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Home Loan

UCO Bank offers home loans to its customer to buy a house of their own. These UCO Home loans are issued at competitive pricing and are designed to meet all kinds of housing needs of an individual. UCO bank has different types of home loans.


Key Features of UCO Home Loans:
 

  • UCO Bank Home loan is issued to all applicants, whether salaried, self-employed, and even to NRI’s and PIO’s. However, the applicants must match the eligibility criteria laid
  • The bank issues home loans under reducing balance method, i.e. the interest is charged only on the outstanding loan amount and not on the amount already repaid.
  • This loan is given for the purpose of purchase or construction of independent house or ready built flats or houses for residential purpose, making extensions/renovations or repairs to existing houses or flats (The property in question should not be more than 50 years), for purchasing furniture or fixtures for existing houses or flats or for purchasing older houses of flats which are not more than 30 years old.
  • The loan can also be availed in order to pay off an existing home loan of the applicant with other banks or financial institutions.
  • UCO Home Loans interest rate is floating in nature which is co-related with the current base rate. Any increment of decrement of the base rate will have the similar effect of the floating interest rate.
  • A certain processing fee on UCO Bank home loan application is charged. The bank levies a charge standing at the rate of 0.5% on the home loans sanctioned, subject to a minimum fee of Rs.1500 and maximum of RS.15000.
  • UCO Home Loan Repayment can be done through UCO Bank Home Loan EMI. The loan should be paid off within 30 years i.e. through 360 EMI’s paid on a regular basis, or before reaching the age of 70 years, whichever is earlier. It means that the applicant cannot opt for a repayment period exceeding beyond 70 years of age.
  • Any moratorium period is only up to 36 months when no repayment of the loan is required but interest payments will have to be done
  • The bank allows for the addition of a co applicant in the loan.
  • The bank requires an equitable/legal mortgage charge of the property as primary collateral. However, the bank does not ask for a third party guarantee.
  • The bank offers prepayment facility at zero cost. Prepayment is a facility, wherein, the applicant is allowed to pay off his entire loan much before the expiry of the stipulated loan period.
  • The applicant is also benefitted by ways of tax relief on the interests and principal payments as per the applicable provisions of the Income Tax Act.
  • The bank offers tax benefits and competitive pricing and the UCO Bank home loan offers certain insurance scheme in order to protect the applicant’s property from damages or the applicant’s family from the burden of EMI payments. The types of schemes offered by the bank are as under:
     
  1. UCO Griha Raksha Yojana: It is a special insurance scheme on offer by the bank which provides protection to the house property against damages from natural calamities.
  2. UCO Griha Raksha Plus: It is a special insurance scheme on offer by the bank which provides protection to the UCO Bank home loan borrowers in the form of cover to pay off the outstanding loan amount in case of, death/permanent or total disability arising out of an accident. This scheme also provides cover towards diagnosis for contracting of any listed critical illness of the applicant.
  3. UCO Griha Jeevan Suraksha: It is a special insurance scheme on offer by the bank which provides protection to the applicant’s family from payment of the outstanding amount of the loan in case of sudden death of the borrower, whether accidental or natural.

UCO Home Loan Eligibility:
 

The applicant must fulfill certain home loan eligibility criteria and submit the documents for home loans laid down by the bank in order to avail a loan


Age: The applicant should be of a minimum age of 21 years.


The maximum age of applying for UCO Housing Loan is set at 70 years. The applicant’s age on maturity of the loan should not exceed 70 years. If an applicant exceeds the above said age limit, then he shall not be deemed eligible


Amount Of loan
 

The quantum of loan depends upon various factors such as the area of residence of the applicant, the purpose of the loan, cost of the housing project, repayment capacity and the monthly income of the borrower
 

  1. On the basis of Residence and purpose of loan:

For Loans applied from rural areas: In case of loans applied from rural areas for the purpose of construction, purchase of houses or takeovers of existing loans, the bank sanctions loans with no upper limit fixed. However, for loans availed from such areas for the purpose of repairs, extensions or renovations to existing houses, the bank issues a maximum loan amount of Rs.7.5 Lakhs.


