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ASSET PRODUCTS OF UNION BANK OF INDIA

Group 4 Manjunath Tanvi Gautami Jyothi Sneha Vandana

ASSET PRODUCTS OF UNION BANK Union Bank of India is one of the prime public sector banks in India. Over the years, it has grown as a major bank, which was once led by Mahatma Gandhithe Father of the Nation. It provides several banking services to its customers. Union Bank of India loan is the most important service provided by the bank. Union Bank of India loan enables its consumers to realize their dreams. The bank provides a number of loans such as: Education loan Home loan Car and two wheeler loan Personal loan Union Bank of India home loan is given to customer with triple insurance benefit and flexible remittance options. Any Indian citizen who is 21 years of age or above with a steady income may apply for the home loan. The maximum repayment period is within 20 years, which should not be exceeded. In case of prepayment, no penalty is charged. Besides, the interest is calculated on reducing balance method. The maximum amount of Union Bank of India home loan can be sought for Rs 10 lac, applicable for A class cities, whereas for other cities, maximum loan would be upto Rs 50 lacs. With regards to flat or house repair loans, one can get a maximum of Rs. 10 lacs. Union Bank of India education loan is another loan advanced by the bank. Any needy or a meritorious student is eligible to apply for the education loan. Students in India can apply for a loan upto Rs 10 lac and in order to study abroad, applicants can get a loan upto Rs 20 lac. The rate of interest charged on the loan differs on the basis of the sex of the student. For a male student, the rate of interest would be calculated at 12 % (fixed) for a loan above 7.5 lac. On the other hand, female students would be paying interest calculated at 11.50 % (fixed) for the same amount of loan. Union Bank of India home loan includes a special scheme called Union Top-up scheme, which is advanced to its existing home loan borrowers in order to meet the expenses of home renovation, repair, furbishing and remodeling. The bank also provides Union Bank of India car loan service. It is extended to purchase a new car, two wheeler, or a second hand vehicle. In order to apply for the same, the customer should present the guarantor. In case of unmarried person, a third party guarantor and for those married, guarantee of the spouse would do the needful. The bank charges processing on the car loan, which is given as: Loan above Rs 2 lac, for a car or a four wheelerRs. 1000 Loan upto Rs 2 lac, for a four wheelerRs 500 For a two wheelerRs. 250 For the retired government employees, institutions and other banks, who draw fixed income or pension Union Bank of India demand loan is the option. It is offered upto

Rs. 1,00,000 or 12 times the monthly pension, whichever is less. Union Bank of India personal loan or Union Bank of India comfort is offered by the bank for personal expenses and consumer durables. Remittance of the loan can be made within 36 equated monthly installment. Some of the documents required for acquiring personal loan include proof of residence and proof of income. UNION HOME Eligibility

Indian Citizen - 21 years and above. Either single account or joint account with other family members viz., father, mother, wife, son or daughter with regular source of income. Individuals who may be employed/self-employed in business having regular income. A minimum of 40% marks as per investment grade scoring chart.

Purpose

Purchase of independent house/flat. Construction of independent house/flat. Repair/Improvement/Extension. Repayment of loan availed from another agency/Bank/NBFC. For purchase/ construction of 2nd property (independent house/flat) Plot sold by a Government-recognized agency viz., HUDA, HOUSEFED and such others.

Quantum

Max. Rs. 100 lacs for major 'A' class cities; for other cities Rs.50 lacs Max. Rs. 10 lacs for repair.

Margin

For purchase/construction, 20% of the value of independent house/flat. For repairs, 20% of total cost of repair. For purchase of plot, 20% of the value of the plot.

Repayment

Moratorium up to 18 months wherever loan is taken for under construction flat or building. By EMI. The maximum repayment period should not exceed 20 years for construction / purchase of house/ flat and 10 years for repair. Option of Flip/Step-up/Balloon methods of repayments for the convenience of the borrowers.

