Multiple banks. Different interest rates. Call it a "conflict of interest".
UCO Bank offers a Demand Gold Loan to meet financial requirements of customers who require immediate cash against their gold assets. Primarily catering to borrowers from the middle and lower income group, this loan offers instant credit for multiple purposes. Given the fact that most households own gold, this loan can be an effective solution to meet temporary monetary contingencies.
UCO Bank Gold Loan comes with a number of significant features, some of which are mentioned below.
The interest rate charged by UCO Bank depends on a number of factors, including the purpose for which a loan is availed. Loans up to Rs 3 lakhs which are designed to cater to priority sector needs are charged an interest of 7% per year (in cases where subvention is applicable). Gold loans for other priority sector needs, including agriculture and retail are charged an interest of 9.75% per annum (Base Rate + 0.05%). Gold loans availed for non-priority sector retail are charged an interest of 10.7% per annum (Base Rate + 3%).
Note: Interest rates mentioned above are as of May 2016, with these rates subject to change. Any change in the base rate is likely to reflect in gold loan rates and borrowers should check the rates applicable before applying for a loan.
The eligibility criteria for a UCO Bank Gold Loan are simple, with applicants expected to meet a few basic requirements.
Eligible applicants need to furnish the following documents before they can avail a loan.
The table below highlights the charges associated with a UCO Bank Gold Loan.
| Type of fee/charge | Amount |
| Service charge for Priority sector loans |
|
| Service charge for non-priority sector loans |
|
There is no upper limit on the amount one can avail as a loan, subject to conditions laid down by the bank.
Borrowers need to provide security in the form of gold coins, jewellery or ornaments.
Yes, borrowers can choose to prepay the loan, with no prepayment charges imposed by the bank.
UCO Bank fixes the repayment schedule depending on the purpose of a loan and the repayment capacity of a borrower. This can change from case to case.
Yes, individuals can apply for this loan through the official website of the bank.
A GST rate of 18% will be applicable on banking services and products from 01 July, 2017.
Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.