For loans applied from metro/urban/semi urban areas:  In case of loans applied from metro/urban/semi urban areas for the purpose of construction, purchase of houses or takeovers of existing loans, the bank sanctions loans with no upper limit fixed. However, for loans availed from such areas for the purpose of repairs, extensions or renovations to existing houses, the bank issues a maximum loan amount of Rs.25 Lakhs.

Area of Residence

Construction/purchase/takeovers

Renovations/extensions/repairs

Metro/Urban/Semi Urban Areas

No Upper limit

Rs.25 lakhs

Rural Areas

No Upper Limit

Rs.7.5 lakhs

 

  1. On the basis of cost of the project: The bank issues loans varying from 75% to 80% of the cost of the project of the property. However, the cost of registration and other documentations costs are not to be included in the cost while determining the cost of the housing project.
  2. On the basis of monthly Income: The amount of loan which can be sanctioned depends upon the Gross Monthly Income (GMI) of the applicant and the Net Take Home Pay (NTHP). The NTHP is defined as the amount of the salary or income available at applicant’s disposal after making the necessary deductions towards his existing liabilities in the form of expense, Payment of existing loan EMI’S (if any) and the EMI of the proposed loan. The list of the amount of loans to be sanctioned as per the GMI of the applicant is given below:

For an individual with a GMI of Rs.50000 and below, the sanctioned amount is set at 60% of the GMI, i.e. the applicant will be sanctioned a loan amounting up to 60% of his current GMI.


For an individual with a GMI above Rs.50000 and below Rs.1 lakh, the amount to be sanctioned is set at 70% of the GMI, i.e. the applicant will be sanctioned a loan amounting up to 70% of his current GMI. However, the NTHP of the applicant should be at least Rs.20000 in order to take a loan with the bank. If the current NTHP of the individual is below Rs.20000, then he will not be deemed eligible for a loan


For an individual with a GMI above Rs.1 lakh, the amount that can be sanctioned is set at 75% of the GMI, i.e. the applicant will be sanctioned a loan amounting up to 75% of his current GMI. However, the NTHP of the applicant should be at least Rs.30000 in order to take a loan with the bank. If the current NTHP of the individual is below Rs.30000, then he will not be deemed eligible.
 

GMI

Minimum NTHP

Eligible Loan Amount(in terms of percentage of GMI)

Rs.50000 and below

NA

60% of GMI

Rs.50000 to Rs.1 lakh

Rs.20000

70% of GMI

Above Rs.1 lakh

Rs.30000

75% of GMI


The least amount of the both i.e. the cost of the project and the monthly income will be the final sanctioning amount.

UCO Pre Approved Loan

Under this facility, the bank sanctions loans to the applicant on an ‘in principle’ basis. This facility allows the individual to avail loans for purchase of properties not yet finalized.


Key features of Pre approved Home loans:
 

It gives user the flexibility to choose from a variety of properties depending upon his loan amount eligibility. Along with flexibility, it also gives the user the power to negotiate with builders/sellers of the property.
 

  • This loan is issued to all applicants, whether salaried, self-employed, even to NRI’s and PIO’s. However, the applicants must match the eligibility criteria laid down by the bank.
  • The age should be 21 years at least because ages lower than 21 years cannot avail the loan
  • The maximum age of loan application is set at 70 years. The applicant’s age at the time of the loan maturity should not be more than 70 years. If an applicant exceeds the above said age limit, then he shall not be deemed eligible for a loan.
  • There is floating rate of interest on the loan. It is linked to the base rate. if the base rate rises or falls, the floating rate will also have the same rise or fall
  • The pre-approval sanction letter is valid for a period of four months from the date of its issuance. The applicant has to purchase the property within a period of four months of receiving the sanction letter. Further requests for extension of the validity period shall not be entertained by the bank.
  • The bank charges certain loan processing fee at the time of loan application. The bank levies a charge standing at the rate of 0.25% on the pre-approved loan amount, subject to a minimum fee of Rs.1000 and maximum of RS.10000. This loan processing fee is non-refundable and may vary as per the prevailing terms and conditions on the day of actual sanction of the loan.

