UCO Bank Car Loan Interest Rates Can Help You Buy Your Dream Car

A car is a dream that we ride on, a travel partner for every road trip and much more than just being a vehicle. We all have a passion for cars and wait for the day when we can take our favorite car home. But, you must also have experienced that the thing which takes our heart away is most of the time out of the budget and same is the case with a car.

However, a car loan is always there to turn the situation in our favor. UCO Bank is one of the best lenders when it comes to affordable car loans. To apply for this desirable car loan that is a combination of a lower interest rate and a higher loan amount, check below the details.

UCO Bank Car Loan Interest Rate 2017

The car loan interest rate at UCO Bank is one of the lowest interest rates on car loans in India. The bank gives 9.00% per annum for new cars and 10.10%-10.60% per annum for used cars.  

Car Loan Eligibility at UCO Bank

UCO Bank accepts the car loan application on the basis of the eligibility criterion set by it. The bank facilitates car loans to a salaried as well as self-employed individuals who match the below criteria:

For Salaried:

• The age of the applicant must be between 21-70 years
• The minimum net monthly income of the applicant should be at least ₹20,000

For Self-employed:

• The age of the applicant must be between 21-70 years
• The minimum annual business income of the applicant should be at least ₹4 lakhs

Documentation Required

The documents checklist you must have at the time of applying for a car loan at UCO Bank is as follows:

For Salaried:

• Age Proof- Passport Copy/PAN Card/ Voter ID card, Photo Driving License with birth date (laminated, recent, legible)/Photo ration card with DOB/Employer certificate/ID/School/College Leaving Certificate
• Identity Proof- PAN Card/Voter ID/Passport/Driving License, 2 passport size photographs
• Income Proof- Form 16 for last 2 years, Latest Salary Slip, 6-month bank statement
• Address Proof- Latest Telephone Bill/ Electricity Bill/Property Tax Receipt/Passport/ Voter ID
• Signature Proof- Driving License/Passport copy/PAN Card

For Self-employed:

• Age Proof- Passport Copy/PAN Card/ Voter ID card, Photo Driving License with birth date (laminated, recent, legible)/Photo ration card with DOB/Employer certificate/ID/School/College Leaving Certificate
• Identity Proof- PAN Card/Voter ID/Passport/Driving License, 2 passport size photographs
• Income Proof- IT returns for the last 2 years along with audited balance sheet, P&L account statement for 2 years, Shop & establishment act certificate / sales tax certificate / SSI registered certificate / copy of partnership
• Address Proof- Latest Telephone Bill/ Electricity Bill/Property Tax Receipt/Passport/ Voter ID
• Signature Proof- Driving License/Passport copy/PAN Card

UCO Bank Car Loan EMI Calculator

A car loan EMI calculator is the tool that is used to calculate the monthly installments of the payments that the borrower would have to pay. This calculator takes into account the interest rate, the loan amount and the loan tenure. With the help of this tool, a borrower can check the payment details and hence prepare himself accordingly to make smoother payments.

UCO Bank Loan Application Form

You can easily apply for UCO Bank car loan by filling in the details asked in the application form, which you can get at the branch or the website of the lender. Moment the application form is submitted, UCO Bank will send a representative to visit your residence and official addresses mentioned in the documents. The representative will scrutinize the authenticity of income details shown by you in addition to the addresses. If everything goes fine, then you can get the loan to buy your dream car within a week of application submission.

Factors affecting your car loan eligibility

• Monthly Income
• Savings
• Age
• Car Value
• Car Model Type
• Credit History
• Employment Status for Salaried
• Longevity in the business for self-employed
• Category of your employer
• Accommodation

UCO Bank Car Loan Eligibility Calculator

If you are earning an income of ₹45,000 per month and your saving comes out to be ₹20,000, which accounts for nearly 45% of your monthly income. The UCO Bank will decide upon your loan amount eligibility after computing per lakh EMI.

Amount=₹1 lakh

Interest Rate=9% per annum

Tenure=7 years

Per lakh EMI= ₹1,609

Loan Amount Eligibility=₹1,00,000x20,000/1,609= ₹12.43 lakhs

Are UCO Bank Car Loan Interest Rates Lowest in the Industry?

