Union Bank Home Loan Interest Rates

Union Bank provides home loans at very affordable rates. The Union Bank of India Home Loan interest rate is between 8.35% p.a. The interest rates depend on the CIBIL score, the type of loan, quantum of loan, employment, gender and Loan to Value Ratio (LTV). Union Bank Home Loan Interest Rate today is as given below.

Comparison of Union Bank Home Loan Interest Rate with Top Banks

The prevailing Home Loan Interest Rates of Top Banks in comparison with Union Bank Home Loan Interest Rate 2024 is as given below:

Union Bank of India offers home loans at attractive interest rates that depend on various factors. The factors affecting Union Bank of India Home Loan Interest Rates are as listed below:

Location of the Property: The location of the property to be mortgaged is very significant. A  property situated at premium locations with proximity to amenities like schools, supermarkets, hospitals and good connectivity will have a higher resale value. Since the recourse to recovery in case of default is the sale proceeds of the security offered, the lenders will prefer a property with a good resale value. If the mortgaged property is in a fully developed location, the home loan will be provided at a relatively low interest as the risk of lending is reduced.

Stability of income: A home loan will be provided for tenure as long as 30 years. Lenders have to ensure that the repayment for such a long period should be without any hitches. Financial institutions will provide home loans at a lower rate of interest to salaried individuals as the income is stable. More so,  if the borrower is employed with public sector undertakings, MNCs or reputed  Companies. 

Credit Score: The repayment capacity and credit integrity is assessed by the credit score. Suppose the repayment of your existing loans and credit card dues is consistent and is made on or before the due date. In that case, you will be considered as a responsible borrower, and the credit score will reflect it — the higher the credit score, the lower the interest rate.

Type of interest: Union Bank of India Home Loan Interest Rates are of two types. A fixed-rate will be higher than the floating rate and will be reset every five years. So for five years, the EMI will be consistent, and you will be able to plan your finances accordingly. On the contrary, a floating rate through lower will keep changing as and when the EBLR changes. 

Loan to Value: The home loan quantum will depend on the value of the property to be mortgaged. Union Bank provides home loans up to 90% of the property value. The rate of interest depends on the down payment brought in by the borrower. With a sizable down payment, the quantum of the loan will reduce, and so will the lending risk for the financial institution. Hence, the higher the down payment, the lower will be the interest rate.

Besides the interest, Union Bank Home Loan attracts other fees and charges as mentioned below.

Union Bank EMI calculator enables you to check your eligibility even before applying for a home loan. You can access the Union Bank EMI calculator by visiting the official website of Union Bank. On the website, you can find the EMI calculator under the ‘Tools and Calculators’ option. You will have to provide the details of the loan amount, rate of interest and tenure to arrive at the EMI payable. You can adjust the tenure and loan amount several times to arrive at an EMI that you have planned for or the EMI you can afford.

The EMI calculator is a very convenient tool to calculate eligibility. The result will be accurate and quick. Calculating the EMI manually would be cumbersome, and the value arrived at may not be totally accurate. The advantage of the EMI calculator is that you can calculate the EMI several times by varying the values as per your requirement.

You can observe from the above calculator that the longer the tenure, the lower will be the EMI. Also, even a small difference in interest to the extent of 0.05% can make a difference. However, choosing a longer-term will enhance the interest cost. You can choose a longer tenure initially to increase the eligibility and contemplate making prepayments whenever you have surplus funds. This arrangement will be cost-effective. There is no prepayment penalty for Union Bank Home Loans.

You can apply for the Union Bank of India Home Loan online by accessing the Retail Loan application on the bank’s official website. On choosing the Retail Loan application option, the retail loan application page will open. You will have to follow the steps given below to apply for a home loan.

• There are two options. New and Existing. The option  New is for applying for the home loan, and Existing is to track the application status.
• Choose New, and another page will open.
• You are to give personal details like First Name, Last Name, Mobile Number and Email Id.
• Next, you will have to choose the scheme from the drop-down. Choose ‘home loan’ from the options.
• Give your current location.
• Choose an appropriate option under ‘Lead Created by’.
• Enter the Captcha
• Authorise the representatives of the bank to either send SMS or call regarding the loan application/enquiry by clicking on the box on the left side of the page.
• Click on the Apply button to submit the application.

The representatives of the bank will get in touch with you for further details. You can also visit the nearest branch of Union Bank of India and apply for the loan personally.