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Key Features of Union Bank of India NRI Home Loan

  • Competitive Interest Rates: Interest rates start at 7.85% p.a. (floating rate, linked to the External Benchmark Lending Rate). 5 bps discount for borrowers who assign credit/term/life policy in favor of the bank. 10 bps concession for Green Homes certified by IGBC or other approved rating agencies.
  • High Loan Amount: Loans can cover up to 90% of the property value (for loans up to ₹30 lakh). No specific upper limit on loan amount, subject to borrower's repayment capacity and property valuation.
  • Flexible Loan Tenure: Maximum tenure of up to 30 years for purchase or construction. For repairs or renovations, the tenure is up to 15 years. Moratorium period of up to 36 months available during construction phase.
  • Multiple Loan Purposes: Purchase of new or old residential units (house, flat, villa, apartment). Construction on non-agricultural plot, plot purchase with construction, repairs/improvements/extensions. Balance transfer of existing home loans from other banks at competitive rates.
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    • High Loan Amount: Loans can cover up to 90% of the property value, depending on eligibility, income, and creditworthiness. No specific upper limit on the loan amount, subject to the borrower’s repayment capacity and property valuation.
    • Minimal Documentation: Streamlined documentation process to reduce hassle for NRIs. Required documents include identity proof (e.g., Indian passport for NRIs, foreign passport for PIOs), address proof (overseas and Indian if applicable), income proof (salary slips, bank statements, ITRs, employment contract), and property documents (agreement, title deed, NOC from builder, property valuation report). Employment contracts in non-English languages must be translated and attested by the employer or Indian Embassy. Additional documents may be needed based on profession (e.g., Continuous Discharge Certificate for merchant navy).
    • Balance Transfer Facility: NRIs can transfer existing home loans from other banks or housing finance companies to Union Bank to benefit from lower interest rates and better terms. No prepayment penalty for floating-rate loans repaid from verified sources. A 2% penalty may apply if the loan is taken over by another lender.
    • Top-Up Loan Facility: NRIs can avail a top-up loan (Union Ashiyana Personal Loan) on their existing home loan for personal or business needs, up to Rs. 15 lakhs. A home loan overdraft facility is also available for up to Rs. 20 lakhs to meet personal or business expenses or repay high-cost loans.
    • No Prepayment Penalty: For floating-rate loans, there are no charges for prepayment or foreclosure if repaid from verifiable sources. For fixed-rate loans, a prepayment penalty of up to 2% may apply.
    • Moratorium Period: A moratorium period of up to 36 months is available, allowing NRIs to defer EMI payments during the construction phase or other specific circumstances.
    • Pan India Branch Network: With over 4,200 branches across India, NRIs have convenient access to loan processing, support services, and repayment facilities.
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Benefits of Union Bank of India NRI Home Loan

  • Competitive Interest Rates: Starting at 7.85% p.a. (as of 2025), with potential concessions for insurance and Green Homes.
  • High Loan-to-Value Ratio: The bank finances up to 90% of the property’s value for loans up to ₹30 lakh, 80% for loans between ₹30 lakh and ₹75 lakh, and 75% for loans above ₹75 lakh. This high LTV ratio reduces the upfront financial burden on NRIs, enabling them to invest in their desired property with a lower initial contribution (margin).
  • Flexible Repayment Tenure: Up to 30 years for purchase/construction, allowing NRIs to spread repayments comfortably.
    • Wide Range of Property Financing: Supports purchase, construction, plot purchase with construction, repairs, renovations and balance transfer.
    • Streamlined Application Process: Online application option with quick sanctioning (typically 5 working days after document submission).
    • No Guarantor Requirement: Unlike some banks, Union Bank doesn't mandate a guarantor for NRI applicants in most cases.
    • Specialized NRI Services: Dedicated relationship managers who understand NRI financial needs and facilitate seamless remittances.
    • Union Awas Scheme: Tailored home loan options for properties in rural or semi-urban areas.
    • Home Loan Overdraft Facility: Access additional funds against home loan for personal/business needs (up to Rs. 20 lakhs).
    • Insurance Options: Property insurance is mandatory while life/liability insurance is optional with premium potentially included in property cost.
    • Green Home Loan Benefits: 10 bps interest concession for IGBC-certified Green Homes under Union Green Home scheme.
    • Multiple Repayment Options: Choose from EMIs, quarterly installments, or step-up repayment based on financial situation.
    • Transparent Charges: Processing fee of 0.50% of loan amount (capped), with no hidden costs, ensuring NRIs can plan their finances effectively
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How to Apply for Union Bank of India NRI Home Loan

