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UCO Bank Home Loan Interest Rates

Indians take great pride in owning a home. Their monthly savings portfolio always contains a portion for house purchase funds. To assist them in their dream of owning a home, banks and financial institutions offer various home loan products.

UCO Bank housing finance scheme is one such product designed carefully and thoughtfully to meet the needs of every individual.

Loan slabsROI w.e.f 10.12.2018
Up to 30 lacs1-year MCLR = 8.70%
30 lacs - 75 lacs1-year MCLR + 0.10% = 8.80%
Above 75 lacs1-year MCLR + 0.25% = 8.95%

Factors that influence the interest rates on UCO Bank Home Loans

The interest rate on a home loan from UCO Bank can vary from borrower to borrower based on their eligibility criteria. Following are some of the factors that can influence the interest rate on your home loans.

Type of Interest :

UCO Bank provides the option of floating rates and fixed rate. Floating rate is bound to change as per market conditions. A fixed rate doesn’t change throughout the loan tenure. Banks offers additional benefits and offers for floating rates.

Credit Score :

A good credit score gets you a better terms on your home loans. Banks prefer an individual with a good credit score. It ensures that you are approved for a higher loan amount and a lower rate of interest. Any credit score of 750 and above is considered a good credit score. With the consistent repayment on your existing loans and credit card bills, you can build a good credit score.

Loan amount :

The interest rate would increase with a higher loan amount. A higher loan amount increases the risk for the lender and hence they charge a higher interest rate. Women applicants are given a concession on the interest rate. Hence, higher the down payment you are ready to make, the loan amount is lower and hence a lower interest rate.

Tenure :

The maximum tenure on UCO Bank home loan is 30 years. One can choose the tenure based on their repayment ability. However, choosing a shorter repayment period is better as it can get you lower interest rate home loans.

Features of UCO Bank Home Loans

Eligibility

Any individual (resident and NRI/PIO), who is above 21 years of age but below 70 years of age is eligible to apply for a home loan.

Purpose

UCO Bank home loans can be availed for

1. Purchase of a new, ready built flat or an old flat not more than 30 years old

2. Purchase or construction of individual house

3. Repair/renovation/extension of an existing property

4. Loan available even for furnishing of the house

5. Takeover of loans availed from other banks or financial institutions

Quantum of Loan

The important feature of UCO Bank home loans is that there is no maximum limit on the quantum of home loan you can avail, except for repairs or renovation purposes.

Branch centreFor construction/purchase/takeoversFor repairs/renovations/extensions
Metro/Urban/

Semi-urban

No Upper Limit Rs. 25 lacs
RuralNo Upper LimitRs. 7.5 lacs

Processing fees

0.5% of the loan amount subject to a minimum of Rs.1500/- and a maximum of Rs.15000/-

Repayment tenure

The maximum repayment tenure offered by UCO Bank is 30 years or 360 EMIs. It should be noted that the borrower should not be older than 70 years at the end of the loan tenure.

Security

UCO Bank requires an equitable mortgage of the purchased property as a security. No other third-party guarantee is required.

Eligibility Criteria: UCO Bank Home Loan

As mentioned earlier, UCO Bank does not have an upper limit on the quantum of loan you can apply for. However, if the loan is for repair or renovation purposes, the loan amount is fixed at Rs.25 lacs. Similarly cost of the property also plays a role in fixing the loan amount

CostQuantum of loan
upto Rs.30 lacsup to 90%
Rs.30 lacs - Rs.75 lacsup to 80%
Rs.75 lacs and aboveup to 75%

Income – The gross monthly income is also considered while determining the loan amount eligibility. The total deductions existing plus the EMI of the proposed loan would be linked to Gross Monthly Income (GMI) and must adhere to the below conditions

Gross monthly income (GMI)Quantum of loan
up to Rs.50000/- EMI not to exceed 60% of GMI
Rs.50000 - Rs.100000EMI not to exceed 70% of GMI
above Rs.100000EMI not to exceed 75% of GMI

NRI/PIO

Gross monthly income (GMI)Quantum of loan
up to Rs.150000/- EMI not to exceed 50% of GMI
Above Rs.150000EMI not to exceed 60% of GMI

Employment type – Employees of State & Central Government/PSU/State & Central Government Autonomous bodies/State & Central Government Colleges & Universities & UCO Bank staffs receive a concession of 10 basis points (0.10%) on loans above Rs.30 lacs

FAQs: UCO Bank Home Loan Interest Rate

1. How is the home loan interest calculated by UCO Bank?

UCO Bank uses the daily reducing balance method, which means that it is calculated on the outstanding amount only. This reduces your interest burden upon every EMI payment.

2. Can I pre-pay my loan?

Bank allows pre-payment of your loan and charges NIL pre-payment charges.

3. Can I avail a top-up loan? What will be the interest rates?

Yes, you can avail a top-up home loan provided there are no overdues on your existing loan. An interest rate of 1-year MCLR + 1.40% is charged for top-up home loans.

4. Is there any concession on interest rates for long-time customers of the bank?

Existing loyal customers of the bank with a good financial health are given a concession of 10 basis points (0.10%) for home loans of above Rs.30 lacs.

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