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.
|Features||New Car Loan||Used Car Loan|
|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||
|Features||New Car Loan||Used Car Loan|
|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|
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.
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.
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.
The eligibility criteria you need to fulfill while applying for a UCO Bank car loan scheme is given below:
Farmers and Agriculturists
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.
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:
Yes, you can club the income of one of your family members in order to be eligible for the UCO Bank Car Loan scheme.
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.
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.