United Bank of India Home Loan

The United Bank of India (UBI) is one of the largest banks having more than 2000 branches across the nation and 35+ regional offices. The headquarters of United Bank of India is located in Kolkata. The motive of the United Bank of India is to provide exceptional banking services to all the masses. It strives to provide easy and efficient banking solutions. Unite Bank of India offers various types of loans to its customers at a competitive interest rate. Unite Bank of India aims at providing financial aid and funds to its customers and account holders at discounted rates.

United Bank of India Home Loans are available to salaried and self employed customers at competitive rates. The housing loans provided by United Bank of India can be used to meet several housing needs like purchase, construction, repair, or extension of a house. The house need not be the first or second house. However, various terms and conditions are applied by the bank, depending upon the type of loan one is applying for.

• UBI offers an array of Home Loan schemes suitable for borrowers with varied needs
• Their Home Loans are available at competitive interest rates and even the processing charges are nominal.
• With easy documentation and faster processing, UBI Home Loans are popular among borrowers.
• It is possible to fix flexible return periods and EMIs for convenient loan repayment
• Processing fee is very low

Following are the key features of UBI Home Loan:

• Maximum loan amount offered is 3 Crores in metro locations, 75 Lakhs in urban locations, 45 Lakhs in semi-urban locations, and 25 Lakhs in rural locations.
• Interest rate starts at 8.70%
• Maximum repayment tenure is 30 years or until the borrower turns 70, whichever is earlier.
• Loan margin is minimum 10% for the loan up to 30 Lakhs, 20% for a loan of 30 Lakhs to 75 Lakhs, and 25% for loan above 75 Lakhs.
• The bank doesn't levy any charges on loan prepayment

The rates of interest are linked to its 1 year MCLR or Marginal Cost of Funds based Lending Rate, which is 8.70% as updated on 17.07.2019.

United Bank of India Home Loans Interest Rates Table

There are various types of Home Loans available at United Bank of India. The account holder can opt for a particular type of loan that suits these requirements. Following are the most popular housing loans offered by Unite Bank of India with their features and eligibility criteria:

United Housing Loan Scheme

Purpose:

• For purchase, construction, repairs, renovations/furnishing, or extension of a residential house/ flat
• For purchase of land and construction of house thereon
• Supplementary finance for completion of the project financed by your employer
• Takeover of the Home Loan from another Bank/Housing Finance Company
• Purchase or take-on of long term lease (minimum 10 years) of a house/flat from Government Bodies/PSUs. In such a case, the unexpired lease period should be more than minimum 5 years of repayment tenure of the loan.
• For purchase or construction of second house/flat
• For purchase or construction of third house/flat

Eligibility:

• The applicant should be more than 21 years of age
• The applicant must have a regular stable income source to apply for this housing loan
• The applicant can be a salaried employee, self-employed professional or a business owner
• The salaried applicant must be in regular and permanent service
• Minimum experience of 3 years in the current profession/trade is must for self-employed professionals and business persons. They must have filled ITR for consecutive 3 years.

Quantum: 

• For purchase/ construction of the house:
  • Up to 3 Crores for the property located in metro cities
  • Up to 1 Crore for the property located in urban areas
  • Up to 45 Lakhs for the property located in semi-urban areas
  • Up to 25 Lakhs for the property located in rural areas
• For repairs:The borrower can get the housing loan of maximum 10 Lakhs for repair purpose. However, the borrower will have to submit the estimates from Chartered Engineer or Architect. It is very important to have a good repayment history to eligible for this loan.
• For extension:The bank offers the loan of maximum 15 Lakhs for extension purpose. The plan must be sanctioned by the authorities of Municipality/Corporation along with the certificated from a Chartered Engineer or Architect.

Margin: 

• The borrower having an income of up to 3 Lakhs, 25% margin is provided by United Bank of India.
• The borrowers having an annual income of more than 3 Lakhs following are the margin details:
  • For the loan amount up to 30 Lakhs: 10% margin is provided on the project cost
  • For the loan amount above 30 Lakhs to up to 75 Lakhs: 20% margin is provided on the project cost.
  • For the loan amount above 75 Lakhs: 25% margin is provided on the Project cost
• The borrower can get 40% of the eligibility for the housing loan to purchase a new plot or for the construction purpose. However, the margin of 25% is applicable on the value of the land or plot the borrower wishes to purchase.

