When one
takes a Union bank Home Loan, a natural question that comes to mind is how much
the EMI would (Equated Monthly Installment) be that one must pay back to the
bank every month.
Hope the
following FAQ’s about Union bank Home Loan EMI will answer all your questions
What is Union bank Home Loan EMI Calculator?
A Union
bank Home Loan calculator helps you know the amount of the EMIs that you will
need to pay towards your Union bank Home Loan and helps make an informed
decision. The EMI-Calculators.com’s Union bank Home Loan EMI calculator also
functions as a Union bank Home Loan interest calculator, as you will be able to
know the interest amount due on your Union bank Home Loan, in addition to the
overall EMI amount, in just 3 simple steps. First, enter the loan amount that
you wish to take. Then, select your preferred tenor. Finally, put in the Union
bank Home Loan interest rate advertised on the website. That’s all!
What is Union bank Home Loan EMI?
EMI stands for Equated Monthly Instalment.
EMI is the monthly repayment that a Union bank Home Loan borrower must make to
repay the Union bank Home Loan within the specified loan tenor.
The following table illustrates
the EMI on several Union bank Home Loan amounts with different tenures. The
applicable rate of interest is 8.60%* onwards.
Factors that Affect Union bank Home Loan EMI
- Principal– The principal is the loan amount that
you avail from the lender. It is directly proportional to your EMIs –
lower principal will lower your monthly instalments and vice versa.
- Rate of interest– The rate of interest is the rate at
which the lender offers you the loan. It is also directly proportional to
the value of your loan EMIs.
- Tenure–
The tenure is the time within which you repay your loan. The tenure is
inversely proportional to your loan EMIs – longer tenure makes the monthly
instalments cheaper and vice versa.
Documents required
to apply Union bank Home Loan
Salaried Employees:
·
Filled up
loan application form
·
2 Passport
Size Photo
·
Copy of Income Tax PAN
·
Identity
Proof – Aadhaar, Passport / Driving
License / Voter ID / PAN
·
Residential
Address Proof – Leave and License/ Registered Rent Agreement/ Utility Bill
(upto 3 months old), Passport
·
Income
Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing
salary credit and any EMI debit
Self-Employed:
·
Filled up
loan application form
·
2 Passport
Size Photo
·
Copy of Income Tax PAN
·
Identity
Proof – Aadhaar, Passport / Driving
License / Voter ID / PAN
·
Residential
Address Proof – Leave and License/ Registered Rent Agreement/ Utility Bill
(upto 3 months old), Passport
·
Income
Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing
salary credit and any EMI debit
Union bank Home Loan EMI tax benefits related FAQs:
Can I claim tax benefits if I plan on constructing the house and selling it
in a few years?
If you sell the property within 5 years of possession, any tax
deductions already claimed will be reversed. However the tax exemptions on
interest paid will remain unchanged.
Who is eligible to claim tax deductions on Union bank Home Loans?
The owner of the property can claim tax benefits. If the spouse is
a co-borrower, they can also file for tax deductions. In the case of a joint
loan, both parties can claim for their share of the loan they pay.
The property I purchased with a Union bank Home Loan is still under
construction. Can I claim tax benefits?
You cannot claim tax deductions till the construction is
completed. Once it is completed, you can claim an aggregate of interest paid
for the period prior to the year of taking possession. This can be claimed in
five equal instalments from the year in which construction is completed.
Can I claim tax benefits on loans from friends?
You can claim for tax deduction under Section 24(b) only for the
interest paid. The friend will have to provide you with a certificate and will
be liable to pay tax on the interest earned from the loan.
Can I claim tax benefit on two Union bank Home Loans?
Generally, tax benefits can be availed only on the house claimed
as self-occupied. In case if you own two houses, only one of them can be
claimed as self-occupied property. The other house will be considered as a
let-out property and will be taxed as per the tax slab applicable. The notional
rent on your second house will be added to your income. To save on the
applicable tax, one can consider investing the second house in his/her spouse’s
name. However, only one residential property can be relieved from being taxed.
