Buying a home is one of life’s most significant milestones, and the Union Bank Home Loan helps make this goal a reality with its affordable interest rates, flexible tenures, and digital convenience. Offered by Union Bank of India, this housing finance solution is ideal for salaried, self-employed individuals, and NRIs looking to buy, construct, or renovate a home. With multiple schemes under its umbrella, such as Union Home, Union Green Home, Union Smart Save, and Union Awas, the product caters to diverse financial needs. Borrowers can enjoy funding up to 90% of the property value, repayment periods up to 30 years, and attractive tax benefits.
Applying for a Union Bank Home Loan is a simple, transparent process that can be initiated online, with quick approvals and minimal documentation.
Union Bank Home Loan Highlights
To help borrowers understand the key benefits, Union Bank provides clear loan features that ensure transparency and convenience throughout the process. These highlights outline what makes this home loan a trusted choice for thousands of Indian homeowners.
| Feature | Detail |
| Interest Rate Range | Starting from 7.45%* p.a. (floating, depending on borrower profile) |
| Tenure | 5 years to 30 years |
| Maximum Loan-to-Value (LTV) | Up to 90% of the property value |
| Processing Time | Sanction within 5 working days (after all documents are submitted) |
| Prepayment Charges | Nil |
| Tax Benefits | Eligible under Sections 80C, 80EE, and 24(b) of the Income Tax Act |
| Eligible Applicants | Salaried, self-employed, NRIs |
| Security | Mortgage of the financed property |
Union Bank Home Loan Interest Rates
Interest rates play a crucial role in determining the affordability of a home loan. Union Bank of India offers home loans linked to the External Benchmark Lending Rate (EBLR), ensuring transparency and automatic alignment with the RBI’s repo rate movements.
| Scheme / Segment | ROI (CIC 800 & above) | ROI (CIC 700–749) |
| Union Home / PMAY-U 2.0 / Union Green Home (Salaried Male) | EBLR – 0.80% = 7.45%* | EBLR + 0.15% = 8.40%* |
| Union Home / PMAY-U 2.0 / Union Green Home (Salaried Female)** | EBLR – 0.80% = 7.45%* | EBLR + 0.10% = 8.35%* |
| EWS / LIG / MIG Urban Area | EBLR + 0.25% = 8.50%* | EBLR + 0.75% = 9.00%* |
| Union Smart Save (Up to ₹30 Lakh, Salaried Male) | EBLR + 0.05% = 8.30%* | EBLR + 0.30% = 8.55%* |
Note: Female borrowers receive an additional 5 basis points (bps) concession when the house is owned singly or jointly.
Fixed Rate Option (Up to 5 Years)
| Loan Amount | Fixed Rate (p.a.) |
| Up to ₹30 Lakh | 11.40% p.a. |
| ₹30 Lakh – ₹50 Lakh | 12.40% p.a. |
| ₹50 Lakh – ₹200 Lakh | 12.65% p.a. |
Borrowers can choose between floating or fixed rate options based on their financial comfort and risk preference.
Also Read: Impact of Repo rate Cut on Home Loan
| Repo Rate and Its Impact on Home Loans
Before choosing a floating-rate home loan, it’s essential to understand the repo rate, as it directly influences the rate of interest. The Repo Rate is the rate at which the Reserve Bank of India (RBI) lends short-term funds to commercial banks. When the RBI increases this rate, banks’ borrowing costs rise, which often leads to an increase in loan EMIs. Conversely, when the repo rate is reduced, EMIs on floating-rate home loans generally decrease. For Union Bank customers, this means your EMI may fluctuate based on the repo rate movement. The transparency of the EBLR mechanism ensures that borrowers benefit when the repo rate falls. As of December 2025, the RBI Repo Rate stands at 5.25%, which forms the basis of the Union Bank’s EBLR-linked interest rate structure. |
Union Bank Home Loan Processing Fees & Charges
Union Bank emphasizes cost transparency, ensuring customers are fully informed of all charges applicable to their loans. The bank levies minimal fees and offers free prepayment facilities.
| Charge Type | Fee / Rate |
| Prepayment / Foreclosure | Nil |
| Switch to Union Smart Save | Nil |
| Switch from Smart Save to Regular | 0.25% of outstanding + GST (Max ₹5,000 + GST) |
| Floating to Fixed Rate Conversion | +1% over the current floating rate |
| Switchover Charge | Up to ₹50 Lakh – ₹10,000 + GST; Above ₹50 Lakh – ₹15,000 + GST |
Also Read: All Bank Home Loan Interest Rates
Compare Union Bank Home Loan Interest Rates with Top Banks
It is important to compare rates before finalizing a loan. The table below shows how Union Bank fares against its top competitors.
| Bank / NBFC | Interest Rate (p.a.) |
| Union Bank of India Home Loan | 7.45%* onwards |
| SBI Home Loan | 7.50%* onwards |
| HDFC Home Loan | 7.90%* onwards |
| Bank of Baroda Home Loan | 7.45%* onwards |
| ICICI Bank Home Loan | 7.65%* onwards |
| Axis Bank Home Loan | 8.35%* onwards |
| Kotak Mahindra Bank Home Loan | 7.70%* onwards |
| Federal Bank Home Loan | 8.75%* onwards |
| IDFC FIRST Bank Home Loan | 8.85%* onwards |
| Standard Chartered Home Loan | 7.99%* onwards |
Note: The interest rates are indicative and may vary based on borrower profile and market trends.
