UCO Bank is one of the oldest banks in India. The bank was founded in the year 1943 and is a public sector institution. The bank offers a host of banking products and services to its customers. These include wealth management, private banking, corporate banking, international banking and rural banking. The bank also provides a platform to deal with government services and their payment.
Personal loans from UCO Bank are one of the most popular personal banking product. These personal loans are offered to various types of customers with various financial needs. Here is a list of all the personal loan schemes offered by UCO Bank.
Meant for financial assistance when a borrower wishes to purchase goods and electronics
This scheme is directed towards customers from specific job types for fulfilling their personal financial needs
The UCO Yatra loan is meant for customers who need extra cash for travel and tour purposes
As the name itself signifies, this personal finance scheme is aimed at providing finance to pensioners
Eligibility criteria for personal loans from UCO Bank is subject to the type of personal finance being availed. The general criteria is listed as under.
UCO Shopper Loan Scheme
At least Rs.3,00,000 for metro customers and Rs.2,00,000 for other cities
Net take-home salary should not be less than 40% of the monthly income after loan deduction
Minimum gross monthly income of Rs.30,000 across all cities
No minimum monthly income requirement
Personal loan eligibility is determined by taking into account various personal and financial details of customers. Age of the applicant, monthly income etc. are some of the most important factors that influence loan eligibility.
Age of the applicant is an important factor in determining loan eligibility. Generally, banks offer higher loan amounts and lower rates of interest to customers who are young and earning. Ideally all banks want customers to be above 21 years of age and below 60 years of age to avail personal loans.
Type of job not only determines loan eligibility for UCO bank customers but also the personal loan scheme he/she is eligible for. UCO Bank has different loan schemes for military officers and pensioners.
A steady job is a key parameter for personal loan eligibility. A steady job depicts steady flow of income and hence regular repayment of loan installments. Hence, all lending entities emphasize the importance of this one parameter.
pertaining to credit channels previously availed. Banks use this to gauge your standing as a borrower and to assess whether you will be able to make regular and timely repayments of loan.
Existing customers are always preferred for personal loans since banks already have the KYC checks in place for such customers. For existing customers, the financial history and payment pattern is also known to a certain extent.
Monthly income of an applicant is of utmost importance since monthly loan installments depend on this. Banks generally want customers’ monthly installment payments to be less than 40% of their monthly income.
The more the number of credit channels availed, the lower is the eligibility of customer. This is because repayment power decreases with growing number of credit lines and as such banks fear loan default as a serious issue.
Credit Information Bureau India Limited, CIBIL, which is the apex credit bureau of the country does the job of collating and evaluating credit information of all customers. Based on this evaluation, it then assigns a credit score to all customers.
Credit score is mostly the first thing that banks look at while calculating loan eligibility for a customer. Customers should always try to know their credit score even before they start the loan application process. This is because sometimes you might not even know that there is some issue with your credit history and might get rejected by multiple banks, which in turn might hurt your credit report even more. On the contrary, if you are aware of your credit score then even if it is not good, you can take suitable measures to improve your score before applying for loan with a bank.
Personal loan eligibility can be improved by taking certain steps in the direction of strengthening credit history. Some of the most crucial steps in this direction are as follows.
Maintain a healthy credit history:
Customers who are regular with their loan and credit card payments have a good credit history. Credit history is also affected by the number of existing loans that you have. A healthy credit history is a pre-requisite to avail personal finance from UCO Bank. Customers with poor credit history should first repair it and then apply for credit.
Have a mix of both secured and unsecured loans:
Customers who have a mix of both secured and unsecured loans are generally considered responsible borrowers as compared to those who don’t. A good ratio of both these types of credit ensures better chances of loan sanction.
Don’t apply with too many banks:
Applying for personal finance with too many banks might lower your credit score and make a dent in your credit history. The best way to go about personal loan application is to first research about your preferred loan product and the subsequent loan provider and then apply for it so as to avoid multiple loan applications.
Do not switch jobs frequently:
A steady job and a regular income are crucial to getting your personal loan approved. Banks look for customers who are regular with their repayments and have the financial power to carry long-term financial liabilities.
The maximum loan amount offered by UCO Bank personal loans is dependent upon the loan scheme being availed.
A maximum loan of Rs.2,00,000 or 10 times the monthly income
Up to Rs.2 lacs without security
For above Rs.2 lacs, security collateral needs to be submitted to the bank
Up to Rs.5 lacs
Without Family Pension
10 times the monthly pension subject to a maximum of Rs.2,00,000/-.
With Family Pension
10 times the monthly pension subject to a maximum of Rs.3,00,000/-
Yes. Self-employed individuals can also apply for personal finance from UCO Bank. Special loan schemes targeted towards self-employed customers are also available.
Yes. Processing charges are levied by UCO Bank for sanction of personal loans. However, this is also dependent upon type of loan scheme availed. For example, pensioners do not need to pay any processing fee to avail personal loan.
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