Repayment: 

• The maximum housing loan tenure at United Bank of India is 30 years. The housing loan tenure depends on the age of the applicant while applying for the loan and remaining age of the property (old).
• The bank can extend the repayment period of the housing loan up to 70 years of age if the salaried employee can provide sufficient income proofs to the bank showing income from other sources as well such as interest or pension.
• The self-employed professionals and business persons should pay off the housing loan within 70 years of age.

Takeover of loan: 

The United Bank of India sanctions the loan for the full take over the amount. Provided the repayment of the EMI of the last 12 months should be regular and the borrower have a standard account.

Processing charge:

The processing fee of 0.59%, or minimum 1,800 and maximum 11,800 is levied by United Bank.

United Smart Loan Scheme

Purpose:

The scheme provides additional finance to the bank's existing Home Loan customers for any purpose including the purchase of furniture/fixtures, interior decoration of the existing house/flat, and so on. The loan is offered at easier terms and conditions.

Eligibility:

The existing borrowers of the bank who have completed at least 2 years of repayment schedule of the loan are eligible to apply for the Smart Loan at United Bank of India.

Quantum of Loan:

The quantum of the loan will depend on the principal amount of the current loan and other following factors:

• The maximum ceiling that stands at 5 lakhs
• Both, the existing outstanding balance, as well as the top up loan, should not be more than the original sanctioned limit.
• The overall repayment period (loan term) will be 5 years and must not increase the remaining tenure of the original loan. The limit must be reviewed on a yearly basis if there is an overdraft.
• Total deductions, which are inclusive of the EMIs for the proposed loan term must not be more than 60% of the gross salary of the borrower.

Security:

The existing mortgage of the housing loan is extended

Repayment:

The loan must be repaid within a maximum of 5 years

Processing charges:

2.36% of the loan value sanctioned

United Housing Loan for Pensioners

Purpose:

The United Bank of India makes sure to offer housing loan schemes and offers to the pensioners also in order to fulfill their dream to have their own home. This loan can be used for:

• Repair, extension, furnishing of own house or flat
• Purchase or construction of a new flat or house.

Eligibility:

• The pensioners of the central government, state government, central government undertakings, defense services, educational institutions, reputed companies can apply for this loan.
• The pensioners must have a minimum net monthly pension of 5,000
• The maximum age at the time of applying for this loan should be 70 years

Quantum of Loan:

• The pensioners can get the loan of maximum 10 Lakhs deducting the EMI
• The loan amount should not be more than 40% of the pension amount
• The pensioner can also add the pension of spouse and apply for the loan. The bank will club the pension amount of both and determine the quantum of the housing loan amount accordingly.

Repayment period:

The maximum loan tenure is 10 years. However, the borrower must fully repay the loan before 75 years of age.

Margin:

The margin on this type of loan is 10% of the total project cost estimated.

Processing charges:

The processing fee of 0.59%, or minimum 1,800 and maximum 11,800 is levied by United Bank.

United Affordable Housing Loan Scheme

Purpose:

• This scheme provides credit-linked subsidy on housing loans availed for new construction or addition of rooms/ kitchen/ toilet, etc. to existing properties as incremental housing.
• Construction or extension should have a toilet facility
• Existing house's repairing work can be undertaken in Kutcha and Semi Pucca houses and require extensive renovation.
• For the construction of the house, the carpet area should be 30 sqm for Economically Weaker Section (EWS) and 60 sqm for Low Income Group (LIG).
• For repair or extension, the area limit should be 30 sqm of built up area for EWS and 60 sqm of built up area for LIG category.
• The same area criteria are applicable for purchasing a newly constructed house from developer/ builder and resale of a newly constructed house from the seller.

