Union Bank of India Home Loan Interest Rates

Highlights on Union Bank of India Home Loan Interest Rate

Interest Rate	8.10% – 12.65% per annum
Types of Interest Rate	Floating/ Fixed
Loan-to-Value Ratio (LTV)	75%-90%
Margin	10%-25%
Maximum Tenure	Up to 30 Years
Processing Charge	0.50% of the loan amount (up to Rs. 15,000+GST)
Repayment Method	EMI/EQI/Step-Up Repayment Method/ Balloon Repayment Method/ Flexible Loan Instalment Plan (FLIP)/ Bullet Payment

The current home loan interest rate of Union Bank of India ranges from 8.10% per annum to 12.65% per annum. The effective rate on a loan application is determined based on the type of loan, income, professional background, credit ratings and other factors. Union Bank of India offers home loans at fixed and floating interest rates. Further, the bank offers rate cuts to women applicants, Green Home loan applicants and other eligible candidates.

Union Bank of India Home Loan Interest Rates for Salaried vs. Self-employed Individuals

Among the many factors affecting Union Bank of India’s home loan interest rates is the applicant’s employment profile. Both salaried and self-employed borrowers can apply for the bank’s home loan products with interest rates ranging from 8.10% to 12.65% per annum. The nature of employment, however, determines the rate concessions (if any) and other factors while calculating the effective ROI on a loan application.

Union Bank of India Home Loan Interest Rates for Women

Union Bank of India offers special rate cuts for women applicants who are single or joint property owners. These cuts help reduce the effective interest rate, making loans more affordable and accessible. Further, the applicant’s employment profile (salaried/ self-employed), LTV ratio, loan type, and CIBIL Score are crucial in determining the final concession.

Union Bank of India Home Loan Interest Rates – Scheme Wise

Union Bank of India’s housing loan interest rates for different loan types are detailed in the table below:

Loan Product	Rate of Interest (per annum)	Type of Interest Rate
Union Home/ Green Home/ Awas/ Repair & Renovation	8.10% – 12.65%	Floating/ Fixed
Home Loan – Smart Save	9.05% – 10.65%	Floating
Home Loan – Commercial Real Estate	8.35% – 11.25%	Floating

How to Calculate the Effective Interest Rate on a Union Bank of India Home Loan?

The effective home loan rate of Union Bank of India is calculated by adjusting the External Benchmark Lending Rate (i). EBLR refers to a minimum interest rate set by the bank based on an external benchmark, such as the RBI’s repo rate, plus a fixed spread.  Factors like the borrower’s CIBIL score, loan amount, and loan-to-value (LTV) ratio also impact the final Union Bank of India’s home loan interest percentage. It must be noted that EBLR only influences floating interest rates, while fixed rates remain unchanged.

List of Factors Affecting Union Bank of India Home Loan Interest Rate and EMI

Multiple factors influence Union Bank of India’s home loan percentage. Take a look at some prominent ones below:

• CIBIL Score: A high CIBIL score improves the chances of getting a lower Union Bank of India home loan interest rate, while a low score may lead to higher rates or loan denial.
• Employment Profile: The nature of an applicant’s income, i.e. salaried or self-employed, plays a key role in determining the effective interest rate.
• Loan to Value (LTV) Ratio: The LTV (Loan-to-Value) ratio is the percentage of the property’s value that a bank is willing to finance through a loan. The higher the LTV, the higher the interest rate.
• Loan Amount: High loan amounts attract high interest rates due to increased risk. On the other hand, lower loan amounts are typically offered at affordable rates.
• Loan Type: Home loan percentage in Union Bank of India also varied with changing loan types. Borrowers are advised to apply for suitable loan types based on their needs.

 

Impact on Union Bank of India Home Loan EMI Calculations After the Repo Rate Cut by RBI

The Reserve Bank of India (RBI) announced a 25-basis repo rate cut on 7th February 2025. The RBI’s repo rate strongly influences the home loan rates of Union Bank of India. A reduction in RBI’s repo rate typically leads to lower EMIs on home loans with floating interest rates. The following examples detail the impact of repo rate reductions on home loans worth Rs. 50 lakhs for 10 and 20 years respectively:

Case 1: Rs. 50 lakhs home loan for 10 years

Loan Amount	50 Lakhs
Loan Tenure	10 years
Original Interest Rate	8.10% p.a.
EMI	₹60,928
Revised Interest Rate	7.85% p.a. (8.10-0.25)
EMI	₹60,268

For a home loan of Rs. 50 lakhs borrowed for 10 years, the latest repo rate deduction offers a monthly savings of Rs. 660 (60,928-60,268).

Case 2: Rs. 50 lakhs home loan for 20 years

Loan Amount	50 Lakhs
Loan Tenure	20 Years
Original Interest Rate	8.10% p.a.
EMI	₹ 42,134
Revised Interest Rate	7.85% p.a. (8.10-0.25)
EMI	₹ 41,356

For a home loan of Rs. 50 lakhs borrowed for 20 years, the latest repo rate deduction offers a monthly savings of Rs. 778 (42,134- 41,356).

How to Get the Best Interest Rate on Union Bank of India Housing Loan?

Keeping the following tips in mind can help borrowers seek the best Union Bank of India home loan interest rates possible:

• Maintain high credit scores, preferably above 750.
• Apply for loan amounts which align with your repayment capacity.
• Showcase consistent employment and regular income. 
• Make high down payments to reduce the LTV ratio and, ultimately, the interest rate.
• Apply jointly with a co-borrower to secure better rates.