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Home / Car Insurance / Articles / Lowest UCO Bank Car Loan Interest Rates | Instant EMI Calculator, Apply Now!

Lowest UCO Bank Car Loan Interest Rates | Instant EMI Calculator, Apply Now!

Team AckoJul 24, 2023

When it comes to purchasing a car, many individuals seek financial assistance through car loans. UCO Bank, one of India's leading public sector banks, offers attractive car loan options to help individuals fulfil their dreams of owning a car.

In this article, we will delve into the details of UCO Bank's car loan interest rates, key features, eligibility criteria, and the application process.

Whether you are a first-time buyer or looking to upgrade your vehicle, UCO Bank's car loan offerings might be the ideal solution for you.

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Contents

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UCO Bank Car Loan Interest Rates in 2023

The following table provides more details about the UCO Bank car loan interest rates as of July 2023.

UCO Bank Car Loan Scheme

Interest Rate

New Car Loan

8.70% onwards

Used Car Loan

9.15% onwards

Features of UCO Bank Car Loan

Here are the key features of the UCO Bank car loan schemes.

  • UCO Bank extends its loan offerings to individuals from diverse economic backgrounds, including entrepreneurs, salaried employees, businessmen, farmers, agriculturalists, pensioners, non-resident Indians (NRIs), and business concerns.

  • UCO Bank finances up to 85% of the on-road cost of the vehicle without imposing a maximum loan amount.

  • An added advantage of choosing UCO Bank for your car loan is the absence of any prepayment penalties. It means that you can repay the loan ahead of schedule without incurring any extra charges.

  • UCO Bank offers flexible repayment options to suit different preferences. For new automobile loans, borrowers can choose to repay the loan through a tenure of up to 84 Equated Monthly Installments (EMIs). On the other hand, for used car loans, the bank provides a repayment period of up to 60 EMIs.

How to Calculate UCO Bank Car Loan EMI

To calculate the EMI (Equated Monthly Installment) for a UCO Bank car loan, you can follow these steps.

Step 1. Gather the Required Information: Before you start calculating the EMI, ensure you have the following details.

Loan Amount: The total amount of the car loan you wish to borrow from UCO Bank.

Interest Rate: The applicable interest rate on the car loan provided by UCO Bank.

Loan Tenure: The chosen repayment tenure for the car loan in months.

Step 2. Use the EMI Formula: EMI can be calculated using the following mathematical formula.

EMI = [P x R x (1+R)^N] / [(1+R)^N-1]

P = Principal Loan Amount (Loan Amount)

R = Monthly Interest Rate (Annual Interest Rate / (12 x 100))

N = Loan Tenure in Months

Step 3. Calculate the EMI: Using the formula from Step 2, input the loan amount, interest rate, and loan tenure into the equation and calculate the EMI.

Eligibility Criteria: UCO Bank Car Loan Eligibility

Following are the eligibility criteria to apply for a UCO Bank car loan.

  • As per the previous fiscal year's Income Tax Return (ITR), self-employed professionals are required to have a minimum annual income of Rs. 5 lakhs in metro areas and Rs. 4 lakhs in non-metro areas.

  • Applicants must be at least 21 years of age, and the maximum age limit, inclusive of the loan repayment period, is set at 70 years.

  • Farmers and agriculturalists should have earned a minimum of Rs. 4 lakhs per year in the preceding fiscal year.

  • For corporates and non-corporate entities, it is essential to have recorded profits in the last two years, along with sufficient cash flow to repay the auto loan after settling any outstanding liabilities, if applicable.

  • Self-employed individuals, professionals, businessmen, corporates, agriculturists, farmers, non-corporate business concerns, former UCO Bank staff, pensioners, and NRIs all qualify to apply for a car loan from UCO Bank.

  • In specific cases, the income of a spouse, parents, or children may be taken into consideration to potentially increase the loan amount.

  • Salaried candidates need to demonstrate a minimum monthly income of Rs. 20,000 after considering all deductions, including existing loan EMIs, statutory deductions, and the requested loan's EMI amount.