Eligibility:

• Applicants must be 21 years of age or above and have regular income
• Applicants must not be a defaulter borrower of any bank or financial institution under EWS or LIG categories.
• The applicant should submit a self-declaration of income along with an affidavit showing that their income falls under the category of EWS or LIG. The income should be below the taxable limit OR the applicant can submit salary slip, salary certificate or other income with ITR/IT Assessment Order or Form 16 as income proof for income above the taxable limit.

Eligible LIG:

• The households having an annual income above 3 Lakhs to up to 6 Lakhs are eligible for this type of loan. However, the States and Union Territories have rights to change the income brackets.
• The all-weather single or multi-storied unit with all the basic and civic amenities such as water, electricity, toilet, etc. with a carpet area up to 60 sqm.

Eligible EWS:

• The households having an annual income of up to 3 Lakhs are eligible for this type of loan. However, the States and Union Territories have rights to change the income brackets.
• The all-weather single or multi-storied unit with all the basic and civic amenities such as water, electricity, toilet, etc. with a carpet area up to 30 sqm.

Beneficiary - Either belonging to EWS or LIG category

• A beneficiary family includes husband, wife, and unmarried son(s) and/or daughter(s)
• They should not own a Pucca house either in their name or in the name of any of their family member in any part of India.
• An adult person who is an earning member (married or unmarried) can be treated as an individual household.

Quantum of loan:

• The subsidy of 6.5% is allowed for the housing loan amount up to 6 Lakhs
• There is no limit of the Home Loan amount
• The beneficiary can also extend the house or flat, but the interest subvention will be provided on the 6 Lakhs only.

Tenure:

The subsidy is allowed on the tenure of up to 20 years.

Interest subsidy & EMI:

• The PLI credits the subsidy to the beneficiary borrower
• The subsidy is provided after deducting the principal amount
• The borrower will have to pay the rate of interest on the outstanding principal amount
• The subsidy is provided to the borrower by NHB in 4 instalments
• The disbursement of the subsidy depends upon the intimation by the bank to the beneficiary or the borrower
• The subsidy is linked to the beneficiary account

Margin:

• The borrowers having an annual income of up to 3 Lakhs can obtain a margin of 25% 
• For the borrowers having an annual income of above 3 Lakhs, the margin is as follows:
  • For the Home Loan up to 30 Lakhs: 10% of the project cost
  • For the Home Loan above 30 Lakhs to 75 Lakhs: 20% of the project cost
  • For the Home Loan above 75 Lakhs: 25% of the project cost

Processing charge:

United Bank of India does not levy any processing fees for the Home Loan amount up to 6 Lakhs. However, for the amount exceeding 6 Lakhs, the bank may charge the processing fees as per their guidelines.

United Affordable Housing Loan Scheme MIG

Purpose:

• Credit-linked subsidy is provided for Middle Income Group (MIG) under this scheme for purchase/ construction of a new/ re-purchase house of 160 sqm and 200 sqm carpet areas, as per the applicant's income eligibility with basic civic infrastructure such as water, road, electricity, toilet, sanitation, sewerage, etc.
• Houses constructed under this scheme should meet the norms and standards of the country's extant guidelines on construction & structural safety.

Eligibility:

• Applicants must be 21 years of age or above and have regular income

• Applicants can be salaried person, self-employed professional, or businessman. Salaried applicant should be in permanent and regular service. Self-employed professionals and business persons should have at least 3 years ITR filed for each financial year on completing the relevant financial year.
• Applicants must not be a defaulter borrower of any bank or financial institution under MIG categories.
• All statutory towns as per the census of 2011 and towns notified subsequently are eligible for the scheme.
• Planning area as notified by the statutory Town (which surrounds the municipal area in concern) is also covered under the scheme.
• The beneficiary family should not own a Pucca house either in their name or in the name of any of their family member in any part of India. They should not have availed of any central assistance under any India government's housing scheme earlier.

Eligible MIG-I:

• The households having an annual income above 6 Lakhs to up to 12 Lakhs are eligible for this type of loan.

Eligible MIG-II:

• The households having an annual income above 12 Lakhs to up to 18 Lakhs are eligible for this type of loan.

Beneficiary - Either belonging to EWS or LIG category

• A beneficiary family includes husband, wife, and unmarried son(s) and/or daughter(s)
• They should not own a Pucca house either in their name or in the name of any of their family member in any part of India.
• An adult person who is an earning member (married or unmarried) can be treated as an individual household.

