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    UCO Bank Car Loan Interest Rates is Rated as "Great!" by 25 Users

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    Overview About UCO Bank Car Loan

    Headquartered in Kolkata, UCO Bank was established in 1943 as a commercial bank under the Government of India. Currently, the UCO Board of Directors has representation from the Reserve Bank of India and the Government of India, along with prominent businessmen and economists. UCO Bank has a widespread reach with 45 Zonal offices across the country and a network of over 2500 computerised branches servicing customers with specialized solutions in India and abroad. With a dedicated team of professionals and far-sighted vision, UCO Bank has established its authority in various financial sectors of the economy inclusive of Trade and Commerce, Agriculture, Industry, Infrastructure and Services. UCO Bank also participates in various green initiatives, contributing towards the protection of our environment. Aiming to cater to its clientele with world-class products and exceptional customer service, UCO Bank’s wide retail portfolio consists of deposits, loans, advances and card services.

    The UCO Car scheme targets customers who want to avail affordable auto financing for their new cars. UCO Bank finances up to 85% of the on-road price and offers car loans at a competitive interest rate. Customers can enjoy the option of making flexible repayments with lower monthly installments. UCO Bank also provides the “UCO Rin Jeevan Suraksha” insurance plan to cover the cost of the car loan, in case of accidental or natural death of the borrower. The bank charges a low processing fee of 1% for car loans and also provides a 100% fee waiver on the same. UCO Bank does not impose any maximum age limit for borrowers, when the avail a UCO Bank car loan.

    UCO Bank Car Loan Interest Rates 2017

    Salaried employees, self-employed professionals, agriculturists, businessmen, ex-staff of UCO Bank, business firms, pensioners and Non-resident Indians are eligible to avail a UCO Bank car loan. The interest rate for a UCO Bank car loan is decided depending on the base rate of the bank and currently is 10.20%. UCO Bank offers this as a floating interest rate, which will vary according to the revision in the base rate. The interest rate is calculated on a daily reducing balance basis on the outstanding loan amount.

    UCO Bank Interest Rate = Base Rate + 0.25%

      New Car Interest Rates - FLOATING
    Loan Tenure of up to 7 years   Interest Rate = 10.20%
    Loan Processing Charges 1% of the loan amount / Maximum of Rs 1500
    Loan Tenure Maximum Tenure - 84 Months
    Quantum of Loan Up to 85% of the on-road price. The road tax and insurance is included here. No cap on the maximum limit.
    Loan Margin 15%
    Foreclosure Charges NIL
    Insurance Life Insurance for the borrower - UCO Rin Jeevan Suraksha

    How do you calculate Interest Rates for a UCO Bank Car Loan?

    Borrowers can choose to repay back a UCO Bank car loan using an EMI or an equated monthly installment. An equated monthly installment is the total of the principal amount taken by the borrower and the interest rate charged by UCO Bank. The repayment for the car loan will be done over the selected loan tenure. Borrowers have to repay a certain amount every month and initially the monthly installment will consist majorly of the interest and will only carry a small portion of the principal amount. As the loan term advances, the interest amount will sufficiently reduce, with the principal amount increasing towards the end of the loan tenure. Loan repayments via monthly installments will work out to be cost-effective for a borrower in the long term.

    The EMI for a UCO Bank car loan can be calculated as follows -

    EMI (E) = [P x r x (1+r) ^n]/ [(1+r) ^n-1]


    P = The Principal Loan Amount

    R = The Interest rate charged per month. UCO Bank charges a floating interest rate of 10.20% for all types of applicants. This is calculated depending on the base rate of the bank.

    N = Number of monthly installments i.e. the number of years opted for the repayment of loan.

    For a principal amount of Rs. 1, 00,000 given at an interest rate of 10.20% and a loan tenure of one year, an estimate of the total sum of EMIs that has to be paid by the borrower is Rs. 1, 04, 720, out of which the interest will be around Rs. 4720.

    In the following example, for a car loan amount of Rs. 4,00,000 to be repaid in 60 months at an interest rate of 10.20% from UCO Bank (Calculations based on EMIs paid in advance):

    Year EMI Amount Interest Amount Principal Amount Balance Due
    2015 Rs. 25,399 Rs. 6,612 Rs. 18,786 Rs. 3,81,214
    2016 Rs. 1,01,595 Rs. 35,867 Rs. 65,728 Rs. 3,15,486
    2017 Rs. 1,01,595 Rs. 28,841 Rs. 72,755 Rs. 2,42,731
    2018 Rs. 1,01,595 Rs. 21,063 Rs. 80,533 Rs. 1,62,198
    2019 Rs. 1,01,595 Rs. 12,453 Rs. 89,142 Rs. 73,057
    2020 Rs. 76,196 Rs. 3,140 Rs. 73,057 Rs. 0

    The total interest to be paid towards a UCO Bank Car Loan for an amount of Rs. 4, 00,000 would be Rs. 107976.

    Factors affecting UCO Bank Car Loan Interest Rates

    There are multiple factors affecting the interest rate given 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.

    How does CIBIL score affect UCO Bank Car Loan Interest rates?

    CIBIL score is a key factor when it comes to car loan interest rates. The score held by an individual plays a major role in determining the interest rate offered by a lender for a new car loan. Prospective borrowers should always carry a good score regardless of their income and other outstanding liabilities. A good score ensures that the customer gets the best deals with regards to interest rates. Low credit score reflects poorly on the individual’s financial capabilities and money management abilities. In this scenario, banks might not give an attractive rate and might even increase the interest rates.

    Key Pointers to know about UCO Bank Car Loan Interest Rates

    • Since the interest rates offered by UCO Bank is a floating rate, borrowers should be aware of market fluctuation and related changes to keep track of their monthly installments amounts.
    • The interest rate for a UCO Bank car loan is calculated on a daily balance reducing basis. This helps customers to save and significantly cut down on the total cost of the car loan.
    • UCO Bank gives a standard interest rate for car loans and does not vary the rate depending on the selected loan tenure.
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