is a small finance bank. These banks have a different rate of interest structure as compared to nationalised and other commercial banks. They stipulate their interest margins depending on their financial position. Though it appears high, the interest rates of Ujjivan Bank are among the lowest when you consider other small banks and NBFCs.

What type of home loans does Ujjivan Bank provide?

Ujjivan Bank provides the following types of home loans.

  • Loans for purchase of new or second-hand houses or apartments
  • Construction of a new home or buy a flat/house under construction
  • Purchase a plot of land and develop your home thereon
  • Loans for carrying out repairs and renovations to the existing house

Who is the primary target group of Ujjivan Bank?

Ujjivan Bank caters to all types of customers. However, their primary target is the economically poor people who do not have access to financial institutions like banks and NBFCs.

Does Ujjivan Bank concentrate on the rural poor alone?

Though the rural poor is its primary target, Ujjivan Bank caters to other sections of society like the urban and metro population.

Does Ujjivan Bank offer a home loan BT facility?

No, Ujjivan Bank does not have a home loan balance transfer facility today. It might offer the same one day in the future.

How does Ujjivan Bank charge interest on the home loan?

Ujjivan Bank charges interest on a reducing balance basis on the home loan. It is the best way of charging interest, as it provides maximum benefit to the borrower.

How can one repay the Ujjivan Bank Home Loan?

Ujjivan Bank offers a specific online portal for paying your EMI. Access the Repay Loan option and enter your details. Choose the collection types, enter the amount and proceed with the payment online. An alternate mode of payment is through PDCs and ECS mandates.

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