It’s always a fun riding a stylish car with eye-catching interiors and exteriors. Tasting the roadside eateries while riding a car with your spouse or love interest is an amazing feeling. But when the wallet is put under the scanner to check whether it is ready to deal with the cost that is required to bring home a car, many become inept due to the surging interest rates on a car loan. The interest rates, to a greater extent, determine the outflow of money from your pocket towards servicing the loan.

So, when the rates charged are on the higher side, you would end up paying more which otherwise can be saved with lower interest rates. Your search for lower rates finishes with UCO Bank, a Kolkata-headquartered public lender which has been in the banking space since 75 years. The bank offers a car loan at affordable rates. But how much affordable is the question you would ask, right! So, let’s explore UCO Bank Car Loan Interest rates here and set the course for an easy and low-cost car acquisition.

UCO Bank Car Loan Interest Rates

UCO Bank finances the purchase of both new and used cars. The interest rate mechanism at UCO is purely based on Marginal Cost of Lending Rate, which applies for floating rate loans.

New Car Loan- 1-year MCLR+0.40%

                      - 8.60%+0.40%=9% p.a.

Used Car Loan- 1-year MCLR+1.50% if you buy from a certified dealer

                       -  8.60%+1.50%=10.10% p.a.

                       - 1-year MCLR+2% for others

                       - 8.60%+2%= 10.60% p.a.

Now let us see where does UCO Bank stand in terms of interest rates compared to its peers. Below are the interest rates of various lenders with the new car rate mentioned first followed by that of used car in each of the cases.

(Interest Rates in % p.a.)

State Bank of India (SBI)- 9.20-9.25

                                         - 12.65

                    HDFC Bank - 11.50-13.75

                                         - 14.50-17.50

   

                      ICICI Bank - 10.75-12.75

                                         - 15.75.  

                      Axis Bank - 11-12, 9.15 for salaried

                                        -  14.50-16.25

                   

   Bank of Baroda (BoB)  - 8.85-10.85  

Punjab National Bank (PNB)- 8.80-9.40

          Bank of India (BOI) - 9.35 for both new and used cars

Oriental Bank of Commerce (OBC) - 10.20-10.45

                                                           - 12.70

                    Canara Bank -8.75-8.95

           Corporation Bank - 9.40-9.90

                Syndicate Bank - 9.40

So, there you saw a list of car loan lenders with their respective interest rates on both new and used cars. You could find some banks which do not offer a loan for buying a used car. It is evident from the chart that UCO Bank is certainly one of the most affordable lenders available today, but not offering the lowest interest rate in the industry.  

How Much EMI You Need to Pay with UCO Bank Car Loan Interest Rates?

The interest rate is one of the vital factors determining the quantum of Equated Monthly Installment (EMI) towards a car loan. Assume you are buying a new car worth ₹7 lakhs. So, as per the new interest rate regime, you would need to service the loan at 9% while availing it from UCO Bank. The maximum time for which you can avail a loan is 7 years. Based on the eligibility, the bank decides to lend ₹6 lakhs. So, on a 7-year loan of ₹6 lakhs at the rate of 9% would bring forth an EMI and interest outflow of ₹9,653 and ₹2,10,890, respectively.

The interest outgo, however, can be reduced if you opt for a slightly lesser tenure, say 5 years, but with an expense of comparatively higher EMI. If you do follow this, the monthly installment and overall interest repayment are going to read as ₹12,455 and ₹1,47,301, respectively. The EMI, as you see, is higher by ₹2,802, but interest slashes by ₹63,589, quite a lot of bucks, isn’t it folks? As a buyer wanting to safeguard the money, this is one practice you should follow to cut down the interest repayment.

I hope, you are now fully updated on UCO Bank Car Loan Interest rates and their effects on your repayment journey. So, I leave it to you to decide whether UCO Bank is the one where you should apply for a Car loan or not. The choice is yours, but make sure your repayment capability is good enough to suffice the EMI payment and thus preventing any incidents of default, which if happens, could lower down your CIBIL score. With that, the chances of future loan approval from the lender can get either bleak or the eventual loan amount could be a lot lower than what you would need.