Registration for Newsletters
UNITED HOUSING LOAN SCHEME
Individual, aged 21 years or above, having Regular Income who is not a defaulter borrower of any Bank/Financial Institution.
1. Construction of house/flat
2. Purchase of new/old (not more than 35 years) house/flat
3. Renovation/extension/repair of house
4. Purchase of land for construction of house thereon
5. Take over of housing loan availed from other Banks/FIs.
Quantum of loan
Nature of Applicant
Location of house/flat/property (Rs. In lac)
For all categories
Enhancement of loan up to 10% is permissible for furnishing.
The quantum of loan shall be determined by the bank considering the cost of the house/flat (Stamp Duty and Registration cost may be included in the total project cost, subject to margin stipulation as applicable) and the applicant’s age, income, assets and liabilities and repayment capacity etc.
Margin & Moratorium period
15% of the project cost in all cases.
a.Construction of house : 12 months from 1st disbursement or till completion (whichever is earlier) b. In other cases, repayment starts from 1-3 months after disbursement
Rate of Interest
Fixed Rate (for 1st housing unit)
Upto Rs 20 lac
Above Rs 20 lac to Rs 30 lac
Above Rs 30 lac
For loans upto 5 years
Above 5 years & upto 20 years
No Fixed Rate
Floating Rate (for 1st housing unit) - BR 8.25% w.e.f 01.07.10
Above Rs 20 lac to Rs 30 lac
Above Rs 20 lac
BR+0.75% i.e 9.00%p.a
BR+1.00% i.e 9.25%p.a
BR+1.25% i.e 9.50%p.a
BPLR-2.50% i.e 11.25%p.a
Above 5 years & upto 15 years
BR+1.50% i.e 9.75%p.a
BPLR-2.00% i.e 11.75%p.a
Above 15 years & upto 20 years
BR+1.75% i.e 10.00%p.a
BPLR-1.75% i.e 12.00%p.a
Floating Rate is linked with BR and subject to change with the revision of Base Rate from time to time
BPLR-1.50% i.e 12.25%p.a
a) Loan for 2nd housing unit, additional 0.50% across the board in all slabs
b) No loan will be extended for purchase of 3rd housing unit
No concession is available for loans upto 5 years
1) 0.25% if loan is taken alongwith Insurance cover under the Scheme (SBI Life/TATA AIG)
2) 0.25% if 50% of the loan is additionally secured by way of Bank’s own Term Deposit.
3) 0.25% if loan is availed under USSY scheme
4) 0.25% for UBI Staffs.
Max. 20 years but before borrower’s attainment of 65 years of age in case of P & SE and before superannuation in case of salaried person.
* During moratorium period, interest is to be serviced as pre-EMI (PEMI) every month
Mortgage of the Property to be acquired; where creation of mortgage is not feasible, total amount of loan must be covered by securities of adequate value or by mortgage of any other property of adequate value.
(Spouse bemade co-borrower, wherever possible)
For salaried persons: Nil; if employer ensures repayment either by way of remittance of salary to the bank or by way of remittance of EMI deducted from the salary of the employee and attachment of terminal benefits.
Where employer does not ensure repayment: Borrower to maintain SB A/c with adequate bal. To service at least one EMI & ECS mandate to debit the A/c where monthly salary is deposited. Personal Guarantee of one person having adequate net worth, which will be inforce till the construction is completed, property is mortgaged and possession is taken by borrower.
For P & SE and for salaried persons: Personal Guarantee of one person having adequate net worth, which will be inforce till the construction is completed, property is mortgaged and possession is taken by borrower. ECS mandate to debit the A/c where salary is credited for EMI and one SB A/c is to be maintained with balance at least to service one EMI with supporting proof of monthly income.
Prepayment & Penal charge
Nil, however, in case of takeover of loan by Banks / FIs & Housing Companies, a 2% pre-payment charges is levied.Penal Intt. @2% on PEMI/EMI in arrear for default period
0.5% of the loan amount.
1.The property is to be insured against fire and other hazards and the policy to be assigned in favour of the Bank.
2.In order to provide Insurance Cover for the property created out of loans along with Personal Accident benefits for the borrowers at a concessional rate of premium, the Bank has a tie-up with United India Insurance Co.Ltd. / Bajaj Allianz Insurance Co. Ltd.
