UCO Bank offers personal loans to every applicant. UCO Personal loans are provided in three variants, namely, UCO Cash, UCO Shopper Loan Scheme and UCO Pensioner Scheme meant to meet specific needs of an individual. UCO Personal loans take care of an individual’s personal needs such as a wedding, certain business expenses or purchase of furniture etc.
UCO Cash Loan
This UCO Personal loan is extended to individuals in order to meet certain unforeseen expenses such as a child’s wedding, education funding needs, vacations, any social obligations and other such related matters.
The bank has laid down certain criteria for an applicant wishing to avail a loan with the bank. The applicant must meet the mentioned criteria in order to avail a UCO Personal loan with the bank. If he fails to meet any of the mentioned requirements then he shall not be deemed suitable for the loan. These criterions vary from individual to individual depending on their age, business profile, and income. The list of criterion as set by the bank is given below:
Job profile of the applicant:
- These loans can be availed by all salaried individuals.
- The applicant, if an employee of any govt. institution/Public sectors Units or any other semi Govt. organization/Colleges/Universities, is also eligible for a loan with the bank provided that he is a permanent and confirmed employee of the unit. Any temporary employee or interns are not deemed eligible for a UCO Personal loan with the bank. The applicant should have had completed a minimum of 3 years of service in his current organization. Any applicant having worked for a period less than 3 years in his current organization will not be provided with a loan. The organization with which the applicant has been working should have salary tie up arrangements with UCO Bank branches.
- Even employees of reputed private concerns are eligible for a loan with the bank. However, the applicant must be a permanent employee of the organization with a minimum 3 years of work experience in the current organization. Any applicant having worked for a period less than 3 years in his current organization will not be provided with a UCO Personal loan. The organization with which the applicant has been working should have salary tie up arrangements with UCO Bank branches.
The eligibility of the applicant under this category is determined, keeping in mind his net take home pay.
- The Net take Home Pay (NTHP) should stand at a minimum of 40% of the gross monthly Income (GMI). 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. While determining the applicant’s total income, in order to calculate the eligibility other sources of income such as rent, interest, dividends and any other such related income may also be taken into consideration. However, the applicant has to provide substantial documents proving the validity of the same.
The maximum amount of UCO Personal loan to be sanctioned under this category of loan is set at Rs.10 lakhs.
The bank may issue loans with or without any collateral. The requirement of collateral depends on upon the amount of the loan applied for. The bank does not require any collateral for loans amounting up to Rs.2 lakhs. However, for loans above Rs.2 lakhs, the bank demands a security in the form of any collateral security equivalent to 40% of the sanctioned loan amount.
The bank also provides for an insurance scheme with the name of UCO Rin 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 UCO Personal loan in case of sudden death of the borrower, whether accidental or natural.
Repayment of the loan
The bank allows for repayment of the loan through Equated Monthly Installments (EMI).However, the repayment tenure for UCO Personal Loan depends on upon the sex of the applicant.
- A male applicant has to pay off the entire loan within a period of 4 years i.e. through 48 EMI’s paid on a regular basis.
- A female applicant has to pay off the entire loan within a period of 5 years i.e. through 60 EMI’s paid on a regular basis, subject to the retirement age of the applicant. The loan has to be repaid in full by all women applicants one year prior to their retirement.
This loan is extended to all pensioners, widows and war widows (only if they are capable of introducing a co-applicant with a steady source of income) drawing regular pensions from UCO bank branches. This loan can be availed by the applicants for the purpose of meeting medical expenses of self or dependent children and spouse, payment of mediclaim installments of self or dependents, children’s wedding, funding of child’s education, traveling purpose, repairs to existing house or property, funeral expenses and other such related expenses.
Amount of Loan:
- The maximum amount of loan to be sanctioned depends on upon the nature of the pension being received by the applicant.
- For pensioners with family pension schemes, the maximum amount of loan that can be availed by an individual is kept at 10 times of the monthly pension of the applicant or Rs.3 lakhs, whichever is lower.
- For pensioners without family pension schemes, the maximum amount of loan that can be availed by an individual is kept at 10 times of the monthly pension of the applicant or Rs.2lakhs, whichever is lower.
- The bank does not levy any kind of processing charge on loans issued to pensioners.
- The rate of interest charged by the bank is fixed at the rate of 4.00% above the existing base rate, i.e. base rate+4.00%. The loan is issued under floating rate method.
- UCO offers a personal loan with 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 bank issues such loans only after having received a third party guarantee.
- The personal guarantee of the applicant’s spouse, who will be eligible for receiving family pension post death of the pensioner, is deemed necessary in order to avail a loan with the bank.
- In Cases, where the applicant’s spouse is not available or already deceased then the personal guarantee of the applicant’s sons or daughters or a third party is required.
- In case of war widows, a co-applicant with sufficient source of income is required. However, if a co-applicant is not available, then the applicant has to provide security in the form of a third party guarantee.
UCO bank offers a personal loan to individuals who want to buy consumer durable items such as refrigerators, music systems, air conditions, electrical and electronic gadgets and any other such related items which aim to make an individual’s life more comfortable.
