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  • UCO Bank Personal Loan Interest Rates

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  • UCO Bank offers personal loans interest rates starting at 9.85% p.a. The maximum amount of loan you can apply for is Rs.10 lakh. The minimum loan tenure is 12 months and the maximum tenure is 60 months. The bank charges a processing fee of 1% of the loan amount, subject to a minimum of Rs.750. There are multiple loan options you can choose from. Pay your medical bills, wedding expenses, buy consumer goods like computers, refrigerators, etc., and do a lot more with these loans. There are predominantly two loan options – UCO Cash which is available only to salaried individuals and UCO Shopper Loan Scheme which is available to both salaried as well as self-employed persons. The bank also offers a special loan scheme for pensioners.

    Particulars UCO Cash UCO Shopper Loan Scheme
    Interest Rate 11.45% to 11.70% p.a. 9.85% to 10.85% p.a.
    Processing Fee 1% of the loan amount (min. Rs.750) 1% of the loan amount (min. Rs.1,000)
    Loan Tenure Up to 60 months (5 years) Up to 60 months (5 years)
    Loan Amount Maximum Rs.10 lakh Maximum Rs.2 lakh
    Employment Status Salaried individuals Salaried and self-employed
    Credit Score Ideal score – above 700 Ideal score – above 700
    Lowest EMI per Lakh Rs.2,197* Rs.2,117**

    Note: *The EMI of Rs.2,197 has been calculated using a principal amount of Rs.1 lakh, an interest rate of 11.45% p.a., a tenure of 1 year, and a processing fee of 1% of the loan amount.

    ** The EMI of Rs.2,117 has been calculated using a principal amount of Rs.1 lakh, an interest rate of 9.85% p.a., a tenure of 1 year, and a processing fee of 1% of the loan amount.

    UCO Bank Personal Loan Schemes

    UCO Bank offers two loan schemes to help customers depending on what they want to buy. The UCO Cash loan option is for salaried customers and can be used towards any expense they see fit. The UCO Shopper Loan Scheme is specifically designed for customers who want to buy consumer durables. This includes computers, refrigerators, televisions, etc.

    Factors that Affect UCO Bank Personal Loan Interest Rates

    Gender: You can get different interest rates based on your gender. UCO Bank offers lower rates for women borrowers.

    Credit score: Your credit score shows whether or not you pay your loan EMIs and bills on time. If your score is high, it means lower risk for the bank. This may prompt them to offer you a lower rate of interest.

    Level of income: If you earn a higher level of income, you may be able to borrow a higher amount from the bank. Apart from this, they may offer you lower rates since your capacity to repay the loan is more.

    Job stability: If you work at a reputed organisation, the bank may consider you to have a more stable job. Job stability means a stable income. This lowers your risk of loan default, which may lead to lower rates of interest.

    Loan tenure: If you choose a longer loan duration, the bank may offer you a lower rate of interest.

    Relationship with UCO Bank: If you already have an account with UCO Bank, they may offer you certain loan benefits that are not offered to first-time customers. These include better interest rates, better repayment options, special services, etc.

    Illustrations

    Illustration 1: Akhil has been working for 2 years now. He is earning a salary of Rs.25,000 per month. He wants to borrow Rs.1 lakh from the bank under the UCO Cash scheme. However, his credit score is only 610. He chooses a tenure of 1 year. The bank offers him an interest rate of 14.5% p.a. since he does not have a good credit score. He is also charged a processing fee of 1% of the loan amount.

    Loan particulars:

    • Principal – Rs.1 lakh
    • Interest rate – 14.5% p.a.
    • Processing fee – 1%
    • Tenure – 1 year (12 months)

    Here is how Akhil has to repay the loan over the next 12 months:

    Month Principal Paid(A) in Rs. Interest Paid(B) in Rs. Total Payment (A+B) in Rs. Outstanding Loan Balance in Rs.
    1 7,794 1,208 9,002 92,206
    2 7,888 1,114 9,002 84,318
    3 7,983 1,019 9,002 76,335
    4 8,080 922 9,002 68,255
    5 8,178 825 9,003 60,077
    6 8,276 726 9,002 51,801
    7 8,376 626 9,002 43,425
    8 8,478 525 9,003 34,947
    9 8,580 422 9,002 26,367
    10 8,684 319 9,003 17,683
    11 8,789 214 9,003 8,895
    12 8,895 107 9,002 0
    Total 100,001 8,027 108,028

    Illustration 2: Saurav earns Rs.50,000 a month. He has a total work experience of 4 years and a credit score of 835. He wants to borrow Rs.1 lakh and repay it over a period of 1 year. Since he has an excellent credit score, the bank offers him a rate of 11.70% p.a. the processing fee is 1% of the loan amount.

    Loan particulars:

    • Principal – Rs.1 lakh
    • Interest rate – 11.70% p.a.
    • Processing fee – 1%
    • Tenure – 1 year (12 months)

    Let’s see how Saurav has to repay this loan over the chosen period of 1 year:

    Month Principal Paid(A) in Rs. Interest Paid(B) in Rs. Total Payment (A+B) in Rs. Outstanding Loan Balance in Rs.
    1 7,896 975 8,871 92,104
    2 7,973 898 8,871 84,131
    3 8,051 820 8,871 76,081
    4 8,129 742 8,871 67,952
    5 8,208 663 8,871 59,743
    6 8,288 582 8,870 51,455
    7 8,369 502 8,871 43,086
    8 8,451 420 8,871 34,635
    9 8,533 338 8,871 26,102
    10 8,616 254 8,870 17,486
    11 8,700 170 8,870 8,785
    12 8,785 86 8,871 0
    Total 99,999 6,450 106,449 ?

    FAQs

    1. What credit score should I have to get a good interest rate?

    Ideally, a credit score above 700 should help you get a loan without any hassle. A 700+ score is considered to be good. But if you want to be in a position to negotiate the interest rate with the bank, you should aim for a score of more than 820. Anything above this is an excellent score.

    2. Should I already have a bank account to get a good interest rate?

    Sometimes, having an existing relationship with the bank can help you get a better interest rate. That said, if you want to take a loan under the UCO Shopper Loan Scheme, you need to be an existing member of the bank for at least 6 months.

    3. How does my interest rate impact my loan repayment?

    Your interest rate is one of the factors that determine what your EMI will be. The higher your rate, the more you will have to repay each month.

    4. How can I calculate my EMI?

    You can use the online personal loan EMI calculator that BankBazaar offers to find out what your EMI is. Calculating your EMI will help you find out whether you will be able to afford to pay that amount every month or not.

    5. What are the different methods of paying my EMIs?

    You can repay your loan in the following ways:

    • By giving standing instructions to the bank to auto-debit the amount every month.
    • Via post-dated cheques.
    • By registering for the Electronic Clearance System (ECS).
    • By registering for the National Automated Clearing House (NACH) mandate.
        

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