Key facts: Federal Bank vs Union Bank of India home loan
- Starting rate: Federal Bank 7.35%, Union Bank of India 8.60%. This is the lowest rate each loan provider advertises for a home loan, not the rate everyone is offered.
- Gap between starting rates: 1.25 percentage points between the lowest and the highest.
- Top of the published range: Federal Bank up to 9.50%.
- Maximum tenure: Federal Bank 30 years. Union Bank of India does not state one in months or years.
- Type of loan provider: Federal Bank is a private bank; Union Bank of India is a public sector bank. Banks and NBFCs price floating rates differently.
- Official websites: federal.bank.in, unionbankofindia.bank.in.
- Pages checked: 5 official pages opened for this loan type.
- Loan types with a published rate: Federal Bank 7, Union Bank of India 3 (out of 8 we track).
- EMI on ₹50 lakh over 20 years: Federal Bank ₹39,822, Union Bank of India ₹43,708 a month, at each starting rate.
- Total interest on the same loan: Federal Bank ₹45,57,354, Union Bank of India ₹54,89,953.
- Last checked: 12 October 2026, on each loan provider's own website.
Who each loan provider suits on a home loan
Built only from figures the loan providers publish. It says where each one is ahead on paper, not who will approve you.
Pick Federal Bank if you want
- The lower published starting rate (7.35%)
- The most complete published terms for this loan (4 of 5 details)
Where Union Bank of India stands
No clear edge on the published figures we could compare for a home loan. Check the table below and the Key Fact Statement.
Federal Bank vs Union Bank of India home loan: rate, fees and tenure
Starting home loan rates as published: Federal Bank from 7.35% and Union Bank of India from 8.60%. Federal Bank is lower at the starting rate, but the top of each range and your own credit profile decide what you are offered.
| Detail | Federal Bank | Union Bank of India |
|---|---|---|
| Published rate | 7.35% to 9.50% (term loan); 7.45% to 9.60% (overdraft); loans up to Rs 35 lakh priced 1% higher | Starts at 8.60% p.a.; EBLR - 0.85% (CIC 825+) to EBLR + 1.35% (CIC 600-649) per rate PDF w.e.f. 08.10.2026 |
| Rate basis | floating, linked to RBI Repo Rate | EBLR (repo-linked); fixed option max 5 years at 11.40% to 12.65% |
| Loan amount | Rs. 1500 lakhs (page title says up to Rs 15 lakhs; inconsistent) | Not published |
| Maximum tenure | 360 months (30 years) for residents; NRI capped at 20 years | Not published |
| Prepayment / foreclosure | No pre-closure charges; part or full prepayment allowed | None; no prepayment penalty on Union Home Loan |
| Eligibility (as published) | Self-employed residents up to 65 years (80 with co-obligant); NRI age not above 55 at end of tenure | Based on income, repayment capacity, age, margin, credit bureau record |
| Other terms published |
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| Official source | federal.bank.in/housing-loan federal.bank.in/loan-rate | unionbankofindia.bank.in/en/details/home-loan-interest-rate unionbankofindia.bank.in/en/details/home-loan unionbankofindia.bank.in/pdf/retail_roi.pdf |
EMI illustration: ₹50 lakh over 20 years
| Loan provider | Rate used | Monthly EMI | Total interest | Total repayable |
|---|---|---|---|---|
| Federal Bank | 7.35% | ₹39,822 | ₹45,57,354 | ₹95,57,354 |
| Union Bank of India | 8.60% | ₹43,708 | ₹54,89,953 | ₹1,04,89,953 |
Illustration only, at each loan provider's lowest published rate. It leaves out processing fees, GST, insurance and any other charges, and it is not an offer. Your approved rate may be higher.
Read the full guide: Home loan
Federal Bank vs Union Bank of India home loan EMI by amount and tenure
Monthly EMI at each loan provider's lowest published rate, on a reducing balance. Fees, GST and insurance are not included, and your offered rate may be higher.
By loan amount, over 20 years
| Loan amount | Federal Bank (7.35%) | Union Bank of India (8.60%) |
|---|---|---|
| ₹25 lakh | ₹19,911 | ₹21,854 |
| ₹50 lakh | ₹39,822 | ₹43,708 |
| ₹75 lakh | ₹59,733 | ₹65,562 |
| ₹1 crore | ₹79,645 | ₹87,416 |
By tenure, on ₹50 lakh
| Tenure | Federal Bank (7.35%) | Union Bank of India (8.60%) |
|---|---|---|
| 10 years | ₹58,960 interest ₹20,75,221 | ₹62,261 interest ₹24,71,269 |
| 15 years | ₹45,925 interest ₹32,66,580 | ₹49,531 interest ₹39,15,491 |
| 20 years | ₹39,822 interest ₹45,57,354 | ₹43,708 interest ₹54,89,953 |
| 25 years | ₹36,463 interest ₹59,38,930 | ₹40,599 interest ₹71,79,657 |
| 30 years | ₹34,449 interest ₹74,01,498 | ₹38,801 interest ₹89,68,211 |
A longer tenure lowers the EMI and raises the total interest. Pick the shortest tenure your monthly budget can carry.