Rate of Interest (w.e.f. 10.11.2008 ) For Home Loans upto Rs. 30.00 Lakhs As on 29.09.2008 As on 10.11.2008 Floating Floating Upto 5 Yrs. Upto 5 Yrs. @BPLR-3.75% = **BPLR-3.50% = 10.25% 9.75% >5 Yrs to 10 Yrs >5 Yrs to 10 Yrs BPLR-3.50% = 10.50% BPLR-3.25% = 10.00% >10 Yrs to 15 Yrs >10 Yrs to 15 Yrs BPLR-3.25% = 10.75% BPLR-3.00% = 10.25% >15 Yrs to 20 Yrs >15 Yrs to 20 Yrs BPLR-3.00% = 11.00% BPLR-2.75% = 10.50% Above Rs 30 lacs As on 29.09.2008 Floating Upto 5 Yrs. BPLR-3.00% =11.00% >5 Yrs to 10 Yrs BPLR-2.50% =11.50% >10 Yrs to 15 Yrs BPLR-2.25% =11.75% >15 Yrs to 20 Yrs BPLR-2.25% =11.75%

As on 10.11.2008 Floating Upto 5 Yrs. BPLR-2.50% =10.75% >5 Yrs to 10 Yrs BPLR-2.00% =11.25% >10 Yrs to 15 Yrs BPLR-1.75% =11.50% >15 Yrs to 20 Yrs BPLR-1.75% = 11.50%

Fixed rates - upto Rs 30 lacs - 10.75% (upto 5 years) Above Rs 30 lacs - 11.50% (upto 5 years) BPLR = 13.25% with effect from 10.11.08

Processing Charges inclusive of applicable service tax


0.50% of loan amount subject to a maximum of Rs.15000/- plus service tax as applicable 0.25% of the loan amount at the time of application plus service tax as applicable 0.25% of loan amount on acceptance of sanction plus service tax as applicable

Insurance

Free Building Insurance. Natural Death (other than accidental death) may be covered under Union Home Plus, which is optional and additional loan can be sanctioned. Free Personal accident coverage (in case of death).

Value Added Services


Credit Card will be issued (free of admission fees and annual fees during first year) Triple Insurance benefit No hidden or built-in costs Quick processing and disposal of loan applications Flexible repayment options

Guarantee Third party guarantee is not mandatory. HOME LOAN FOR PURCHASE OF 2nd PROPERTY (HOUSE/FLAT/BETTER ACCOMMODATION) Co-Applicant

Prospective borrower can include spouse or any other co-owner as a coapplicant. To enhance the loan amount, co-applicant's income can be taken into account while calculating repayment capacity.

Eligibility

Loan can be availed for the second property even while the existing house/flat is under mortgage to Banks/Financial Institutions (subject to conditions).

Quantum

Depends on the repayment capacity as well as the cost of the property. 80% of the cost (cost will include cost of house, stamp duty, registration fees, transfer fees, if any, and all such charges.) subject to maximum of Rs.50,00,000 or 4 times the gross annual income, whichever is less.

Repayment

Maximum repayment period is 20 years (including moratorium) OR permissible up to the retirement age of the borrower OR 65 years (in case of professionals/businessmen) whichever is earlier. The existing house to be disposed off in 12 months time (optional) and sale proceeds to be deposited in the loan account. The EMI would be fixed on balance amount outstanding in the account.

Margin

If money from the sale proceeds of the existing house is deposited in the account, the same would be treated as margin.

Security

Similar to Home Loan.

Processing Charges ( Processing charges excluding applicable service tax ) 0.50% of loan amount subject to a maximum of Rs.15000/- and payable

0.25% of the loan amount at the time of application plus service tax as applicable 0.25% of loan amount on acceptance of sanction plus applicable as applicable

Other Attractive Features


No prepayment penalty Free Insurance facility against Fire, allied perils including Earthquake, Personal Accident (Death) Flexible repayment schedule Easy and convenient EMIs Loan sanctioned within 72 hours of receipt of application in full as per requirement. Option to pay interest on a daily reducing balance basis.