Loan to NRI
Salary certificate (in English) duly attested by the embassy official
1.Applicant should maintain NRE/NRO/FCNR/NRNR a/c with the Bank and repayment will be made by direct remittance or through such account. 2. NRI should empower one Power of Attorney (POA) holder to deal activities with bank in India on behalf of NRI. POA holder should be resident Indian and have relation with NRI. 3. POA must be notarised if executed in India and if outside India, must be attested by Indian Embassay & registered in India within three months of execution. 4. POA holder will preferably be co-borrower. 5. Guarantor should be Resident Indian and related to applicant. 6. Margin should be paid through banking channel by direct remittance. 7. If property is rented, realizable rent should be credited to housing loan a/c of borrower with the branch
FestivalDhamaka Valid from 01.10.10 too 31.12.10
a)Intt. Concession : 0.50% in all slabs, irrespective of loan size
b) Waiver of processing charge
c) Waiver of mortgage/documentation charge
d) No other concession is available for loans upto 5 years.
Corporate level tie up
Applicable to all proposals including Corporate level tie-up arrangements (WB Govt. WBSEDCL, WBPDCL etc. )
No other concession will be available from the card rate except the following :
Under no circumstances the effective Rate of Interest would be lower than the Base Rate
United Housing Loan Scheme for Pensioners
(Interest w.e.f. 01.07.2010)
1. All pensioners of Central and State Governments, Central and State Governments' Undertakings, Defence Services, reputed Companies, Educational Institutions (Universities, Institutes, Schools and Colleges) including pensioners (VR and VRS) of United Bank of India drawing pension from the branches of the Bank are eligible for loan under the scheme.
2. Monthly Net Pension: Min. Rs.5,000/-
3. Entry Age: Max. 70 years
4. The pensioner 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
1. Renovation/extension/repair/furnishing of self-occupied house / flat;
2. Purchase/construction of new house/flat ;
3.Purchase of old house/flat not old over 35 years from the date of completion of construction
4.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 the borrowers' net monthly pension. If spouse becomes co-borrower and if he/she is also pensioner drawing pension from the branch, pension of both of them shall be considered for determining the quantum of loan within the overall ceiling
Entire loan has to be liquidated before borrower's attaining 75 years of age. The age of the 1st pensioner or from whose income (also service holder/pensioner), the major recovery of loan will be made, shall be the deciding factor for the period of loan. However, where loan is extended for getting shelter in “Old -Age Home” total repayment period including the extended period must not exceed 10 years (120 EMI).
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.
Reschedu-ling 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.
Mortgage of the property for which bank finance 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 sercured 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 convering the entire repayment.
1. Irrevocable undertaking of the pensioner to realise 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. The pensioner would also write a letter to his/her PPO issuing authority with an undertaking not to effect transfer of PPO to any other bank, since he/she has 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.
For Housing Purpose:- 15% of total project cost (as per UHL Scheme revised from time to time)
For Securing shelter in “Old-Age Home”: Nil
Rate of interest for Housing Purpose
Repayment is restricted to 10 years & Intt. rate is applcable as per Card rate of United Housing Loan at floating rate.
Rate of interest for Shelter in Old-Age Home
As per card rate of housing loan.
(However, in case of Bank’s own term deposit, borrower shall continue to enjoy interest as per stipulated frequency)
@ 1% over and above the usual interest on overdue amount for overdue period.
@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.
The loan shall be disbursed through SB A/c other than Pension disbursement account maintained with the branch at once or in instalment as per progress in work. If the pensioner is not having any other Savings Bank a/c. with the branch, he/she will have to open a Savings A/c. with the branch jointly with family pensioner or other members of the family, as the case may be.
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
Area of operation
From all the branches of the bank
@0.5% 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.
(Interest w.e.f. 01.07.2010)
The Scheme will be operative from all the Branches of the Bank.
Personal including purchase furniture/fixtures and interior decoration of the house.
Existing Housing Loan borrowers having completed minimum 2 (two) years of repayment schedule with a record of regular repayment and having good repayment capacity.
Mode of Assessment
The quantum of loan should be fixed in such a manner that the EMI of the Smart Loan and Housing Loan plus other deductions from the gross salary/income must not exceed 60% of the borrower’s gross monthly salary/income (for both Salaried and P & SE)
Quantmum of Loan
Minimum: Rs. 20,000/-
Maximum: To the extent of 50% of the principal amount of Housing Loan repaid during the period subject a maximum of Rs. 1.00 lac.
50% of the Principal amount of Housing Loan repaid
Extension of charge (mortgage) by the borrowers who have executed documents in connection with existing housing loan.
