UCO Bank Gold Loan

Overview about UCO Bank Gold Loan

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.

Features of UCO Bank Gold Loan

UCO Bank Gold Loan comes with a number of significant features, some of which are mentioned below.

• Multipurpose – This loan can be used for any genuine purpose, ranging from education to housing to business.
• Quick approval – Gold loans can be availed without additional hassles, with minimal paperwork and documentation required.
• High quantum – Borrowers can avail loans of different denominations, subject to their requirement and background.
• Competitive interest – This loan comes at a competitive rate of interest, making repayment light on the pocket.
• Prepayment – Borrowers can choose to prepay the loan without the worry of prepayment charges.

UCO Bank Gold Loan Interest Rates

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.

Eligibility criteria to avail UCO Bank Gold Loan

The eligibility criteria for a UCO Bank Gold Loan are simple, with applicants expected to meet a few basic requirements.

• Accountholder – A borrower should have an account with UCO Bank. Both individuals and companies are eligible for this loan, depending on the purpose for which it is to be used.
• Gold owner – Applicants should be the owners of the gold which they aim to pledge.

Documents required for UCO Bank Gold Loan

Eligible applicants need to furnish the following documents before they can avail a loan.

• ID/address proof – Valid government approved ID/address proof (Passport, PAN card, DL, etc.)
• Declaration – A declaration mentioning the purpose for which a loan is being used
• Purity certificate – A certificate highlighting the purity and quality of gold being kept as security

Fees and charges associated with UCO Bank Gold Loan

The table below highlights the charges associated with a UCO Bank Gold Loan.

UCO Bank Gold Loan FAQs

1. What is the maximum loan amount one can avail under this scheme?

   There is no upper limit on the amount one can avail as a loan, subject to conditions laid down by the bank.

2. What is the security one needs to provide?

   Borrowers need to provide security in the form of gold coins, jewellery or ornaments.

3. Is prepayment of the loan permitted? If so, are there any prepayment charges?

   Yes, borrowers can choose to prepay the loan, with no prepayment charges imposed by the bank.

4. What is the repayment tenor of a gold loan?

   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.

5. Can one apply for this loan online?

   Yes, individuals can apply for this loan through the official website of the bank.