Kotak vs Union Home Loan, 2026.
Reviewed by Jay Patel· Last reviewed: stale
A ledger-columns read on Kotak Mahindra Bank and Union Bank— rate, EMI, fee, fine print. Which one wins your file, not the pitch deck.
Kotak vs Union — Home Loan Comparison
Key parameters compared side by side.
| Parameter | Kotak | Union |
|---|---|---|
| Interest Rate (p.a.) | 8.45% – 9.4% | 8.3% – 9.2% |
| Processing Fee | 0.50% (max Rs 10,000) | 0.50% (max Rs 15,000) |
| Max Loan Amount | Rs 5 Cr | Rs 5 Cr |
| Max Tenure | 20 Years | 30 Years |
| Bank Type | Private Sector | Public Sector |
| Founded | 1985 | 1919 |
| Headquarters | Mumbai | Mumbai |
Interest Rate (p.a.)
Kotak
8.45% – 9.4%
Union
8.3% – 9.2%
Lower/better: Union
Processing Fee
Kotak
0.50% (max Rs 10,000)
Union
0.50% (max Rs 15,000)
Max Loan Amount
Kotak
Rs 5 Cr
Union
Rs 5 Cr
Max Tenure
Kotak
20 Years
Union
30 Years
Lower/better: Union
Bank Type
Kotak
Private Sector
Union
Public Sector
Founded
Kotak
1985
Union
1919
Headquarters
Kotak
Mumbai
Union
Mumbai
Rates as of April 2026. Subject to change based on RBI policy and bank revisions.
EMI Comparison
Estimated EMI for Rs 50 Lakh home loan for 20 years at each bank's lowest rate.
Kotak
Union
Savings: Choosing Union saves you approximately ₹473 per month, or ₹1,13,520 in total interest over the loan tenure.
Feature Comparison
Key features offered by Kotak and Union for home loan.
| Feature | Kotak | Union |
|---|---|---|
| 811 Dream Home Loan | ||
| No prepayment penalty | ||
| Digital approval journey | ||
| Free legal & valuation | ||
| Union Home scheme | ||
| Special rate for defence personnel | ||
| Wide branch network |
811 Dream Home Loan
No prepayment penalty
Digital approval journey
Free legal & valuation
Union Home scheme
Special rate for defence personnel
Wide branch network
Which Is Better — Kotak or Union?
It depends on your priorities. Here is a quick guide.
Choose Kotak If...
- Trusted brand with strong home loan offerings
Choose Union If...
- Lower starting interest rate (8.3% vs 8.45%)
- Longer max tenure (30 yrs vs 20 yrs)
- Government-backed (public sector bank)
- Lower maximum rate (9.2% vs 9.4%)
Still unsure? Contact Money Matrix Hub for a free personalised recommendation based on your income, credit score, and loan requirement.
Eligibility Comparison
General eligibility criteria for home loan at both banks.
Kotak Eligibility
- CIBIL score: 700+ preferred
- Min income: Rs 25,000 per month (salaried)
- Self-employed: 3+ years of business vintage
- Age: 21–65 years (salaried), 25–70 years (self-employed)
- Indian resident or NRI (with conditions)
Criteria may vary. Contact Money Matrix Hub for exact eligibility assessment.
Union Eligibility
- CIBIL score: 650+ preferred
- Min income: Rs 20,000 per month (salaried)
- Self-employed: 3+ years of business vintage
- Age: 21–65 years (salaried), 25–70 years (self-employed)
- Indian resident or NRI (with conditions)
Criteria may vary. Contact Money Matrix Hub for exact eligibility assessment.
Frequently Asked Questions
Common questions about Kotak vs Union home loan.
Which bank has a lower home loan interest rate in 2026 — Kotak or Union?
Union currently offers a lower starting rate of 8.3% p.a. for home loan. However, the actual rate you receive depends on your credit score, income, and loan amount. Money Matrix Hub can help you get the best negotiated rate from both banks.
What is the maximum home loan amount I can get from Kotak vs Union?
Kotak offers a higher maximum loan amount of up to Rs 5 Cr. Kotak offers up to Rs 5 Cr while Union offers up to Rs 5 Cr for home loan.
Which bank charges a lower processing fee for home loan — Kotak or Union?
Kotak charges a processing fee of 0.50% (max Rs 10,000), while Union charges 0.50% (max Rs 15,000). Processing fees are often negotiable, and Money Matrix Hub can help waive or reduce these charges.
Should I choose Kotak or Union for home loan in 2026?
The best choice depends on your specific needs. Kotak offers rates from 8.45%–9.4% with a max tenure of 20 years, while Union offers 8.3%–9.2% with 30 years tenure. Contact Money Matrix Hub for a personalised comparison based on your profile.
Can Money Matrix Hub help me apply for a home loan from both Kotak and Union?
Yes. Money Matrix Hub is an authorised DSA partner for both Kotak and Union. We can submit parallel applications at no extra cost and help you pick the best sanction offer. Our service is 100% free for borrowers.
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