Union Bank of India Home Renovation Loan

Union Bank of India offers renovation home loans for existing and new customers who want to repair, renovate, or extend their residential property. Find out how to apply for this loan!

Union Bank of India Renovation Home Loan – Highlights and How Does This Work

Union Bank of India is one of the leading public sector banks in India and offers a wide range of banking products and services to its customers. One of the popular products offered by the bank is the renovation home loan, which is designed to help existing and new customers who want to repair, renovate, or extend their residential property.

The renovation home loan is a part of the Union Home loan scheme, which also covers the purchase, construction, and takeover of residential property. The renovation home loan can be used for the following purposes:

• Repairs, improvements, or extensions of the existing residential property
• Completion of under-construction residential property
• Purchase of solar power panel along with purchase or construction of house

The renovation home loan works as follows:

• The customer can apply for the loan online or offline by filling out the application form and submitting the required documents
• The bank will verify the customer’s eligibility, credit history, income, and property details
• The bank will sanction the loan amount based on the customer’s repayment capacity and the value of the property
• The bank will disburse the loan amount in instalments as per the progress of the work
• The customer will repay the loan amount in equated monthly instalments (EMIs) or equated quarterly instalments (EQIs) as per the loan tenure and interest rate

Union Bank of India Renovation Home Loan Features & Benefits

Some of the features and benefits of the Union Bank of India renovation home loan are:

• The customers are eligible for loans ranging from a minimum of Rs. 15,000 to a maximum of Rs. 30 lakh for repair or renovation purposes. 
• A flexible repayment period of up to 15 years is available for these renovations or repairs. 
• Loans come with competitive interest rates, starting at 8.35% per year. 
• Customers have the option to reduce interest charges by opting for prepayment or foreclosure of the loan at no extra penalty or fee. 
• No security or collateral is required to secure the loan. 
• The only requirement is the inclusion of the spouse’s consent as a co-applicant. 
• The loan application process is streamlined and efficient, accessible through the bank’s online platform or physical branches.

Union Bank of India Renovation Home Loan Interest Rates

The interest rates for the Union Bank of India renovation home loan depend on various factors, such as the customer’s credit score, income, loan amount, loan tenure, and the type of property. The current interest rates for the renovation home loan range from 8.35% p.a. to 14.50% p.a. The customer can check the latest interest rates on the bank’s website or on the online portals of the bank’s partners.

The interest rates for the renovation home loan are calculated on the basis of the daily reducing balance method. This means that the customer pays interest only on the outstanding balance of the loan and not on the entire loan amount. This helps the customer save on interest charges and reduce the EMI burden.

Union Bank of India Renovation Home Loan Eligibility Criteria

To be eligible for the Union Bank of India renovation home loan, the customer needs to fulfil the following criteria:

• The customer should be an Indian citizen or a non-resident Indian (NRI)
• The customer should be a permanent or confirmed employee of a reputed private institute or organisation in India
• The customer should have a minimum monthly gross salary of Rs. 15,000 (Rs. 20,000 for Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Ahmedabad, and Pune)
• The customer should be at least 18 years old and not more than one year prior to retirement age
• The customer should be a customer of the bank for at least 6 months prior to applying for the loan if opting for scheme B (non-tie-up)
• The customer should necessarily maintain the salary account with the bank if opting for scheme B (non-tie-up)

Union Bank of India Renovation Home Loan Documents Required

To apply for the Union Bank of India renovation home loan, the customer needs to submit the following documents along with the loan application form:

• Identity proof: Any one of PAN card, Aadhaar cards, passports, voter ID cards, driving licence, etc.
  
• Address proof: Any one of Aadhaar card, passport, voter ID cards, driving licence, utility bills, rent agreements, etc.
  
• Income proof: Salary slips for the last 3 months, bank statements for the last 6 months, Form 16, IT returns, etc.
  
• Property proof: Sale deed, agreement to sell, allotment letter, possession letter, approved plan, estimate of work, etc.
  
• Photographs: Two recent passport-sized photographs of the applicant and the co-applicant

Union Bank of India Renovation Home Loan Processing Fees And Other Charges

The processing fees and other charges for the Union Bank of India renovation home loan are as follows:

• Processing fees: 100% waiver of processing fees for Union Home loans, including takeover of home loans sanctioned during the period from 16.11.2023 to 31.12.2023 (both dates inclusive). The waiver of 100% processing fees is applicable for customers with a CIC score of 700 and above (including 1 to 5). CIC score of applicant/s, whose income is to be considered for income eligibility for loan, has to be 700 or above for this offer.
  
