Union Bank of India Home Loan Interest Rate Starting at 8.35% p.a.

Union Bank of India Home Loan Interest Rate August 2026: 8.35% – 10.75% p.a.

The Union Bank of India home loan interest rate today ranges from 8.35% to 10.75% p.a. on floating-rate loans (fixed-rate options range from 11.40% to 12.65% p.a. for tenures up to 5 years). Union Bank of India's floating-rate home loans are linked to its External Benchmark Lending Rate (EBLR), which tracks the RBI's repo rate.

Union Bank of India Home Loan Interest Rate by CIBIL Score

Your credit score is one of the biggest factors in determining your Union Bank of India home loan interest rate.

*Indicative rates based on Union Bank of India's risk-based pricing framework; actual rate depends on the final credit assessment and borrower category.

Women Borrower Concession

Female applicants receive a 0.05% interest rate concession compared to male counterparts in the 700–749 (professionals) and 650–699 (non-salaried) credit score brackets.

Fixed Rate Home Loans

Processing Fee & Other Charges

• Processing Fee: Up to 0.50% of the loan amount, subject to a maximum of ₹15,000, plus applicable GST.
• Prepayment: No prepayment or foreclosure penalty for individual borrowers.
• Loan Quantum: No specified cap on the home loan amount for general purposes.

How to Get the Lowest Union Bank of India Home Loan Interest Rate

• Maintain a CIBIL score of 750 or above to qualify for the bank's most competitive pricing.
• Apply as a woman borrower or with a woman co-applicant in eligible brackets to access the 0.05% concession.
• Keep your FOIR (Fixed Obligation to Income Ratio) low by limiting existing loan and credit card obligations.
• Choose a repayment tenure that balances affordable EMIs with lower overall interest costs.
• Add a co-applicant with a high income or credit profile to improve eligibility, if required.

Tax Benefits on Union Bank of India Home Loan

Borrowers can claim deductions under Sections 80C, 80EE, and 24(b) of the Income Tax Act, subject to meeting the applicable eligibility conditions.

Impact of RBI Repo Rate Changes on Union Bank of India Home Loan Rate

Since Union Bank of India's EBLR-linked rate is directly benchmarked to the RBI repo rate, any change in the repo rate is reflected in the bank's home loan pricing. At the June 2026 MPC meeting, the RBI kept the repo rate unchanged at 5.25%. The next RBI Monetary Policy Committee meeting is scheduled for August 2026.

Eligibility Criteria & Documents Required

• Indian resident, salaried or self-employed, aged 18–70 years (at loan maturity)
• A CIBIL score of 750 and above is recommended for the best pricing
• Stable income source with consistent repayment capacity (FOIR within bank norms)
• KYC documents: PAN, Aadhaar, address proof
• Income proof: salary slips & Form 16 (salaried) or ITRs & business proof (self-employed)
• Property documents and bank statements of the last 6 months

*Rates are indicative and subject to change basis RBI policy and Union Bank of India's prevailing pricing. Last updated August 2026.