In case of Salaried Class Persons, if salary is disbursed through the financing branch, letter of authority to deduct EMI from such account to be obtained. A copy of sanction letter should be sent to the Drawing & Disbursing authority of the Borrower to be sent for information and acknowledgement to be kept on Branch record.
Floating rate: 11.00% p.a (fixed).
@1% over and above the normal interest for default in payment of EMI over the overdue amount for the overdue period. However, there shall be no penal charges for loans upto Rs. 25,000/-
2% of the sanctioned amount
TL or OD may be sanctioned even after liquidation of housing loan and till mortgage of house property is in force. However, TL shall be repaid within 5 years and OD will be reviewed every year
Nil. However, if loan is taken over by other Banks/FIs, a prepayment charge @2% shall be levied.
Nature of Loan
Loan can be availed either in the form of Term Loan or OD (subject to annual review of limit) as per convenience of the customers.
UNITED CAR LOAN SCHEME
(Interest w.e.f. 01.07.2010)
Purchase of NEW/OLD CAR not over 4 years old (valuation - by an Automobile Engineer)
Any Individual with minimum net income (take home for salaried persons) of Rs12,000/- p.m. For Salaried persons : The applicant is in regular service for at least 1 year and remaining period of service to cover repayment period.
P&SE: They should be in the profession/business for at least 1 year. The prospective borrower should be Savings / Current / Term Deposit Account holder of the Branch.
Partnership Firm / Proprietorship Firm / Company / Society are also eligible for loan.DSCR must be 1.5:1.Other conditions :a) Must have sufficient net profit to cover EMI b) Financials to be studied c) P/G’tee of Partners/ Directors d)Resolution of Board e) Charge to be noted with ROC etc.
Maximum: [Individual – Rs.30 lacs; Non-Individual – 40 lacs – Br. Will sanction upto Rs. 30 lac, beyond Rs. 30 lac upto Rs. 40 lac by R.O.] in case of new car and Rs. 6.00 lac in case of old car [Both Individual & Non-Individual] subject to 90% of the on road price (irrespective of wife as Co-borrower or not). The total deduction from salary including the proposed EMI should not be more than 60% of Gross Salary.
10% of the cost of the car (on road price) in case of new car &
30% of the valuation amount in case of old car
Hypothecation of the vehicle to be purchased out of loan.
For salaried Persons:
1. Nil; if employer ensures repayment either by way of remittance of salary to the bank or EMI deducted from salary of the employee remitted to the Bank and attachment of terminal benefits.
2. When the salary is neither disbursed through the Branch nor the Employer ensures remittance of monthly EMI to the Bank and also does not ensure attachment of terminal benefits, the loan shall be additionally secured by personal guarantee of 1 or 2 persons having adequate worth to cover the loan amount being guaranteed.
In case of Professional & Self-Employed Persons including professionals engaged in public service like Doctor (Regd. Medical Practitioner) :
The loan should be additionally secured by personal guarantee of 1 or 2 persons having adequate worth to cover the loan amount being guaranteed.
Rate of interest
Rate of Interest w.e.f.- 01.07.10
Upto 36 months
Above 36 months
Special Concession for Car Loan Mela
w.e.f 01.10.10 to 30.11.10
1.00% for 36 EMIs & 0.50% for more than 36 EMIs
2% on Overdue amount.
i) New Vehicle – Max. 72 months.
ii) Old Vehicle – up to 2 yrs. old - Max. 48 months
iii) 2 years and up to 4 yrs. Old – Max 36 months.
0.50% of the loan amount
Concession in Interest Rate for existing good borrowers of the Bank.
Max Amt to be allowed
Existing Mortgage based borrowers with completed 2 years of regular repayment
30% of Sanctioned Amt of Mortgage Loan or Total principal amt repaid which is higher
Extension of Mortgage
CC A/C holders having (i) Completed minimum 2 years (ii) Satisfactory conduct of A/C; and (iii) Credit Risk rating of at least UBCR-3
20% of CC Limit
Extension of Mortgage if available, otherwise Nil.
Corporate Customer availing loan for 5 cars at a time &repayment through single cheque/SI from A/c maintained with us
Further concession of 0.50%
Ensure coverage of insurance of the vehicle through our Corporate Insurance Partner
Ensure that the Borrowers & Guarantors are complied with KYC Norms and whereever possible verify antecedents of Borrowers and Guarantors through CIBIL Website.
