The property loan scheme is another offering of UCO Bank. It offers financial support for companies as well as individuals to fund their MSE units and related expenses.
Purpose of UCO Property Loan Scheme
The property loan scheme from UCO Bank can be taken out for any of the following reasons:
- To offer credit facility to individuals and companies/firms to meet their financial requirements related to their MSE units
- To provide financial help for purposes covered by Priority sector norms
- To offer credit facility to individuals for personal expenses that cover social obligations, travelling expenses, medical emergencies, etc.
Eligibility criteria of UCO Bank Property Loan Scheme
The eligibility of the customer applying for a property loan scheme from UCO Bank depends upon the following:
- The applicant (pensioner or self-employed or salaried individual) must be at least 21 years old and not older than 65 years of age.
- The applicant must possess a property that can be mortgaged in addition to sufficient income for repayment of the loan.
- Businessmen or self-employed individuals must possess a regular source of income and must also file their income tax return.
- The minimum gross salary of a salaried customer must be Rs.30,000 per month if they reside in metropolitan cities and Rs.20,000 per month if they live in other centres.
- The minimum income for non-salaried customers must be Rs.4 lacs per annum regardless of where they reside.
- The net take home salary of all customers must be at least 40% of the gross income after deductions such as professional tax, insurance premium, PF, income tax, etc., or Rs.10,000, whichever is more.
Features of UCO Property Loan Scheme
- The repayment period for the loan is a maximum of 144 EMIs regardless of how much money is borrowed.
- The minimum credit at the end of each month must be higher than the interest debited to the account.
- All repayments must be made before the customer attains 70 years of age.
- Registered mortgage / equitable mortgage of unencumbered commercial property / residential house / apartment / non-agricultural land / flat located in semi-urban / urban / metro centres should be in the borrower’s name can be pledged as security.
Benefits of UCO Property Loan Scheme
- No prepayment charges
- Low processing fee
- Minimal documentation
- Hassle-free application procedure
- Dedicated team for customer service
- Flexible repayment period
Interest Rate of UCO Property Loan Scheme
The rate of interest for a property loan scheme from UCO Bank is the base rate plus 2% (floating) if it is under Priority Sector, and base rate plus 3% (floating) if it us under Non-Priority Sector.