Union Bank-Demo-Home loan

Bank does not extend home loan for one of the following. Identify

• Taking over of Housing loan liability from another Bank

• Purchase of non-agri land and construction of residential building thereon

• Purchase of Agri land

For availing Home loan from our Bank the maximum exit age stipulated is ......... years

• 60

• 75

• 70

Mr. John, an American citizen wants to purchase a villa for Rs 5 crores in Bangalore and approaches your branch for availing Home loan of Rs 4 crores. How will you respond?

• Being a US national, Mr. John is ineligible

• We can consider the request subject to approval by Head office

• We can agree subject to Mr. John providing 100% cash margin by way of Term deposit

Mr & Mrs. Rakesh Chawla had availed Home loan from the Bank in 2010 for Rs 80 lakhs and has been repaying regularly. The present balance outstanding is Rs 35 lakhs. They approach your branch with a request for further loan of Rs 15 lakhs for carrying out certain repairs . Can you consider their request?

• No. Loan can be extended only for buying/constructing Home/flat

• Yes subject to maximum loan amount of Rs 30 lakhs for repairs/renovation.

• Yes subject to the loan is used for purchase of furnitures from Bank approved furniture shop

Margin stipulated for home loans above Rs 30 lakhs is..... % of the total cost of the purchase/construction

• 20%

• 10%

• 15%

What is meant by Loan moratorium period ?

• Duration when borrower is allowed grace time between two EMIs

• Duration when the borrower doesn't have to make the home loan EMI payments.

• duration when borrower has to repay only the interest debited

Mr & Mrs. Rakesh approaches your branch to enquire about the moratorium period allowed on Home loan for Repair/renovation of the property.

• 36 months

• 48 months

• 12 months

Maximum period allowed by the Bank for repayment of Home loan availed by a borrower for purchase/construction of house is.............

• 15 years

• 20 years

• 30 years

In the Balloon Repayment Method of the Home loan the initial repayments will be........................than normal EMI

• lower

• higher

• equal to EMI

In case of Floating rate of interest on Home loans, if prepaid by the borrower, the penalty will be charged at..........

• 2% is charged on the average outstanding balance of the preceding 12 months

• No penalty charged if loan is taken over by other Banks/FIs

• 1% of the balance outstanding as on the date of pre-payment