UNITED EDUCATIONAL LOAN SCHEME
(Interest w.e.f. 01.07.2010)
Providing financial assistance to meritorious and needy students for pursuing higher/professional/technical education.
The student should be an Indian national seeking admission to a professional/technical course through entrance test / merit based selection process either inland or abroad.
Courses conducted by reputed Indian/foreign institutions in Graduation/Post Graduation/Professional etc.
Expenses to be covered
Course Fee, Examination/Library/Laboratory Fee, Purchase of Books/ Equipments/Instruments/Uniforms, Caution Deposit/Building Fund/ Refundable Deposit, Travel Expenses/Passage money for studies abroad, purchase of computer/laptop, if required and other expenses to complete the course like study tours, project work, thesis etc. (Caution deposit/building fund/refundable deposit does not exceed 10% of total tution fees)
1. For study in India :Max. Rs. 10 lac
2. For study abroad :Max. Rs. 20 lac
.Upto Rs. 4.00 lac : BR + 2.00% i.e. 10.25% p.a. at present (Floating)
Above Rs.4.00 lac : BR + 2.75% i.e. 11.00% p.a. at present (Floating)
(Interest shall be debited monthly on simple basis during moratorium period and thereafter on compounding basis)
For Girl students : 0.50% concession from card rate
1.00% interest concession is allowed during morotorium peirod only if the interest is serviced monthly & regularly during the moratorium period.
1. For loan upto Rs. 4.00 lac Nil
2. For loan above Rs. 4.00 lac
a) For study in India : 5%
b) For study abroad : 15%
The loan is to be repaid in 5 to 7 years after moratorium period.
Course period plus Two years or six months after getting the job whichever is earlier.
It can be issued by the Bank for students going abroad for higher studies. For this financial and other supporting documents may be obtained from applicant.
In case of receipt of application for more than one from a family, the family as a unit has to be taken into account for considering the loan and security taken in relation to quantum of finance disbursed subject to margin and repayment capacity of parent/students.
No specific restriction with regard to age of the student to be eligible for loan
Change of address
In case of student staying with parent whose service is transferable, the student has to intimate the same as and when changes occured by obtaining an undertaking from the parent / guardian jointly with student
Parents / guardian should be the co-borrower. In case of married person, co-obligator can be either spouse or the parents / parents-in-law.
Disposal of loan
15 days to 1 months
Top up loan
. UNITED DEMAND LOAN SCHEME
(Interest w.e.f. 01.07.2010)
a. Loan Against NSC/KVP/LIP/RELIEF BOND etc
Borrower/ guarantor should have well introduced a/c with KYC compliance
For meeting all types of expenses.
Maximum Quantum of loan
a) Against LICI Policy -- 90% of SV
b) Against NSCs/ KVPs /Relief Bond etc on the age of NSC/KVP/Relief Bond as follows:
% Of Face Value
1 year or less
Above 1 year to 2 year
Above 2 year to 3 Yr
Above 3 year to 4 Yr
Above 4 year to 5 Yr
Above 5 year
Assignment of LIP or pledge/ transfer of NSCs/KVPs / Bond in favour of the bank.
Rate of interest
a) Term Loan : BR + 2.50% i.e., 10.75% p.a Floating
b) O.D : BR+3.50% i.e., 11.75% p.a Floating
0.50% of the loan amount.
Max. 72 months or maturity date, whichever is earlier
Any legal entity with KYC compliance
For meeting all types of expenses
Margin on accrued value of deposit
OD will be reviewed annually & will continue on satisfactory conduct of a/c. Otherwise Balance of OD a/c with interest will be adjusted with premature proceeds of deposit
b) Term Loan
(i)One year or on maturity of the deposit whichever is earlier
(ii) Two years or on maturity of the deposit whichever is earlier
(iii) Three years or on maturity of the deposit whichever is earlier
When the loan is not repaid within stipulated period, immediately a/c will be adjusted with premature proceeds of deposit so that outstanding balance of loan a/c does not exceed maturity value of deposit.
Realization of Interest
In case of Fixed Deposit, periodic interest will be credited to loan a/c as per standing instruction of depositor
Lien of Term Deposit.
Rate of interest
ii) For loans/OD facility to deposit holder(s).
