1. What is EMI Calculation?

EMI (Equated Monthly Installment) is the fixed payment amount made by a borrower to a lender at a specified date each calendar month. For Union Bank of India home loans, this includes both principal and interest components.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( r \) — Monthly interest rate (annual rate divided by 12 months)
• \( n \) — Loan term in months
• \( PMT \) — Monthly EMI payment (INR)

Explanation: The formula accounts for compound interest over the loan term, distributing payments equally each month.

3. About Union Bank of India Home Loans

Details: Union Bank of India offers home loans starting at 6.40% p.a. interest rate (as of current offerings). Loan terms typically range from 5 to 30 years, with amounts up to 90% of property value.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate (6.40% is the starting rate for UBI), and loan term in years. All values must be valid (principal > 0, rate > 0, term 1-30 years).

5. Frequently Asked Questions (FAQ)

Q1: What is the current interest rate for UBI home loans?
A: Rates start at 6.40% p.a. but may vary based on loan amount, term, and applicant profile.

Q2: What is the maximum loan term available?
A: Union Bank of India typically offers home loans up to 30 years, subject to age criteria.

Q3: Are there prepayment charges?
A: UBI generally doesn't charge for prepayment of floating rate loans, but terms may vary.

Q4: What is the maximum loan-to-value ratio?
A: Up to 90% of property value for loans up to ₹30 lakh, 80% for higher amounts.

Q5: What documents are required for a UBI home loan?
A: Typically includes identity proof, address proof, income documents, and property papers.