Union Bank Home Loan Eligibility
Union Bank determines eligibility based on multiple parameters, ensuring responsible and fair lending. Meeting these requirements improves the likelihood of loan approval.
- Age: Minimum 21 years; maximum 65 years at loan maturity.
- Credit Score: A strong CIBIL score (700 and above) is preferred.
- Income Stability: Regular income from employment or business is required.
- Co-applicant Income: Combined income can be considered to enhance eligibility.
- NRIs: Eligible for Union Bank Home Loans under specific terms.
- EWS/LIG/MIG Applicants: Includes small traders, artisans, SHG members, and beneficiaries of schemes like PM SVANidhi, PM Vishwakarma, and Mudra.
These criteria ensure fair evaluation based on repayment capacity and overall financial profile.
Documents Required for Union Bank Home Loan
Union Bank maintains a simple documentation process for faster approvals and disbursals. The required papers vary slightly depending on employment type and loan purpose.
- Duly filled and signed loan application form.
- KYC Proofs: PAN card, Aadhaar, Passport, Voter ID, or Driving License.
- Two recent passport-size photographs.
- Income Proof (Salaried): Last 3 salary slips, Form 16, or latest ITR.
- Income Proof (Self-Employed): Last 3 years’ ITRs and business proof.
- Bank Statements: Previous 6 months.
- Property Documents: Agreement to sell, title deed, approved layout plan, NOC, and construction estimates.
Providing complete and accurate documentation helps speed up loan processing.
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Types of Union Bank Home Loan
Union Bank offers a variety of home loan products designed for different borrower segments. Below is an overview of each scheme.
| Loan Type | Purpose | Ideal For |
| Union Home Loan | Purchase, construction, repair, or takeover of a residential property | Salaried and self-employed borrowers seeking standard housing finance |
| Union Green Home Loan | Purchase or construction of IGBC-certified eco-friendly homes | Environmentally conscious buyers investing in sustainable housing |
| Union Awas Home Loan | Purchase, construction, repair, or extension of homes in semi-urban/rural areas | Borrowers in rural and semi-urban locations |
| EWS/LIG/MIG Urban Area Loan | Affordable housing finance with possible PMAY-U subsidy | Low- and middle-income urban borrowers |
| Loan for Purchase of Plot | Financing the purchase of residential plots/sites from approved authorities | Individuals planning to buy land for future home construction |
| Builder Tie-ups / Approved Projects Loan | Purchase of property in bank-approved housing projects | Buyers looking for quick processing and reduced documentation |
| Pradhan Mantri Awas Yojana (PMAY-U) | Government-linked affordable housing scheme with interest subsidy | Eligible EWS, LIG, and MIG category homebuyers |
| Union Smart Save Home Loan | Overdraft-linked home loan allowing deposit withdrawals and interest savings | Borrowers seeking flexibility in managing loan repayments |
1. Union Home Loan
Union Home Loan is the primary housing finance product offered by Union Bank of India. It is designed for individuals who want to purchase, construct, renovate, extend, or take over an existing home loan. This loan applies to new and resale properties as well as construction loans on owned land. Borrowers can also transfer their existing home loan from another lender to Union Bank to benefit from potentially lower interest rates.
Key Features:
- Purpose: Purchase or construction of residential house/flat/villa; house repairs, improvements, or extensions; completion of under-construction properties; home loan balance transfers.
- Loan Amount: Based on the applicant’s repayment capacity and property value.
- Tenure: Typically up to 30 years.
- Benefits: Flexible options, including interest concessions for specific borrower profiles and opportunities to lower overall cost through balance transfer.
2. Union Green Home Loan
Union Green Home Loan is a specialised product that supports the financing of eco-friendly residential properties. These homes are usually certified by approved green building rating agencies such as the Indian Green Building Council (IGBC). The objective is to encourage sustainable building practices by offering home loans with preferential terms.
Key Features:
- Purpose: Purchase or construction of IGBC-certified green homes or flats; balance transfer of existing loan on a green property.
- Loan Amount: Determined by property value and repayment capacity.
- Tenure: Up to 30 years.
- Eligibility: Property must have a valid green certification, and loan eligibility depends on standard Union Bank home loan criteria.
3. Union Awas Home Loan
Union Awas is a special home loan scheme for rural and semi-urban areas, designed to make housing finance accessible beyond major cities. It supports residents in smaller towns and villages seeking to purchase, construct, repair, or extend their homes.
