Union bank home loan: One of the most significant investments one makes in their life is an investment in real estate. Purchasing a house, however, is a longer process than it seems.
With the present-day rates so high, it is pretty difficult to buy one with an up-front payment and that is where the role of home loans comes in.
There is a range of options available for home loans today with decent processing systems including NBFCs and banks such as Union Bank of India.
Modern-day digital technology has made it easy for the majority of lenders today to provide the availability of home loans to every borrower from the comfort of their homes.
However, it is not as simple as it sounds because home loan approval doesn’t come easy to everyone.
Housing loans are certainly a hefty investment that goes on for years and your bank needs to be 100% sure while putting their faith in you to repay the amount, with the interest of course.
That is why the Union Bank of India features rigid screening protocols for making sure that they are sending out their money to an honest person.
With a decent Union Bank of India Home Loan rate of interest and reasonable EMIs, there comes a lot of responsibility on the borrower’s end as well.
However, the first step is nonetheless your Union Bank Home Loan application for which you need to be truly careful.
But you don’t need to worry about it because we’ve got you covered!
In this article, we are going to provide you with definite instructions and all other things to keep in mind while applying for a Union Bank Home Loan that would ensure 100% approval!
Let’s have a look.
Major features of Union Bank Home Loan
- Union Bank Home Loan interest rate starts at just 6.40% per annum
- Sanctioning of the home loan within 5-6 business days
- Waiver of up to ₹10,000 on extra expenses under plans for Home Loan Takeover
- Committed departments for Union Bank Home Loan processing at every location for sooner process
Union Bank of India Home Loan Details
- Union Bank of India Home Loan Interest rate: Starting from 6.40% to 7.35% per annum
- Union Bank Home Loan Present EBLR: 6.80% per annum
- Union Bank of India Home Loan Processing Fee: 0.50% of the total amount of home loan
- Union Bank of India Home Loan Maximum Repayment Tenure: 30 years
The prospective borrowers of Union Bank Home Loan will be able to enjoy longer repayment tenures of as long as 30 years together with EMIs that go as minimal as Rs. 652 for a lakh.
Moreover, the Union Bank of India Home Loan interest rate 2022 starts at just 6.80% per annum which is a pretty low mark as compared to other banks.
One can also avail up to ₹30 lakhs of Union Bank home loan in case of house repairs.
Besides, Union Bank home loan also provides you with an entire waiver of a prepayment fee for loans on floating interest rates.
Different Ways of Applying for a Union Bank Home Loan
In the broad sense, you will only have a couple of ways through which you can apply for a Union Bank Home Loan.
Both the methods are equally effective and take more or less the same processing time overall so you can simply choose whatever suits you.
- Through the official website of Union Bank of India Home Loan
One can apply for a Union Bank home loan through the official website of the bank.
All you have to do is simply search through the website.
After that, just fill up the application form for a Union Bank home loan and the processing would be started by the bank.
- Through a local branch of Union Bank of India
One may also choose to head to the closest Union Bank of India branch physically and ask for a home loan application form there and fill it up accordingly.
Eligibility Criteria for Union Bank of India Home Loan
Minimum Age Limit: 21 years
Maximum Age Limit: 70 years
- Status of Residency
Residents of India
Non-Resident Indians (NRIs)
- Kind of Employment
Self-employed individuals or businessmen
List of documents you need for Union Bank Home Loan
Necessary documents (For all applicants)
- Proof of Identity: Passport, Voter ID, Driving License, or Employer ID
- Proof of Address: Passport, Voter ID, Telephone Bill, or Driving License
- 3 recent photographs of the applicant, co-applicant (if any), as well as the guarantor (passport-sized)
- Applicant, co-applicant, as well as guarantor’s PAN Card
- Proof of salary
- Other documents that would need to be deposited according to an individual’s profile
- For salaried individuals
- Salary slips (Past 3 months)
- Form-16 or ITR (Income Tax Returns) of the Past Year
- For self-employed individuals
- Balance Sheets as well as Income Tax Returns for past three years
- For non-resident Indians (NRIs)
- Copy of Passport of the applicant along with Visa
- Attested Income certificate for the past six months
- Appointment Letter or Offer Letter
- Bank statements of the applicant for the past one year – both Overseas as well as NRE/NRO
- Employment agreement (in case it is written in a Foreign language, it will need to be translated as well as verified by Indian Embassy or the employer
- Employee Identity Card
- Most recent work permit
- Assurance of one resident of India at least with the capacity of repaying the home loan
Also read – Tata Capital Home loan
Union Bank Home Loan EMI Calculator
Getting to know the amount of Equated Monthly Installments, also known as EMIs that a borrower will need to pay on their Union Bank Home Loan is of great significance.