Other Conditions: No Prepayment penalty if the loan is adjusted by the borrower from his own verifiable legitimate sources or genuine sale. However, 2% charged on an average o/s. balance of last 12 months if loan is closed on take over by other Banks / Financial Institutions. UNION TOP UP SCHEME ELIGIBILITY Existing home loan borrowers (Standard Assets with regular EMI repayment) who Are salaried/professional & self employed, agriculturists or business men having regular source of Income. Have repaid minimum 24 EMIs in Home loan account and Where net take home pay/monthly income is not be less than 35% of gross monthly income/earnings after considering all deductions including the EMI of the proposed TOP-up Loan. PURPOSE To meet any type of expenditure in respect of the House viz. repairs/renovation/ remodeling / furnishing etc. NATURE OF FACILITY Term Loan (Floating) QUANTUM

The maximum amount of loan can be extended upto 50% of EMIs repaid subject to minimum of Rs.50,000/- to Maximum of Rs.5,00,000/-

RATE OF INTEREST (w.e.f. 10.11.2008)


Union Top- (Original Housing Loan Limit Up upto Rs.30 lacs)
Term Loan BPLR 2.00% i.e. 11.25% (Floating)

(Original Housing Loan Limit Above Rs.30 lacs)


BPLR 1.25% i.e. 12.00% (Floating)

MARGIN 50% [i.e. only 50% of the amount already repaid will be considered as top-up loan subject to maximum cap]. PROCESSING CHARGES 0.50% of the Top-up Loan amount. SECURITY Existing Mortgaged House will continue as security (the house for which housing loan is extended and is secured by EM.). GUARANTEE Guarantee is applicable wherever guarantee is taken in the existing Home Loan. REPAYMENT

The maximum repayment period is of 5 years or left over period for the borrower before he attains retirement or 60 years of age which ever is earlier. Term loan is subject to review every year.

TAX BENEFITS Accrued interest on Top-up loan is eligible for exemption under section 24 of Income Tax Act, provided the loan is granted for the purposes of renovation, additions, repairs or reconstructions of house property. However, if the loan is granted for furnishing of house, such exemption is not available. (The Installments towards repayment of Principal is not eligible for exemption under Income Tax).
UNION MILES

Union Miles Scheme is offered to individuals /frims for vehicle finance for thier personal use. ELIGIBILITY

Individuals of the age 18 years and above Permanent employee of Central/State/Defence/Police Force/Public or Joint Sector Undertaking/reputed firms/ established Educational Inst. Professional/Businessmen having regular income. Borrower has at least minimum services to liquidate the loan 1 year prior to retirement. Firms / Companies.

A Minimum of 40% marks as per investment grade scoring chart

PURPOSE

For Purchase of new two/four wheelers, for personal or professional use Second hand vehicles upto 3 years old also eligible.

QUANTUM 4 Wheeler- 4 times the net income /net annual salary subject to a maximum loan of Rs 25 lacs for new vehicle and Rs 10 lacs for old vehicle 2 Wheeler- 4 times the net income /net annual salary subject to a maximum loan of Rs 1 lacs for new vehicle MARGIN

20% of cost of vehicle. 50% of old vehicle. Under tie-up - 10%.

REPAYMENT

4 Wheelers - A Maximum of 60 months in Equated Monthly Installments(EMIs). 2 Wheelers - A Maximum of 36 months in Equated Monthly Installments(EMIs). Under Tie-up ------------4 Wheelers - A Maximum of 84 EMIs (Ford India) 2 Wheelers - A Maximum of 60 EMIs (Bajaj Auto Ltd.)

RATE OF INTEREST (w.e.f. 10.11.2008) Period 4 wheelers Upto 3 Years Above 3 Years Rate of Interest (w.e.f 10.11.2008) 2 Wheelers Upto 3 Years Above 3 Years Old Cars(< 3 Years)

Rate Of Interest 12.25% p.a 12.75% p.a

12.75% p.a 13.25% p.a 13.25% p.a

PROCESSING CHARGES (EXCLUDING SERVICE TAX)


Two Wheelers Rs. 250 Four Wheelers Rs. 500 Loan upto Rs. 2 Lacs. Four Wheelers Rs. 1000 Loan over Rs. 2 Lacs. Hypothecation of vehicle financed by the Bank. Bank's lien to be got noted with the Transport Authorities.

SECURITY GUARANTEE Guarantee of the spouse. In case unmarried, third party guarantee with sufficient means. OTHER CONDITIONS

No Pre-Payment penalty if the loan is adjusted by the borrower from his own verifiable legitimate sources or genuine sale. However, 2% charged on an average o/s. balance of last 12 months if loan is closed on take over by other Bank/Financial Institutes Comprehensive Insurance with Bank Clause.

Salary Certificate/proof of income and proof of residence to be obtained and held on record.