1.50% above the rate of interest on deposit (no ceiling)
iii) For loans/OD facility against third party deposits with our bank
2.50% above the rate of interest on deposit (no ceiling)
In case of more than one deposit offered, higher rate of interest paid on deposits is to be taken for calculation of rate of interest on loan
UNITED CONSUMER LOAN SCHEME
(Interest w.e.f. 01.07.2010)
Any Individual with minimum net income (take home for salaried persons) of Rs.5,000/- p.m. RO to consider: Relaxations up to 20%
For Salaried Persons : The applicant is in regular service for at least one year and should have left over service to cover repayment period.
For P & SE: They should be in the profession/business for at least 2 years.
The prospective borrower should be a Savings/Current/Term Deposit A/c holder of the Branch.
Rs.0.10 lac to Rs.4.00 lac subject to a maximum 36 times of monthly net income excluding the instalment of the proposed loan. The total deduction including the proposed EMI should not be more than 60% of Gross income.
RO to consider: 25% of Rs.4.00 lac beyond the maximum ceiling subject to 48 times of monthly net income.
10 to 20% of the cost of the article.
Hypothecation of the article(s) to be purchased with the loan
A. For salaried persons :- Nil if employer ensures repayment either by way of remittance of salary to the bank or by way of remittance of EMI deducted from the salary of the employee and attachment of terminal benefits.
B. For salaried Persons with salary payment a/c with bank but without employer’s undertakings :-
a) Letter of authority / undertakings / indemnity from borrower / borrower’s spouse to continue salary a/c & to utilise terminal benefits for repayment of loan (Annexure – I to III)
b) Third party guarantee, preferably co-employee
C. For salaried persons without salary a/c / employer’s undertakings and Professional & self-employed persons:- Third party guarantee with atleast networth 200% of loan amount & acceptable to bank.
i) individual : 14.25% p.a.(BR+6.00%)
ii) individual & 50% of the loan additionally secured : 13.75% p.a.(BR+5.50%)
For loan up to Rs. 50,000/ : Max. 36 EMI
For loan above Rs.50,000/- to Rs.2 lac : Max. 48 EMI
For loan above Rs.2 lac : Max. 60 EMI
Branch to consider: Extension of repayment period of another 12 months in each category subject to fulfillment of other conditions.
0.5% of the loan amount
UNITED PERSONAL LOAN SCHEME :- FOR SALARIED PERSONS
(Interest w.e.f 01.07.2010)
For meeting all personal expenses
Permanent employees of Govt./Semi-Govt., and its undertakings, reputed corporate houses, educational institutions, corporations, municipalities. Employees of the bank are also eligible for finance under the scheme provided the applicant has not availed clean over draft facility for staff
1. Min. 3 years of permanent service
(RO empowered to consider 1 year completed service vide HO Circular No. RBD/UPL/41/OM-553/08-09 dated 17.01.09)
2. Salary of the applicant is either disbursed through the branch or employer ensures remittance of EMI by deducting from applicant's salary.
For all cases : Max Rs 3 lac or 40 months’ net salary, whichever is less
(RO empowered to consider : Enhancement of limit upto 25% provided salary is disbursed through the branch or any tangible liquid securities viz Nsc, Kvp, LIC (SV) is offered vide HO Circular No. RBD/16/OM-243/2004 dated 11.08.04)
1. Unconditional undertaking from the borrower authorising his/her employer to pay the loan outstanding from the terminal benefits in the event of discontinuation of service due to any reason.
2. Written undertaking from the employer to pay the loan outstanding out of terminal benefits of the borrower employee in the event of early cessation of service.
3. The borrower will provide 3 undated cheques for three EMIs for use of the branch when necessity arises.
BR + 6.00% i.e. 14.25% p.a. (Floating)
Max : 60 months in all cases but before superannuation
Provided take home pay should not go below 40% of the gross salary after all deductions including proposed EMI and adequate length of service shall remain to cover the repayment period.
1% of the sanctioned loan
Loan to persons whose service is transferable should be as far as possible avoided.
UNITED PERSONAL LOAN SCHEME:- FOR PENSIONERS
(Interest w.e.f. 01.07.2010)
To extend short term loan to the pensioners to meet their family and personal expenses.
All pensioners including family pensioners of Central and State Govt. & Undertakings/Public Sector Undertakings/Defence Services / Reputed Companies/Educational institutions (Universities, Institutes,Schools and Colleges) / Banks drawing pension from the branches of the Bank including pensioners of our Bank employees
Entire loan is to be repaid before pensioner's attaining seventy five years of age.
A maximum of 12 months' gross pension subject to a Max of Rs.2 lac.
1% of the loan amount-
BR + 4.75% i.e. 13.00% p.a.(floating).