  • Step 1: Check Eligibility
    Ensure you meet basic criteria:
    NRI/PIO status with valid passport
    Age between 21 and 60 years at loan maturity
    Minimum 6 months of overseas employment
    Stable income to support EMI payments
    Good credit score (preferably 750+)
    Property must be residential and in India
  • Step 2: Gather Required Documents
    Identity Proof: Passport, visa/work permit
    NRI Status Proof: Employment contract, CDC for seafarers
    Income Proof: Salary slips (6 months), bank statements (NRE/NRO/FCNR)
    Property Documents: Sale agreement, title deed, approved plans, encumbrance certificate
    Other: Loan application form, photographs, POA if applicable
  • Step 3: Choose Application Mode
    Online:
    Visit Union Bank's website (https://www.unionbankofindia.co.in)
    Fill online form and upload documents

    Offline:
    Visit branch in India or through POA holder
    Contact NRI Services team for assistance

  • Step 4: Submit Application and Pay Processing Fee
    Submit form and documents online/offline
    Pay processing fee (0.50% of loan amount, capped)
    Receive acknowledgment for tracking
  • Step 5: Document Verification and Property Assessment
    Bank verifies personal, income, and property documents
    Property valuation by bank-approved valuer
    Credit assessment including CIBIL score check
  • Step 6: Loan Approval and Sanction Letter
    Receive sanction letter with loan details if approved
    Review terms including amount, interest rate, tenure
    Accept terms to proceed
  • Step 7: Loan Agreement and Disbursement
    Sign agreement personally or via POA holder
    Complete property registration if applicable
    Funds disbursed to seller/builder or your NRE/NRO account

Eligibility Criteria for Union Bank of India NRI Home Loan

  • Residential Status:
    • Non-Resident Indian (NRI): Indian citizen residing outside India with valid passport and visa/work permit.
    • Person of Indian Origin (PIO): Foreign citizens of Indian ancestry with proof of Indian origin.
    • Seafarers: Merchant Navy employees with Continuous Discharge Certificate (CDC).
  • Age: Minimum 21 years at application; maximum 60 years (or retirement age) at loan maturity.
  • Employment and Income:
    • Salaried: Minimum 6 months of continuous overseas employment with valid contract.
    • Self-Employed: At least 2 years of stable business income with financial documentation.
    • Steady income sufficient to cover EMI payments (typically not exceeding 50-60% of monthly income).
  • Creditworthiness: Good credit score (CIBIL/Experian 750+ preferred) with no history of defaults.
  • Property Requirements: Must be residential property in India with clear legal title and approvals.
  • Co-Applicant (Optional): Indian resident co-applicant (e.g., spouse, parent) can strengthen application.
  • NRI Status Duration: Typically at least 2-3 years as NRI, verified through visa/employment history.
  • Repayment Capacity: Demonstrated ability to repay through NRE/NRO accounts as per FEMA regulations.
  • Valid Documentation: Must possess valid passport, visa/work permit, and employment/business proofs duly attested by the Indian Embassy or employer.
  • Banking Relationship: Preferable to have an existing or newly opened NRE/NRO account with Union Bank for seamless EMI payments.
  • Loan Tenure: Subject to age and repayment capacity, the tenure can go up to 30 years or till the age of retirement, whichever is earlier.
  • Minimum Income Requirement: Varies by country and loan amount, typically based on net monthly income after tax and existing liabilities.
  • Power of Attorney (PoA): Required in favor of a resident Indian for property transactions and loan formalities if the applicant is abroad.
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Documents Required for Union Bank of India NRI Home Loan

  • Application Form:
    • Duly filled and signed NRI Home Loan application form.
    • Recent passport-sized photographs.
  • Identity and NRI Status Proof:
    • Valid Passport with visa/work permit pages.
    • For PIOs: Foreign passport with proof of Indian ancestry.
    • For seafarers: Continuous Discharge Certificate (CDC).
  • Income Proof:
    • For Salaried:
      • Last 6 months' salary slips.
      • Valid employment contract.
      • Bank statements showing salary credits.
    • For Self-Employed:
      • Audited financials for last 2 years.
      • Business registration documents.
      • Bank statements showing income flow.
  • Property Documents:
    • Sale Agreement or allotment letter.
    • Encumbrance Certificate for past 13 years.
    • Title Deeds proving clear ownership.
    • Approved Building Plan and Khata certificate.
  • Other Documents:
    • Notarized Power of Attorney (if applicable).
    • Processing fee payment receipt.
    • Property insurance documents.

