Union vs IDFC Home Loan, 2026.
Reviewed by Jay Patel· Last reviewed: stale
A ledger-columns read on Union Bank and IDFC First Bank— rate, EMI, fee, fine print. Which one wins your file, not the pitch deck.
Union vs IDFC — Home Loan Comparison
Key parameters compared side by side.
| Parameter | Union | IDFC |
|---|---|---|
| Interest Rate (p.a.) | 8.3% – 9.2% | 8.5% – 9.5% |
| Processing Fee | 0.50% (max Rs 15,000) | Up to 3% (negotiable) |
| Max Loan Amount | Rs 5 Cr | Rs 5 Cr |
| Max Tenure | 30 Years | 30 Years |
| Bank Type | Public Sector | Private Sector |
| Founded | 1919 | 2015 |
| Headquarters | Mumbai | Mumbai |
Interest Rate (p.a.)
Union
8.3% – 9.2%
IDFC
8.5% – 9.5%
Lower/better: Union
Processing Fee
Union
0.50% (max Rs 15,000)
IDFC
Up to 3% (negotiable)
Max Loan Amount
Union
Rs 5 Cr
IDFC
Rs 5 Cr
Max Tenure
Union
30 Years
IDFC
30 Years
Bank Type
Union
Public Sector
IDFC
Private Sector
Founded
Union
1919
IDFC
2015
Headquarters
Union
Mumbai
IDFC
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.
Union
IDFC
Savings: Choosing Union saves you approximately ₹631 per month, or ₹1,51,440 in total interest over the loan tenure.
Feature Comparison
Key features offered by Union and IDFC for home loan.
| Feature | Union | IDFC |
|---|---|---|
| Union Home scheme | ||
| Special rate for defence personnel | ||
| No prepayment penalty | ||
| Wide branch network | ||
| Digital-first processing | ||
| Attractive for salaried professionals | ||
| Monthly rest calculation | ||
| Online document upload |
Union Home scheme
Special rate for defence personnel
No prepayment penalty
Wide branch network
Digital-first processing
Attractive for salaried professionals
Monthly rest calculation
Online document upload
Which Is Better — Union or IDFC?
It depends on your priorities. Here is a quick guide.
Choose Union If...
- Lower starting interest rate (8.3% vs 8.5%)
- Government-backed (public sector bank)
- Lower maximum rate (9.2% vs 9.5%)
Choose IDFC If...
- Trusted brand with strong home loan offerings
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.
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.
IDFC 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.
Frequently Asked Questions
Common questions about Union vs IDFC home loan.
Which bank has a lower home loan interest rate in 2026 — Union or IDFC?
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 Union vs IDFC?
Union offers a higher maximum loan amount of up to Rs 5 Cr. Union offers up to Rs 5 Cr while IDFC offers up to Rs 5 Cr for home loan.
Which bank charges a lower processing fee for home loan — Union or IDFC?
Union charges a processing fee of 0.50% (max Rs 15,000), while IDFC charges Up to 3% (negotiable). Processing fees are often negotiable, and Money Matrix Hub can help waive or reduce these charges.
Should I choose Union or IDFC for home loan in 2026?
The best choice depends on your specific needs. Union offers rates from 8.3%–9.2% with a max tenure of 30 years, while IDFC offers 8.5%–9.5% 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 Union and IDFC?
Yes. Money Matrix Hub is an authorised DSA partner for both Union and IDFC. 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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