UCO Bank Used Car Loan
Formerly known as United Commercial Bank, UCO is one of the major commercial banks in the country. Established in 1943, this Kolkata headquartered banking and financial services institution has been serving a massive customer base across various sectors and target groups. A key component of its retail loan arm is finance facility for used cars in the personal banking segment.
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
Up to 70% funding is provided for used cars 4 years old (from the date of registration) and up to 60% for cars between the 4 to 5 years. The maximum loan amount for used cars is Rs.3.5 lacs.
Towering Repayment Tenure
For used cars, the loan repayment can be made in up to 36 EMIs 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(maximum Rs.1500). 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. The current interest rate for used cars is Base rate + 4%. The base rate is the standard rate of interest for all loan products from UCO which can change based on the bank's discretion.
UCO Bank Used Car Loan Eligibility Criteria
- An aspirant aged 21 and above is welcome to apply for a car loan from UCO Bank. There is no upper limit on the age criteria.
- 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.5,00,00 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 min. 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.
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 will have to pay interest based on MCLR, with these rates changing on a regular basis. The MCLR rates for the month of May are highlighted in the table below.
MCLR Benchmark Tenure (Period) | Benchmark Rates (MCLR) |
Overnight | 9.30% |
1 month | 9.40% |
3 months | 9.45% |
6 months | 9.50% |
1 year | 9.55% |
2 years | 9.65% |
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 Base and Prime Lending Rates (For existing borrowers)
Existing borrowers can choose to migrate to a MCLR based platform or continue using the old Base Rate system.
Base Rate | 9.70% per annum |
Prime Lending Rate | 14.25% per annum |
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%. This effectively means that used car loans from UCO Bank are charged an interest of 13.70% per annum.
Note: The rates mentioned above are subject to change at the sole discretion of UCO Bank. These rates are as of Jan, 2018 and borrowers should check prevailing rates at the time of application.
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.
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