• Prepayment charges: Nil
• Foreclosure charges: Nil
• Documentation charges: Rs. 500 + GST
• CERSAI charges: Rs. 50 + GST for loans up to Rs. 5 lakh and Rs. 100 + GST for loans above Rs. 5 lakh
• Valuation charges: As per actuals
• Stamp duty charges: As per state laws

Union Bank of India Renovation Home Loan For Salaried Person

The salaried person can avail of the Union Bank of India renovation home loan for repairing, renovating, or extending the existing or new residential property. The salaried person needs to meet the following criteria to be eligible for the loan:

• The salaried person should be a permanent or confirmed employee of a reputed private institute or organisation in India
• The salaried person should have a minimum monthly gross salary of Rs. 15,000 (Rs. 20,000 for Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Ahmedabad, and Pune)
• The salaried person should be at least 18 years old and not more than one year prior to retirement age
• The salaried person should be a customer of the bank for at least 6 months prior to applying for the loan if opting for scheme B (non-tie-up)
• The salaried person should necessarily maintain the salary account with the bank if opting for scheme B (non-tie-up)

The salaried person can avail of the following benefits of the Union Bank of India renovation home loan:

• The salaried person can avail a minimum loan amount of Rs. 15,000 and a maximum loan amount of Rs. 30 lakh for repairs or renovation
• The salaried person can enjoy a flexible repayment tenure of up to 15 years for repairs or renovations
• The salaried person can get competitive interest rates starting from 8.35% p.a. on the loan amount
• The salaried person can save on interest charges by prepaying or foreclosing the loan without any penalty or charges
• The salaried person does not need to provide any security or collateral for the loan
• The salaried person only needs to provide the spouse’s consent as a co-applicant for the loan
• The salaried person can get quick and hassle-free processing of the loan application through the bank’s website or branches

Union Bank of India Renovation Home Loan For Self-Employed

The self-employed person can avail of the Union Bank of India renovation home loan for repairing, renovating, or extending the existing or new residential property. The self-employed person needs to meet the following criteria to be eligible for the loan:

• The self-employed person should be an Indian citizen or a non-resident Indian (NRI)
• The self-employed person should be engaged in a business or profession that is legal and stable
• The self-employed person should have a minimum annual gross income of Rs. 1.5 lakh as per the latest IT returns
• The self-employed person should be at least 18 years old and not more than one year prior to retirement age
• The self-employed person should be a customer of the bank for at least 6 months prior to applying for the loan if opting for scheme B (non-tie-up)
• The self-employed person should necessarily maintain the current account with the bank if opting for scheme B (non-tie-up)

Union Bank Of India Home Renovation Loan – Terms And Conditions

Here are some of the important points that you should know before applying for this loan:

• The renovation home loan is subject to the terms and conditions of the Union Home loan scheme, which also covers the purchase, construction, and takeover of residential property.
• The renovation home loan can be availed for the purpose of repairs, improvements, or extensions of the existing residential property, completion of under-construction residential property, or purchase of solar power panel along with purchase or construction of house.
• The renovation home loan can be availed of as a term loan or an overdraft facility under the Union Ashiyana Overdraft Scheme.
• The renovation home loan can be availed of by Indian citizens and NRIs who are permanent or confirmed employees of a reputed private institute or organisation in India.
• The renovation home loan can be availed of for a minimum amount of Rs. 5,000 and a maximum amount of Rs. 30 lakh for repairs or renovation.
• The renovation home loan can be repaid in up to 5 years for repairs or renovation and up to 30 years for purchase or construction.
• The renovation home loan can be repaid in equated monthly instalments (EMIs) or equated quarterly instalments (EQIs) as per the customer’s choice.
• The renovation home loan can be repaid using various methods, such as step-up, balloon, flexible, or bullet repayment methods.
• The renovation home loan is offered at competitive interest rates starting at 8.35% p.a. on the loan amount.
• The renovation home loan does not require any security or collateral, except the spouse’s consent as a co-applicant.
• The renovation home loan does not charge any processing fees, prepayment charges, or foreclosure charges for customers with CIC score of 700 or above.
• The renovation home loan charges nominal documentation charges, CERSAI charges, valuation charges, and stamp duty charges as per actuals.
• The renovation home loan is subject to the bank’s discretion and approval based on the customer’s eligibility, credit history, income, and property details.
• The renovation home loan is subject to compliance with the bank’s norms and guidelines, as well as the applicable laws and regulations.