UCO Bank Used Car Loan
UCO Bank Used Car Loan helps salaried, self-employed, business and NRI applicants finance a pre-owned car through this Kolkata-headquartered public sector bank, established in 1943. The loan is priced against UCO Bank's MCLR-linked benchmark rates and is repayable in easy monthly instalments. Check the eligibility, loan quantum and interest rates below before you apply.
UCO extends used car loans for all types of income groups ranging from salaried class to self employed towards the purchase of pre owned cars in various categories. As a responsible public sector bank, UCO disburses used car loans at attractive terms and low interest rates.
Features and Benefits of UCO Bank Used Car Loan
Populist Approach
Other than applicants from salaried and non - salaried groups, UCO also provides car loan to other categories of aspirants such Business houses(Corporates & Non Corporates), Retirees, Pensioners & Non Resident Indians(NRI's) which represents a mass reach approach from a responsible bank.
Appealing Quantum of Loan
UCO Bank now funds up to 80% of the dealer-quoted price (subject to a maximum of Rs.100 lakh) for a pre-owned car bought through an OEM-backed or reputed car dealer, and up to 70% of valuation (maximum Rs.10 lakh) for a car bought privately.
Towering Repayment Tenure
For used cars, the loan repayment can be made in up to 60 EMIs (five years) which gives you multitude of options in choosing the most suitable tenure that matches your monthly budget. Plus, UCO Rin Jeevan Suraksha (insurance) covers the outstanding loan amount in case of death of the borrower.
Soft on Wallet Fee & Charges
Processing fee charged by the bank is just 1% of the loan amount. UCO does not levy any penalty on car loan prepayment. With such conducive rates, you're likely to save more on miscellaneous charges involved in the loan.
Nominal Interest Rates
The interest rate for used cars is substantially low when compared to its counterparts in the market. UCO Bank used car loan interest rates are linked to the MCLR (Marginal Cost of Funds Based Lending Rate) for new borrowers. New borrowers are charged MCLR plus a spread that UCO Bank sets at its discretion, while existing legacy borrowers who remain on the Base Rate system continue to be charged Base Rate + 4%. See the interest rate tables below for the current benchmark figures.
UCO Bank Used Car Loan Eligibility Criteria
- An aspirant aged 21 and above is welcome to apply for a car loan from UCO Bank. The maximum age for a UCO Bank used car loan applicant is 70 years.
- For the salaried class, min. monthly available income should be Rs.20,000 after all deductions and existing liabilities on various loans. Maximum loan amount provided by the bank will be 36 times of gross monthly income.
- Non salaried car loan aspirants from metros(professionals and businessmen) should be earning a minimum of Rs.5,00,000 and Rs.4,00,000 in all other centers as per the ITR/ Assessment of ITR during the preceding financial year. The maximum loan amount disbursed can go up to three times the average gross income for the last two years.
- Farmers and Agriculturists with a minimum of Rs.4,00,000 in gross income can be eligible for a car loan from UCO. Max. loan can be up to 3 times the annual income of the previous financial year.
UCO Bank allows clubbing of income of immediate family members like spouse and children to enhance eligibility.
Documents Required for UCO Bank Used Car Loan
Applicants need to submit one mandatory identity/address proof (Ration Card, Voter's ID, PAN Card, Passport or Driving Licence, along with two passport-size photographs), income proof (last three months' salary slips, Form 16 and bank statements for the last six months for salaried applicants, or trade licence, current account statements and financial statements for self-employed applicants), and vehicle documents. For a pre-owned car, the vehicle documents include the dealer's quotation or sale agreement, a fitness certificate from a qualified automobile engineer, a valuation certificate from a bank-approved surveyor, and the blue book, road tax clearance and insurance copy.
UCO Bank Used Car Loan Interest Rates
UCO CAR is a specialised loan which can be used by borrowers to purchase a pre-owned car. Based on new guidelines from the RBI, interest on this loan will be computed using MCLR, which takes into account current financial conditions to provide relevant information to borrowers.
UCO Bank Marginal Cost of Funds based Lending Rate (For new borrowers)
Individuals who wish to avail a UCO Bank used car loan will have to pay interest based on MCLR, with these rates changing on a regular basis. As of July 2026, UCO Bank's 1-year MCLR is 8.80% per annum (effective 10 July 2026).
MCLR Benchmark Tenure (Period) | Benchmark Rates (MCLR) (p.a.) |
Overnight | 7.90% |
1 month | 8.20% |
3 months | 8.45% |
6 months | 8.70% |
1 year | 8.80% |
2 years | Not currently published as a separate MCLR tenure by UCO Bank. |
Note: The interest rates are effective from 10 July 2026.
Used car loan interest rates - July
The tenure of a used car loan determines the overall interest rate payable, primarily due to the fact that MCLR changes with tenure. UCO Bank can charge an additional spread over the applicable MCLR, with this being the final interest applicable. These rates are decided by the bank at its sole discretion.