You will have to pay wealth tax on the second home.
Can my spouse claim income tax deduction if we buy a house jointly?
Yes, you can claim separate deductions in your IT returns if your
spouse is employed and has a different source of income. You can both claim
deduction under Section 80C up to Rs.1.50 lakh from your total income. If the
house is jointly owned, each co-owner can claim deductions up to Rs.2 lakh on
account of the interest on borrowed money. However, if the house is being
rented, there is no restriction on the claiming amount and you can individually
claim deductions based on the ratio of possession on the property.
Is the Union bank Home Loan principal part of Section 80C?
Yes, Union bank Home Loan principal is part of Section 80C of the
Income Tax Act. Under this section, an individual is entitled to tax deductions
on the amount paid as repayment of the principal component on the Union bank
Home Loan. An amount up to Rs.1.50 lakh can be claimed as tax deductions under
Section 80C. However, the tax benefit on the repayment of the principal amount
can be claimed only after the house is constructed. The section does not allow
deductions for the repayment of the principal part during the years the house
was being constructed.
Can I claim tax benefits from a Union bank Home Loan while claiming House
Rent Allowance (HRA)?
An individual is entitled to the following benefits if he/she is
staying in a rented place after buying a Union bank Home Loan:
· House
Rent Allowance (HRA) benefit
· Tax
benefit on the interest amount paid under Section 24
· Tax
benefit on principal amount repaid under Section 80C
The Housing Rent Allowance benefit stops once the construction of
the property is complete. You can avail all tax benefits on the Union bank Home
Loan only if the construction of property has been completed and is ready to
move in during the same financial year. You can still claim tax benefits if you
are living in a rented accommodation after giving your house on rent. However,
the rent you receive on the property will be added to your taxable income and
will be taxed as per the applicable tax slab.
Can self-employed individuals claim Housing Rent Allowance (HRA) benefit?
No, self-employed individuals cannot claim Housing Rent Allowance
(HRA) benefit. However, you can save tax on the house rent paid under Section
80GG of the Income Tax Act, provided the rent has not been claimed under
another section of the IT Act.
Are there any other tax deductions I can claim with respect to interest
payment on the home other than the interest under Section 24(b)?
You can also claim tax deductions in respect of the interest on
the Union bank Home Loan under Section 80EE of the Income Tax Act. Under this
section, an individual is entitled to claim tax deductions up to a maximum
amount of Rs.50,000 during a financial year. The deductions, however, cannot be
claimed if you have repaid the entire Union bank Home Loan. You can claim tax
benefits under Section 80EE if you haven’t purchased a house before. The value
of the house should not exceed Rs.50 lakh and the Union bank Home Loan taken
for the property should be less than Rs.35 lakh to avail this benefit.
Can I claim tax benefit on the principal repaid on a Union bank Home Loan?
Yes, you can avail tax benefits on the principal amount repaid on
the Union bank Home Loan from total income under Section 80C. However, you can
only claim tax deductions up to a maximum amount of Rs.1.50 lakh under this
section.
What is maximum amount I can avail for deduction of interest paid on my Union
bank Home Loan?
Under Section 24 of the Income Tax Act, an individual can claim
tax deduction of the interest payment on the Union bank Home Loan up to a
maximum amount of Rs.2,00,000. However, there is no limit on the interest
payment deduction of the property is rented.
Union bank Home Loan EMI for Different Loan Amounts
Following table shows the EMIs for
various loan amount based on different tenures at 8.60%* onwards
· The EMI that you can avail with Union bank Home Loan of 10 Lakh is
10,024 with 15-years tenure. The EMI increases when you opt for tenure of 5
years.
· The EMI for a loan of 15 Lakh is higher – 30,992, when you opt for
5-years. It decreases to 15,036 if you opt for tenure of 15 years.
