UCO Bank Personal Loan Eligibility

The eligibility to avail a personal loan from UCO Bank will depend on the type of loan you want to avail. UCO Bank offers personal loan under 5 categories – UCO Cash, UCO Pensioner, UCO Shopper Loan Scheme, UCO Securities, and Gold Loan Scheme. The maximum amount that can be availed is Rs.10 lakh and the maximum repayment tenure is 60 months. The interest rate on UCO Bank personal loans starts from 11.45% p.a.

Eligibility Criteria for UCO Bank Personal Loans

Factors affecting UCO Bank Personal Loan Eligibility

• Age of the applicant: 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 of the applicant: UCO Bank offers personal loan schemes under different categories which are based on the job or employment type of the applicant. For instance, the UCO Cash is a type of personal loan offered to permanent employees of private, government, and semi-government firms, etc., while under the UCO Pensioner scheme, pensioners can avail personal loans from UCO Bank.
• Stability of job: A steady job is a key parameter for personal loan eligibility. A steady job depicts a steady flow of income and hence regular repayment of loan installments. Hence, all lending entities emphasize the importance of this one parameter.
• Credit Score: Your credit score is an important factor that lenders consider when determining your eligibility. A credit score of above 750 is considered healthy and can improve your eligibility for a personal loan.
• Relationship with the bank: Existing customers of the banks/financial institutions are given preference for personal loans since they already have the KYC (Know Your Customer) checks in place. The financial history and payment pattern for such customers are also known to a certain extent and hence, their eligibility for a loan is always higher.
• Monthly income of the loan applicant: When your monthly income is on the higher side, your eligibility for a loan is also higher simply because it is an indication of your high repayment capacity. Banks usually prefer lending to customers whose monthly instalments do not exceed 40% of their income and who have a low debt-to-income ratio.
• Existing debt liabilities: The more the number of credit channels availed, the lower is the eligibility of customer for any kind of loan. This is because repayment power decreases with the growing number of credit lines and as such, banks fear loan default as a serious issue.

How to increase UCO Personal Loan Eligibility?

• 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 a poor credit history should first repair it and then apply for a loan.
• 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.

FAQs

1. I earn Rs.20,000 per month. Am I eligible for a personal loan from UCO Bank?

Though your eligibility for a personal loan from UCO Bank is not entirely dependent on your income, it is an important factor that the bank may consider. With your salary, you may be offered a personal loan from UCO Bank but for that, you need to ensure that your take-home salary after all deductions is no lesser than 40% of your gross salary.

2. How much loan amount am I eligible for?

The maximum amount of loan that you are eligible for will depend on a lot of factors such as your income, any securities that you pledge, type of income etc. For instance, if you want to take a loan under the UCO Cash scheme, you can avail an amount up to 10 times your gross monthly income, subject to a maximum of Rs.10 lakh.

3. Will my eligibility for a UCO Bank personal loan depend on my credit score?

Yes. Most lenders will lend to you only if you have a healthy credit score (above 750) and hence, it is vital for you to apply for a loan only after checking your credit score. Doing so will let you take corrective measures to improve your score if it is low and if you have a good score, it will empower you to approach the lender with confidence.

4. I own some government securities. Am I eligible to avail a personal loan against them?

Yes. UCO Bank offers personal loan against government securities under the UCO Securities scheme. You can pledge financial securities issued by the state or central governments/Reserve Bank of India (RBI) which include KVPs, relief bonds, NSCs, and any other government securities. You can also avail loans against Life Insurance policies of LIC and debentures or bonds issued by public financial institutions (PFIs).

5. Will my eligibility increase if I choose a longer repayment tenure?

The repayment tenure you choose on your personal loan from UCO Bank will not directly impact your eligibility but it will definitely infliuence the EMIs that you pay. For instance, if you choose a shorter repayment tenure, your EMIs will be higher but you will pay lesser interest as you will be paying off the loan quicker. On the other hand, a longer repayment tenure will reduce your EMIs but will result in you paying higher interest over the loan tenure.