Union Bank of India Home Loan 2026: Rates, Eligibility & Application

Union Bank of India, formed after the merger of Andhra Bank and Corporation Bank with Union Bank in 2020, is now one of India's largest public sector banks with over 8,700 branches nationwide. The bank has rapidly scaled its home loan portfolio and, as of 2026, offers one of the most competitive starting rates in the market at 8.35% — undercutting all major PSU banks including SBI.

This guide covers Union Bank's complete home loan offering in 2026: products, rates, eligibility, documents, and how to maximise your chances of getting the best rate.

Union Bank Home Loan Interest Rates 2026

Union Bank's lending rates are linked to the Repo-Based Lending Rate (RBLR). Current rates as of March 2026:

EMI Reference (20-year loan):

• Rs 40 lakh at 8.35%: EMI ≈ Rs 34,550
• Rs 60 lakh at 8.50%: EMI ≈ Rs 52,100
• Rs 1 crore at 9.00%: EMI ≈ Rs 89,970

Model your specific scenario with the EMI calculator.

Union Bank Home Loan Products 2026

1. Union Home Loan (Standard)

The basic home loan for purchase, construction, extension, and renovation of residential property. Floating rate linked to RBLR with no prepayment charges.

Key features:

• Loan amount: Rs 1 lakh to Rs 15 crore (metro cities)
• Tenure: Up to 30 years (salaried), 25 years (self-employed)
• LTV: 90% (up to Rs 30 lakh), 80% (Rs 30-75 lakh), 75% (above Rs 75 lakh)
• Zero prepayment charges on floating rate loans

2. Union Miles (Smart Home Loan with Overdraft)

Union Miles is Union Bank's overdraft-enabled home loan product, designed to save interest for borrowers who can park surplus funds.

Features:

• OD account linked to home loan
• Surplus deposits reduce effective interest calculation
• Parked funds accessible on demand
• Ideal for business owners, salaried employees with bonuses, or those who invest in short-term instruments
• Rate: typically 0.10-0.15% above Union Home Loan

Savings illustration: Rs 50 lakh at 8.35% with Rs 5 lakh parked: interest saved = Rs 5 lakh × 8.35% × (months parked / 12). Parking Rs 5 lakh for 6 months saves approximately Rs 20,875.

3. Union Awas (Affordable Housing Loan)

Targeted at EWS and LIG borrowers under PMAY, Union Awas offers subsidised rates under the Credit Linked Subsidy Scheme (CLSS) and has simplified documentation requirements for qualifying borrowers.

4. Union Nari Shakti Home Loan

A dedicated product for women borrowers with preferential rates (0.05-0.10% below standard rates) and relaxed processing. Designed to encourage home ownership among women.

5. Union Bank NRI Home Loan

For Non-Resident Indians purchasing or constructing residential property in India. Repayment via NRE/NRO accounts; co-applicant in India required for most cases.

Eligibility Criteria

Age:

• Minimum: 18 years
• Maximum: 70 years at loan maturity (extended to 75 for pensioners)

Employment and Income:

• Salaried: At least 2 years of employment (1 year in current organisation)
• Self-employed: Minimum 3 years of stable income
• Minimum net monthly income: Rs 15,000

Debt-to-Income Ratio: Union Bank allows FOIR (Fixed Obligation to Income Ratio) of up to 55% for incomes below Rs 50,000/month, and up to 60% for higher incomes.

CIBIL Score: Minimum 650

Property Requirements:

• Clear title and encumbrance-free
• Approved plans from local municipal authority
• RERA registration for under-construction projects
• Property located in India

Estimate your loan eligibility with the home loan eligibility calculator.

Documents Required

Identity and Address Proof:

• Aadhaar card (mandatory)
• PAN card (mandatory)
• Passport / voter ID / driving licence as secondary ID

Income Documents — Salaried:

• Latest 3 months' salary slips
• Form 16 for past 2 financial years
• Last 6 months' bank statements (salary account)

Income Documents — Self-Employed:

• ITR for last 3 years with computation of income
• Audited P&L and balance sheet for last 2 years
• CA-certified financials (if turnover above Rs 1 crore, compulsory audit)
• Bank statements (current account) for 12 months
• GST returns (if applicable)
• Business registration / trade licence

Property Documents:

• Title deeds and chain of ownership documents
• Sale agreement / allotment letter
• Approved building plan
• Encumbrance certificate (minimum 13 years)
• RERA certificate (for under-construction properties)
• NOC from builder and housing society

Full checklist available at home loan documents guide.

Comparing Union Bank with Other PSU Banks 2026

Observation: Union Bank offers the lowest starting rate among the major PSU banks at 8.35%, combined with the overdraft Miles product. However, SBI's lower processing fee cap (Rs 10,000 vs Rs 15,000) and superior digital infrastructure give SBI an edge in overall experience. For borrowers in South India where Union Bank's legacy Andhra Bank and Corporation Bank branches are dense, Union Bank is a particularly natural choice.

How to Apply for Union Bank Home Loan

Option 1: Online Application

Visit Union Bank's official website (unionbankofindia.co.in) or download the Union Bank mobile app. Navigate to the Loans section, select Home Loan, and fill the application form. Upload documents digitally — the system provides an application reference number for tracking.

Option 2: Branch Walk-In

Visit a Union Bank branch with complete documents. Ask for the Retail Assets team. In major cities, Union Bank has dedicated Loan Processing Centres (LPCs) that handle home loans faster than general branches.

Option 3: Through a DSA

Engage a certified Union Bank DSA like Money Matrix Hub. Benefits include:

• Application submitted directly to LPC (bypassing branch queues)
• Simultaneous comparison with SBI, BOB, and other lenders
• Expert guidance on document preparation
• Negotiation support for rate concessions

Processing Timeline: 10-20 working days from complete document submission for salaried cases; 20-30 days for self-employed.

Tips to Get the Best Union Bank Rate

1. Achieve CIBIL 800+ before applying. Union Bank's 8.35% rate is reserved for the best profiles. A score improvement from 750 to 800 can save 0.20% — which on Rs 50 lakh over 20 years translates to Rs 1.5-2 lakh in savings.

2. Maintain an income account with Union Bank. Salary or business account holders often get preferential treatment in processing and marginal rate benefits.

3. Apply during promotional periods. Union Bank runs processing fee waivers during Independence Day (August), Diwali (October), and the financial year-end (March).

4. Consider joint application. Including your spouse (especially if she is a woman, for the Nari Shakti concession) improves your FOIR calculation and can unlock a better rate.

5. Use the Union Miles option if you have variable income. The interest savings from the overdraft facility can significantly outweigh the 0.10-0.15% rate premium.

6. Compare with competing banks. Even after Union Bank offers you a rate, compare it with SBI and Canara Bank. Sometimes the competition can be persuaded to match or beat Union Bank's rate.

For help comparing Union Bank's offer with competitors, contact Money Matrix Hub. Our consultation is free and we work with all major banks.