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United Bank of India Home Loan

Home Loan Bank Information

Bank Name
Processing Fees
Kotak Mahindra Bank
1 - 20
Rs 20000
1 - 30
Rs 3000
Bajaj Housing Finance
1 - 20
0.3 %
LIC Housing Finance
0 - 30
Rs 10000
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Table of Contents



There is no dearth of home loan schemes in the market with a host of lenders like banks, NBFC and Housing Finance Companies wooing the prospective borrowers with an array of offers. The construction cost of houses have skyrocketed beyond the reach and it is here that the United Bank of India with its bouquet of home loans is playing an important role in bridging the fund gap to enable individuals from realizing the dream of owning a house.

The key features of UBI Home Loans are:

  • Repayment for long tenure up to 30 years.
  • Low interest rates linked to MCLR.
  • Easy documentation.
  • Provision of online application.
  • Lowest EMI per lakh at Rs.772 for 30 years.
  • Attractive tax benefits under the Income Tax Act 1961.

United Bank of India Home Loan Interest Rates

Interest Rates are as of 2019

UBI interest regime is linked to the MCLR pattern which varies according to the repo rate determined by the RBI from time to time.

MCLR from 17th June 2019. Most of the housing loans attract floating interest rate with MCLR H at 8.55 % currently. However MCLR Y – 1 Year MCLR is 8.75 %
Scheme Type Interest Processing Fee
United Housing Floating 8.55 % MCLR H 0.59% min Rs.1180 and max Rs.11800
United Platinum Housing Floating 8.45 % MCLR Q
United Home Advantage Floating 8.55 % MCLR H
United Housing for Pensioners Floating 8.55 % MCLR H
United Affordable Housing Floating 8.55 % MCLR H
United Affordable Housing for MIG Floating 8.55 % MCLR H
Rural Housing Subsidy Floating 8.55 % MCLR H

Eligibility Criteria for United Bank of India Home Loan

The eligibility norms set at United Bank of India is as follows:


Eligibility norms for United Housing across specific schemes.
Scheme Type Details
United Housing Eligibility

Salaried with permanent employment

Self Employed Persons, Business and Professionals with 3 years experience and 3 years ITRs


It is dependent on the location of property

  • Metro: Rs.300 L  max
  • Urban: Rs.100 L max
  • Semi-Urban: Rs. 45 L max
  • Rural: Rs.25 L max
  • Repairs: Rs.10 L max
  • Extension: Rs.15 L max
United Platinum Housing Eligibility Permanent employees of State / Central Government  and Statutory Bodies / PSUs
Quantum Same as United Housing
United Home Advantage Eligibility All categories under United Housing
Quantum Rs. 20 L and above
United Housing for Pensioners Eligibility
  • All categories of pensioners
  • Min net pension per month Rs.5000
  • Maximum age is 70 years.
  • Rs. 10L max
  • Deduction including EMI not to exceed 40 % of Pension
United Affordable Housing Eligibility

Appropriate credentials like ITR and Form 16 for identification as EWS and LIG.

  • Family includes spouse and children
  • Should not own a pucca house
  • Annual Income Rs.3L
  • Area: 30 sqm
  • Annual Income Rs.3L to Rs.6L
  • Area: 60 sqm
  • No limits as per eligibility
  • Interest subvention up to Rs.6L loan.
  • Subsidy 6.6 %
United Affordable Housing for MIG Eligibility
  • All categories of borrowers as in United Housing
  • Statutory Towns under CLSS as per 2011 census.
  • Beneficiary should not have enjoyed any other government scheme
Income range MIG I MIG II
Rs.6L to Es.12L Rs.12L to Rs.18L
Quantum Rs.9 L max Rs.12 L max
Tenure 20 years 20 Years
Subsidy 4 % 3 %
Area 160 sq. m 200 sq. m
Rural Housing Subsidy Eligibility
  • All categories of borrowers as in United Housing
  • Statutory Towns under CLSS as per 2011 census.
  • Beneficiary should not have enjoyed any other government scheme
Quantum Subsidy is provided up to max Rs.2L loan


In addition to these specific eligibility norms, there are a few other important parameters at the uniformly applicable to all the schemes.

Eligibility norms applied uniformly across all home loan schemes
  • To construct a new house of flat
  • To purchase ready to occupy house or flat
  • To purchase a house or flat under construction
  • For extension/ renovation / furnishing of house / flat.
  • For take-over of Housing Loan with other institution.
  • For taking house / flat from Government or PSU on lease min 10 Years.
  • Purchase of 2nd unit.
  • Purchase of 3rd unit subject to a higher rate of interest at 0.50 % over the normal.
  • One must be above 21 years of age at minimum.
  • The maximum tenure of the loan should terminate at 70 years of age.
  • For pensioners, during the time of application, the age should not exceed 70 years.
Fees Processing charges  are recovered at 0.59 % of the loan amount subject to min Rs1180 and max Rs.11800.
LTV (Margin)
  • 25 % to Rs.3 L annual income.
  • Over Rs.3L annual income
    • 10 % for loan up to Rs.30L
    • 20 % for loan above Rs.30L and up to Rs.75L
    • 25 % for loan above Rs.75L
    • For purchase of plot for construction the amount is 40 % of the loan amount eligibility subject to 25 % margin on the cost of plot.
  • Equitable mortgage of the property.
  • Interim security for under construction property.

