United Bank of India Home Loan Eligibility

United Bank of India is a government-owned bank with its headquarters in Kolkata. The bank has a three-tier set up with the head office in Kolkata, 36 Regional Offices, and 2058 branches. It is one of the 14 banks that was nationalised in the year 1969. United Bank of India provides various corporate banking and services along with retail banking.

Investment in house property is a milestone in one's life. But the investment cannot be done in one go. If you have to make the investment without dipping into your savings, you will have to avail a Home Loan. United Bank of India provides Home Loans of various types at a very competitive rate.

The Home Loan provided by the United Bank of India is very affordable as the rate of interest is very competitive. To qualify for the loan, you have to comply with the following home loan eligibility criteria.

• The applicant should be over 21 years of age
• Salaried individuals should be having a regular and permanent job with stable income
• Self-employed individuals/professionals and businessmen who are established and have a minimum existence of 3 years in the same line of business.
• Professionals and businessmen should have a minimum of 3 years of Income Tax Return

The following are the features of United Bank of India Home Loan:

The following documents are required for United Bank of India Home Loan:

KYC Documents for both salaried/self-employed individuals

• Aadhar card
• Voter's ID Card
• PAN Card
• Passport
• Driving Licence
• Utility bills

Income Proof for salaried individuals

• Latest Salary slips (3 months)
• Form 16 for the past 2 years
• ITR for the past 2 years
• Bank account statement for the last 6 months

Income Proof for the self-employed

• Financial statements like audited balance sheet and profit and loss account for the past 2 years
• ITR with income computation for the past 2 years
• Bank account statement for the last 12 months

Business existence proof for the self-employed 

• Registration certificate under Shop Establishment
• Certificate of Incorporation
• GST Certificate

Other documents for the self-employed

• Partnership deed in case of a partnership firm
• Memorandum of Association and Articles of Association in case of Pvt Ltd Companies
• Share-holding pattern and list of Directors in case of a Company

Property documents

• Copies of property documents like sale deed, khata, approved plan, possession certificate, agreement of sale (in case of a flat), a receipt for having paid the advance amount ( in case of a flat), tax paid receipts
• In the case of take-over of a loan, a list of original documents deposited with the existing lender along with a letter giving the outstanding liability

The above documents should be submitted along with two passport size photographs and an application for a Home Loan.

The following are the factors affecting United Bank of India Home Loan Eligibility:

• Age: The maximum repayment tenure is 30 years for a Home Loan at the United Bank of India. The advantage of this long tenure can be utilised if you are younger in age. For instance, if you avail a loan at the age of 30 years, the loan will mature when you attain an age of 60 years, which is well within the norms of the bank. You will also get the benefit of easy instalments if you avail the loan when you are young. At the United Bank of India, if the borrower convinces the bank about a regular source of income even after superannuation, the repayment period will be extended up to the age of 70 years.
• Existing loans: The eligibility and the credit decision depend on the existing commitments. If you have already availed many loans, then the chances of getting a Home Loan will be bleak. The available surplus funds to service the Home Loan will be lowered to the extent of your existing commitments. If you intend to avail a big-ticket loan like a Home Loan it is advisable to reduce the number of loans as much as possible before applying for the loan.
• Credit score: Maintaining a good credit score depicts your financial discipline. A candidate with a good score is considered as a low-risk borrower. Higher the score better are the chances to get approval for the loan.
• Income: The eligible quantum of loan is directly proportionate to the income. If you have a good income and the debt to income ratio is as per the bank norms, you will be eligible for a higher loan amount.
• Property and LTV ratio: The maximum quantum of the United Bank of India Home Loan depends on the location of the property. Property located in Metro will fetch a loan up to 3 Crores. A property at the urban area will fetch a loan up to 1 Crore, property at the semi-urban area will fetch a loan up to 45 Lakhs and property at the rural area will fetch a loan of 25 Lakhs.
• Employment: If you are a confirmed employee at Government Organisations/PSUs or at MNCs, then the eligibility will be higher since the source of income is regular and stable. Similarly, a well-established business/profession with an existence of more than 3 years will enhance the eligibility for the self-employed.

The following are some of the tips to increase the Home Loan eligibility:

• Credit report/credit score is the key for higher eligibility. Lenders look for a borrower with good payment record and with less existing commitments. A good score is a good indicator and will enhance the eligibility. Check your credit score. If there are any discrepancies, get the same rectified before applying for a Home Loan.
• Lesser the existing commitments, higher will be your loan eligibility. If you are planning for investment in a house property, aim at keeping the existing commitment as low as possible to increase the eligibility.
• United Bank of India permits part pre-payment without any penalty. Encash this facility by opting for a longer repayment period while applying for the loan and making part pre-payments periodically to reduce the tenure eventually.
• Add a co-borrower with good income and a good score to enhance the eligibility. Spouse, parents or children can be co-borrowers.
• If you have invested in shares and have fixed deposits, you can declare the dividends and interest on the fixed deposits as other sources of income. If you propose to let out the property, then the rental income can also be declared. Other sources of income will be considered to assess the eligibility.
• The maximum quantum of the United Bank of India Home Loan depends on the location of the property. The maximum quantum is 3 Crores for a property in Metro, 1 Crore for a property in the urban area, 45 Lakhs for a property in the semi-urban area and 25 Lakhs for a property in the rural area. Even the LTV is dependent on the location of the property. So choose a property in a location that has good market value to get a higher quantum and in an area which fetches the maximum quantum of loan.

Using an EMI Calculator before applying for a Home Loan has the following benefits:

• The loan processing can be quickened by giving the exact loan amount which you can arrive at by using the EMI Calculator.
• You can budget the EMI level as per the surplus available out of your monthly income by calculating the suitable EMI using an EMI Calculator.
• You will get an idea about the exact loan quantum that you will be eligible and you can limit your project cost to that extent.

You will get an idea of the interest cost with the amortization table which gives a break up of the adjustment towards the interest and the principal component throughout the loan tenure. You can plan your part pre-payments and also get an idea as to how the additional payments will impact on the interest cost with the EMI Calculator.