Union Bank Home Loan Interest Rates

Below are the Union Bank home loan interest rates in 2025 for all home loan schemes:

Union Bank of India Home Loan Floating Interest Rates

Besides the Union Bank housing loan interest rate, you will have to pay the following charges on the Union Bank Home Loan:

• Processing charges: 0.50% of the loan amount, subject to a maximum of Rs. 15,000 + GST
• Legal & valuation charges: As per actuals
• Stamp duty: As per actuals
• CERSAI: As per actuals
• Prepayment charges: Nil for floating interest rate home loan or for a fixed interest rate home loan prepaid out of own sources. If the loan is taken over by other financial institutions, prepayment charges at 2% of the average liability for the preceding 12 months will be collected.

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 a premium location 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 UBI home loan interest rate 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 their 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.

Union Bank home 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 home loan calculator Union Bank 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.

Following are the Union Bank home eligibility criteria:

• The applicants can be an Indian citizen or non-resident Indian (NRI).
• The minimum age to apply for the loan is 18 years. 
• The maximum age for the loan maturity should be up to 75 years.
• Individuals can apply for the loan singly or jointly with other eligible individuals.

Once you meet the above eligibility criteria, you may apply for the loan by submitting the following documents:

• Duly filled home loan application form & credit information
• KYC documents of applicant and co-applicant/guarantor (if any):
  • Identity proof: PAN Card/ Voter’s ID/ Passport/ Aadhaar/ etc.
  • Address proof: Driving License/ Passport/ Aadhaar/ etc.
  • 2 latest passport-size photographs
• Income proof for salaried: Last 2 years’ ITR/ Form 16, latest 3 salary slips and proof of other income (if any) if income is not reflected in ITRs/ Form 16
• Income proof for other than salaried: Last 3 years’ ITR and proof of other income (if any) if income is not reflected in ITRs/ Form 16
• Bank statement for the last 6 months 
• Property documents (based on the proposed property i.e. Flat/ House/ Plot):
  • Agreement to sell/ Allotment letter.
  • Copy of property ownership documents: Title Deed/ Original Sale Deed/ Share Certificate(s) issued by the society & other link parent documents conveying the ownership
  • Advance payment receipts/ own contribution receipts
  • Copy of approved plan by local body
  • NOC from Builder/ Developer/ Society
  • Statutory & regulatory approval of construction of proposed residential unit as per state laws
  • In case of construction/ extension/ repairs/ renovations: Estimate cost of construction/ extension/ repairs/ renovations 
• Additional documents in case of takeover from other Bank/ FI:
  • Sanction letter
  • Statement of account for last 12 months
  • List of documents held with the Bank/ FI (on letterhead)
  • Authority letter from the applicant authorising the Bank/ FI to directly hand over the security documents to Union Bank’s authorised officials
• Additional documents for NRI applicant/ co-applicant:
  • An employment contract/ offer letter (if the employer contract is in any language other than English, it has to be translated into English & attested by the employer /Indian Embassy).
  • Latest work permit
  • Copy of passport
  • Local address proof (if any)
  • Visa stamped on the passport
  • Identity card issued by current employer
  • If NRI applicants execute the power of attorney document abroad, it has to be attested by respective Indian Embassy

You can apply for the Union Bank of India Home Loan online or offline. 

• Apply online: To apply for a home loan from Union Bank of India online, you can visit the Union Bank of India website, go to the home loan section, and then click Apply Online. Also, you can track the status of your loan application from the same portal. 
• Apply offline: Visit the nearest Union Bank of India branch with the required documents. You can collect th loan application form from a branch or download the same from the Union Bank of India website