Union Bank of India NRI Home Loan

Union Bank of India offers a specialised home loan scheme for Non-Resident Indians (NRIs). This scheme is designed to cater to the growing demand for home loans within the NRI community. Avail of various benefits and flexible terms to facilitate the process of property ownership in India. The eligibility for an NRI home loan from Union Bank of India ranges from INR 5 lakhs to a maximum of INR 3 crores, primarily based on the applicant's repayment capacity and the property's value. The bank assesses the repayment capability of NRI customers by considering factors such as the applicant's age and income.

Feature & Benefits of Union Bank NRI Home Loan

The NRI Home Loan Union Bank of India offers several key features and benefits, making it a competitive option for Non-Resident Indians looking to invest in property in India.

• Attractive Interest Rates: The interest rates are competitive and tailored according to the borrower’s eligibility.
• Low Processing Fees: The scheme includes a one-time processing fee, avoiding additional charges.
• Flexible Loan Amount: Loan amounts are based on the borrower’s eligibility criteria, allowing flexibility in the amount borrowed.
• Pan India Branch Network: Easy access to services with branches across India.
• Higher Tenure Period: Offers a maximum loan tenure of up to 30 years, providing flexibility in repayment plans.
• Additional Top-Up Loan: Option to get a top-up on the existing loan for personal use.
• Minimal Documentation: The documentation process is straightforward and requires less paperwork.
• Balance Transfer Facility: Attractive rates are offered for transferring the balance of an existing home loan.
• Transparent Process: The process is clear with no hidden charges or terms​​.

Types of Union Bank Home Loans for NRIs

Here is a quick snapshot of the Union Bank Home Loans for NRIs. Take a look!

Purpose of Union Bank NRI Home Loan

The primary purpose of the Union Bank of India NRI Home Loan is to meet the increasing demand for home loans among the Non-Resident Indian (NRI) community. This specially designed scheme assists NRIs in purchasing or constructing residential properties in India. Additionally, the Union Bank of India also provides support for various business and agricultural operations in India, especially those involving NRIs as members, while the operations are managed by resident Indians​​. This specialised home loan product is tailored to facilitate property ownership in India for NRIs, acknowledging their unique needs and circumstances. 

Union Bank of India NRI Home Loan Interest Rates

The table below depicts the loans types and their respective Union Bank NRI home loan interest rates.

Union Bank NRI Home Loan Documents Required

The following documents are required for the Union Bank of India NRI Home Loan:

• Complete the application form and provide credit information.
• Submit KYC (Know Your Customer) documents for the applicant and any co-applicant or guarantor, if applicable. This includes:
• Proof of identity (PAN card, Voter’s ID, Passport, Aadhaar, etc.)
• Proof of address (Driving license, Passport, Aadhaar, etc.)
• Two recent passport-sized photographs.
• For salaried individuals: Provide income proof such as the last 2 years’ Income Tax Returns (ITR)/Form 16, the latest 3 months’ salary slips, and any other income proof (if not shown in ITRs/Form 16).
• For non-salaried individuals: Provide income proof such as the last 3 years ITR and any other income proof (if not shown in ITRs/Form 16).
• Bank statements for the past 6 months.

Union Bank NRI Home Loan Eligibility Criteria

Following are the eligibility criteria for Union Bank of India NRI Home Loan eligibility.

• Age Requirement: Applicant should be between 18 to 75 years old.
• Application Mode: Can apply either jointly or as an individual.
• Eligibility: Open to Resident Indian Citizens and Non-Resident Indians (NRIs), including Persons of Indian Origin (PIOs) and Overseas Citizens of India (OCI), as per the Home Loan scheme.
• Property Ownership: Must own an independent house without any existing loans from other banks against it.
• Credit History: Should have a satisfactory track record in repaying Home Loan EMIs, with no overdue payments in the Home Loan account, and not classified under the Special Mention Account (SMA) category in the past 6 months. 

Fees & Charges for Union Bank NRI Home Loan

For the Union Bank NRI Home Loan, here are some of the charges:

• Processing Fee: Processing fees for NRI Home Loans range between 0.25% and 2.00% of the total loan amount​​​​​​.
• Valuation, Legal, Stamp Duty, CERSAI, and Memorandum Registration Charges: These charges are as per the actuals incurred​​.
• Prepayment Penalty: For Floating Rate Loans: No prepayment penalty or take-over penalty if the loan is taken over by other banks/financial institutions​​​​​​.
• For Fixed Rate Loans: No prepayment penalty if the loan is prepaid from own verifiable sources. However, a take-over penalty of 2% is charged on the average outstanding balance of the preceding 12 months if the loan is taken over by any other bank/financial institution or adjusted by the borrower in lump-sum from any third party/source (except genuine sale)​​.
• Late Payment Fee: A late payment fee of up to 3% per month is charged on the defaulted amount for missing an EMI payment​​.

Tax Benefits of Union Bank NRI Home Loans

Non-resident Indians (NRIs) can avail of several tax benefits on home loans in India, similar to those offered to resident Indians. These benefits are specifically outlined under various sections of the Income Tax Act. For Union Bank NRI Home Loans, these benefits include:

• Standard Deduction and Interest Deduction: NRIs can claim a standard deduction of 30% on income from house property. Additionally, they can benefit from an interest deduction on the home loan. This implies that the interest paid on the home loan can be deducted from their taxable income​​​​.
• Deduction for Principal Repayment: Under Section 80C of the Income Tax Act, NRIs are allowed to claim a deduction for the principal repayment of the home loan. This includes amounts paid towards the principal repayment, stamp duty, and registration charges​​​​.
• Deduction under Section 24(b): Under Section 24(b) of the Income Tax Act, NRIs are eligible to claim deductions on the interest paid on the home loan. This benefit allows for income tax deductions of up to INR 200,000 per annum on the interest repayment component of the home loan. This deduction can be claimed each year until the end of the loan repayment tenure​​​​.