· For a loan of 25 Lakh, the cheapest EMI you can avail with 15 year
tenure – 25,060. Decreasing the tenure to 5 years increases the EMI to 51,654.
· The EMI is 72,315 when you avail loan of 35 Lakh for 5 years. The
same will decrease to 35,084 if you increase the tenure to 15 years.
· The cheapest EMI comes with 15-years tenure with loan of 50 Lakh –
50,120. The EMIs double when you opt for 5 years tenure.
Step by step guide before having Union bank Home Loan EMI:
Step 1 : Check Union bank Home Loan EMI and calculate Union bank Home Loan
eligibility – Union bank Home Loan EMI Calculator
As you decide to take a Union bank Home Loan, always estimate your
loan amount eligibility to know the loan amount you will be eligible for and
can apply for. Also calculate the monthly EMI that you can comfortably service
given your net take personal salary and other existing fixed obligations
including rent and EMIs on other existing loans, if any. Your house loan
eligibility is calculated based on your age, net income, existing obligations,
property type, LTV ratio and other factors. EMI is dependent on the loan
amount, interest rate and tenure. Once you understand your minimum loan
requirement, your eligibility and monthly EMI you can comfortably service, shortlist
the banks which offer you maximum loan amount to meet your requirements.
Step 2 : Check loan approval status and legal documents – Union bank Home
Loan EMI Calculator
If you are buying a property from builder, then check for the
banks which have approved the projects you have shortlisted. For resale
property, check the approved map plans and ensure that all property
registration papers for the complete chain from the first owner to current
owner are in place. Shortlist the banks which lend on your chosen property.
Step 3 : Decide on type of Union bank Home Loan interest rate offers – Union
bank Home Loan EMI Calculator
As you narrow down the list of banks in Step 2 and 3, you need to
conduct an interest rate on Union bank Home Loan comparison of the loan offers
of various banks. Some of the interest rate offers that needs to be checked
are:
Choice between fixed and floating rates – Fixed rates come at a
slightly higher rate of interest compared to floating rate loans and interest
rate remains constant during the tenure of Union bank Home Loan. In floating
rate loan, interest rates are reset at periodic intervals in response to
changes in MCLR and PLR rates of banks or NBFCs. Majority of Union bank Home
Loans in India today are floating rate loans as it allows the borrowers to get Union
bank Home Loan interest rate in line with the current interest rates.
Decide if you need a home saver loan – This is a loan with
overdraft facility which allows you to deposit surplus amount in your Union
bank Home Loan overdraft account as and when available, allowing you to reduce
your overall interest amount. This loan is highly recommended for salaried
individuals with high bonuses and self employed business which is seasonal and
has fluctuating cash flows. The interest rates on overdraft loan is slightly
higher than that of a regular Union bank Home Loan interest rate.
You can also evaluate a mortgage guarantee house loan as it covers
any default risk and allows the lender to give you loan at low rate of
interest. You will however need to pay a mortgage guarantee fee to the bank.
Check and compare the current Union bank Home Loan interest rates
of the banks on various types of loan products and take an informed decision.
Step 4 : Compare shortlisted banks | Union bank Home Loan EMI Calculator
In addition to interest rates, banks also charge many other fees
on Union bank Home Loans. Along with interest rates, you should check other
associated costs with a your loan which include prepayment charges, processing
fee, insurance premium and other charges offered by the shortlisted banks. You
should calculate all inclusive costs on Union bank Home Loan to be able to
further shortlist the banks and reduce your choice to 2-3 banks.
You can take the help of loan advisors of online on various
websites listed below.
·
https://www.paisabazaar.com/
·
https://www.bajajcapital.com/
Step 5 : Select the bank based on other service related parameters | Union
bank Home Loan EMI Calculator
Finally as you decide to take the loan, also consider other
service and transparency related parameters of the chosen banks. Some of these
factors are turnaround time offered by the banks, quick loan delivery, doorstep
services, transparency in the loan process. You also need to understand the
trends and changes in MCLR rates over a period. Last but not the least, read
reviews of existing customers on banks on their services, interest rates and
transparency to take your decision to borrow from a bank.