Quantum of loan:

• Maximum eligible amount of housing loan for interest subsidy is 9 Lakhs for MIG-I and 12 Lakhs for MIG-II.
• Additional loan beyond the said limit will be at non-subsidised rate

Tenure:

• Maximum repayment tenure is 30 years or up to 70 years of age, whichever is earlier
• The subsidy is allowed for the tenure of up to 20 years

Margin:

As applicable in United Housing Loan Scheme.

Processing charge:

United Bank of India does not levy any processing fees for the Home Loan amount up to 12 Lakhs. However, for the amount exceeding 12 Lakhs the bank may charge the processing fees as per their guidelines.

United Platinum Housing Loan Scheme

Purpose:

Housing loan facility for permanent employees of Central/ State Government, Statutory & Regulatory Bodies, and PSUs.

Eligibility:

• Undertaking to be provided by the employer to pay equated monthly instalment (EMI) by direct deduction from the applicant's salary and to remit to the lender.
• Undertaking to be provided by the employee borrower authorising their employer to pay EMI through deduction from their salary and to remit to the lender.

United Reverse Mortgage Loan Scheme

Purpose:

• To provide supplement pension or other income
• Upgradation/ renovation/ extension of existing residential property
• Home improvement/ maintenance/ insurance-related expenses incurred on residential property.
• Medical and other such emergency expenditures
• Repayment of an existing loan obtained for/against a residential property that is to be mortgaged.
• Meeting other genuine needs

Eligibility:

• The scheme is operative through designated branches only in metro and urban locations
• Age of the applicant should be minimum 60 years on application date
• Married couples are eligible as joint borrowers. Both of them should be minimum 60 years of age or above.
• The applicant must have the ownership of the house/flat (to be mortgaged) located in India, with clear title.
• Applicant should be living in the same residence for at least the last 1 year and the same residence should be used as permanent primary residence.
• The property to be mortgaged should be self-occupied, approved construction, with a remaining life of at least for 20 years, and maintained in good condition. The property must be free from encumbrances.
• The applicant should not have any due income tax
• Income proof is not required

Quantum of loan:

• Depends on the realizable value of the concerned property minus margin (also known as qualifying amount).
• The qualifying amount is restricted to 50 Lakhs
• Property will be revaluated at an interval of every 5 years and the qualifying amount will be revised based on the said revaluation of property.

Margin:

20% of the property's value

Loan repayment:

• The applicant need not service the housing loan account. However, the loan becomes due on any or more the following events:
  • When the last surviving borrower dies or sells the home or moves out of the home permanently.
  • 18% of the approved loan amount
  • The borrower fails to pay property taxes, maintain/repair the concerned residential property, or fails to keep the home insured.
  • Borrower declares himself/ herself bankrupt
  • If the mortgaged residential property is donated/ abandoned by the borrower
  • If the borrower makes any changes in the concerned residential property that impact the security of the loan.
  • Fraud/misrepresentation/perpetration by the borrower
  • If a government agency acquires the concerned property for public use or condemns it for health, safety or other reasons.
  • If the market value of the property declines below the applicable qualifying amount of loan/outstanding balance of the loan account.

Security:

• The loan can be secured by way of:
  • Mortgage of owned/occupied residential property
  • Registered Will by the borrower in Bank's favour
  • An undertaking by the borrower stating that the Registered Will provided to the Bank is the last Will that is prepared by them at the time of availing the Reverse Mortgage Loan facility.

Processing fee:

As applicable on United Housing Loan scheme.

United Rural Housing Interest Subsidy Scheme (RHISS)

Purpose:

• RHISS provides financial support to the applicant for modification of existing housing unit and construction of a pucca house in rural areas with basic civic infrastructure such as water, electricity, sanitation, etc.
• Houses constructed or modified under this scheme should adhere to the norms and standards of extant guidelines of the country on construction and structural safety.
• A pucca house is one that is capable of withstanding normal wear and tear due to usage/ natural forces like climatic conditions for at least 30 years.