United Bank of India Home Loan Schemes

It is now time to recapitulate the interest applicable in various United Housing Loan Schemes. It should be important to note the primary determining factors of the loan are:

  • MCLR where H is Half Year and Q is Quarter
  • Floating rate


Various interest rates across United Housing Loan Schemes.
Scheme Interest
United Housing 8.55 % MCLR H
United Platinum Housing 8.45 % MCLR Q
United Home Advantage 8.55 % MCLR H
United Housing for Pensioners 8.55 % MCLR H
United Affordable Housing 8.55 % MCLR H
United Affordable Housing for MIG 8.55 % MCLR H
Rural Housing Subsidy 8.55 % MCLR H


Types Housing Loan Schemes

As already learnt, there are a host of schemes offered by UBI. The schemes are innovatively designed providing a lot of flexibility to the borrowers to choose the best to one’s advantage.


United Housing Loan: It is the primary home loan offering the whole gamut of possibilities to suit your preference and project. In general, the following can be highlighted as the key features of this loan.

  • Type: Term Loan
  • Tenure: Up to 30 years, or 70 years of age other than pensioners.
  • Interest type: Floating linked to MCLR.


United Housing for Pensioners: As the name suggests, it is specially designed for pensioners, who are mostly senior citizens, thereby giving credence to this category of borrowers.


United Platinum Housing: This loan is specifically designed to cater to permanent staff of offices in State or Central Government, Statutory bodies and PSUs with certain concessions as under:

  • Interest: Floating MCLR Q, which is currently 8.45% and lower compared to others by 10 basis points.
  • Direct deduction in the salary and remittance to the loan.


United Home Advantage: This loan is laced with a unique feature of overdraft facility with reducing drawing power. The features to specially look for are:

  • You can park your surplus funds in the account and withdraw it provided the drawing power permits.
  • You are able to mitigate your total interest outgo.
  • This facility can be availed of only after the final disbursement has been made.


United Affordable Housing: There are three schemes in this category of loans The three schemes with the bank are:

  • United Affordable Housing Loan
  • United Affordable Housing for MIG
  • Rural Housing Subsidy

United Bank of India Home Loan for NRI or PIO

UBI has a specific scheme targeted at the NRI and PIO component of their clientele. The advantage of housing proposals from them is that they are cash rich in hard currency that gives them greater value in INR. Many NRIs have taken to owning houses or flats by availing of housing loan as a form of investment yielding high returns. However, their fund management is governed by the rules of RBI and FERA regulations.


Housing Loan for High-net-worth Individuals

There is no clear definition of who constitute the class of High – net – worth individuals than the fact that they hold abundant liquid assets. It is advantageous for the bank in extending home credit to them as there is no possibility of the credit turning sticky. Ideal for them is the United Combo Loan Scheme which is a combination of housing and a car loan.


Eligible amount in this loan scheme

This loan makes all those borrowers who have availed of housing loan of over Rs.15L. In addition, the purchase of the car is financed with concessions, especially in the application of interest lower by 0.25 %.


UBI Home loan for NRI

As the name suggests, this loan is meant for the NRI and PIOs who intend to purchase or build a house or flat.  The key features of this unique and attractive loan are:

Eligibility:  Any NRI or PIO.

Purpose: All the purposes specified in the United Housing Loan, plus the following.

  • To bridge the gap of housing finance provided by the employer.
  • Loan up to only two units.
  • The loan can be for residence or a combination of residence and commercial.

Quantum of Loan: The following are the factors that determine the quantum loan to be afforded.

  • The lowest amount of the loan requested.
  • 75 % of the cost of property including the registration and stamp duty applicable.
  • Repayment capacity of the applicant.


  • Equitable mortgage of the property.
  • Interim security for under construction property.

Margin: A flat 25 % of the project cost subject to the following norms:

  • Based on cost price or the market value, whichever is less.
  • The full margin money has to be spent before disbursal of loan.

Repayment Tenure: A maximum of 25 years subject to liquidation of the loan at 60 years age of the borrower.

Documents Required:

  • KYC Documents.
  • Copy of employment contract or offer letter in English duly attested by the Indian Embassy or bank branch in that country.
  • Details of the employer.
  • Borrower profile and CV.
  • Latest salary slip duly attested.
  • Copy of Passport Visa stamped and valid visa.
  • Bank statements for last 6 months.
  • Assets and liability statement duly notarized.
  • A General power of Attorney in our format in favor of a blood relation supported by KYC documents.
  • Copy of CDC for Mariners.
  • Property documents.
  • Details of NRE/ NRO account for payment of EMI.

How to Apply for United Bank of India Home Loan

UBI has an online facility designed specifically for the application process. The online application procedure is quite elaborate asking you to populate the relevant fields. The submission of the online form is only an expression of interest. The appraisal and scrutiny of the proposal are to be accomplished in the branch within the command area where your residence is located. It can also be directed to the retail hub if available in your vicinity. In fine, they offer a seamless loan processing experience to you.

Document Checklist for United Bank of India Home Loan

Category Document Details
Property Documents
  • Copy of approved plan from appropriate authority
  • Title deed, sale agreement
  • Estimated cost of the project by an approved  Engineer or Architect
  • Search report of the deed for the specified period.
  • Allotment certificate in case of flat.
  • Copy of land status in records.
  • Invest proof for margin money.
Documents for KYC
  • Valid Photo ID card
  • Date of birth proof
  • Address Proof
  • Proof of permanent employment.
  • Latest salary slips
  • Latest bank statements.
Self Employed
  • Proof of 3 years in trade or profession.
  • ITR for at least 3 years.
Additional documents required for NRI and PIO Already described in the Housing Loan for NRI section.


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