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Union Bank of India offers competitive home loan interest rates for 2025, with floating rate options linked to the repo rate starting from 8.50% p.a. Fixed rate home loans are available at 9.00% to 9.50% p.a., depending on the borrower's profile and loan amount. The annual percentage rate (APR) incorporates these base rates along with additional fees. Rates may vary based on the Marginal Cost of Funds Based Lending Rate (MCLR), which is reviewed periodically. Processing fees are typically 0.50% of the loan amount, subject to a minimum of ₹5,000 and a maximum of ₹10,000, plus applicable GST. Prepayment charges are nil for floating rate loans if prepaid from own sources, but a 2% fee applies for fixed rate loans if prepaid within the first three years. Foreclosure charges may also apply at 2% on the outstanding amount for balance transfers.
The Union Bank of India Home Loan EMI Calculator is a user-friendly tool to estimate monthly repayments. To use it, input the principal loan amount, tenure in years or months, and the applicable interest rate (such as the floating rate of 8.50% p.a. or fixed rate of 9.00% p.a.). The calculator computes the Equated Monthly Installment (EMI) using the formula: EMI = [P × r × (1+r)^n] / [(1+r)^n – 1], where P is the principal, r is the monthly interest rate, and n is the number of installments. It also provides a breakdown of total interest payable and the amortization schedule, helping borrowers assess affordability based on repo rate linked or MCLR-based rates.
Eligibility for Union Bank of India home loans requires applicants to be aged 18 to 70 years at loan maturity. Income eligibility starts with a minimum monthly income of ₹25,000 for salaried individuals and ₹3 lakh annual income for self-employed professionals. A strong CIBIL score of at least 700 is essential for favorable rates and approval. Employment type matters—salaried employees need at least two years of experience, while self-employed individuals require three years in business. The loan-to-value ratio (LTV) is up to 90% for loans under ₹30 lakh and 80% for higher amounts, depending on property value and borrower's creditworthiness.
Home loans from Union Bank of India offer flexible tenures ranging from 5 to 30 years, allowing borrowers to choose based on repayment capacity. Shorter tenures reduce total interest but increase EMI, while longer ones spread costs. Repayment options include floating rate plans with no prepayment penalties for partial payments up to 25% annually from own funds. Foreclosure is permitted after a 6-month lock-in period for floating rates, with no charges if closed from personal savings. For fixed rate loans, prepayment flexibility is limited, with charges applicable. Borrowers can opt for step-up or step-down EMI structures to align with income growth, ensuring manageable repayments over the loan tenure.