UNION COMFORT ELIGIBILITY


Age 18 yrs completed. Permanent employee of Central Government / State Government/ Defence / Police Force / Autonomous bodies / Public / Joint Sector undertaking / Corporations / Limited Companies / Firms / Established Educational Institutions. Individuals having regular income. Tax payers, Non-I-T permissible if annual pay Rs.1 lac or more and net take home annual pay Rs.0.40 lac - after deducting EMI of present loan. Salary accounts with financing branch.

Min. 40% marks as per investment grade scoring chart.

PURPOSE To meet personal expenses or purchase of consumer durables. QUANTUM


6 months net salary not exceeding Rs. 1 lac for salaried class. For others, 50% of annual income as per last 2 IT returns (not exceeding Rs.1 lac.)

MARGIN Nil. REPAYMENT In 36 Euated Monthly Instalments(EMIs). Repayment starts from the nest month of disbursement of loans. RATE OF INTEREST (w.e.f. 10.11.2008) (BPLR=13.25%)

15.00%. Concession in the rate of interest can be considered by Regional Head in case of group borrowers. 10% under HCL Tie-up scheme for purchase of PCs.

PROCESSING CHARGES (EXCLUDING SERVICE TAX)


Rs. 100 upto Rs. 10,000/Rs. 250 upto Rs. 50,000/Rs. 500 above Rs. 50,000/-

SECURITY One Guarantor having means equivalent to the loan amount, Hypothecation Of Asset wherever applicable. OTHER CONDITIONS

Proof of Income (Salary Certificate). Proof of Residence (latest Tel. Bill/Electricity Bill/Employer's Certificate) Irrevocable undertaking letter from the employer for recovery of installment from salary every month and to remit to bank directly. Irrevocable undertaking by the borrower authorising the Bank to recover the loan installments from his/her salary A/c./SB A/c. with the Branch.

* Prevailing Rate of Interest will be applicable as on date of sanction.

UNION EDUCATION OBJECTIVE & PURPOSE The scheme aims at providing financial assistance on reasonable terms:

To the poor and needy students that they may undertake basic education

To meritorious students that they may pursue higher or professional or technical education ELIGIBILITY The student applying for UNION EDUCATION Loan ought to: Be an Indian National Has secured admission to professional or technical courses through an appropriate Entrance Test or selection process Has secured admission to a foreign University Has passed an appropriate qualifying examination a. Studies in India School education up to +2 Graduation/Post-Graduation Professional course Management course Special Education Loan Scheme for Students pursuing courses from approved institutions like IITs/IIMs/ /NIT XLRI/BITS/VIT/IISc/S.P. Jain Institute Of Management/Symbiosis Institute Of Management and T.S. Chanakya, Navi Mumbai- Nautical Science and MERI, Calcutta, Marine Engineering, MERI, Mumbai, Maritime Science. b. Studies Abroad : Graduation: For job-oriented professional or technical courses offered by reputed universities Post-Graduation: MCA, MBA, MS and such other courses

Courses conducted by CIMA, London, CPA, USA., and such other institution

PURPOSE To the poor and needy students to undertake basic education To meritorious students to pursue higher or professional or technical education CONDITIONS

The Parent/Guardian of the student who is availing loan from our bank shall be made co-obligator/joint borrower irrespective of the age of such students. The Loan Accounts of students applying through college/institutions will be

sanctioned/disbursed at the branch nearest to permanent residence/place of domicile of the borrower student. Loan will be disbursed directly to the college/institute. Student to produce mark list of previous term/semester before availing next installment. Student /Parent to provide latest mailing address before availing next installment. In case of parents with transferable job, new address to be provided before availing installments.