Bank specific Union bank Home Loan EMI Calculator FAQs
1. What benefits do I get by calculating my EMI before taking an Union bank
Home Loan?
Calculating your EMI before taking a loan can help you in the
following ways:
You can manage your monthly expenses better. Once you know how
much you must pay towards your loan each month, you can then budget the other
expenses accordingly. You will be able to determine what tenure to choose
depending on how much you can afford to repay every month. Planning prepayments
and pre-closures can be done easily, helping you pay off your loan faster.
2. Will my EMIs change in case of prepayment?
When you prepay a part of your loan, the outstanding principal
will reduce. This allows you to opt for a lower EMI while keeping the loan
tenure the same. Or, you can maintain the same monthly instalment as before and
reduce the tenure of the loan. It is advisable to maintain the same EMI and
reduce the tenure since this will reduce the amount of interest you pay in the
long run.
3. Can I use the same EMI calculator for all banks?
Yes. An EMI calculator is a common tool and is not tied to any bank
or financial institution. If you know your principal, interest rate, processing
charges, and tenure, you should be able to generate your EMI. BankBazaar’s
calculator also allows you to factor in prepayment details.
4.How accurate is an EMI calculator?
An
EMI calculator estimates your loan repayment details based on the data you give
it. But the EMI that your bank gives you may be a little different due to other
charges involved in the calculation. Also, if your Union bank Home Loan is
subject to a floating rate, then the interest rate changes every year based on
the MCLR or base rate change. Even a slight change in interest rate will make a
difference to the total loan amount you repay, depending on the duration of the
loan. These variables limit the accuracy of an EMI calculator.
5. Why are the interest charges in the repayment table slightly higher
during the initial months of the loan?
The interest rate of your loan is applied based on “reducing
balance principle”. Because of this, the interest will be slightly higher
during the initial phase since the principal outstanding is higher. As this
amount reduces, the incidence of interest will also come down proportionately.
How is Union bank Home Loan EMI Calculated?
Equated Monthly Installment – EMI
for short – is the amount payable every month to the bank or any other
financial institution until the loan amount is fully paid off. It consists of
the interest on loan as well as part of the principal amount to be repaid. The
sum of principal amount and interest is divided by the tenure, i.e., number of
months, in which the loan has to be repaid. This amount has to be paid monthly.
E = P x r x
(1+r)^n/((1+r)^n – 1)
- E is the amount
that you will have to pay every month; basically, the EMI.
- P is the amount
that you want to borrow.
- r is the rate
of interest that is applicable but calculated on a monthly basis instead
of the annual rate of interest. It is obtained by using the formula r =
(annual interest/12) x 100.
- n is the duration of the loan in terms of
months. So if you select a term of 5 years, n will be 60.
EMI is just the amount you
(borrower) repay to the bank, each calendar month, to clear your outstanding
loan.You have to repay the EMI each month, on a particular fixed date, for the
entire duration (tenure) of the loan, till you repay the entire outstanding
amount. (amount borrowed + interest).
For Example, if you borrow 10,000,000 units of a currency from the bank at
10.5% annual interest for a period of 10 years (i.e., 120 months), then EMI =
Units of currency 10,000,000 * 0.00875 * (1 + 0.00875)^120 / ((1 + 0.00875)^120
– 1) = Units of currency 134,935. i.e., you will have to pay total currency
units 134,935 for 120 months to repay the entire loan amount. The total amount
payable will be 134,935 * 120 = 16,192,200 currency units that includes
currency units 6,192,200 as interest toward the loan.
How to Calculate EMI for Union bank Home Loan?
Calculating the EMI amount on your
Union bank Home Loan is quite easy. Simply enter the loan amount you wish to
take, the tenor (in months, and not years) and the rate of interest, in the
required fields.
