UCO Bank, a 1943-founded Kolkata-headquartered public lender with more than 3,000 branches, is a noted player when it comes to financing your car wish. Be it the wish of driving a new or a used car, the bank has an attractive loan for buying looking to bring home either set of vehicles. Similarly, the cars can be financed to salaried to self-employed businessmen and from self-employed professionals to partnerships firms, companies, etc.
The time period for which the loan has to be serviced remains a maximum of 7 years for new and 5 years for used cars. The affordable interest rates make the customers running all the way to the bank branches or log in to its website to apply for the loan at the earliest. Like any good thing, UCO Bank Car loan also comes with some conditions, which you would like to know, right! So, could you please spare some valuable minutes to run through UCO Bank Car Loan Eligibility?
Meet UCO Bank Car Loan Eligibility Criteria & Bring Home Your Dream Car
UCO Bank has set a list of norms that the borrowers must comply with before accessing a car loan from the lender. Keen to know the eligibility criteria that the bank follows for approving a car loan? Find them out in the pointers below.
- Net monthly take home salary should be a minimum of ₹20,000 after deducting all loan liabilities, if any, and the proposed EMI of the loan.
- Self-employed businessmen and professionals, on the other hand, should post a yearly income of ₹5 lakh in metro cities and ₹4 lakh in other centres to be able to find a green signal from the bank for a car loan.
- When the borrower is set to apply for a car loan, his or her age must be a minimum of 21 years. The age of borrower at the time of loan maturity must not be over 70 years.
UCO Bank Car Loan Eligibility Calculator
Above, you got to know about the general eligibility of UCO Bank with regards to a car loan, Now get down to the real task of determining the loan amount you are worth for. It’s the bank’s Car loan eligibility calculator that will decide your worth. Based on what you earn and save, the calculator decides the amount of loan using its algorithm. Let’s understand the function of the calculator through an example below.
Rikshit Verma, a 25-year old IT professional, earns a monthly salary of ₹28,000 and he saves around ₹14,500. Now if he wants to know how much UCO Bank can finance him as a car loan, he can use the calculator, which would start its operation by calculating the per lakh EMI. Now when the term ‘ EMI’ comes, the interest rate and tenure assume enormous significance as they form the base by which the monthly installments are calculated.
UCO Bank Car Loan Interest Rates 2017
For New Car Loan-9% p.a.
For Used Car Loan-10.10%-10.60% p.a.
Now let’s get back to the example that was left in a mid way. So, assume Rikshit is buying a new car. In that case, the per lakh EMI would turn out to be ₹1,609.
Loan Eligibility-1,00,000 x savings/per lakh EMI
-₹1,00,000 x 14,500/1,609=₹9.01 lakh
This was based on the savings Rikshit is able to make. However, if the saving drops further and the resultant amount comes below 50% of the monthly income, he could get a lower amount of loan or his application may even get rejected as the bank could fear default from his end.
UCO Bank Car Loan EMI Calculator
Knowing the eligibility is just a tip of the iceberg. Also important is to be aware of the Equated Monthly Installment (EMI) that you as a concerned borrower should be beforehand. What can enable that is the EMI calculator, which based on the loan amount, interest rate and the tenure, shows the desired result. Also, the calculator indicates the overall interest repayment to be made from your end until the expiry of the tenure. Suppose you are searching for a 7-year car loan of ₹5 lakh at UCO Bank, which offers the same at 9%. The indicative EMI would be ₹8,045, while the total interest outgo is expected to be ₹1,75,741 over the loan term. So, your overall repayment would go up to ₹6,75,741 (5,00,000-principal+interest-1,75,741).
The decks, I hope, are cleared for you to buy a car from the showroom and sizzle the road as UCO Bank Car Loan Eligibility is understood from every respect possible. So, drive, enjoy and save on your dream car...
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