QUANTUM OF LOAN Need-based finance subject to repayment capacity of the parent or student with margin and upto the following ceilings For studies in India - Up to Rs. 10 lacs For studies abroad - Up to Rs. 20 lacs MARGIN No margin for loans up to Rs. 4.00 lacs . However, for loan of higher amounts, the margin requirement is 5% for inland studies and 15% for studies abroad. Scholarship/assistance to be included in margin. Margin maybe brought in on pro-rata basis as and when disbursement is made. REPAYMENT Repayment holiday or Moratorium on loan: Course period + 1 year OR 6 months after job placement, whichever is earlier. Starting from this point, the loan is to be repaid in 5-7 years after completion of course period/moratorium. RATE OF INTEREST(w.e.f 10.11.2008) For Male Student : Up to Rs. 4.00 lakhs : 11.75% (Fixed) Above Rs. 4.00 lakhs upto Rs.7.50 lakhs : 12.50% (Fixed) Above Rs. 7.50 lakhs : 12.00% (Fixed) For Female Student: Up to Rs. 4.00 lakhs : 11.25% (Fixed) Above Rs. 4.00 lakhs upto Rs.7.50 lakhs : 12.00% (Fixed) Above Rs. 7.50 lakhs : 11.50% (Fixed) For Special Education Loan Scheme : Special scheme For IIM students : 10.50% for Male : 10.25 % for Female

Special Scheme for BSc in Nautical Science,Marine Engg,Maritime Science : 11% Special Scheme IIT/NIFT students: 10.50% for male : 10.25% for Female Special Scheme for XLRI.BITS/VIT/IISC/SYMBOISIS/SP JAIN/NIT : 11.00% Special Scheme for students of ISB(Indian School of Business) only for Hyderabad 9.50% for male : 9.25% for Female Special scheme for students of Asian Institute of Management : 11.00% Simple interest will be calculated during repayment holiday/moratorium period. Interest rate is fixed and will not undergo any change till the loan amount is repaid in full. PROCESSING CHARGES NIL SECURITY Upto Rs. 4 lakh : No security Above Rs 4 Lakh & upto Rs 7.5 lakh : a suitable third party / personal guarantee However for loans above Rs 7.5 lakh, Collateral security of suitable value along with coobligation of parents / guardian / third party / accompanied by assignment of future income of student for the payment of installments is required A Life insurance policy from Insurance company for a sum not less than the loan amount is required to be taken in the name of the student and duly assigned in favour of Union Bank. OTHER CONDITIONS Loans can be considered for eligible students in case they approach the Bank in the subsequent year of the commencement of the course. Branches can issue Bank Guarantee, for payment seats wherever required. No Prepayment penalty if the loan is adjusted by the borrower from his own verifiable legitimate sources or genuine sale. However, 2% charged on an average o/s. balance of last 12 months if loan is closed on take over by other Banks / Financial Institutions The Loan Accounts of students applying through college/institutions will be sanctioned/disbursed at the branch nearest to permanent residence/place of domicile of the borrower student. No Pre-Payment penalty for self-closure. However, 2% charged on an average o/s. balance of last 12 months if loan is closed on take over by other Bank/FIs * Rate of Interest prevailing on the date of sanction shall be applicable.

Union Education Scheme for Commercial Pilot Training Programme / Course Nature of course/training programme Commercial Pilot Training / Course Eligibility Should be Indian National. Should have secured admission to the relevant course through admission test. Should have secured admission to the foreign institutions for studies abroad. Duration of the Course 12-24 months Type Of Institution 1. For Course / Training programme in India: Government or recognized Private Institute approved by Director general Of Civil aviation, Government Of India. 2. For course/training programme abroad: The course/ training programme should have been offered by recognized institutions abroad approved by competent authority in that country eg. in U.S.A the Federal Aviation Administration, Govt. Of U.S.A. The licenses issued by such institution should be convertible into corresponding Indian Licences in case the applicant desires to take up employment in India after completion of course/ training abroad, as per directives of Director General Of Civil aviation, Government of India. Quantum Of Loan Nil margin up to Rs.4 lacs. Min.5 % margin for loans above Rs. 4.lacs in India. Min.15% Margin for loans above Rs. 4 lacs for studies abroad. Scholarships/ assistance to be included in Margin. Margin to be brought in year to year whenever disbursement made on pro rata basis. Rate Of Interest Male Female For loans up to Rs. 4 lacs 11.75% 11.25% For Loans above Rs.. 4 lacs and Below 7.5 lacs 12.50% 12.00% For Loan above Rs. 7.5 lacs 12.00% 11.50% (1% concession if interest is serviced during moratorium period) Security No security up to Rs. 4 lacs. Loan above Rs. 4 lacs and upto Rs. 7.50 lacs- personal guarantee to the satisfaction of the bank.