With an effective online tool like the Union Bank of India Home loan EMI calculator, you can easily get a clear understanding of the EMI amounts you are going to be paying to the bank for the entire term.
This tool works automatically by considering various factors such as the given Union Bank of India Home Loan rate of interest, repayment term, processing fee by the bank, as well as the principal amount of course.
It then calculates the precise EMI amount that you will need to pay on your home loan once it has been sanctioned to you.
Why was my Union Bank Home Loan application got rejected?
There can be several reasons why your Union bank home loan application got rejected.
It is worth noting that these reasons are likely to stay more or less the same for all the banks.
However, one thing that varies is the internal policies of each bank for providing funds to worthy applicants.
In the case of Union Bank of India home loans, the following reasons may have led to the rejection of your application:
- Poor CIBIL or credit score
- Unstable job or business
- Low monthly income
- Functioning in any of the delisted private corporations
- Not catering to the provided age limit
- Residing in a location that is mentioned in the list of defaulters
- A high amount of pending debt
- Poor income or CIBIL score of the co-applicant
Also read – Bajaj Finance Home loan
Rejection Criteria for Union Bank Home Loan
- Fail to fulfill the Union Bank of India Home Loan Eligibility Criteria
Union Bank of India features particular eligibility criteria on not just their housing loans but also all other loan schemes.
They are related to the applicant’s monthly income, the kind of employment, the corporation you are working for, job experience, and so on.
Any applicant who wishes to apply for a Union Bank home loan will need to fulfill all these requirements before they move forward.
In case any individual fails to satisfy the provided eligibility criteria then your Union Bank Home loan application is going to be rejected.
- Poor CIBIL or Credit Score
Poor credit or CIBIL score is one of the primary reasons for the rejection of a Union bank home loan application.
All banks work to dig into the applicant’s credit score as soon as they receive their application.
Union Bank of India also takes this as the first step in their screening process.
In case the credit or CIBIL score of the applicant is very low, the bank will immediately reject the application.
- Disparities in the applicant’s credit report
Your credit report includes the total record of your credit card bills as well as loans that you formerly availed of.
It indicates how regular an individual has been in repaying the amount and if there were any late payments.
For words like ‘written off’ or ‘settled’ used in your report, your Union Bank of India home loan application will be rejected.
The same goes for any kind of disparities found such as the applicant’s date of birth.
- Changing jobs too frequently
In case an individual keeps changing his jobs too frequently like within 5-6 months, then the bank is going to get an impression that he/she is not reliable.
Thus, the Union bank home loan application will be rejected.
- Low monthly income
The salary of an individual plays a key role in their home loan application.
In case one does not fulfill the mentioned income criteria set by the bank for Union bank home loans, the application is going to be rejected.
This reduces your repayment capacity and the bank would cease to count on you as a worthy borrower.
- Legal issue with the property
You will be required to submit the original documentation related to your property to the bank.
This is crucial because the property is going to act as collateral for your Union Bank home loan.
In case the property has some ongoing legal action or if the documents are not appropriate, the bank will immediately reject the application.
- Continual credit inquiry
In case an individual keeps applying for loans every so often and that too in an extremely short interval, it is certainly going to seem that you are financially irresponsible.
You would appear like you fail to manage your finances rightfully which is why you’re always in the credit search now and then.
This indicates to the bank that as an applicant of the home loan, you are an unreliable individual, and thus, your Union bank home loan application is likely to get rejected.
Also read – Axis Bank Home Loan
Frequently Asked Questions (FAQs)
How can I receive details or clear my doubts about Union Bank Home loans?
In case you wish to receive more information as per your profile or have any doubts regarding the same, you can simply head to your nearest Union Bank of India branch and talk to the executives there.
Alternatively, you can also reach out to Union bank home loan customer care for getting all the information.
What is the processing time of a Union Bank home loan?
As soon as you submit your Union bank home loan application the bank is going to take up around 5-6 business days for running the background confirmation process for approval of the home loan.
How can I check the process status of my Union Bank home loan?
You may reach out to customer care of Union Bank home loans for getting the status of your application.
Why did my Union bank home loan application get rejected even after having a good CIBIL score?
While having a decent CIBIL score is crucial, it is not the only aspect taken into account for a Union Bank home loan application.
Apart from it, there are several other considerations involved such as low income, unstable jobs, etc.
So in case you fail to cater to any other factors like these, your Union bank home loan application is going to be rejected.
Who can I choose as my co-applicant for the Union Bank home loan?
The bank allows you to choose from all immediate family members including your mother, father, brother, sister, husband/wife, son, or daughter to be the co-applicant/s in your Union Bank home loan.
Make sure that your co-applicant is working and earning a decent amount. By having a co-applicant in your home loan, your eligibility is certainly going to get a significant boost.