Application Process: How to Apply for UCO Bank Car Loan

There are two methods to apply for a UCO Bank car loan. The following sections explain the same.

Online Process

  • Visit the official website of UCO Bank.

  • Select “Vehicle Loan” from the “Borrow” menu.

  • Click on “Apply Now”.

  • Fill in the required details and submit the online loan application.

Offline Process

Walk into your nearest UCO Bank branch and enquire about the car loan. The bank official will guide you through the application process. 

Documents Required to Apply for a Car Loan from the UCO Bank

Here is the list of documents you need to apply for a UCO Bank car loan.

  • ID proof

  • Address proof

  • Proof of age

  • Bank statement for the last six months

Salaried Applicants

  • Salary slips for the last three months

  • ITR/Form 16

Self-Employed Applicants

  • ITR with income calculation for the last three years

  • Audited Balance Sheet and Profit & Loss Account for the past three years.

Factors Affecting UCO Bank Car Loan Interest Rates

Several factors can influence UCO Bank car loan interest rates. These factors include the following.

  • Credit Score: One of the most critical factors that impact car loan interest rates is the applicant's credit score. It is a numerical representation of an individual's creditworthiness based on their credit history and repayment track record. 

Borrowers with a higher credit score are seen as less risky by the bank, and thus, they are likely to be offered lower interest rates. On the other hand, individuals with a lower credit score may face higher interest rates due to perceived higher credit risk.

  • Loan Amount and Tenure: The loan amount and repayment tenure also play a significant role in determining the interest rate. Larger loan amounts or longer tenures may result in higher interest rates. On the contrary, opting for a smaller loan amount or a shorter repayment tenure may lead to more favourable interest rates, as the bank perceives lower risk associated with shorter loan durations.

  • Employment Stability: Stable employment history is another factor that influences car loan interest rates. Borrowers with a consistent employment record and steady income are seen as more reliable in repaying the loan on time. Such individuals may be offered more competitive interest rates compared to those with frequent job changes or irregular income patterns.

  • Market Conditions: The prevailing market conditions, including the overall economic climate and monetary policies, also impact car loan interest rates. In times of economic stability and low inflation, banks may offer car loans at more attractive rates. Conversely, during periods of economic uncertainty or high inflation, interest rates may be adjusted accordingly.

  • Relationship with the Bank: Existing UCO Bank customers with a long-standing relationship and a good repayment history may be eligible for preferential interest rates on their car loans. Building a strong banking relationship and maintaining timely repayments can improve the chances of securing favourable interest rates.

Check Out Car Loan Interest Rates from Other Banks in India (2023)

The following table lists the car loan interest rates (as of July 2023) of various banks in India.

Bank Name

Car Loan Interest Rate (Per Annum)

State Bank of India

8.60% onwards

Bank of Baroda

8.70% onwards

Union Bank of India

8.80% onwards

HDFC Bank

8.85% onwards (Rack Interest)

Federal Bank

11% onwards

Axis Bank

8.75% onwards

Canara Bank

8.80% onwards

Punjab National Bank

8.75% onwards

ICICI Bank

8.85% onwards

Kotak Mahindra Bank

7.70% onwards

Bank of India

8.85% onwards

IndusInd Bank

7% onwards

Yes Bank

9.7% onwards

UCO Bank

8.70 onwards

Frequently Asked Questions (FAQs) about UCO Bank Car Loan

Here are some of the most common questions and their answers related to UCO Bank car loans.

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What is the processing fee for the UCO Bank car loan?

The processing fee for the UCO Bank car loan stands at 0.50% of the loan amount, up to a maximum of Rs. 5,000 and applicable GST.

What is the age limit for a UCO Bank car loan?

Applicants must be at least 21 years of age, and the maximum age limit, inclusive of the loan repayment period, is set at 70 years.

What is the maximum finance allowed under the UCO car loan combo scheme?

The maximum finance allowed under the UCO car loan combo scheme depends on the terms and conditions of the bank.

Disclaimer: The above content is for informational purposes only. It is recommended to take the help of an expert before making a decision.

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