Union Bank of India Home Loan Interest Rate

Union Bank Of India Home Loan interest rate charged on its varied housing loan schemes are pretty attractive and competitive as compared to that offered by different home finance lending public sector and private sector banks and financial institution in India's realty sector. As in case of most of the

home loan lending banks and institutions UBI also provides the interest rate on its housing loans on the basis of - Fixed Interest Rate and Floating interest rate schemes. The interest charged on home loan by the home loan lenders is basically ascertained according to the changes and motions in the market at a regular interval. Rate Of Interest charged on the housing finance is a significant consideration any home loan applicant takes into account before going ahead with any sort of home loan scheme. The interest rate in the home loan market keeps on fluctuating depending upon the customer response to the market. The financial institutions act accordingly with the market and their competitors and either cut the rate or increase it with the course of time. The interest rate on home loans in India are determined by 'Finance Authority Of India'. Interest rate on home loans are offered on following two basis:

1. Fixed rate of interest - The interest rate charged on the home loan offered at Fixed interest rate remains constant throughout the home loan tenure. The home loan seekers are recommended to opt for this type of home loan rate scheme only when they are sure that the interest charged has hit an all time low rate and from that point it is only likely to increase.
   
   
2. Floating rate of interest - The interest rate applied on the home loan scheme on the basis of floating rate scheme varies on the basis of prime lending rate authorized by country's central bank RBI(Reserve Bank Of India). The home loan floating rate of interest varies irregularly and doesn't stick on any particular point. This type of interest rate scheme proves to be lucrative if the interest rate in the market has reached to a point from where it is only going to fall.
   
   

Latest and the current Home loan interest rates offered by Union Bank

Of India:

• Interest rate on a home loan of up to Rs 5 Lacs - UBI charges a fixed interest rate at 8.50% initially for 3 years for a loan tenure of 5 years to 20 years. The interest rate scheme changes to floating rate of interest from 4th year onwards and interest is charged at 9% for the same period.
  
  
• Interest on a loan amount of over 5 Lacs and up to Rs 30 Lacs - 8.50% of fixed interest rate is charged for a loan period of over 5 years to 20 years and the rate of interest increases to 9% floating rate for a period of 5 years to 10 years, whereas 9.25% floating interest rate is charged for over a duration of over 10 years to 20 years.
  
  

• Rate of interest on a loan amount of over Rs 30 Lacs to Rs 50 Lacs - The bank charges a fixed rate of 8.50% for first 3 years for a loan duration of 5-20 years. The interest rate increases and changes to 9.25% floating rate from 4th year onwards for a period of 5-10 years and increases to 9.50% for a period of over 10 years to 20 years.
  
  
• On a loan amount over Rs 50 Lacs - Union Bank Of India charges floating rate of interest at 9.25% initially for 3 years for a loan tenure of 5-20 years and the rate increases to 10% for a duration of 5-10 years and then to 10.25% for a loan duration of 10-20 years.
  
  

The bank keeps on updating the information on its website: www.unionbankofindia.co.in