Eligibility:

• Applicants must be 21 years of age or above and have regular income
• Applicants can be salaried person, self-employed professional, businessman, or agriculturist
• Applicants must not be a defaulter borrower of any bank or financial
• The scheme covers entire India except for the statutory towns as per the census of 2011 and towns notified subsequently under PMAY - Urban.
• If the applicant has availed any interest subsidy under any other Indian government scheme is not eligible to claim the interest subsidy benefit again.
• Any rural household that does not appear on the permanent waitlist of PMAY - Gramin

Loan quantum:

• Maximum eligible amount of housing loan for interest subsidy is 2 Lakhs
• Additional loan beyond the said limit will be at non-subsidised rate

Repayment tenure:

• Up to 30 years or 70 years of age, whichever is earlier
• Subsidy is allowed for only up to 20 years of tenure or tenure of the loan, whichever is earlier

Margin: 

• The borrower having an income of up to 3 Lakhs, 25% margin is provided by United Bank of India.
• The borrowers having an annual income of more than 3 Lakhs following are the margin details:
• For the loan amount up to 30 Lakhs: 10% margin is provided on the project cost
• For the loan amount above 30 Lakhs to up to 75 Lakhs: 20% margin is provided on the project cost.
• For the loan amount above 75 Lakhs: 25% margin is provided on the Project cost
• The borrower can get 40% of the eligibility for the housing loan to purchase a new plot or for the construction purpose. However, the margin of 25% is applicable on the value of the land or plot the borrower wishes to purchase.

Security:

• Primary security is the equitable mortgage of the finance house
• Additional security is Nil

Processing fee:

Nil

United Home Advantage

Purpose:

This is a housing loan scheme with overdraft facility available at reducing monthly Drawing Power. The scheme provides the advantage to the borrowers to deposit their surplus funds in their housing loan account and withdraw it as per Drawing Power available in the housing loan account.

Eligibility:

All new Home Loan customers who are eligible as per United Housing Loan scheme.

Loan quantum:

20 Lakhs and above.

Repayment tenure and processing charge:

As applicable on United Housing Loan scheme.

Housing Loan for NRIs

Purpose:

• Purchase of ready-built/ under-construction house or flat
• Purchase of an old house/flat which is not older than 35 years
• Construction of a new house on own land
• Renovation/repair/extension/furnishing of owner-occupied/ tenant-occupied house/flat
• Supplementary finance for completion of the employer-financed project
• Take-over of Home Loan taken from other Banks/HFCs
• Purchase of land to construct a house within 2 years
• Purchase or take-on of a long-term lease (minimum 10 years) of house/flat from government bodies/ PSUs.

Eligibility:

• Non-Resident Indians (NRIs) who hold an Indian passport
• Persons of Indian origin (PIOs) who hold a foreign passport, either singly or jointly. The applicant can be a citizen of any country except Pakistan/ Bangladesh/ Sri Lanka/ China/ Afganistan/ Iran/ Nepal/ Bhutan if:
• They at any time had Indian passport
• They either of their parents/any of their grandparents was an Indian citizen under the constitution of India of the Citizenship Act 1955.
• They are a spouse of a citizen of Indian or a person referred to in sub clauses (a) or (b) as stated above.

Loan quantum:

• The loan quantum is the lowest amount of the following amounts:
• Loan amount requested
• Property's cost
• 75% of the property's cost (including the cost of the house/plot, registration fees, stamp duty, transfer fee, etc.) and repairs/improvement/extension cost.
• Borrower's repayment capacity

Security:

• Equitable mortgage of the concerned property
• Interim security is required for under-construction property

Margin:

Minimum 25% of the entire project cost in all the cases.

Repayment tenure:

The maximum repayment tenure is up to 25 years.