Amount Of loan:
 

The amount of loan sanctioned depends upon various factors such as the area of residence of the applicant, the purpose of the loan, the cost of the housing project, repayment capacity and the monthly income of the applicant.
 

  1. On the basis of Residence and purpose of loan:

For Loans applied from rural areas: In case of loans applied from rural areas for construction, purchase of houses or takeovers of existing loans, the bank sanctions loans with no upper limit fixed. However, for loans availed from such areas for repairs, extensions or renovations to existing houses, the bank issues a maximum loan amount of Rs.7.5 Lakhs.
 

  1. For loans applied from metro/urban/semi urban areas:  In case of loans applied from metro/urban/semi urban areas for the purpose of construction, purchase of houses or takeovers of existing loans, the bank sanctions loans with no upper limit fixed. However, for loans availed from such areas for the purpose of repairs, extensions or renovations to existing houses, the bank issues a maximum loan amount of Rs.25 Lakhs.

Area of Residence

Construction/purchase/takeovers

Renovations/extensions/repairs

Metro/Urban/Semi Urban Areas

No Upper limit

Rs.25 lakhs

Rural Areas

No Upper Limit

Rs.7.5 lakhs

 

  1. On the basis of cost of the project: The bank issues loans varying from 75% to 80% of the cost of the project of the property. However, the cost of registration and other documentations costs are not to be included in the cost while determining the cost of the housing project.
  2. On the basis of monthly Income: The amount of loan also depends upon the Gross Monthly Income (GMI) of the applicant and the Net Take Home Pay (NTHP). The NTHP is defined as the amount of the salary or income available at applicant’s disposal after making the necessary deductions towards his existing liabilities in the form of expense, Payment of existing loan EMI’S (if any) and the EMI of the proposed loan. The list of the amount of loans to be sanctioned as per the GMI of the applicant is given below:

For an individual with a GMI of Rs.50000 and below, the amount to be sanctioned is set at 60% of the GMI, i.e. the applicant will be sanctioned a loan amounting up to 60% of his current GMI.


For an individual with a GMI above Rs.50000 and below Rs.1 lakh, the amount of loan to be sanctioned is set at 70% of the GMI, i.e. the applicant will be sanctioned a loan amounting up to 70% of his current GMI. However, the NTHP of the applicant should be at least Rs.20000 in order to take a loan with the bank. If the current NTHP of the individual is below Rs.20000, then he will not be deemed eligible


For an individual with a GMI above Rs.1 lakh, the amount of loan to be sanctioned is set at 75% of the GMI, i.e. the applicant will be sanctioned a loan amounting up to 75% of his current GMI. However, the NTHP of the applicant should be at least Rs.30000 in order to take a loan with the bank. If the current NTHP of the individual is below Rs.30000, then he will not be deemed eligible for a loan with the bank.
 

GMI

Minimum NTHP

Eligible Loan Amount(in terms of percentage of GMI)

Rs.50000 and below

NA

60% of GMI

Rs.50000 to Rs.1 lakh

Rs.20000

70% of GMI

Above Rs.1 lakh

Rs.30000

75% of GMI


The least amount of the both i.e. the cost of the project and the monthly income will be the final sanctioning amount.

UCO Top-Up Home Loans

The bank also offers top up loans to its existing UCO Bank home loan borrowers.


Key features of UCO Bank Top up loans:
 

  • This loan can be availed for the purpose of the home loan borrower’s personal expenses such as child’s wedding, education, repairs or extensions to existing house, purchase of furniture and fixtures, business expenses, agricultural purpose etc.
  • This loan can be availed by all existing UCO Bank home loan borrowers with no overdue in existing UCO Bank home loan account. The applicant should have a regular repayment track and should have pad at least 36 EMI’S after completion of the moratorium period.
  • The bank requires a primary security in the form of mortgage charge on the property already mortgaged to the bank. The loan will be sanctioned only after a valid mortgage has been created in favor of the bank by the applicant.
  • The loan is given as a term loan
  • The applicant can apply for UCO Bank Home Loans for a minimum of RS.1 lakh and a maximum of Rs.25 lakhs.
  • The applicant if wishes to avail the loan in the form of cash credit/overdraft facility, then he can apply for a UCO Home loan amounting up to Rs.2 lakhs or 10% of the original UCO housing loans, whichever is lower.
  •  A flat rate of 0.10% on the sanctioned loan amount is charged as a processing fee
  • Which should not exceed Rs.10000
  • The top up loan has to be repaid by the borrower before he completes 70 years of his age.
  • The bank offers prepayment facility at zero cost. Prepayment is a facility, wherein, the applicant is allowed to pay off his entire loan much before the expiry of the stipulated loan period.

