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UCO Bank Car Loan

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UCO Bank Car Loan

With the economic uplift in most cities of India, the car loan industry has got a severe boost. People are now not only dreaming about owning a car, but are actually buying it. EMI or Equated Monthly Instalments are making it easier for people to pay loans and enjoy the comfort of a car. UCO Bank offers car loans on easy finance schemes for new and pre-owned four wheelers not older than 5 years.

Factors that Affect UCO Bank Car Loans

Floating Interests Rates: UCO bank’s car loans are offered at floating interest rates, which means that the rates change as per the market fluctuations. Interest rates will keep varying as per the inflation rates. Basically, the bank keeps revising the rates as per the high and lows of the markets. Loan applicants need to be aware of the changing interest rates (low when the marker is low and high when the market is peaking) while availing for the car loan and must plan as required.

Repayment Capacity: UCO bank offers car loans based on the model and the condition of the car and its resale value. Hence, the financing or loan amount on each car differs. This is in case if the borrower isn’t able to pay loan, the bank could sell the car and recover the loan amount. The car is kept as a security, hence, the car model and the repayment capacity is kept in mind while sanctioning the car loan.

Down Payment: UCO bank car loans are offered at better interest rates when the loan applicant can give a good amount of down payment for the car. The down payment is flexible and is decided by the borrower but the Bank always prefers a good part of the amount so that the interest rates or the EMI becomes significantly less and affordable.

Eligible Applicants for UCO Car Loans

The minimum age is 21 years and the maximum age is up to 70 years including, repayment period.

  • Salaried Group: Regular employee with minimum 6 months completed service.
  • Non-salaried Group: Established professionals and self employed or businessmen
  • Farmers and Agriculturists
  • Business Concerns (corporates and non-corporates)
  • Ex-staff and Pensioners
  • NRIs

Income Criteria for UCO Car Loans

Salaried Group
  • Minimum monthly take-home pay would be Rs.20000/- at all centres after all statutory deductions and existing loans liabilities + EMI of the proposed loan
  • Maximum loan limit 36 times of Gross Monthly Income
Non-Salaried Borrower
  • Minimum Income criteria for Professionals & Self-employed Businessman would be Rs 5 lakhs per annum in Metro Centres and Rs 4 lakhs per annum in other centres as per ITR/ Assessment of ITR during the preceding year.
  • Maximum loan limit three times of average gross annual income for the last 2 years.
Non-Salaried Borrower
  • Minimum Gross Income of Rs. 4 lakhs per annum during the previous financial year.
  • Farmers having land holding in their own name.

The maximum loan limit is three times of the annual income of the previous financial year. UCO bank car loans allow you to club the income of the spouse and children above 18 to ascertain the loan limits based on merit. Likewise, clubbing of income of regular earning parents is allowed for loan to children above 18 years of age.

UCO Bank Car Loan for Business Purposes

If the UCO Bank car loan is availed for business for corporates or non-corporates – the business concern must be in profit for last 2 years and cash flow during the currency of loan must be sufficient enough to repay the proposed loan after satisfying all existing liabilities if any.

Margin Requirements for UCO Bank Car Loan

  • New Car: 15% for new vehicle
  • Pre-used Car: 20% of valuation in case of reputed certified car dealers for pre used cars. Vehicles up to 5 years old are eligible.
  • In other cases, 30% of valuation by approved valuer or surveyor of any General Insurance company / certified automobile engineer or IDV (Insured's Declared Value), whichever is lower, for pre-used cars. Vehicles up to 5 years old are eligible.

Loan Amount for UCO Bank Car Loans

For New Car:

Maximum finance would be 85% of the on Road Price i.e. Ex Show Room Price+ Cost of Registration +One Time Road Tax+ Insurance (one time) with no ceiling on maximum loan amount

For Pre-used Car:

Rs 15 lakhs if purchased from reputed certified car dealers for pre used cars.

Rs 5 lakhs if purchased from others

Repayment of UCO Bank Car Loans

New Car: Maximum 84 EMI

Pre-used Car: Maximum 60 EMI

Rate of Interest* for UCO Bank Car Loans

New Car: MCLR of 1 Year + 0.40% presently, 8.95% p.a.

Pre-Used Cars: MCLR of one year + 1.50% if purchased from certified car dealer presently, 10.05% per annum and MCLR of one year + 2.00% for all others presently 10.55% per annum

Following type of customers will be eligible for concession in ROI of 10 basis points (0.10%):

  • Employees of Central and State Government/PSU/Central & State Government Autonomous bodies/Central & State Government Colleges & Universities and our Bank staff
  • Existing loyal customers having proven track record i.e. anyone of the following:
    • Satisfactory running of Savings/Current account having average balance of Rs. 50000 for the last one year
    • Loan accounts with regular repayment of principal and interest for a period of three years and above after moratorium period.

Processing Charge for UCO Bank Car Loans

  • 1% of the loan amount maximum Rs.1500/-.
  • 100% waiver of processing charges from 01.07.2018 to 30.09.2018
  • Prepayment Charges: Nil

UCO Bank Car Loans - FAQ

1. How can you avail of the UCO bank car loan?

You can directly approach the UCO bank, log on to their website and apply online or apply through CreditMantri.

2. Why apply for the UCO bank car loan through CreditMantri?

The application of the UCO car loan through CreditMantri is an easy, seamless process. CreditMantri guides you through all the steps and documents that are required to get the loan sanctioned.

3. Is the UCO bank car loan meant for new cars only?

UCO bank’s car loan scheme is designed for both new cars and pre used (old) cars.

4. What is the maximum amount that I am eligible for?

For new vehicles, there is no ceiling on the loan amount. However, maximum finance would be limited to 85% of the on road price.

For pre-used vehicles there are three criteria mentioned as below:

  • 70% of the cost of the used vehicle up to 4 years old
  • 60% of the cost of the used vehicle more than 4years old but not exceeding 5 years old
  • Rs. 3.50 lakhs maximum

5. What is the repayment schedule?

Loan can be repaid in maximum of 84 months for new cars and maximum of 36 months for old cars.

6. How is interest calculated or charged in my loan account?

Interest is calculated on daily reducing balance basis, which means that it is calculated only on the outstanding loan amount, which reduces every time you pay off your EMIs or make any pre-payments. This makes paying of the loan much faster with more ease.

7. Can I repay the loan ahead of schedule? What are the prepayment charges?

Yes, you have the option to repay the loan ahead of schedule either in part or in full without any prepayment charges.

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