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City Union Bank's home loan interest rates for 2025 are competitive, with floating rates starting from 8.75% p.a. and ranging up to 9.50% p.a., linked to the repo rate or MCLR (Marginal Cost of Funds based Lending Rate). Fixed rate options are available at slightly higher annual percentage rates, typically between 9.00% and 9.75% p.a., depending on the borrower's profile and loan amount. These rates are subject to change based on RBI's repo rate adjustments, ensuring borrowers benefit from potential reductions in floating rate schemes.
Processing fees are charged at 0.50% of the loan amount, with a minimum of Rs. 2,500 and a maximum cap of Rs. 10,000 (plus GST). Prepayment charges for floating rate loans are nil if prepaid from own sources, but a 2% fee applies for balance transfers. For fixed rate loans, prepayment penalties can be up to 2% on the outstanding amount if prepaid within the first three years. Other charges include legal fees of around Rs. 5,000 and valuation fees starting at Rs. 1,000.
The City Union Bank Home Loan EMI Calculator is a user-friendly tool to estimate monthly repayments. To use it, input the principal loan amount (e.g., Rs. 50 lakhs), loan tenure in months or years (up to 360 months), and the applicable interest rate (such as 8.75% p.a. for floating rate). The calculator computes the Equated Monthly Installment (EMI) using the formula: EMI = [P x R x (1+R)^N] / [(1+R)^N-1], where P is principal, R is monthly interest rate, and N is tenure in months. It also displays total interest payable and amortization schedules, helping users compare floating rate vs. fixed rate options based on current MCLR or repo rate linked benchmarks.
Eligibility for City Union Bank home loans requires applicants to be between 21 and 65 years of age at loan maturity. Salaried individuals need a minimum monthly income of Rs. 25,000, while self-employed professionals require Rs. 3 lakhs annual income. A strong CIBIL score of at least 700 is essential for approval, as it influences the offered interest rate and loan amount. Employment type matters—stable jobs in government or reputed private sectors are preferred. The loan-to-value ratio (LTV) is up to 90% for loans under Rs. 30 lakhs and 80% for higher amounts, based on property valuation. Income eligibility is assessed via bank statements and tax returns to ensure EMI affordability.
City Union Bank offers flexible loan tenures from 5 to 30 years (up to 360 months), allowing borrowers to choose based on repayment capacity and interest savings. Shorter tenures reduce total interest but increase EMI, while longer ones ease monthly burdens. Repayment options include standard EMI, step-up EMI for growing incomes, or balloon payments. Prepayment flexibility is high for floating rate loans with no charges on partial prepayments up to 25% annually from own funds. Foreclosure rules permit full repayment after 6 months without penalty for floating rates, but fixed rate loans may incur 2-4% charges if closed early. Overdraft facilities linked to repo rate provide additional repayment ease for eligible borrowers.
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