Once you find the EMI calculator
for Union bank Home Loan, To calculate the amount of EMI, you need to put
the following inputs in the EMI calculator:
- Loan Amount – The principal amount borrowed
from the bank or financial institution is known as the loan amount.
- Interest Rate – Interest rate can be either fixed
or floating.
- Loan tenure – Is the time over which you choose to
repay the loan.
The result will be your EMI, the
total interest you’ll be paying and the total amount you’ll be paying by the
end.
What are the Advantages of Knowing Union bank Home Loan EMI in Advance?
Good planning always ensures
stable finances. Calculating the Union bank Home Loan EMI in advance gives a
better understanding of the amount of money you would have to spend every
month. Hence, you can plan well and decide whether you are able to spare that
much money or not.
Components of a Union bank Home Loan EMI Calculator?
- Amount of loan to calculate EMI
- Loan term (months or years) to calculate
EMI
- Rate of interest (percentage) to
calculate EMI
How to use Union bank Home Loan EMI Calculator?
Using the EMI Calculator is a very
simple process. All you need to do is follow these steps–
· Go the Union bank Home Loan EMI Calculator page
· Choose the loan amount, rate of interest, and tenor (in months)
That’s all! You will instantly get
your Union bank Home Loan EMI amount along with the interest amount payable on
the loan.
What are the Advantages of a Union bank Home Loan EMI Calculator?
A Union bank Home Loan EMI
Calculator helps you to decide whether you can afford the financial commitment
of a Union bank Home Loan in the long term. If you want, you can increase or
decrease your EMI amount depending on the amount of loan you are taking and the
time period for which you’ll be paying the EMIs.
Quick Results – Applicants
can easily use this calculator to calculate the EMIs that they will be liable
to pay for the pre-determined tenure and interest rate that the Union bank Home
Loans are offered, in mere seconds.
Simplicity – The
calculations using this EMI calculator for Union bank Home Loan are based on
the applicant providing three key bits of information i.e. the principal amount
of the loan, the applicable rate of interest and the loan tenure.
Varying Combinations
– With the Union bank Home Loan EMI calculator, you can easily input different
interest rates and tenures to look for a combination that will allow you to
easily repay the principal amount, without putting undue pressure on your
finances.
Free Usage – The EMI-Calculators.com’s Union bank Home Loan EMI calculator is a user friendly Union
bank Home Loan calculator that is available to everyone free of charge and is
easy to use
What Is a Union bank Home Loan EMI Amortization Schedule?
A Union bank Home Loan amortization
schedule is the table or record which details all the periodic payments on your
loan. This is generated through an amortization calculator.
Amortization is basically the
procedure of repaying a loan through regular payments over a specified period.
An amortization schedule is the total tally of loan payments showing the amount
of interest and principal contained in each payment, until the loan is repaid
in full.
What are the factors that impact monthly Union bank Home Loan EMI?
The estimated monthly investment
(EMI) depends on a number of factors such the amount, the tenure of the loan,
and the interest rate. The estimated monthly investment (EMI) differs according
to the loan type and the amount. If the interest rate of the loan is fixed, the
estimated monthly investment remains fixed as well for the entire time the loan
is active. The borrower can also opt for a pre-payment wherein the estimated
monthly investment (EMI) gets reduced. If the interest rate is floating, the
EMI is also floating.
What is Flat/Fixed Rate of Interest? And Flat/Fixed Rate of Interest Effect
your EMI for Union bank Home Loan?
A fixed rate of interest is one
where the interest rate on a loan remains fixed throughout the loan repayment
period (loan tenure). This type of interest rate is comparatively higher than a
floating rate of interest. Fixed rate of interest is better for those who don’t
prefer the risk of fluctuation that is an integral part of a variable interest
rate. In the case of a fixed rate of interest, the loan EMI remains the same
throughout the loan tenure.
The online loan EMI calculator can
be used to calculate loan EMIs with a fixed rate of interest. The
different Interests Rates that can be implied in a Loan contract are Fixed
Interest Rate and Floating Interest Rate.
