What are Union Bank home loan prepayment charges?
For eligible floating-rate individual home loans used for non-business purposes, RBI rules generally prohibit such charges. Confirm the latest Union Bank terms for your product.
Union Bank Home Loan Prepayment Planning
Union Bank of India Home Loan Prepayment Calculator
Illustrative floating rate reference, May 2026. Verify the latest Union Bank of India rate card and sanction terms before acting. Use this page to estimate how recurring prepayments can reduce your total interest and shorten your tenure.
Calculate My Exact Savings
Read the complete home loan prepayment guide
About the lender
Union Bank of India
Union Bank of India home loan borrowers can use part-prepayments to reduce both interest outgo and overall tenure. The savings are usually most visible when the loan still has many years left.
Worked example
If you prepay ₹4,000 every month
Example assumes a ₹40,00,000 loan at 8.60% with 20 years remaining.
| Metric | Without prepayment | With ₹4,000/month extra |
|---|---|---|
| EMI | ₹34,967 | ₹38,967 |
| Total interest | ₹43,92,080 | ₹32,86,829 |
| Tenure | 20 years | 15 years 7 months |
| Interest saved | - | ₹11,05,251 |
| Time saved | - | 4 years 5 months |
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Frequently asked questions
Union Bank of India prepayment FAQs
How do I prepay a Union Bank home loan?
You can usually use Union Bank branch or servicing channels to make a part-prepayment. Ask how the bank will apply it to EMI or remaining tenure.
Should I reduce EMI or tenure after a Union Bank prepayment?
Tenure reduction is usually the more interest-efficient choice. EMI reduction is mainly for cash-flow relief.
How much can I save by prepaying ₹4,000 per month on a Union Bank home loan?
Savings vary by outstanding balance, rate, and tenure. Use the example below for a benchmark and KlearPay for exact numbers.
