United Bank of India Home Loan Eligibility

You can instantly check United Bank of India Home Loan Eligibility online. Share your home loan requirement and profile details on Home Loan Eligibility Calculator and you will instantly know about pre-approved loan amount and EMI. Currently Union Bank Home Loans are starting from 6.80 % p.a for maximum of 30 years. To enhance your loan eligibility, you can also apply jointly. Resident Indians as well as NRIs ranging within 18 to 75 years of age can apply.


United Bank of India Home Loan

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.

Eligibility Criteria for United Bank of India Home Loan

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

Features of United Bank of India Home Loan

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


United Bank of India provides Home Loan for the following purposes:

  • The purchase and construction of a house/flat
  • Repurchase of a house/flat
  • If a Home Loan is already availed from your employer, the bank provides supplementary finance to complete the project.
  • Balance transfer of Home Loans availed at other banks/financial institutions.
  • If a house/flat is taken on a lease for a minimum period of 10 years from Government Bodies/PSUs, the bank provides finance for such a lease provided the unexpired period of the lease is more than the repayment period of 5 years.
  • For purchase/construction of a 2nd house/flat
  • For purchase/construction of 3rd unit. The rate of interest for a Home Loan for 3rd unit will be higher than the interest for 1st and 2nd unit by 0. 50% of the regular interest.
Loan amount
  • Maximum loan quantum is 3 Crores at Metros, 1 Crore at Urban areas, 45 Lakhs at semi-urban areas, and 25 Lakhs at rural areas.
  • The maximum quantum of loan for repairs of the existing house is 10 Lakhs subject to availability of an estimated from a Chartered Architect or Engineer.
  • The maximum quantum for extension of the existing house is 15 Lakhs subject to the availability of a sanctioned plan.

Different slabs of the rate of interest applied are as follows:

  • From the 1st of November 2019, the rate of interest for a Home Loan will be linked to EBLR.
  • For loans up to 30 Lakhs with LTV less than 80% the rate of interest will be EBLR + 15 bps, i.e., 8% p.a. at present.
  • For loans up to 30 Lakhs with LTV greater than 80% and up to 90%, the rate of interest will be EBLR + 30 bps, i.e., 8.15% p.a. at present.
  • For loans above 30 Lakhs and up to 75 Lakhs with LTV less than 80%, the rate of interest will be EBLR + 15 bps, i.e., 8% p.a. at present.
  • For loans above 75 Lakhs with LTV less than 75%, the rate of interest will be EBLR + 30 bps, i.e., 8.15% p.a.
  • Currently, under United Platinum Housing Loan Scheme, the rate of interest is linked to RLLR. The Home Loan interest rate under this scheme is RLLR + 45 bps, i.e., 8.15%.
SecurityEquitable Mortgage of the property created out of the loan.
  • The maximum repayment period is 30 years
  • In the case of salaried individuals, if the borrower can convince the bank about regular income by way of pension or any other source after retirement, the repayment period can be extended up to 70 years.
  • Similary, if income generation is substantiated by the self-employed, the repayment can be made up to 70 years of age.
Balance TransferProvision for taking over of the Home Loan with other lenders is available provided at least 12 EMIs for the present loan is serviced regularly.
Processing chargesProcessing charges at 0.59% of the loan amount, with a minimum of 1,180 and a maximum of 11,800.
Pre-closure/part pre-payment charges
  • No pre-closure/part pre-payment charges for loans availed at a floating rate.
  • For loans taken over with a fixed rate pre-closure/part pre-payment charges will be collected at 2.38% will be collected. If the pre-closure is done out of own resources, then there will be no charges.

Documents Required for 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.

Factors Affecting the United Bank of India Home Loan Eligibility

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.

How to Increase the United Bank of India Home Loan Eligibility?

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.

Why Use a Home Loan EMI Calculator?

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.

Best Value Home Loans

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United Bank of India Home Loan Eligibility FAQs

Can I avail other loans after I have availed a housing loan?


You can avail other loans like a vehicle loan or a personal or any other kind of loan when the EMIs of your housing loan are in progress provided you have sufficient repayment capacity.  The lenders will thoroughly scrutinize your repayment capacity before extending other loans when a housing loan is present.

What are the steps taken by the bank in case of default in Housing Loan EMI?


In case the Home Loan EMI is delayed, the bank charges a penalty at 2% of the overdue amount for the overdue period. If the default becomes persistent and the recovery does not come through, then the banks have the authority to take possession of the property for which the loan is provided. The property will be auctioned and the proceeds adjusted towards the outstanding loan amount. Any excess proceeds will be credited to your bank account.

What is the impact of part pre-payment of the loan on the EMI?


Periodical part pre-payment will reduce the outstanding principal balance. You can either opt for a reduction in the loan tenure by keeping the EMI constant or can reduce the EMI by keeping the loan tenure constant. If you intend to save on the interest outgo, you should be opting for keeping the EMI constant and reducing the loan tenure.

What are the advantages of calculating the EMI before applying for the Home Loan?


If you understand the EMI that you will have to pay for the desired loan amount, you can either plan your monthly spends to accommodate for the proposed EMI or apply for a lesser amount to keep the EMI within your affordable budget.

What is the basis for arriving at the EMI amount?


The EMI amount depends on the loan amount, loan tenure and interest.

In the case of a floating interest, how does the bank deal with the EMI when the interest rates change?


If the rate of interest increases, the bank normally keeps the EMI constant and extends the tenure in order to avoid the additional financial burden. But if the extension of tenure amounts to a tenure which is above the maximum period as per the bank norms, the EMI will be increased and the tenure kept unchanged. If the rate of interest decreases, keeping the EMI constant will decrease the tenure which works to your advantage.

What is the maximum loan tenure allowed by United Bank of India?


The maximum loan tenure permitted by United Bank of India is 30 years. In case the borrower convinces the bank regarding the regular source of income after retirement, the tenure will be extended till the borrower attains the age of 70.