Multiple banks. Different interest rates. Call it a "conflict of interest".
  • UCO Bank Trader Loan is Rated as "Excellent!" by 6 Users

    Fees & Charges

    Promised Interest Rate

    Customer Service



    UCO Bank Trader Loan

    The trader loan offered by UCO Bank helps in financing the term loan and working capital requirements of wholesale and retail traders.

    Eligibility criteria for UCO Bank Trader Loan

    Customers who wish to take out a trader loan from UCO Bank must meet the following requirements to gain eligibility:

    • Must an existing enterprise that has been in operation for a minimum of two years
    • The enterprise must have earned a profit over the past two years
    • Must be an individual, limited company, proprietorship, borrowing concern or HUF that is dealing exclusively with UCO Bank only.

    Features of UCO Trader Loan

    • The minimum amount of money that is granted in this loan is Rs.1 lac and the maximum is Rs.200 lacs.
    • The Term loan has a maximum limit of Rs.25 lacs for acquiring fixed assets if it is fund based.
    • Inland letter of credit for deferred payments or DA with since period should not be more than 90 days.
    • The validity period for inland bank guarantee extends to one year including claim.
    • Primary-Hypothecation of fixed assets, book debts and stocks can be used as security if the existing units have been making profit for a minimum of two years.
    • Assignment of LIC policy, collateral equitable mortgage of land of building, pledge, lien/assignment of KVP, bank’s own FDR, NSC, RBI/government bonds are also accepted.

    Limits (least of the following)

    • 60% on immovable property’s realisable market value or
    • 90% on FDR in case the limit is in excess of 60% of the value of the project
    • 85% on government bonds, NSCs and LIC Policies’ surrender value in case it is sought as extra limit


    20% of gross yearly sales in existing units as shown in the last Sales Tax return/Sales Tax Assessment order/Service Tax Assessment Order/VAT Assessment Order or Return or Declaration/Return given by the customer, whichever is lower.

    Benefits of UCO Trader Loan

    1. A margin is not required for cash credit if they are existing units and 20 or 25% for units when calculating drawing power.
    2. The margin for term loan, letter of credit and bank guarantee is 25%.
    3. Simple application process.
    4. No balance sheet required if the maximum limit is Rs.10 lacs.
    5. Balance sheet not compulsory if the limit is below Rs.50 lacs.
    6. New trading units and those that have not yet completed two years can be financed to the extent of Rs. 10 lacs.


    • By all the directors of the company
    • By all the partners of the firm if it is a partnership firm
    • By karta and other major coparceners of HUF
    • By owners of immovable properties offered as collateral security

    Interest Rate of UCO Bank Trader Loan

    The interest rate applicable to a trader loan from UCO Bank is the base rate and BPLR. In case of DRI advances, the rate is 4%. In case of agricultural advances, the spread over base rate (SOBR) is 1% and the effective rate is 10.7% if the total funded exposure is under Rs.25 lacs. The SOBR is 2% and the ER is 11.7% if the overall funded exposure is over Rs.25 lacs and less than Rs.1 crore. The SOBR is 1.5% and the ER is 11.2% if it is financed to rice sellers and the overall funded exposure is over Rs.25 lacs and less than Rs.1 crore. For crop loans under Rs.3 lacs where interest subvention is an option, the effective rate is 7%.

    UCO Trader Loan Reviews

    • UCO Personal Loan
      "Very good service"
      0.5 4.0/5 "Great!"
      The UCO bank personal loan service was good and I have got the personal loan within 21 days of time. The customer support service and the response was quite good from the UCO bank and I am satisfied with the loan amount .I would say it is a very good service,
      Was this review helpful? 7
      , kolkata
      Reviewed on May 10, 2018
    • UCO Personal Loan
      "Approchable bank"
      0.5 4.0/5 "Great!"
      I have taken a personal Loan from UCO BANK.The approved loan amount was 40 thousand . The given rate of interest was2% yearly. As one time payment i closed the loan. The experience was really good.The customer service and response at the time of submitting the application was fine.
      Was this review helpful? 2
      , new delhi
      Reviewed on Jan 24, 2018
    • UCO Personal Loan
      "Good Loan "
      0.5 5.0/5 "Blown Away!"
      I got a Personal Loan from UCO few years back, and the experience with them has been great . The process for the application was simple and required minimal hassle. I got the loan for Rs.1.50 Lakhs for a mere 10.99% rate of interest, which I think is a great deal.
      Was this review helpful? 6
      , new delhi
      Reviewed on Nov 07, 2017
    • UCO Personal Loan
      "excellent service"
      0.5 4.5/5 "Excellent!"
      I have taken a personal loan from UCO and their main branch was located near to my office so I applied from there their interest rate was very low compare to others in the market and during the process they asked for my document 16 and a letter from my employer and the guaranty and the previous policy copies once I submitted with the documents they completed the process which was good.
      Was this review helpful? 3
      , bangalore
      Reviewed on Oct 15, 2017
    • UCO Personal Loan
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      UCO bank gave a very good service in regards to my personal loan application and I got the loan amount within 7 to 8days from UCO bank. The process just took a week time. The customer service, the response and their follow up was good with UCO bank. The rate of interest is low when compared with others. The processing fee is also reasonable with UCO bank. I am very much satisfied with the loan amount with UCO bank.
      Was this review helpful? 4
      , bangalore
      Reviewed on Jun 23, 2017
    • UCO Personal Loan
      "Very lengthy process"
      0.5 2.5/5 "Just OK"
      Besides paper work the rest is fine with UCO bank personal loan. The documentation part is very lengthy and they took a lot of time to provide the loan. UCO bank took around 10 to 15 days of time to provide the loan. Apart from that, I did not undergone any sort of issues with them.
      Was this review helpful? 8
      , jharsuguda
      Reviewed on Dec 21, 2016
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