The bank has laid down certain criteria for an applicant wishing to take personal loans from UCO. The applicant must meet the mentioned criteria in order to avail a UCO Personal loan with the bank. If he fails to meet any of the mentioned personal loan requirements then he shall not be deemed suitable for the UCO Personal loan. These criterions vary from individual to individual depending on their age, business profile, the area of residence, income, relationship with the bank etc. The list of criterion as set by the bank is given below:
Relationship with the Bank
The applicant must be having a banking relationship with the bank for a minimum period of 6 months, i.e. the applicant should be the bank’s customers for at least a time period of 6 months and above.
UCO Personal loans can be availed by all individuals irrespective of them being self-employed professionals, self-employed, non-professionals and businessmen. Besides this, the applicants must fulfill the below-mentioned eligibility criteria
- The applicant, if an employee of any govt. institution/Public sectors Units or any other semi Govt. organization, is also eligible for a loan with the bank provided that he is a permanent and confirmed employee of the unit. Employees or interns who are temporarily employed would not be able to take the UCO Personal loan
- Even employees of reputed private concerns are eligible for a UCO Personal loan with the bank. However, the applicant must be in a permanent position with the organization with a minimum 1 year of work experience. The applicant must also have a minimum period of 5 years of service remaining, i.e. the applicant should not be nearing his retirement age at when the individual is applying for a loan with the bank.
Income Required For UCO Personal Loan
The eligibility of the applicant under this category is determined to keep in mind four important factors, namely, his Gross Income, Net Take Home Pay, His area of residence and his job profile.
In case of a salaried borrower:
- A salaried applicant residing in metro cities, with a minimum gross income of Rs.30000 per month is eligible for a UCO Personal loan with the bank, whereas, a salaried applicant residing in other cities, with a minimum gross income of Rs.20000 per month is eligible for a loan with the bank.
- The Net take Home Pay (NTHP) should stand at a minimum of 40% of the gross monthly Income (GMI) or Rs.10000, whichever is higher. 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 UCO Personal Loan EMI of the loan sought.
In Case of Non-salaried Borrowers:
- A non-salaried applicant residing in metro cities or any other city, with a minimum gross income of Rs.4 lakh per month as per his latest audited financials, is eligible for a UCO Personal loan with the bank.
- The Net take Home Pay (NTHP) should stand at a minimum of 40% of the gross monthly Income (GMI) or Rs.10000, whichever is higher. 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 UCO Personal loan.
The UCO Personal loan eligibility under this category depends on upon the job profile of the applicant.
In Case Of Salaried Borrowers
A salaried applicant whose age lies between 21 to 60 years is eligible for a UCO Personal loan with the bank. It means that an applicant lower than the age of 21 or higher than 60 cannot apply for a UCO personal loan with the bank.
In Case Of Non-Salaried Borrowers
A non-salaried applicant between the ages of 21 to 65 years is eligible for a loan with the bank. It means that an applicant below the age of 21 and above the age of 65 cannot apply for UCO Personal loan with the bank.
Amount of Loan Granted
The maximum amount to be sanctioned as a loan under this category of loan is set at Rs.200000 or 10 times of monthly take home pay, whichever is less. It means that the least amount of both will be considered as the eligible loan amount.
The bank charges certain processing fee at the time of loan application. The bank levies a charge at the rate of 1% on the sanctioned UCO Personal loan amount, subject to a minimum fee of Rs.1000.
For granting the UCO Personal loan there is a margin which is to be maintained with the bank. The required rate is 20% of the total cost of the articles being purchased.
The bank allows for repayment of the UCO Personal loan through Equated Monthly Installments (EMI). The applicant should repay UCO Personal loan within a maximum of 60 monthly installments spread over a 5 year period
The bank issues such type of personal loans with or without collaterals.
Interest rate for Personal Loans
The bank issues loans under floating rate of interest linked to the existing base rate. Any change in the base rate structure has a direct effect on the home loan rate. An increase in the base rate will lead to an increase in the home loan rate and a decrease in the base rate structure will lead to a decrease in the UCO Personal loan rate. The bank cannot offer UCO Personal loans below existing base rate.
- The UCO Personal Loan interest rates charged by the bank depend on upon the nature of the loan. If the loan has been availed against 100% liquid collateral security or by ways of salary tie up arrangements with the bank, then it issues UCO Personal loans at the rate of 1% above the existing base rate, i.e. base rate+1%.
- If the loan has been availed without any security or guarantee, then the bank issues loans at the rate of 2% above the existing base rate, i.e. base rate+2%.
UCO bank offers Personal loans 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.
UCO Securities is a Personal Loan scheme which is sanctioned against the pledging of securities held by an applicant. The features of UCO Personal Loan are as given below:
- The loan is given to individuals against financial securities held by them. The securities should be issued by the Central Government, State Government or Reserve Bank of India in the form of Kisan Vikas Patra, National Savings Certificates, Government securities and Relief Bonds. The loan is also available against Life Insurance Policies issued by Life Insurance Corporation of India and against bonds and debentures issued by specific Public Financial Institutions.
