Union Bank Home Loan Interest Rate – Complete Guide & EMI Tips

Key Takeaways

• The Union Bank home loan rate of interest begins at 7.35% per annum for borrowers with high credit scores, and the final rate is determined based on credit profile, loan amount, and employment category.

• Union Bank home loan interest rate for women offers concessions to women borrowers under selected home loan schemes, which can help reduce the overall borrowing cost over the loan tenure.

• Union Bank charges a processing fee of 0.50% of the sanctioned home loan amount, subject to a maximum limit of ₹15,000, excluding applicable taxes and statutory charges.

“Ghar lene ka plan hai, par EMI aur interest rate samajh nahi aa raha? I felt the same until I clearly understood how home loan interest rates Union Bank actually work.”

A home loan interest rate is the cost you pay to borrow money for buying a house. It’s like paying rent on money you borrow. The better your financial profile, the lower this cost becomes over time. It is linked to the External Benchmark Lending Rate (EBLR) and varies based on borrower profile and credit score.

If you borrow ₹50 lakh at 8.35% per annum, the interest you pay each year will be based on this rate. For smaller loans, such as Union Bank home loan interest rate 10 lakh, the EMI impact is easier to manage. I use the Union Bank home loan interest rate calculator to estimate repayments accurately and plan my budget better.

Types of Home Loans Offered by Union Bank 

Here’s how Union Bank home loan rate of interest varies across loan types and applicant credit categories:
 

Rates vary with profile, credit score, and loan scheme.

Bonus Tip: Union Bank of India does not charge any prepayment or foreclosure penalty on floating-rate home loans when you pay from your own verified funds. This allows you to reduce principal faster and benefit more from the Union Bank home loan interest rate calculator.

Union Bank Home Loan Processing Fees & Charges

I always check the charges involved before applying. Union Bank of India clearly lists its home loan fees, which helps me plan my total loan cost better.
 

These charges apply uniformly across standard Union Bank home loan schemes, including cases where the Union Bank home loan interest rate for women is applicable.

How to Apply for a Union Bank Home Loan?

Union Bank of India offers both online and offline options, which makes the application process convenient for me.

Step 1: I visit the official Union Bank home loan portal or the nearest Union Bank branch to begin the application.

Step 2: I fill in my basic details, such as name, contact number, income information, and loan requirements in the application form.

Step 3: I submit the required documents, including identity proof, address proof, income proof, bank statements, and property-related documents.

Step 4: The bank verifies my credit score, repayment capacity, and documents to assess eligibility.

Step 5: After successful verification, Union Bank issues a sanction letter mentioning the approved loan amount, interest rate, and charges.

Step 6: Once I accept the terms, the bank completes legal checks and disburses the loan amount as per the agreement.

This structured process ensures transparency and helps me track my application easily.

Conclusion 

Union Bank of India offers competitive home loan interest rates, clear processing charges, and a transparent application process. You can plan your home purchase confidently and avoid last-minute confusion by understanding rates, fees, and steps in advance. Check official details before applying, always, to make a smarter borrowing decision.

FAQs Related to Union Bank Home Loan Interest Rates 

Why does my Union Bank home loan EMI not change immediately after an interest rate revision, and what happens when I make prepayments?

Union Bank updates EMIs after the scheduled reset period, not instantly. Prepayments usually reduce the outstanding balance, which can lower the EMI or shorten the loan tenure based on the bank’s adjustment method.

Can I reduce my Union Bank home loan interest rate after the initial fixed period, and should I choose loan restructuring or prepayment later?

Union Bank may revise the interest rate based on prevailing rates and your repayment record after the fixed-rate period ends. Maintain a good credit history. If your finances improve, making prepayments is usually more cost-effective than restructuring, as restructuring may involve additional fees.

What is the Union Bank home loan interest rate for govt employees?

Government employees with strong credit profiles often receive preferred pricing within the floating rate range, though exact rates depend on individual assessment. 

What is the rate of the Union Bank home loan interest rate for Union Bank staff?

Union Bank of India staff do receive concessional home loan interest rates, which are lower than the regular public rates offered by the bank. For example, according to published staff home loan data, staff with a CIBIL score of 800 and above may be offered a rate around 8.35% p.a. (EBLR-0.90%), while lower credit categories have different concessions as per internal policy. These reduced rates reflect preferential pricing for employees compared to standard retail rates. 

What is the difference between SBI and Union Bank of India's interest rates for home loans?

SBI home loan interest rates start slightly lower than Union Bank’s. SBI’s current home loan rates are around 7.50% to 8.70% per annum based on borrower profile and credit score. Union Bank of India’s home loan interest rates begin around 7.35% to about 10.00% per annum, depending on credit score and loan type.
 

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About the Author

LoansJagat Team

‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.