Key Features:
- Purpose: Purchase or construction of residential houses in semi-urban/rural zones; house repairs and extensions.
- Loan Amount: Typically capped (e.g., up to ₹20 lakh in semi-urban and ₹15 lakh in rural areas, as per common scheme limits).
- Tenure: Up to 30 years for purchase/construction and up to 15 years for repair or renovation.
- Borrower Profile: Residents of semi-urban/rural areas, including salaried, self-employed, and agrarian income earners.
4. EWS/LIG/MIG Urban Area Home Loan
This scheme focuses on affordable housing for Economically Weaker Section (EWS), Low Income Group (LIG), and Middle Income Group (MIG) borrowers in urban areas. It is often linked with government support under the Pradhan Mantri Awas Yojana-Urban (PMAY-U) and provides easier access to credit for low- and middle-income earners.
Key Features:
- Purpose: Affordable home financing for urban EWS, LIG, and MIG categories.
- Loan Benefits: Often eligible for interest subsidy under the CLSS component of PMAY-U, helping lower effective borrowing cost.
- Borrower Profile: Households within defined income brackets (e.g., EWS, LIG, MIG) seeking affordable housing solutions.
5. Home Loan for Purchase of Plot
Union Bank offers a Plot Purchase Loan to finance the purchase of residential plots or sites. This loan supports buyers acquiring land from authorised development authorities, government bodies, or approved private entities.
Key Features:
- Purpose: Acquisition of residential plots/sites from statutory authorities or approved private developers.
- Loan Amount: Depends on plot value and borrower’s repayment capacity.
- Tenure: Generally up to 10 years (or age limit criteria), or extended tenure when combined with construction financing.
- Benefits: Enables land purchase even before home construction begins.
6. Builder Tie-ups / Approved Projects Loan
Through Builder Tie-ups, Union Bank partners with select property developers to offer pre-approved home loans for properties in approved projects. This often results in faster processing, reduced documentation, and lower legal costs.
Key Features:
- Purpose: Purchase of housing units in pre-approved developments.
- Benefits: Streamlined loan processing with possible concessions on legal and valuation fees.
- Target Audience: Buyers interested in ready-to-move-in or under-construction units within approved projects.
7. Pradhan Mantri Awas Yojana – Urban (PMAY-U)
Union Bank participates in the Pradhan Mantri Awas Yojana – Urban (PMAY-U), a flagship government initiative to promote affordable housing for urban India. Under PMAY-U, eligible borrowers can get interest subsidies through the Credit Linked Subsidy Scheme (CLSS), which significantly reduces the effective loan cost.
Key Features:
- Purpose: Affordable housing support under the Government of India’s “Housing for All” initiative.
- Benefits: Subsidised interest (varied percentages based on income category) to eligible beneficiaries for affordable homes.
- Income Segments: Includes EWS, LIG, and MIG categories for targeted support.
8. Union Smart Save Home Loan
Union Smart Save is a flexible home loan overdraft facility that allows borrowers to maintain surplus funds in a linked overdraft account. Surplus funds reduce the outstanding balance, lowering interest costs while providing withdrawal flexibility when needed.
Key Features:
- Purpose: Flexible housing finance with overdraft functionality that reduces interest outgo by offsetting surplus funds.
- Benefits: Allows withdrawal of surplus funds while lowering interest cost.
- Borrower Advantage: A hybrid solution between traditional home loans and overdraft features.
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Union Bank Home Loan EMI Calculator
The EMI Calculator helps estimate monthly repayment obligations based on the loan amount, interest rate, and tenure.
How to use the calculator:
- Visit the official Union Bank Home Loan Calculator webpage.
- Enter the desired loan amount.
- Input the applicable interest rate.
- Choose the repayment tenure (in years or months).
- The calculator instantly displays your estimated EMI, helping you plan your finances.
This tool helps borrowers understand affordability before applying.
Apply for Union Bank Home Loan
Union Bank provides convenient online and offline application options to suit every customer.
Steps to apply online:
- Visit the official Union Bank Home Loan Page.
- Select the preferred home loan scheme.
- Fill in personal, financial, and property details.
- Upload the necessary documents for verification.
- Receive instant in-principle approval and await final sanction post-verification.
Alternatively, applicants can submit the physical form and documents at any Union Bank branch.
Track Union Bank Home Loan Application Status
Union Bank ensures transparency by allowing customers to check their loan application status easily.
Borrowers can:
- Contact Customer Care at 1800 2333.
- Visit the nearest Union Bank branch for updates.
- Use the Online Grievance Redressal portal on the official website to raise a query.
Union Bank Home Loan Customer Care
Union Bank’s customer support team assists borrowers with queries, grievances, and information requests through multiple touchpoints.
| Service Channel | Details |
| Toll-Free Helpline | 1800 2333 |
| Customer Care Portal | Online Grievance Redressal |
| Branch Assistance | Available across all Union Bank branches |
| Support Hours | 24×7 digital support and standard business hours at branches |
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