UBI to clear home loans in 5 days

{image-union bank of india-logo_05042008.jpg news.oneindia.in}New Delhi, Apr 5: In a unique customer friendly move, Union Bank of India (UBI) today announced that it will soon launch a scheme for clearing housing loans within five days and education loans within 48 hours. The Bank also announced the launch of 'Union Reverse Mortgage Scheme' for senior citizens, thus becoming the second Public Sector Bank to have done so. The scheme was earlier launhced by Punjab National Bank.

UBI General Manager (North) S C Sinha told a newsconference here that the scheme relating to expeditious clearence of housing and education loans will start "very soon." Infact, he said, in case there was a delay in clearnng these loans then the Bank will compensate the loanees. The rate of interest charged on home loans varies from 10.25 per cent to 10.76 per cent and for education loans 10.25 per cent.

Mr Sinha said the 'Union Reverse Mortgage Product' is designed for the benefit of senior citizens. It was announced by Finance Minister P Chidambaram in his last year's Budget.

The banker said the scheme will enable home owners to obtain monthly payments against the mortgage of their homes so long as they continue to live in the home.

The loan will be available to home owners who are 60 years of age or more and can be availed jointly with the spouse provided she or he is older than 55 years of age, There are no repayment obligations on the owner as the loan becomes due only on the death of the owner or the last surviving spouse.

Mr Sinha said unlike other loan products, there is no 'income criteria' to be met for availing this loan.

Mr Sinha said a new branch by the UBI was opened yesterday in Greater Noida and a specialised branch in Delhi relatig to 'Cash Management Service.' In addition, the Bank also started yesterday 14 new ATMs in the NCR Delhi, thus bringing the total number of ATMs in the Northern region to 162.

The Zone comprises a network of seven Regional offices and 277 branches across the states in the Northern India. These include Delhi NCR, Haryana, Chandigarh, Punjab, Rajasthan, Himachal Pradesh and Jammu and Kashmir.

Mr Sinha said the Bank proposes to open 400 new branches in 2008-09 and each Zone has been asked to open at least 50 branches, He said all the 2,516 outlets of the Bank are under Core Banking.

''The Bank is in the forefront among all large Public Sector Banks in technology adoption and bringing all the branches under Core Banking Solution(CBS),'' Mr Sinha added.

UNI