(i) Maximum of 48 EMIs where the pensioner is below 70 years.
(ii) Maximum of 36 EMIs where the pensioner is above 70 years.
The repayment schedule should be so fixed that the EMI plus other deductions should not be more than 40% of the gross monthly pension
Pre payment charges
Security (Pensioner & Family pensioner)
Personal guarantee of the family pensioner. If there is no family pensioner or the family pensioner is dead, the personal guarantee of any working son or daughter or of a Third Party shall be accepted. If the borrower is unable to provide personal guarantee as stipulated above, he/she shall have to cover at least 50% of the loan by pledge of any liquid security acceptable to the Bank.
UNITED CASH RENTAL SCHEME
(Interest w.e.f. 01.07.2010)
To meet any business or personal requirement except for speculative purpose.
Any individual single or jointly, firm or company owning house/flat or godown and let out or leased out the same to bank, insurance company, multinational company, company of good market standing, reputation and financial position, financial institutions, financially sound public sector undertakings or Govt. of India Offices (but not individual) are eligible for loan under the scheme. Land lords of premises let out or leased out to the bank for branch/office/residential purposes are also eligible to avail of loan under the scheme. Loan under the scheme shall not be extended to Trust and Co-operative Societies.
The unexpired period of tenancy/lease must be at least for 1 year.
Min. Rs.0.50 lac and Max. Rs. 10 Crore. Maximum quantum of loan where EMI should not exceed 80% of post tax monthly rent / lease rent receivable (85% when our bank is tenant) subject to a ceiling of Rs. 10 crore or to such extent of the value of the property to be mortgaged less 20% margin, whichever is lower. In the event of any shortfall in security value after providing 20% margin, eligibility of loan amount up to Rs.10 crore may be considered provided the shortfall is secured by other securities viz., LIC Policy (by SV), NSCs, KVPs, Relief Bonds, Bank's own Term Deposits, Central Govt. securities etc. acceptable to the Bank.
20% of the amount of rent receivables but where our bank is tenant:- 15%,
Primary: The security for the loan shall be-
i) Mortgage charge (equitable or registered) on the property (free hold/ lease hold) for which tenancy/lease agreement has been entered between the borrower and tenant/lessee or any other property of the borrower, the value of which shall be at least 125% of the amount of loan (i.e. With margin of 20%); Agricultural Land shall not be accepted as security. The property proposed to be mortgaged must be marketable and mutation done in favour of the borrower or guarantor who owns the property.
ii) Assignment of future rent receivables;
iii) Assignment of LIC policy (by SV) and creation of Bank's lien on NSCs, KVPs, Relief Bonds, Bank's own Term Deposits, Central Govt. Securities etc. acceptable to the bank to cover the shortfall when the value of the property to be mortgaged after providing margin of 20% shall not cover the proposed exposure, which is restricted up to Rs. 10 Crore.
Additional: Personal Guarantee of the Partners or Directors in case the borrower is a Partnership Firm or a Company, as the case may be, and personal guarantee of the owner of the property and personal guarantees of the owners of NSCs/KVPs/LIPs/Relief Bonds/Govt. Security Papers etc. which might be taken as securities in case of need.
Maximum 8 years or unexpired period of lease, whichever is earlier
(Branch may allow upto 5 years, RO can allow upto 7 years & above 7 years, approval from HO is required )
1% of the sanctioned limit shall be realized before disbursement of the loan.
The property mortgaged to the bank shall be insured against loss by fire, flood, earthquake and other damages for full value with bank clause. At the option of borrower, loan may be covered further by Credit Life Insurance from Bank’s Corporate Insurance Partner.
EMI will start from the following month of disbursement of loan on the strength of S.I. Monthly rent must be credited to the said account. In case of termination of lease during currency of loan, EMI is to be paid from borrower’s own source or to be paid by single stroke.
(Interest w.e.f. 01.07.2010 to be consulted as per respective schemes)
Teaching and non teaching staff of Govt. and Govt. aided schools. Colleges, Universities including Deemed Universities.
Operational from all the Branches of the bank.
To extend finance under United Housing Loan Scheme, United Personal Loan Scheme, United Consumer Loan Scheme, United Car Loan Scheme and United Festival Loan Scheme to the target group per terms and conditions of respective schemes with the relaxations as mentioned in this scheme.