Rate of Interest

  1. UCO Bank offers the UCO Home Loan at MCLR of 1 Year + 0.15%, present effective rate: 9.60% p.a.
  2. UCO pre-approved loans are issued at an MCLR of 1 Year + 0.15%, present effective rate: 9.70% p.a.
  3. UCO Top-Up Loans are issued at 1.40% over MCLR of 1 Year, present effective rate: 10.95% p.a.

Frequently Asked Questions (FAQs)

  • For what purposes can one avail a home loan from UCO Bank?

One can avail a UCO Bank home loan for buying a new readymade house or a flat, for construction a new house or flat, for buying a residential plot and then constructing a house or a flat, for buying an old house or flat, for buying furniture and fixtures for an existing home or for taking over the balance of home loans taken from other banks and financial institutions and transferring the same to UCO bank at attractive rates of interest.
 

  • What is the maximum amount of home loan available at UCO Bank?

There is no maximum limit on the amount of loan offered by the bank if the loan is taken for the purchase or construction of a house. However, if the loan is taken for carrying out repairs, renovations or extensions on an existing property, the maximum available loan amount depends on the region of loan application. If loan is applied from a metro, urban or a semi-urban area, a maximum amount of Rs.25 lakhs can be taken as loan and if the loan is applied from a rural area, the maximum available loan quantum is limited to Rs.7.5 lakhs.
 

  • What is the loan repayment tenure for UCO Home loans?

The home loan taken from UCO Bank should be repaid within a maximum period of 30 years. However, there is another condition in the loan tenure allowed which is that the loan repayment should be completed before the borrower reaches 70 years of age. So, the effective loan tenure would be 30 years or the borrower attaining 70 years of age whichever is earlier.
 

  • Is there any moratorium period available under the home loan scheme?

Yes, the bank may allow a repayment holiday or a moratorium period in the UCO Bank housing loan scheme in certain cases. The allowed moratorium period is limited to 36 months.
 

  • What is the security required for availing the UCO Housing Loans?

For availing the housing loan, the applicant is required to provide an equitable mortgage of the property which is financed from the loan.
 

  • Is prepayment of the UCO home loan allowed?

Yes, the customer can choose to prepay the home loan taken from the bank. This prepayment can be done either in full or partially and the bank would not levy any charges for such prepayment done.
 

  • Other than the UCO Home Loan, what are the other types of home loans offered by UCO Bank?

UCO offers two other types of Home Loan schemes which are Pre-approved home loans and Top-up Home Loans. Pre-approved Home Loans allow the borrower the approval of a home loan even before the property has been finalized. Top-up home loans, on the other hand, are a type of Personal Loan which is offered to individuals who have already availed of a home loan from UCO bank. These Top-up Home Loans can be used for meeting the personal expenses of UCO home loan borrowers.

UCO Home loan EMI Calculator

PaisaBazaar offers EMI calculator for the convenience of its applicant. The EMI calculator is a simple and handy tool that makes the financial planning of the applicant really easy. One may know how much saddle the upcoming loan EMI is going to put on their monthly budget.


Any Interested applicant may login to www.paisabazaar.com. The applicant may select the EMI calculator and fill up the requisite details accordingly. Post-filling up the details such as Loan Amount, Rate of Interest and Tenure, the results would be prompt and the applicant may know the forthcoming EMI amount in case he/she applies for the personal Loan.

Applying for a UCO loan

Applying for a home loan from the UCO Bank has been simplified by Paisabazaar.com, on online portal which allows applicants to find out about the loan product, its features, the eligibility requirement, and the installment payable and then apply for the loan all from the comfort of their home or office. The application for UCO Bank’s home loans can also be done through the website.