For loans above Rs. 7.50 lacs- suitable collateral security/third party guarantee acceptable to the bank. Life insurance policy for a sum not less than the loan to be taken on the life of the student/ applicant and assigned in favor of the BanK. UNION MORTGAGE SCHEME [Scheme for financing against Mortgage of immovable property] ELIGIBILITY Any Individual in the age group of 18-60 years of age owning residential/ commercial property (land/plot/ building) and who are Income-Tax assesses having net monthly income of Rs.10,000/- pm in the case of salaried persons and an annual income of Rs.1.20 lacs p.a. in the case of non salaried perosns. Earning family members income can also be clubbed to arrive the eligibility criteria. Individuals who are not Income Tax assessees also eligible for this scheme, subject to production of proof of income acceptable to the Bank. A minimum 40 points as per investment grade scoring chart. PURPOSE To meet any personal expenditure of varied needs like marriage of children, higher education, medical expnses or any unforeseen expnses and also as liquidity finance. QUANTUM OF LOAN Metro/Urban Semi Urban - Minimum Rs. 1 lac. Rs.1 lac - Maximum Rs. 50 Lac. Rs.25 lacs subject to 36 times of gross monthly income of salaried persons(Net of all deductions including TDS etc.) whichever is less OR - 2 times the Net annual Income in case of others (Income as per the latest IT return less taxes payable) whichever is lesser. NATURE FACILITY Facility can be given in the form of Term Loan or Secured Overdraft. However, SOD Facility will not be considered for salaried persons MARGIN 50% of the fair market value of the property mortgaged as per the latest valuation report not older than six months from an approved valuer of the Bank. Fresh valuation at the cost of the borrower(s) once in three years required during currency of advance. REPAYMENT

Loan amount together with interest is to be repaid in maximum 60 equal monthly installments. Post-dated cheques fot the 60 EMIs will be collected up-front. Subject to closure of the loan with full adjustment prior to the retirement in case of salaried class. RATE OF INTEREST (LATEST RATE OF INTEREST WILL BE APPLICABLE) - Fixed Rate ---15.25% - Floating rate ---- BPLR + 1.75% i.e.. 15.00% - 2% penal interest to be levied on overdue installment. [ Present BPLR is 13.25% ] PROCESSING CHARGES (EXCLUDING SERVICE TAX) One time fee of 0.50% of the loan amount, collected up front. SECURITY Equitable Mortgage of non-encumbered residential house/flat, commercial or industrial property situated in Metro, Urban & Semi-urban centres only in the name and possesion of the borrower and/or his/her family member. SOD limit is subject to review/renewal every year. SOD interest to be serviced every month. OTHER CONDITIONS No Prepayment penalty if the loan is adjusted by the borrower from his own verfiable legitimate sources or genuine sale. However, 2% charged on an average outstanding balance of last 12 months if loan is closed on take over by other Banks/Financial Institutions. UNION HEALTH

ELIGIBILITY Any qualified medical practitioner / Dentist in the age group of 25 to 60 years with minimum three years experience and in the age group of 25 to 60 years. Firms / Companies engaged in medical profession in which Doctors / Dentist are Partners or Directors or the Proprietor. QUANTUM

An amount equivalent to 75% of the equipment cost and other Assets to be financed. MARGIN Minimum 25% of cost of equipments and other assets to be financed. REPAYMENT Maximum 7 years including initial moratorium period of 3/6 months - By Equated Monthly Instalments. RATE OF INTEREST (w.e.f. 10.11.2008) (BPLR=13.25%) A Fixed Interest rate of 14.00% for Individuals and 15.00% for others. Interest rate will not undergo any change till full repayment of the loan . PROCESSING CHARGES(EXCLUDING SERVICE TAX) 0.50% of loan amount. SECURITY Hypothecation of equipment / items purchased out of Bank finance. Collateral security 50% of loan amount. EM of premises in case the loan is for acquiring premises. OTHER CONDITIONS Third Party gurantee is not mandatory No Prepayment penality if the loan is adjusted by the borrower from his own verifiable legitimate sources or genuine sale. However, 2% charged on an average o/s. balance of last 12 months if loan is closed on take over by other Banks / Financial Institutions. * Rate of Interest prevailing on the date of sanction shall be applicable.