Besides, in-principle approval for sanction of educational loan to sons/daughters of the teaching and non teaching staff of educational institution can also be issued subject to fulfilling of terms and conditons as mentioned below.
i) the student secures at least 65% marks in the pre-qualifying test/examination of higher secondary (10+2), CBSE, ISC or its equivalent conducted by schools/institutions just before final examination. Formal sanction letter shall be issued upon his/her getting at least 60% marks in the final examination and gaining admission to a course conducted by colleges/universities approved by UGC/Govt./AICTE/AIBMS/ICMR/MCI etc. through standard selection.
The salary of the applicant under target group must be disbursed through the financing branch and all other terms and conditions of respective schemes except the deviations given in this scheme are complied with.
UNITED MORTGAGE LOAN
(Interest w.e.f. 01.07.2010)
Providing loan against mortgage of property to the owner of the property (House/Flat or any other commercial property but not agricultural land or any other vacant land).
to meet any personal/ business requirement except speculations.
Any individual (salaried or Professional/Self-employed or pensioner or others) in the age bracket of 21-65 years having property to be mortgaged and sufficient income to repay the loan. He/she must not be a defaulter in any Bank /FI and must be KYC complied. In case of customer of other bank, credit report from that bank should be taken into consideration.
However, RO may consider Company, Partnership firm. Third party property also cannot be mortgaged for taking a loan.
In case of Term Loan minimum Rs.1.00 Lac and maximum Rs.15.00 Lac. In case of OD facility for business purposes the maximum amount may be raised to Rs.25.00 lac subject to the following.
a) 24-times of monthly net income excluding the EMI of the proposed loan.
b) 50% of the value of property
c) Total monthly deduction from gross income including the proposed EMI should not exceed 50% of the gross income of the borrower.
RO may consider sanction of extension / fresh proposal beyond Rs 25 lac upto their DP subject to following
a) 70% of valuation of property(or) (b) 48 times of net monthly income, whichever is less
BR + 5.00% p.a. i.e. 13.25% p.a. at present for Term Loan
BR + 5.50% p.a. i.e. 13.75% p.a. at present for OD
Maximum 72 months for Term Loan and for OD arrangement, on review at an interval of 12 months.
1% (one time) of the sanctioned loan amount.50% of processing charge shall be deposited at the time of submission of application.
i)Mortgage (equitable or registered) of unencumbered residential house or flat or the commercial property owned by the borrower.
RO may consider property belongs to parents or spouse of the borrower.
ii) No loan against security of vacant land / agricultural land / third party property (except parents & spouse) and mutation & conversion is pending.
ii)Assignment of rent if the property is leased or let out.
The property mortgaged to the bank shall be insured against loss by fire, flood, earthquake and other damages for full value covering full period of the loan at the cost of the borrower with bank clause and assigned in favour of bank.
For letting out mortgaged property after availing the loan, Bank’s permission is required. The rent so received should be assigned to the Bank. The lessee/tenants should be a corporate body with a strong financial background otherwise the loan should be prepaid before leasing /letting out the property.
Renewal of loan
On full repayment of the term loan, the loan may be reinstated or renewed on fulfillment of terms and conditions of the schemes and on execution of fresh documents.
N I L
1) Revaluation of mortgage property not allowed within 2 years of sanction for enhancement of limt
2) Minimum threshold score is 50 as per comprehensive credit rating model
3) RO may approve additional loan not exceeding 1% of loan amount as pre-operative expenses towards creation of mortgage on case to case basis
Credit Life Ins. Single premium to be borne by borrower. Addl. Loan may be provided
UNITED TRADE CREDIT SCHEME
(Interest w.e.f. 01.07.2010)
Working Capital finance is provided for the purpose of business in the form of OD and/or Term Loan to wholesale / retail / business and service sector other than industry, export and trade in commodities and produce which are prohibited/restricted for trading by the policy of Banks.Besides, Trade Credit can also be extended for acquisition of commercial shop/space/equipment etc.
1.Individual, Proprietorship, Limited Co. (Private or Public), HUF, and Co operative Societies registered under Co-operative Societies Act, having existing business with profit for the last 2 years
2. If the borrower is engaged in multiple businesses, finance cannot be extended to profit earning units, if it incurs overall loss.
3.The borrower should be a registered or License holder under any of the Local Law/Act. If not, he/she must provide it before disbursement of the loan.
Minimum 0.50 lac and Maximum 50 lac subject to 20% of the annual sales/turnover for the immediate preceding year or Projected annual sales as per ITR/STR/AO, etc. However projected sales should not exceed 120% of actual sales achieved in immediate preceeding year or 120% of average sales of last three years. Credit limit beyond Rs.50 lac, sanctioned before 19.05.08 will continue.