- The securities held should be in the name of the individual who is applying for the loan facility if the loan application is made on an individual basis. If the application is made on a joint basis, the securities to be pledged can be held in the name of any one of the co-applicants
- The securities to be pledged should be transferable which can be assigned or pledged in the name of UCO Bank or transferred in the name of the bank
- The bank would issue the loan after it retains a proportion of the security value as margin. The margin retained would be calculated on the discontinued value of the maturity proceeds which will be the discounted value of the financial security at its Base Rate
- The loan can be issued in multiple natures of a term loan, demand loan or an overdraft facility
- The rate of interest at which the loan is issue is equivalent to the Base Rate + 3.50%
- The loan repayment period depends on the remaining term of maturity of the security which is pledged or 5 years whichever is earlier
- A loan processing fee is payable on the loan which is Rs.250 per personal loan request
This is another type of Personal Loan from UCO bank which is offered to customers so that they can undertake a journey without worrying about the required finances. The salient features of the loan scheme can be detailed as below:
- The loan is issued to meet the expenses which occur when a trip is undertaken. The expenses might involve airfare, train tickets, bus charges, expenses incurred for accommodation, sightseeing expenses, etc. related to a journey. The journey for this purpose might be a pilgrimage, tour, excursion, journey for a medical treatment, etc. The loan also covers the expenses incurred when a trip is undertaken with self, spouse, children, parents of the applicant within India or abroad. Thus, the personal loan requests can be placed for meeting the traveling expenses, hotel accommodation expenses, and cash in hand, sight-seeing expenses, etc.
- The loan should not be put to any speculative uses and the applicant has to give a written undertaking stating the valid purpose for which the loan is being availed at the time of applying for the loan.
- A maximum of 30% of the loan amount can be availed by the borrower for meeting other expenses
- A minimum loan of Rs.30, 000 and a maximum of Rs.5 lakhs is granted as loan under this scheme of finance
- 15% of the estimated expenses of the trip would be retained by the bank as a margin and 85% of the funding can be done with the loan amount
- The loan is offered as a term loan wherein a loan processing fee of 1% of the loan amount with a minimum of Rs.2000 is payable upfront at the time of applying for the loan
- The rate of interest charged on the loan amount is 12.2% which is arrived at by adding 2% to the Bank’s current Base Rate
- If the borrower fails to meet the EMI payments and there is a default in the EMI for more than one month, the bank would levy a penal interest. This penal interest would be charged at 2% per annum on the amount of default for the default period starting from the date when the EMI was due to be paid
- The loan repayment tenure is extended up to 24 months which would start 1 month after the loan is disbursed. However, the applicant must repay the loan before he attains 70 years of age
- The loan can be prepaid anytime without incurring any prepayment charges for the same
- As security for the loan the bank has multiple requirements for personal loans. The first being an extension of the charge or mortgage of the property which has been already mortgaged to the bank. The minimum collateral security for all types of personal loans issued by the bank should be 1.25 times for banks to offer personal loans. An ECS or PDCs should be obtained from the borrower for the entire loan repayment tenure as the second requirement. Lastly, if the applicant is a salaried individual, the personal guarantee of the spouse or PF Gratuity nominee would be required. In case the applicant is self-employed, personal guarantee of the spouse or a third party guarantee would be required if the spouse is dead or separated. The third party should have an income similar to the borrower of the loan.
- The applicant should be an Indian resident having a regular source of income by way of salary or self-employed income
- The borrower should be an existing UCO bank borrower of another loan for which his property has been mortgaged with the bank. The borrower should also have a regular repayment record in case of the earlier loan of 12 months after the moratorium period has been completed.
- There should be thus, no overdue in the applicant’s earlier loan account taken from the bank
- The applicant’s property should be mortgaged in favor of the bank
The minimum age for granting the loan is 21 years while the maximum age is 70 years which also includes the repayment tenure.
The UCO Bank has an MCLR of 9.45% for one year and 9055% for two years w.e.f. 11-08-2016. The following are the rates of interest for different schemes;
- For Men: MCLR of 1 Year + 3%, 12.45% at present.
- For Women: MCLR of 1 Year + 2.75%, 12.20 at present.
- Processing fees is 1% of loan amount (minimum Rs.750/-)
- MCLR of 1 Year + 4.15%
- There is no processing charge or service charge.
UCO Shopper Loan Scheme:
- In case of Salary tie-up arrangement or Loan secured by 100% liquid collateral security - MCLR of 1 Year + 1.15%
- All other cases - MCLR of 1 Year + 2.15 %
- Processing fees is 1.00% of the loan amount with MinimumRs.1000/-
UCO Securities Loan:
- MCLR of 1 Year + 3.25%
- The Processing fees of UCO Securities Loan is Rs.250 per case
UCO Personal Loans are available online through the Paisabazaar.com website where one can apply for a UCO Personal loan online by simply filling up and submitting the loan application form available on the website. There is also an option to calculate EMI for UCO Personal Loan on the website to assess the affordability of the UCO Personal loan availed. There are other online tools available on the website like eligibility calculator, financial calculator, etc. to provide the applicant with a whole gamut of financial tools which he may avail for any sort of loan related use.