What each loan provider publishes about its home loan
Federal Bank
Private bank · The Federal Bank Limited
- How the rate is set: floating, linked to RBI Repo Rate
- Eligibility as published: Self-employed residents up to 65 years (80 with co-obligant); NRI age not above 55 at end of tenure
- Funding of up to 85% of project cost
- Repayment holiday of up to 36 months
- Can be availed in overdraft format
- No pre-closure charges
Union Bank of India
Public sector bank · Union Bank of India
- How the rate is set: EBLR (repo-linked); fixed option max 5 years at 11.40% to 12.65%
- Eligibility as published: Based on income, repayment capacity, age, margin, credit bureau record
- Instant in-principle approval
- Sanction about 5 working days after documents
- Takeover from other banks/FIs
- Property insurance mandatory
Before you apply for a home loan
- Balance transfer: You can move the loan later to a loan provider with a lower rate. Ask what the new loan provider charges to take it over.
- Floating rate resets: A floating rate moves with the loan provider's benchmark, which follows the repo rate. Ask how often it resets and whether the change lands on your EMI or your tenure.
- Fees beyond the rate: Processing fee, legal and technical valuation charges and any administrative charge add to the cost. Ask for the full list in writing.
- Prepayment: RBI does not allow pre-closure charges on floating-rate home loans to individuals. Fixed-rate loans can still carry them.
RBI requires every loan provider to hand you a Key Fact Statement before you sign. It shows the rate, every fee, the APR and the total you will repay.
Terms used on this page
Plain meanings of the terms this comparison uses.
Starting rate: The lowest rate a loan provider advertises for a product. Most borrowers are offered a higher rate, because the final rate depends on credit score, income, employer and loan amount.
APR: Annual percentage rate. It adds the processing fee and other charges to the interest rate, so it shows the yearly cost of the loan better than the interest rate alone.
Key Fact Statement: A short summary the loan provider gives you before you sign. It lists the interest rate, every fee, the APR and the total amount you will repay. RBI requires it for retail loans.
Floating rate and repo rate: A floating rate moves with a benchmark, and for banks that is usually the RBI repo rate, the rate at which RBI lends to banks. A fixed rate stays the same for the period you agree.
Processing fee: A one-time charge for handling the application. It is usually a percentage of the loan amount plus GST, and it is often deducted before the money reaches you.
Credit score: A number from 300 to 900 that shows how you have repaid past loans and cards. A higher score usually gets you a lower rate.
Sources and last check
Every figure above is read from the loan provider's own website and was checked on 12 October 2026. A blank means the page does not show that figure, and we never estimate one.
- Federal Bank: federal.bank.in/housing-loan federal.bank.in/loan-rate
- Union Bank of India: unionbankofindia.bank.in/en/details/home-loan-interest-rate unionbankofindia.bank.in/en/details/home-loan unionbankofindia.bank.in/pdf/retail_roi.pdf
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More home loan comparisons
Federal Bank vs Union Bank of India: every loan type on one page · All home loan comparisons · Home loan guide · Home loan EMI calculator
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Frequently asked questions
Which is better for a home loan: Federal Bank or Union Bank of India?
Federal Bank has the lower published starting home loan rate at 7.35%, against 8.60% at Union Bank of India. On ₹50 lakh over 20 years the difference in total interest is ₹9,32,599. Rate is only one part of the cost, so also compare the processing fee, the prepayment terms and the total repayable amount in the Key Fact Statement.
Which has the lower home loan interest rate: Federal Bank or Union Bank of India?
Federal Bank has the lower published starting home loan rate at 7.35%, against 8.60% at Union Bank of India. The published ranges run to Federal Bank up to 9.50%, so the rate you are offered can sit well above the starting rate.
What is the home loan processing fee at Federal Bank and Union Bank of India?
Federal Bank: not published. Union Bank of India: not published. Fees can change, so confirm the amount in rupees, with GST, before you accept.
What is the maximum home loan tenure at Federal Bank and Union Bank of India?
Federal Bank: 360 months (30 years) for residents; NRI capped at 20 years. Union Bank of India: not published. A longer tenure lowers the EMI and raises the total interest.
Can I prepay or foreclose a home loan early at Federal Bank and Union Bank of India?
Federal Bank: No pre-closure charges; part or full prepayment allowed. Union Bank of India: None; no prepayment penalty on Union Home Loan. Ask whether the rate on your loan is fixed or floating, because the charges depend on it.
What is the EMI on a ₹50 lakh home loan at Federal Bank and Union Bank of India?
Over 20 years at each loan provider's lowest published rate the monthly EMI is ₹39,822 at Federal Bank and ₹43,708 at Union Bank of India. This leaves out processing fees, GST and insurance, and your approved rate may be higher.
Who is eligible for a home loan at Federal Bank and Union Bank of India?
Federal Bank: Self-employed residents up to 65 years (80 with co-obligant); NRI age not above 55 at end of tenure. Union Bank of India: Based on income, repayment capacity, age, margin, credit bureau record. Each loan provider can ask for more documents once you apply.
Are Federal Bank and Union Bank of India regulated by the RBI?
Yes. Federal Bank is a private bank, Union Bank of India is a public sector bank, and all lend under RBI rules, including the requirement to give you a Key Fact Statement before you sign.
Where do these home loan figures come from?
From the official pages of Federal Bank and Union Bank of India, opened and checked on 12 October 2026. The sources are listed at the bottom of this page. We show a blank where a loan provider does not publish a figure, and we do not estimate one.
KhatuLoans is not a loan provider and is not paid by the loan providers named here to rank them. Rates, fees and eligibility change; always confirm with the loan provider. Read our editorial policy and how we make money.