UCO Bank interest rate for used cars (Based on Base Rate)
The interest for UCO CAR is calculated on the basis of the base rate, with the final interest payable being BR+4%.
EMI Calculation for UCO Bank Used Car Loan
Determine EMIs and get breakdown of various charges before applying for a used car loan from UCO Bank. Use the UCO Bank Used Car Loan calculator to help you ascertain expenses involved. This user friendly tool will give you a better picture of the costs incurred, thus enabling you to plan the financials in a better way.
Summary
UCO Bank Used Car Loan helps salaried, self-employed and business applicants finance a pre-owned car at MCLR-linked interest rates from this public sector bank. The loan covers a large share of the car's value, is repayable over a flexible tenure, and comes with minimal fees and no prepayment penalty. Check your eligibility and use the UCO Bank Used Car Loan EMI calculator to plan your instalments before you apply.
FAQs on UCO Bank Used Car Loan
1.What is UCO Bank Used Car Loan?
UCO Bank Used Car Loan is a financing facility from UCO Bank that helps individuals and businesses purchase a pre-owned car. It is available to salaried, self-employed, business and NRI applicants and is repaid through monthly instalments.
2.Who can apply for UCO Bank Used Car Loan?
UCO Bank Used Car Loan is open to salaried and non-salaried individuals, corporate and non-corporate business houses, retirees, pensioners and Non-Resident Indians. This wide reach reflects UCO Bank's approach as a public sector lender.
3.How much loan amount can I get under UCO Bank Used Car Loan?
The loan quantum under UCO Bank Used Car Loan depends on whether the car is bought through a dealer or a private seller, and is capped as a percentage of the car's price or valuation. Refer to the Appealing Quantum of Loan section above for the current funding limits.
4.What is the repayment tenure for UCO Bank Used Car Loan?
UCO Bank Used Car Loan can be repaid over a flexible tenure through equated monthly instalments, letting borrowers choose a schedule that fits their monthly budget. The current maximum tenure is listed in the Towering Repayment Tenure section above.
5.Does UCO Bank charge a processing fee on the used car loan?
Yes, UCO Bank Used Car Loan carries a one-time processing fee calculated as a percentage of the loan amount, subject to a cap. The exact fee is listed in the Soft on Wallet Fee & Charges section above.
6.Does UCO Bank levy prepayment charges on a used car loan?
No, UCO Bank does not levy any penalty if you prepay your UCO Bank Used Car Loan. This helps borrowers save on interest by closing the loan early without an additional cost.
7.Is insurance available with UCO Bank Used Car Loan?
Yes, UCO Bank Used Car Loan comes bundled with UCO Rin Jeevan Suraksha, an insurance cover that settles the outstanding loan amount if the borrower passes away during the loan tenure. This protects the borrower's family from the repayment burden.
8.Who is eligible for UCO Bank Used Car Loan?
Eligibility for UCO Bank Used Car Loan depends on the applicant's age and category — salaried, non-salaried professional or businessman, or farmer/agriculturist — with a minimum income requirement for each category. The full criteria are listed in the Eligibility Criteria section above.
9.Can I combine my spouse's or family income to improve my UCO Bank Used Car Loan eligibility?
Yes, UCO Bank allows applicants to club the income of immediate family members such as a spouse or children with their own. This can enhance the loan amount an applicant is eligible for under UCO Bank Used Car Loan.
10.What documents are required for UCO Bank Used Car Loan?
UCO Bank Used Car Loan requires identity and address proof, income proof suited to the applicant's employment category, and vehicle-related documents such as the dealer quotation, fitness certificate and valuation certificate for the pre-owned car. The Documents Required section above lists these in full.
11.How is the interest rate calculated for UCO Bank Used Car Loan?
UCO Bank Used Car Loan interest for new borrowers is calculated using the Marginal Cost of Funds based Lending Rate (MCLR) plus a spread set by the bank. Existing borrowers on the legacy system continue to be charged with reference to the Base Rate.
12.What is MCLR and how does it affect UCO Bank Used Car Loan interest rates?
MCLR, or Marginal Cost of Funds based Lending Rate, is the internal benchmark rate that UCO Bank revises periodically based on prevailing financial conditions. UCO Bank Used Car Loan rates for new borrowers move in line with changes to this benchmark.
13.Can existing borrowers stay on the Base Rate system for UCO Bank Used Car Loan?
Yes, existing UCO Bank Used Car Loan borrowers can either migrate to the MCLR-based platform or continue on the older Base Rate system. Each system determines the applicable interest rate differently.
14.How can I calculate my EMI for UCO Bank Used Car Loan?
You can use the UCO Bank Used Car Loan EMI calculator to estimate your monthly instalment and see a breakdown of the charges involved. This helps you plan your finances before applying for the loan.
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