Factors Affecting Union Bank of India NRI Home Loan Approval

  • Applicant Profile: NRI status, age (21-60 years), employment stability (minimum 6 months overseas), and income level.
  • Creditworthiness: Good credit score (750+ preferred) with clean repayment history in India or country of residence.
  • Property Characteristics: Must be residential property in India with clear legal title, proper approvals, and adequate valuation.
  • Loan-to-Value Ratio: Up to 90% for loans ≤ ₹30 lakh, 80% for ₹30-75 lakh, and 75% for >₹75 lakh.
  • Repayment Capacity: EMI should typically not exceed 50-60% of monthly income after accounting for existing liabilities.
  • Documentation: Complete and authentic documents including identity proof, income proof, property papers, and NRI status verification.
  • Co-Applicant Profile: Including an Indian resident co-applicant with stable income can strengthen the application.
  • Country of Residence: Stable countries with strong banking relations with India may be viewed more favorably.
  • Property Location: Urban properties in developed areas may qualify for better terms than rural properties.
  • Loan Purpose: Clear purpose (purchase, construction, renovation) that aligns with bank's lending policies.
  • Banking Relationship: Existing savings or NRE/NRO accounts with Union Bank can positively influence approval and processing speed.
  • Power of Attorney (PoA): Required if the NRI is not physically present in India; it should be duly executed and attested as per bank norms.
  • Currency of Income: Income earned in stable and convertible foreign currencies is preferred for assessing repayment ability.
  • Employment Type: Salaried applicants working with reputed companies or government organizations abroad may be favored.

Frequently Asked Questions (FAQs)

What is the Union Bank of India NRI Home Loan?
The Union Bank of India NRI Home Loan is a specialized financing product designed for NRIs and PIOs to:
  • Purchase residential properties in India
  • Construct homes on owned plots
  • Renovate or extend existing properties
  • Transfer existing home loans from other lenders
It offers competitive interest rates starting at 7.85% p.a. and high Loan-to-Value ratios (up to 90%).
Who is eligible for the NRI Home Loan?
  • Residential Status: NRI with valid Indian passport or PIO with foreign passport and proof of Indian origin.
  • Age: Minimum 21 years; maximum 60 years at loan maturity.
  • Employment: Minimum 6 months of overseas employment with valid contract.
  • Income: Stable and verifiable income sufficient to cover EMIs.
  • Credit Score: Preferably 750 or above (CIBIL or equivalent).
  • Property: Must be residential property in India with clear title.
What is the maximum loan amount I can get?
The loan amount depends on:
  • Your income and repayment capacity
  • Property value (determined by bank-approved valuer)
  • Loan-to-Value (LTV) ratio:
    • Up to 90% for loans ≤ ₹30 lakh
    • Up to 80% for ₹30-75 lakh
    • Up to 75% for >₹75 lakh
There's no specific upper limit, subject to bank's assessment.
What are the interest rates?
  • Floating rates start at 7.85% p.a. (linked to External Benchmark Lending Rate, reset every 3 months)
  • Concessions available:
    • 5 bps reduction for opting for credit/term/life insurance
    • 10 bps reduction for IGBC-certified Green Homes
  • Rates vary based on credit score, loan amount, and applicant profile
Check Union Bank's website for current rates.
What is the maximum repayment tenure?
  • Up to 30 years for purchase or construction
  • Up to 15 years for repairs or renovations
  • Moratorium period of up to 36 months available during construction phase
What documents are required?
Key documents include:
  • Identity Proof: Passport, visa/work permit
  • Income Proof: 6 months' salary slips, employment contract, bank statements
  • Property Documents: Sale agreement, encumbrance certificate, title deeds
  • Other: Loan application form, photographs, POA if applicable
Can I apply from abroad?
Yes, through:
  • Online: Union Bank's website
  • POA Holder: Appoint someone in India to handle formalities
  • NRI Services: Contact the bank's dedicated NRI team
Do I need to be physically present?
No, physical presence is not mandatory. You can:
  • Appoint a Power of Attorney (POA) holder
  • Complete most formalities online
  • Use digital signatures where applicable
What is the processing fee?
Typically 0.50% of the loan amount (subject to a cap), plus applicable taxes. This is non-refundable and payable at application.
How long does processing take?
Typically 5 working days after complete document submission, depending on:
  • Document verification
  • Property evaluation
  • Credit assessment
Are there tax benefits?
Yes, for NRIs filing taxes in India:
  • Up to ₹2 lakh deduction on interest paid under Section 24(b)
  • Up to ₹1.5 lakh deduction on principal repayment under Section 80C (if property not sold within 5 years)

List of Union Bank of India NRI Home Loans

  • Union Bank of India Home Loan
  • Union Bank of India Awas
  • Union Bank of India Smart Save Home Loan
  • Union Bank of India Green Home
  • Union Bank of India Composite Loan
  • Union Bank of India Home Improvement Loan
  • Union Bank of India Home Improvement Loan
  • Union Bank of India Home Loan Balance Transfer
  • Union Bank of India Ashiyana Personal Loan