UCO Bank Car Loan Interest Rates 20 Jun 2019

UCO Car Loan Interest Rates
UCO Car Loan Interest Rates

UCO bank offers car loans at 9.05% for the customers who wish to purchase a new car and interest rates ranging between 10.15% and 10.65% for those who wish to purchase a pre-owned car.

The interest rate levied by the bank depends on factors such as the loan amount, repayment tenure, credit score, etc.

UCO Bank Car Loan

Features New Car Loan Used Car Loan
Interest rates 9.05%
  • 10.15% if the car is purchased from a certified dealer
  • 10.65% for other car owners
Loan tenure Up to 7 years Up to 5 years
Processing fee 1% of the loan amount, up to maximum of Rs.1,500 1% of the loan amount, up to maximum of Rs.1,500
Loan amount Up to 85% of the on-road price of the car
  • Rs.15 lakh if the car is purchased from a certified car dealer
  • Rs.5 lakh for other car owners
Prepayment charges NIL NIL

UCO Bank Car Loan Combo Scheme (Car Loan for UCO Home Loan Borrowers)

Features New Car Loan Used Car Loan
Interest rates 8.8%
  • 9.9% if the car is purchased from a certified dealer
  • 10.40% for other car owners
Loan tenure Depends on the terms and conditions set by the bank Depends on the terms and conditions set by the bank
Loan amount Depends on the terms and conditions set by the bank Depends on the terms and conditions set by the bank

Factors affecting UCO Bank Car Loan Interest Rates

There are multiple factors affecting the interest rate offered to car loan customers by UCO Bank. Some of the common factors playing a key role have been listed below -

Market Fluctuations - UCO Bank offers car loans at floating interest rates which change according to market fluctuations. Depending on the inflation rate, interest rates might go up or down, with the bank revising as per the changes. If the inflation is low, then the interest rates get lowered and vice versa. Borrowers must be financially prepared for this when they avail a car loan and must plan as required.

Car Model - Banks sometimes give different interest rates for different car models. The bank looks at the resale value and the popularity of the car model when it offers car loans at a particular interest rate. In most cases, while availing a car loan, hypothecation of the new vehicle is required. If the borrower is unable to repay the loan, then since the car is kept as security, the bank might seize the vehicle and sell it to get back the loan amount. Every time a borrower opts for a car loan, the car model and repayment capacity should always be kept in mind to avoid unnecessary complications.

Down Payment - Banks look into the down payment amount done by a prospective borrower, when a car loan is availed. Though the down payment amount can be decided by the borrower according to the financial situation, banks always prefer individuals who make higher down payments. Mostly this ensures that banks offer the best interest rates to borrowers. With the interest rate being lower, this reflects on the monthly installment as well, which in turns becomes significantly less.

Income - Banks generally approve car loans for customers who meet a certain income criteria. UCO Bank requires that depending on the type of applicant, the necessary income criteria has to be met. The borrower’s income is generally given weightage because the loan has to be conveniently repaid without any arrears and disruptions. The borrower should be able to sustain the new car loan along with other debts and liabilities, with the current income shown. Depending on the income factor, banks might offer a better interest rate for borrowers in general.

UCO Bank Car Loan Frequently Asked Questions (FAQs)

  1. Who can apply for a UCO Bank Car Loan?
  2. Salaried individuals, self-employed people, people working for corporate, non-corporate bodies, pensioners, and Non-Resident Indians (NRIs) can apply for a UCO Bank Car Loan.

  3. What is the minimum and maximum age for a person to be eligible for a UCO Bank Car Loan scheme?
  4. The minimum age of the applicant should be 21 years and maximum age must not be more than 70 years of age at the end of the repayment tenure.

  5. What are the other eligibility criteria that I should be aware of before applying for a UCO Bank Car Loan?
  6. The eligibility criteria you need to fulfill while applying for a UCO Bank car loan scheme is given below:

    Salaried individual:

    • The minimum monthly take home salary should be Rs.20,000
    • The maximum loan amount that one can avail should be 36 times the monthly gross income of the individual.

    Self-employed individual:

    • The minimum salary of the person living in a metro area should be Rs.5 lakh p.a., while the minimum salary of the individual living in other areas should be Rs.4 lakh.
    • The maximum loan amount should be three times the annual income for the past two years.

    Farmers and Agriculturists

    • Minimum gross income of Rs.4 lakh p.a. for the last financial year.
    • The farmer should hold a land in his/her name.
    • The maximum loan amount should be three times the annual income for the previous financial year.
  7. Will I get any insurance cover on availing a car loan from UCO Bank?
  8. Yes, UCO Bank offers you UCO Rin Jeevan Suraksha, which covers your outstanding loan amount in case of your death or if you meet with an accident.

  9. What is the maximum loan amount that I can avail while applying for a car loan from UCO Bank?
  10. If you are purchasing a new car, you can avail up to 85% of the on-road price of the car. If you are purchasing a pre-owned car, then the maximum loan amount will depend on the criteria given below:

    • 70% of the price of the car can be availed as the loan amount if the vehicle is up to 4 years old.
    • 60% of the price of the car as the loan amount if the age of vehicle is more than 4 years but not more than 5 years.
    • If the previous two criteria are not being fulfilled, then the maximum loan amount you can avail is Rs.3.5 lakh.
  11. Can I club the income of my family member in order to be eligible for the UCO Bank Car Loan scheme?
  12. Yes, you can club the income of one of your family members in order to be eligible for the UCO Bank Car Loan scheme.

  13. How can I apply for a UCO Bank car loan online?
  14. You can visit the official website of the UCO Bank, and under the ‘Car Loan ‘section click on ‘Apply for a Car Loan’. It is important you read about the different car loan schemes offered by the bank. You will have to upload the necessary documents and provide relevant details as asked by the lender. The bank will verify the documents and the details provided by you. If the documents and the details provided by you are correct, the bank will disburse the loan amount to your bank account.

  15. Can I apply for a UCO Bank car loan offline?
  16. Yes, you can apply for a UCO Bank car loan offline as well. You will have to visit the nearest UCO Bank branch along with the relevant documents and approach the bank official who will assist you with the process-related to the application of the UCO Bank car loan scheme.

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