UNION SHARES ELIGIBILITY Individuals holding shares/debentures/bonds either in their name or jointly. PURPOSE Personal purposes like Education, Housing, Consumer Goods and such other needs. QUANTUM OF ADVANCE The maximum amount that can be granted is up to Rs.20.00 Lacs for security held ONLY in DEMAT Form. PERIOD 3 years for Loan repayable in installments. SOD facility to be renewed/reviewed every year. RATE OF INTEREST (w.e.f. 10.11.2008) Rate of Interest BPLR+3.75% i.e. 17.00% (* Present BPLR is 13.25%) SECURITY Pledge of shares of those companies approved by the Bank (Please refer to nearest branch of Bank for the list of approved companies) OTHER CONDITION No PrePayment penalty for self-closure. However, 2% charged on an average o/s. balance of last 12 months if loan is closed on take over by other Bank/Financial Insitutions UNION CASH ELIGIBILITY Retired employees of Government / Semi Government undertakings, Banks and other

reputed private organisations etc. who draw fixed income / pension through our Bank. PURPOSE To meet financial requirements. TYPE OF LOAN:

Demand Loan repayable in installments with a maximum repayment tenure of 36 months Term Loan with repayment tenure of above 36 months and maximum upto 48 months.

QUANTUM Upto Rs.1,00,000/- or 12 times the monthly pension, whichever is less. MARGIN 25% in case of Deposit Receipts / NSC / Bonds issued by Government of India / Financial Institutions. 50% in case of Shares & Debentures. REPAYMENT - 12 36 EMIs in case of Demand Loan repayable in Installments Above 36 to 48 EMIs in the case of Term Loan RATE OF INTEREST (w.e.f. 10.11.2008) (BPLR =13.25%) -A fixed interest rate of 13.75% (Fixed) PROCESSING CHARGES (EXCLUDING SERVICE TAX) -NO Processing charges. SECURITY Pledge of Deposit Receipts / Shares / Debentures of corporates of good standing, NSCs Bonds issued by Government of India / Financial Institutions etc. Where sufficient security is not available, personal guarantee of spouse or a person who is the nominee under pension scheme is to be obtained. In genuine cases, the Bank may consider this facility on a clean basis. OTHER CONDITIONS Declaration is required from the spouse who is eligible for family pension.

UNION SMILE ELIGIBILITY

Pensioners & salaried class who are drawing their pension/ salary through Union Bank of India. PURPOSE To meet unforeseen medical expenses, timely payment of dues to State Electricity Board, Telephone, School fees and water charge and other such needs. QUANTUM Maximum 90% of one months pension/salary credited in the account MARGIN 10% REPAYMENT Entire amount of overdraft and interest should be recovered while crediting next pension/salary. Otherwise, it can be recovered in installments within a period of 3 months, if so required by borrower. RATE OF INTEREST (w.e.f. 10.11.2008) (BPLR=13.25%) 2% of the amount of overdraft in the account every month. Interest to be recovered as and when the pension /salary is credited. PROCESSING CHARGES Nil. SECURITY Nil. OTHER CONDITIONS The facility can be allowed on an ongoing basis by liquidating earlier dues. Pensioners of Union Bank of India are also eligible.

UNION REVERSE MORTGAGE SCHEME (URM) S.No. Parameter Details

01 Objective of the scheme 03 Eligibility a No. of borrowers

To provide a source of additional income for Senior Citizens of India who own self-acquired and selfoccupied house property in India.

Single OR Jointly with Spouse in case of a living spouse. b Minimum age of first 60 years borrower c No. of surviving Should not be more than one. spouses on the date of sanction of loan d Age of spouse e Residence 55 years and above The property against which the Borrower proposes to raise the loan should be his permanent primary residence. The residence (house/flat) should be self-acquired and self owned. Proof of owner ship of residence to be established such as Document Title, Latest Property Tax Receipt/ Building Tax receipt/ Water/Electricity bill.) Borrower(s) will be required to inform the Bank when they cease to use the residence as their permanent residence. The loan amount along with interest will be 70% of the assessed market value of the property subject to Maximum of Rs.50 lakhs Minimum of Rs. 1 lakh Monthly Payout subject to downward revision in case of fall in property price/increase in rate of interest once in 5 years. 30% (inclusive of interest upto maturity) Fi 10.00% p.a. interest reset every 5 years i

Quantum of loan

Margin Rate of Interest