Union Bank of India Loan Against Property
A loan against property lets a borrower raise funds by pledging a residential or commercial property they own as security, while continuing to occupy or use it. It is a secured borrowing option typically used when a large sum is needed for a purpose that is not tied to buying a house, such as funding higher education, meeting wedding costs, managing medical emergencies, supporting business travel, or covering other unforeseen expenses.
Because the property acts as collateral, the amount that can be raised is linked to the value of the mortgaged asset and the borrower's income. Union Bank of India, a public sector bank established in 1919, offers this facility under its Union Mortgage scheme to Indian citizens, both resident and non-resident, who own non-agricultural property and have a regular source of income.
The bank makes the loan available either as a term loan or as a secured overdraft, giving borrowers a choice between structured repayment and a flexible draw-down arrangement. Applicants may also use the scheme to take over an existing mortgage loan held with another bank. The scheme places emphasis on adequate property insurance to protect against damage from unforeseen events, with the interest linked to the bank's External Benchmark Lending Rate. Sanction is subject to the bank's eligibility assessment and is not guaranteed.
Documents required
- A filled application form
- Credit information
- KYC documents of the applicant and co-applicant / guarantor: identity proof (PAN card, Voter ID, Passport, Aadhaar, etc.), address proof (Driving licence, Passport, Aadhaar, etc.), and two latest passport size photographs
- Income proof - Salaried: last 2 years' ITR / Form 16, latest 3 salary slips, and proof of other income (if any); Non-salaried: last 2 years' ITR and proof of other income (if not reflected in ITR / Form 16)
- Bank statements for the last 6 months
- Property documents based on the proposed property: agreement to sell / allotment letter, ownership documents (title deed / original sale deed / society share certificate) and link parent documents, advance-payment / own-contribution receipts, copy of the approved plan, NOC from the builder / developer / society, and statutory and regulatory construction approvals; for construction / extension / repairs, an estimate of cost
- In case of take-over from another bank / FI: sanction letter, statement of account for the last 12 months, and confidential credit report from the existing bank
- In case the applicant / co-applicant is an NRI: employment contract or offer letter, latest work permit, copy of passport, local address proof, visa stamped on the passport, identity card issued by the current employer, and attested power of attorney (if executed abroad)
As published by Union Bank of India. Your branch may ask for more.
Eligibility
Loan terms
- Available to both resident and non-resident Indian citizens who own non-agricultural property
- Offered as either a term loan or a secured overdraft facility
- Can be used to take over an existing mortgage loan from another bank
- Interest linked to the bank's External Benchmark Lending Rate tied to the repo rate
- Mandatory property insurance to safeguard against loss from unforeseen damage or natural disasters
Fees & charges
FAQ
LAP is secured against property, so the rate is lower and the tenure longer than an unsecured personal loan — better when the need is large and long-term. The trade-off is a legal/valuation process and your property as collateral.
Every row is date-stamped with the day we last checked it, and links to the lender’s published material so you can confirm it yourself. A row we confirmed against the source reads “Verified”; one we could only sight reads “as of”, and is not presented as confirmed. Anything we have not re-checked in 60 days is marked “rate under review” rather than left to look current. We do not claim a fixed re-checking cycle — the date on each row is the honest answer.
No. Viewing rates is not a credit enquiry and has no score impact. A hard enquiry happens only when you formally apply to a lender.