Retail Credit

 
United Housing Loan for Pensioners

United Bank of India takes care of your Housing and related requirements at post retirement stage. You will also find us your companion in securing Shelter in any Old-Age Home. Salient features of the Scheme are given below:

Eligibility :

1. All pensioners of Central and State Governments, Central and State Governments’ Undertakings, Defense Services, reputed Companies, Educational Institutions (Universities, Institutes, Schools and Colleges) including pensioners (VR and VRS) of United Bank of India.
    
2. Your Monthly Net Pension should be Minimum of Rs. 5,000/-
    
3. Your age at the time of availing loan should be Maximum 70 years
    
4. You must be physically fit and mentally alert to execute the documents. Person(s) in paralytic condition or bed-ridden is/are not eligible for the loan

Purpose :

• Renovation/ extension/ repair/ furnishing of self-occupied house/ flat
   
• Purchase/construction of new house/ flat
   
• Purchase of old house/ flat not old over 35 years from the date of completion of construction.
   
• Securing shelter in any “Old-Age Home”

Quantum of Loan :

Max. Rs. 2 lac provided total deduction including EMI of the loan must not exceed 40% of your net monthly pension. If your spouse joins as co-borrower and if he/ she is also pensioner drawing pension from the our branch, pension of both of you shall be considered for determining the quantum of loan within the overall ceiling.

Repayment Period :

Entire loan has to be liquidated before your attaining 75 years of age. The age of the 1st pensioner or from whose income (also pensioner), the major recovery of loan will be made, shall be the deciding factor for the period of loan (subject to maximum repayment period of 10 years). However, where loan is extended for getting shelter in “Old -Age Home” total repayment period must not exceed 10 years (120 EMI).

Moratorium Period:

Repayment shall start from the following month in which the last installment is disbursed or two months after release of first installment, whichever is earlier.

Rescheduling of Loan:

Where loan is secured by way of mortgage of immovable property and family pension-holder is co-borrower, repayment may be rescheduled upon death of the original pension holder. But rescheduled loan must be liquidated within 75 years of age of the family pension holder.

Primary Security:

Mortgage of the property for which bank finance is availed of and hypothecation of movable assets financed by the Bank for furnishing the house/ flat, wherever necessary. Where creation of such charge is not feasible, the total amount of loan must be covered by securities of adequate value, till the mortgage is created, in the form of Bank’s own Term Deposit, LIC Policy (by surrender value), NSC, KVP, Relief Bond or any other tangible security acceptable to the Bank.

If loan is taken for securing shelter in “Old-Age Home”, the loan has to be secured by way of Bank’s own Term Deposit at least equal to the loan amount. Under such cases, deposit shall be subject to automatic renewal for a period covering the entire repayment.

Additional Security:

1. Your irrevocable undertaking to realize EMI from the S/B A/c. maintained with the branch concerned and not to transfer the PPO elsewhere till the liquidation of the loan in question.
    
2. You shall have to furnish a letter to your PPO issuing authority with an undertaking not to effect transfer of PPO to any other bank, since you have availed Housing Loan from UBI, till the loan is liquidated.
    
3. The family pension-holder shall be the co-borrower. If there is no family pensioner or family pensioner is dead, any working son or daughter or the legal heir shall be the co-borrowers.

Margin:

For Housing Purpose:

1. In case of spouse being Co-borrower- Min. 10% of total project cost.
2. In case of others - Min 15% of total project cost.

For Securing Shelter in "Old-Age Home": Nil

Interest Rate:

Facility of both fixed and floating rates interest available.

a) Fixed Rate Revised w.e.f. 09.04.2007
  

 b) Floating Rate Revised w.e.f. 09.04.2007

Repayment period is restricted to maximum 10 years.

A) If loan is taken along with Insurance Cover under the Scheme, a reduction of 0.25% p.a. in rate of interest may be allowed.

B) A reduction of 0.25% p.a. in the interest rate shall be allowed if 50% of the loan is additionally secured by way of Bank’s own Term Deposit.

C) For United Salary Payment (USP) accounts a reduction of 0.25% p.a. shall be allowed. However, under no circumstance, rate of interest under fixed rate option will be less than 10.50% p.a. for limit upto Rs. 20 lac and 11.50% p.a. for loans above Rs. 20 lac whereas for Floating rate option, below 9.75% p.a. for loans upto Rs. 20 lac and 10.75% p.a. above Rs. 20 lac.

(However, in case of Bank’s own term deposit, borrower shall continue to enjoy interest as per stipulated frequency)

(However, in case of Bank's own term deposit, you may continue to enjoy interest as per stipulated frequency)

Penal Interest:

@ 1% over and above the usual interest on overdue amount for overdue period.

Prepayment Charges :

@2% in case of takeover of loan by banks/ financial institutions/ Housing companies etc. Only. However, no prepayment charges shall be realized where loan is extended for securing shelter in Old-Age Home.

Disbursement :

The loan shall be disbursed through SB A/c other than Pension disbursement account maintained with the branch at once or in installment as per progress in work. If you are not having any other Savings Bank A/c. with the branch, you will have to open a Savings A/c. with the branch jointly with your family pensioner or other members of the family, as the case may be.

Insurance :

The property to be mortgaged to the bank has to be insured comprehensively with bank clause as per the scheme at the cost of the borrower.

Processing Charge:

@0.50% of the loan amount. However, no processing charges are to be levied where loan is availed by providing 100% security and also where loan is secured for getting shelter in Old-Age Home.

Click here for Feedback & Forms