Mumbai: Union Bank is offering home loans with interest rates starting at 8.35% which is the lowest in the industry.The final rate depends on the borrower’s CIBIL score. This rate applies to all loan amounts, with no upper limit. Customers can apply for loans to purchase new or old homes, flats, or opt for a composite loan for purchasing land and constructing a house.
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A benefit for borrowers transferring an existing loan from other financial institutions is a waiver of legal and valuation charges up to Rs 10,000. The loan tenure extends up to 30 years, allowing flexible repayment options. Union Bank also provides a moratorium period of up to 36 months for construction loans and 48 months for composite loans. There is no prepayment penalty, so borrowers can repay early without extra fees.
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The bank offers funding up to 90% of the agreement value, subject to Loan-to-Value (LTV) norms. As a festival offer, Union Bank is currently waiving processing charges on home loans.
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In comparison, HDFC Bank and ICICI Bank offer rates starting at 8.75%, while SBI’s rates begin at 8.50%. Axis Bank’s rates range from 8.75% to 13.30%, depending on the loan amount and borrower profile. Besides Union Bank, Bank of Maharashtra is the only public sector bank to offer home loans at 8.35%