Term Loan for fixed assets will be maximum three times of the cash profit of the immediate preceeding year and in this case Debt Service Coverage Ratio (DSCR) of the project shall not be less than 1.75.
Loan for acquisition of fixed assets shall be in the form of Term Loan whereas working capital finance shall be in the form of Over Draft/Term Loan.
Term Loan for capital investment can be extended provided all other operative business a/cs and/or working capital loan are maintained with the branch
(RO to consider :-Any proposal for extension of maximum ceiling beyond Rs 50 lac but within the financial power of concerned Regional Head)
a) 40%, in case of mortgage of land and building,
b) 20%, in case of financial securities viz. NSCs, KVPs, Relief Bond, Bank's own Term Deposits, Government Securities.
(RO may allow upto 65% on land & building and 95% on liquid securities)
Concession in margin
A one time concession of margin to the extent of 5% may be considered after one year at the time of review subject to satisfactory conduct of the account by branch
Mortgage of land and building excluding agricultural land and liquid security like NSC/ KVP/ Bank’s own Term Deposit/LIC Policy (S/V), Relief Bond etc. Shares / Debentures /Bonds of Corporate & Public Sector Undertakings, Units of Mutual Fund are not acceptable for credit facility under the Scheme.
No loan against security of vacant land/agri-land/third party property (except parents & spouse) and where mutation & convertion pending.
Hypothecation of stock and other current assets.
BR + 4.50% i.e. 12.75% p.a. (Floating)
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Concession in interest rate
i) A concession of 0.50% in interest rate may be allowed for every 25% (of the limit) of liquid security provided.
ii) On satisfactory conduct of the account, one time incentive by way of reduction in rate of interest to the extent of 0.25% p.a. shall be allowed at the beginning of 3rd year of operation, at the discretion of the sanctioning authority.
iii) Concession will continue till the conduct of the a/c remains satisfactory and score 50 marks or above in credit rating.
1% of the loan amount.
@2% of the outstanding balance of the term loan
Term Loan: Max. 60 months
Working Capital in the form of O/D: It is to be sanctioned for a period of one year and reviewed annually.
As per United Housing Loan (as applicable from time to time)
a) 0.25% flat concession on card rate
b) Bank will provide loan for such insurance premium.
15% (as per UHL Scheme)
a) No prepayment charges except take over by other banks.
b) Scope of flexi EMI.
United Personal Loan Scheme
0.25% concession on Card rate
As per United Personal Loan Scheme
There shall be no bar for availing loan by USP account holder under the package provided realization of EMI of the loan is ensured. However, it is stipulated that no overdraft under USP Scheme will be allowed if Personal Loan is availed of.
However, total deductions from monthly salary of the borrower including EMI of the proposed loan, should not exceed 60% of the monthly gross salary.
Undertaking by the employer
In case of Govt./ Govt. aided/ Govt. sponsored schools, where the undertaking from the Salary Drawing & Disbursement Authority is not available, an undertaking from the Head Master/Mistress/ Secy. may be accepted as the letter from the Competent Authority of the respective organization.
Max. 60 months
United Consumer Loan Scheme
0.25% Concession on Card rate
10% of the cost of the article.
United Car Loan Scheme
0.25% Concession on Card rate.
In case of old car only: 20% of the valuation
United Festival Loan Scheme
Max. Rs. 30,000/-
Max. 12 months
0.25% Concession on Card rate
United Educational Loan Scheme
Terms and condition for getting ‘in-principle approval for sanction’
1. For obtaining ‘in-principle approval for sanction’ letter, the student shall secure at least 65% marks in the pre-qualifying Examination of Higher Secondary (10+2), CBSC, ISC or its equivalent, conducted by Schools/ Institutions just before the final Examination.
2. Formal sanction letter shall be issued upon his/her getting at least 60% marks in the aforesaid final examination and gaining admission to a course conducted by colleges/universities approved by UGC/Govt./AICTE/AIBMS/ICMR/MCI etc. through standard selection procedure and fulfilling all other terms and conditions of United Educational Loan Scheme.
3. Candidates who score at least 55% marks in Graduation examination may also be issued ‘in-principle approval for sanction’ letter for Educational Loan for admission in MBA and MCA. However in this case, he/she must be selected for admission to a Postgraduate Professional Institution mentioned in the list issued by Retail Banking Department, Head Office through standard selection procedure.