About UCO Bank Personal Loan
UCO Bank offers personal loans for borrowers who wish to purchase goods and electronic items, to fulfil personal financial needs, fund travel and tours. UCO Bank also offers loans for Pensioners to help them with their financial requirements.
UCO Bank Personal Loan Interest Rates
UCO Bank personal loan interest rates depends the borrower’s on income, borrower’s credit history, the RBI rates, inflation etc. UCO Bank personal loan interest rate for the year 2015 is 14.60 percent per annum. The bank ensures that the interest rates is not burdening the borrower.
UCO Bank Personal Loan interest rates table:
| Interest rates |
UCO Shopper Loan scheme: Secured by 100 percent liquid collateral- Base rate + 1 percent floating
If there is no collateral- Base rate + 2 percent floating
UCO Cash: Men- Base rate + 5.40 percent
Women- Base rate + 4.40 percent
UCO Yatra: 12.20 percent
UCO Pensioner: Base rate + 4 percent floating |
| Loan amount |
UCO Shopper Loan scheme: Maximum loan amount- Rs.2 lakhs
UCO Cash: Maximum loan amount – Rs. 10 lakhs
UCO Yatra: Minimum- Rs.30,000 Maximum- Rs.5 lakhs
UCO Pensioner: With family pension- Maximum – Rs.3 lakhs
Without family pension- Maximum – Rs.2 lakhs |
| Loan tenure |
UCO Shopper Loan scheme: 5 years
UCO Cash: 4 years for men and 5 years for women
UCO Yatra: 2 years
UCO Pensioner: 3 years |
EMI per lakh (lowest interest rate and maximum tenure)
Calculate EMI on your Personal Loan |
Rs.2,172 per month |
| Base rate (w.e.f. 1st May, 2015) |
9.95 percent |
| Prepayment charges |
Nil |
How to calculate interest or EMI on UCO Bank Personal Loan?
EMI or Equated Monthly Instalment is the amount that the borrower has to pay back to the bank. It consists of interest and principal amount. The principal amount and interest is divided by the tenure that the loan was taken for. The formula to calculate the EMI is:
EMI= Principal X Rate of interest on a monthly basis X (1+rate of interest on a monthly basis) to the power of the loan tenure divided by [(1+rate of interest on a monthly basis) to the power of the loan tenure – 1]
To make the EMI calculation easy, you can use the free online EMI Calculator available on BankBazaar.com. You get an amortization table that contains details of how much of the EMI amount is going towards the principal amount payment and how much of it covers the interest amount.
For example, Mr. Ronny has taken a personal loan for Rs.1 lakh from UCO Bank. The interest rate he is being offered is 10.95 percent for a tenure of 5 years. By the end of the fifth year, he would have paid Rs.30,305 towards total interest and his loan EMI is Rs.2,172. He will be paying 23.3 percent towards the interest and 76.7 percent towards the principal loan amount. His amortization table will look as follows:
| Year |
Principal paid (in rupees) |
Interest paid (in rupees) |
Balance amount (in rupees) |
| Year 1 |
15,893 |
10,168 |
84,107 |
| Year 2 |
17,723 |
8,338 |
66,384 |
| Year 3 |
19,764 |
6,297 |
46,619 |
| Year 4 |
22,041 |
4,020 |
24,579 |
| Year 5 |
24,579 |
1,482 |
0 |
Factors affecting UCO Bank Personal Loan Interest Rates
UCO Bank personal loan interest rate varies for every applicant due to the following factors:
- Loan tenure:
If the loan tenure is short, the interest rate is high when compared to loans with a longer tenure.
- Repayment capacity:
UCO Bank checks a person’s repayment capacity before offering him a loan and before deciding the interest rate. The bank will make sure that after paying the EMI, you will have enough money left for the rest of the month. The bank also looks into the borrower’s assets and his creditworthiness.
- Borrowing class:
Banks prefer to give loans to those who have a constant income and they try and stay away from young applicants as they are not so stable at their job. UCO Bank offers personal to permanent employees, self-employed, businessmen and pensioners.
- Relationship with the bank:
If you have a good relationship with the bank then you may stand a chance to get a discount on the processing charges or might get a reduced interest rate. You can also get a discount on the prepayment charge as well.
The interest rates and processing charges are charged at the sole discretion of the bank and are subject to change.
How CIBIL score affects UCO Bank Personal Loan interest rates?
The applicant’s CIBIL score and credit report plays a major role when the bank is deciding on the interest rate that is to be offered for his loan. If the borrower’s CIBIL score is 750 and above, then he will be able to bargain with the bank and ask for a lower interest rate. Those with a lower score will be termed risky and the bank might offer personal loan at a higher rate of interest. Credit report documents the borrower’s repayment history. The bank checks how efficiently you have made the payments on all the loans that you have taken in the past. If your score is low, then you can fix the score before applying for a loan.
Key things about UCO Bank Personal Loan Interest Rates
Before applying for a Personal Loan, you must know the following factors:
- When a fixed rate of interest is set on the personal loan, you will be required to pay a fixed amount of interest throughout the tenure.
- Floating interest rate will change as per the change in the bank’s base lending rate. The EMI will keep changing with the changing rate.
- To avail UCO Bank Yatra Loan and UCO Pensioner you must provide security.
- When the repo rate goes up, your interest rate will also go up.
- UCO Bank offer personal loans to permanent employees, self-employed, businessmen and pensioners.
l loans to permanent employees who are confirmed in the services of government departments, corporate or business houses or in a recognised educational institutions.
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