Fixed
Interest Rate means interest payment on loan will be in fixed equal
installments over the entire period of the loan. The interest rate will not
change regardless of any market fluctuations.
Benefits of Fixed Interest Rate:
- Interest Rate does not change as per the
market fluctuations
- Having a fixed interest rate brings a
sense of safety and security for the borrower
- Since it entails a fixed monthly
repayment schedule, it helps in easy budgeting
Drawbacks of Fixed Interest Rate:
- Generally, Fixed Interest Rates are
1%-2.5% higher than Floating Interest Rate
- Fixed Interest Rates are subject to
change as per the market fluctuations, hence if by chance the interest
rate decreases, the fixed rate Union bank Home Loan won’t be benefited as
the borrower will have to pay the same fixed amount every month.
What is Floating Rate of Interest? And Floating Rate of Interest Effect
your EMI for Union bank Home Loan?
Floating rate of interest changes
depending on the market-lending rate. It is also known as variable rate of
interest. If the lending rate increases, the floating interest rate will also
increase. Due to the risk of fluctuation, the floating rate of interest is
usually lower than the fixed rate of interest. With a floating rate of interest
for a specified loan tenure, you can either expect your EMI to reduce or
increase depending on the rise in the interest rate.
The online loan EMI calculator for
Union bank Home Loan can be used to calculate loan EMIs with a Floating rate of
interest.
Floating Interest Rate is the rate
which changes as per the market conditions. Loans on floating interest rates
are tied to a base rate PLUS a floating element thereof.
Benefits of Floating Interest Rate:
· Floating Interest Rates are cheaper than Fixed Interest Rate
· During the long term, even if the floating interest rate rises up
the fixed interest rate, they will eventually fall. Hence ensuring a lot of
savings.
Drawbacks of Floating Interest Rate:
Due to frequent fluctuations in
interest rate, the nature of monthly installments is quite uneven.
Hence it is necessary that you
conduct a proper cost and benefit analysis before choosing among Fixed and
Floating Rate of Interests.
Why should I use a Union bank Home Loan EMI calculator?
The simplest answer is that it’s
fast and it’s convenient. This means that you can do multiple calculations in
minutes where such calculations many take longer were you to sit down with a
pen and paper. These calculators are also super accurate, so it eliminates the
possibility of errors in calculations, provided you provide accurate data.
Will banks provide the Union bank Home Loan EMI calculator?
Yes. These days most, if not all,
banks have Union bank Home Loan EMI calculator, specific to various loans,
available on their websites.
How much should I pay as monthly EMI for Union bank Home Loan?
Monthly EMI for Union bank Home Loan depends upon your income and
expenses. Generally, banks advise you to limit your EMI to 35% to 45% of your
net income so that you can pay your EMI without any burden or difficulty. You
can calculate your EMI online which will help you to know your repayment
capacity.
What if I miss EMI payment for Union bank Home Loan or there is an ECS
bounce?
If you miss your EMI payment on your Union bank Home Loan or if
there is an ECS bounce then bank may charge a penalty. In addition, it will
also be reflected in your CIBIL
report and your CIBIL
score may get impacted.
What if I get delay in paying the Home /House loan EMI?
Banks charges penalty for delaying EMI payment for Union bank Home
Loan. The amount of penalty varies from bank to bank.
Why it is necessary to calculate EMI beforehand?
It is important to calculate your EMI in advance to maintain
stability in future payments. When you avail loan for your house, you promise
the bank to pay a fixed amount at fixed date every month. So, before availing
the Union bank Home Loan you should consider the stability of your income,
monthly expenses and the existing loan obligations to avoid any discrepancies
in future payments.
Does the loan tenure affect my EMI for Union bank Home Loan?
Union bank Home Loan can be availed for maximum tenure of 20 years.
Tenure affects your monthly EMI. Longer the tenure of Union bank Home Loan,
lower will be your EMI.
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