PSULast verified: 27 Feb 2026
Union Bank of India Home Loan Prepayment Rules (2026)
Check current prepayment penalty rules, part-payment limits, notice expectations, and process format for Union Bank home loans.
Quick Rules Card
| Penalty on Floating Rate | No - No penalty for floating-rate individual housing loans. |
| Penalty on Fixed Rate | Conditional - Fixed-rate prepayment terms apply as per sanctioned facility. |
| Max Part-Payment / Year | No common cap across products |
| Notice Period | Written intimation may be required for closure |
| Payment Format | Union Digital / branch service request |
RBI Context (2014 Circular)
RBI circular DBOD.No.Dir.BC.107/13.03.00/2013-14 (2014) disallows foreclosure/prepayment charges on floating-rate term loans to individual borrowers.
Prepayment Examples
- ₹1.5L yearly prepayment from bonus can lower maturity by years over long tenures.
- Earlier prepayments create larger savings than late-stage prepayments.
Source Citation
Union Bank Home Loan - Terms & ChargesFrequently Asked Questions
Is Union Bank home loan prepayment penalty-free on floating rate?
No penalty for floating-rate individual housing loans.
What is the part-payment limit for Union Bank home loan?
Current published guidance: No common cap across products. Always confirm your sanction letter before making a large prepayment.
How can I submit a prepayment request for Union Bank?
Typical process: Union Digital / branch service request. For closure requests, banks may ask for additional authorization and NOC workflows.
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