For NRIs

• Copy of the offer letter/ employment contract and its English translation (if it is not in English), duly attested by the embassy/ consulate or the bank's branch in the concerned country.
• A brief write up about the company or institution where the borrower is employed
• Residence proof: Lease deed copy/ utility bills/ driving license, etc.
• A complete profile or CV of the applicant covering the applicant's educational qualifications, age, nature of profession/ business, job experience, etc. with necessary proof.
• Latest salary certificate in English or pay slips specifying the name, joining date, salary details, and designation of the applicant, duly attested by embassy officials.
• Copy of a notarised valid work permit or appointment letter and contract details in English, duly attested by Indian Embassy.
• Copy of Identity Card which is issued by the current employer or the employment verification certificate.
• Passport's copy as age proof with visa stamp
• A copy of a valid visa notarised by the notary public
• Statement of Overseas NRE/NRO bank accounts for the last 6-12 months
• Bank statements of salary account for the last 6 months
• Copy of the recent W2 form for the applicant residing in USA and ITR for the last 2 years
• A notarised Assets & Liabilities statement of the applicant
• General power of attorney notarised & attested by Indian embassy or consulate
• Employer's undertaking for remittance of EMI, wherever feasible
• Copy of Continuous Discharge Certificate or CDC for merchant navy employees

For other applicants

• Age proof
• Identity proof
• Residence proof
• Income proof
• Property documents

• At MyMoneyMantra be assured to find a team that does elaborate research to find the most suitable option of Home Loans for you.

• With MyMoneyMantra documentation, the process is always easy, simplified, and well assisted

• Get the most accurate customised solutions at MyMoneyMantra

• Get all information, duly compiled on just one platform to avoid confusion

• The MyMoneyMantra finds products based on your eligibility concerning income and other factors.

• You can easily compare products from different banks and across different parameters such as loan tenure, processing fee, interest rates, and loan amount to come to the best conclusion.

• Also get personalised expert's advice, which is based on your credit score, creditworthiness, and past repayment history.

Get the MyMoneyMantra experts to help you with your Home Loan from the selection of the right product, during the application process and right to the disbursement of the loan.

• Simply, go to the Home Loan page on MyMoneyMantra and provide all the important parameters such as age, income, name, occupation, etc.

• The eligibility tool will access the details provided by the applicant and give the best Home Loan options along with their interest rate, personal loan tenure, and other important information.

• This process can be completed in a jiffy and the borrower can apply for the loan online at UBI through MyMoneyMantra for faster processing and a well-managed experience.

Some of the other products by United Bank of India include:

You can use the Home Loan EMI Calculator available on MyMoneyMantra to get fast and accurate results. It simply requires you to enter the loan amount you wish to borrow, the loan tenure, and the interest rate. Press the 'Calculate' button, and you will get the result.

For calling the bank directly for any kind of customer care assistance or Home Loan related queries, you can call the following numbers:

• Toll-Free Number: 1800-345-0345
• Other Contact Numbers: 022-40429100/ 18001033470

What should be my age to apply for United Housing Loan Scheme?

You should be above 21 years of age to apply for United Housing Loan Scheme.

What is the maximum tenure available to repay United Bank of India Home Loans?

Depending on the type of scheme you choose, the maximum repayment period may go up to 30 years.

Does the bank offer Home Loans to NRIs?

Yes, NRIs and PIOs can avail Home Loans under Housing Loan for NRIs scheme at United Bank of India.

Can all PIOs avail United Bank of India Home Loan?

No. Under Housing Loan for NRIs scheme, Persons of Indian origin (PIOs) of Pakistan, Bangladesh, Afghanistan, Sri Lanka, China, Iran, Nepal, and Bhutan cannot avail the housing loan under certain conditions.

What is the eligibility required to avail United Housing Loan for Pensioners?

• Applicant should be the pensioners of Central/State Governments, Central/State Government Undertakings, Defense Services, Educational Institutions, Reputed Companies, and pensioners of United Bank of India.
• Monthly Net Pension of the applicant should be a minimum of 5,000
• Age of the applicant should be maximum 70 years at the time of availing loan

How much loan amount can be availed under the United Housing Loan for Pensioners?

The maximum housing loan amount available under the scheme is up to 10 Lakhs.

Who is eligible to avail a housing loan under the United Smart Loan Scheme?

Existing Home Loan borrowers who have completed minimum 2 years of repayment schedule can apply for this loan.

What is the minimum margin required for United Reverse Mortgage Loan Scheme?

Minimum margin to be arranged by the borrower is 20% of the value of the property.