Public sector banker, Union Bank of India has increased marginal cost of funds (MCLR) rates by 5 basis points across all tenors with effect from December 11. The MCLR benchmark ranges from 7.50% to 8.60%. Notably, the interest rates will continue till January 10, 2023. Also, the bank revised its external benchmark lending rates which are linked to the repo rate. Thus, the home loan interest rates of the lender have changed accordingly. Also, your CIBIL score will depend on the amount of EMI you pay on your home loan. Higher your credit score, lower will be the home loan rates.
As per the website, with effect from December 11, the 3-year MCLR rate is 8.60%, while the MCLR for 2-year and 1-year tenors will be 8.45% and 8.25%, respectively. The lender is offering 8.05% MCLR for six months, while the rate stands at 7.85% for 3 months, 7.65% for one month and 7.50% for overnight tenure.
Further, the external benchmark rate stands at 9.05% since 11th December which is a total of — repo rate Spread of 6.25% and 2.80%.
On home loans, Union Bank said the approved rate of interest will be effective for all new Union home and Union housing loan customers (including switchovers from other benchmarks, viz. MCLR / Base Rate / BPLR to EBLR).
Union Bank Home Loan Rates:
until 30 million:
For borrowers with a credit score of 800 and above, the home loan rate has been set at 8.60% for both salaried and non-salaried men and women. Whereas for credit score ranging from 750 to 799, this rate is 8.70%.
On a credit score of 650 to 749, home loan rates for salaried women range from 9.05% to 9.20%, while rates for non-salaried women range from 9.10% o 9.25%. On the other hand, the rate varies from 9.10% to 9.25% for salaried males and 9.15% to 9.30% for non-salaried.
Furthermore, the rate for both salaried and non-salaried women and men with credit scores from 600 to 649 is 9.75%, while for all those with credit scores below 600, the rate is 10.25%.
above 30 million:
Just like above, borrowers with a credit score of 800 and above have a home loan 8.60% rate, and for credit scores ranging from 750 to 799, the rate will be 8.70%.
For borrowers with a credit score of 600 to 749, home loan rates vary from 9.15% to 9.30% for salaried women and 9.20% to 9.35% for non-salaried women. While the lending rate ranges from 9.20% to 9.35% for salaried males and 9.25% to 9.40% for non-salaried males.
The home loan rate for credit score from 600 to 699 is 9.90%, while the rate for CIBIL score below 600 is 10.45%.
Also, Union Bank said that the benefit of 5 bps concession will be applicable only if the house is owned singly/jointly by the woman borrower.
Fixed rate for a maximum tenure of 5 years:
The bank has charged a fixed rate of 11.40% on home loans up to 30 lakhs, while the rate is 12.40% from 30 lakhs 50 lakhs and is fixed at 12.65% on loans from from 50 lakhs 200 lakhs.
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