About UCO Bank
UCO Bank is one of the oldest commercial banks in India. Previously known as the United Commercial Bank, UCO Bank, was established in 1943 in the city of Kolkata. As a commercial bank owned by the government of India, the loans and advances are two major services of the bank. The lender has adopted several good practices to meet the customers' credit requirements and provides both Term Loans as well as Working Capital Loans for individuals as well as commercial credit needs for Agriculture, Trade and Service, Large/ Medium and Small-Scale Industries, Infrastructural Industries, etc.
UCO Bank Home Loan
UCO Home Finance is designed perfectly to suit the housing credit requirements of the diversified customer base. The rate of interest offered is competitive, and EMI is calculated on reducing balance method each month.
|About UCO Bank Home Loan|
Max. Loan Amount
Depends on Income and borrower's credit rating
Loan To Value
Up to 90% of property value*
Up to 0.5%
Up to 30 years
Why UCO Bank Home Loan?
It is always one's dream to live with family in their own space. Often many challenges like high-interest rates, and multi-layered need for various certificates, become a bottleneck to realise a dream of buying a home. A perfect Home Loan with interest of your liking is hard to find by; and, this is where UCO Bank Home Loan comes to your help.
A Home Loan by UCO Bank can help you conveniently buy a flat or house of your choice. You enjoy following benefits:
Ease of borrowing: With UCO Home Loan, you can choose a longer tenure of up to 30 years as per your financial health.
A simple application process is another highlight of UCO Bank Home Loan application. You can easily apply online via MyMoneyMantra or visit the nearest UCO Bank branch. The process would involve limited documentation and faster processing.
Diversified deals: You can avail UCO Home Loan for construction, repairs or renovations of the existing house or purchase of residential property that isn't older than 30-50 years*, besides to transfer Home Loan balance from other banks. Be assured to find a customised loan for your needs.
Affordability: With promise of low-interest rate and loan insurance, you not only save on loan repayment amount but also get peace of mind against financial troubles owing to uncalled for death or disability.
Turnaround Time: You can complete the process of applying for a Home loan within 5 working days. Being one of the oldest commercial banks, UCO Bank, ensures better customer service for you throughout the country.
Easy eligibility: Both salaried as well as self employed individuals are eligible for UCO Bank Home Loans. You don't need to worry about the looped documentation and long processing time of Home Loans, as UCO Bank Home Lone is best suited to help a vast segment of borrowers.
Features of UCO Bank Home Loan
The following features make UCO Home Loan stand apart from other Home Loans-
- Home Loan for all
UCO Home Loan is provided to all types of applicants whether they are salaried or self-employed. Even NRIs and PIOs can apply for UCO Bank Home Loan with same eligibility criteria as of Resident Indians.
- EMI Calculated on Reducing Balance Method
A reducing balance method is used for calculation of UCO Home Loan EMIs. That is, interest is charged only on the remaining loan amount, which is assessed after payment of each EMI. You do not pay interest on the principal amount already paid.
- Floating Interest Rate
The interest rate on UCO Home Loan is floating in nature and will change with change in benchmark price.
- Purpose of Loan
The purpose for Home Loan can vary from construction of a new house to repairs/ renovation of an existing house or flat which is not more than 50 years old or for purchasing furniture.
- Loan Amount
According to the area used for the construction or repair or purchase of a house, the maximum limits are capped as shown below in the table:
|Location of the House||For construction or Purchase or Takeover of Loans||For repair or extension or renewal|
Metro or Urban or Semi-Urban
No upper limit
No upper limit
- Processing Fee
The UCO bank charges a nominal processing fee at 0.5% of the loan sanctioned. The processing fee ranges between 1500 to a maximum of 15000.
- Loan Tenure
The UCO Home Loan can be borrowed for a maximum of 30 years, or through 360 EMIs. The age of the borrower should not be more than 70 years before the maturity of loan. That is, though the maximum tenure is 30 years, for people above 40 years of age, the maximum loan tenure will be 70 minus the borrower's age.
- Moratorium period
You can make use of a moratorium period of 36 months, wherein you do not re-pay the regular EMI, but only the interest component for the period.
UCO Bank allows you to add a co-applicant and improve the loan eligibility.
For Home Loan, UCO bank seeks an equitable/ legal mortgage charge of the property as primary collateral. But, the bank does not ask for a third party guarantee.
- No Cost Prepayment facility
UCO Bank extends a prepayment facility at zero cost. You can repay the entire loan much before the expiry of the loan period as per your financial health.
- Tax Relief
You can tap tax relief on the repayment of interest and principal of Home Loan as per principal provisions of the Income Tax Act.
- Margin of Finance
The loan can be sanctioned for up to 90% of the value of the property.
- Insurance scheme
The UCO Bank Home Loan is backed by optional insurance schemes to protect your property as well as repayment burden. Different types of insurance schemes offered are given below:
- UCO Griha Raksha Yojana -This is a special insurance scheme on offer which protects your house form natural calamities.
- UCO Griha Raksha Plus - This insurance scheme protects the Loan borrowers by paying off the outstanding loan amount in case of death or total disability from an accident. The scheme also covers the diagnosis for contracting the listed illness of the applicant.
- UCO Griha Jeevan Suraksha - This insurance scheme protects the applicant's family from payment in case of the sudden death of the borrower, whether accidental or natural.
UCO Bank Home Loan Interest Rates
The UCO Bank is a state-owned commercial bank and offers attractive rates of interest. The latest interest rates for Home Loans are shared below:
Rate of Interest
|UCO Bank Home Loan Slabs||Effective rate of interest (% p.a)|
|Up to 30 Lakh||1 year MCLR, i.e., 8.65%|
|Above 30 Lakh to 70 Lakh||1 year MCLR + 0.10% i.e. 8.75%|
|Above 75 Lakh||1 year MCLR + 0.25% i.e. 8.90%|
Except for Home Loans up to 30 Lakh, the following categories of customers are eligible to obtain a concession of 10 basis points (0.10) on the Home Loan Rate.
- Employees of Central and State Government/ PSUs/ Central and Stare Government Autonomous bodies/ Central and State Government College and University and UCO bank staffs.
- Existing UCO bank customers having a proven track record, by way of any of the following:
- Satisfactory running of Saving Bank Account with an average balance of 10000 for last one year.
- Current account holders with an average balance of 20000 for the last year.
- Loan accounts with a good history of payment of principal and interest for three years and above after moratorium period.
UCO Bank Loan Processing Fees and Other Charges
UCO Home Loans are available to you at nominal processing fees. There are no hidden charges involved.
If you opt for UCO Home Loan, you will pay a nominal processing fee of up to 0.50%, which is limited to a minimum of 1500 and a maximum of 15000. Besides, there is no additional charge for prepayment of floating Home Loans. This grants you utter freedom of settling your loan amount whenever you want without paying any extra charges.
Types of Home Loans by UCO Bank
UCO Bank offers three types of Homes Loans. They are:
UCO Home Loan
This is a regular Home Loan product by UCO Bank. Both salaried as well as self-employed between the age group of 21 years to 70 years can apply for this loan.
UCO Pre Approved Home Loan
This is an add on facility provided by UCO Bank in which the applicant is provided In-principle sanction of the Home Loan based on eligibility as per income criteria under UCO Home Loan scheme where the applicant is yet to identify or finalise the property. The Pre Approval sanction is only valid for 4 months from the date of sanction.
UCO Top Up Home Loan
In case, when the Home loan borrowers have other financial requirements like children's education, the furnishing of the house, repair of the house, business needs, etc., an extended mortgage is charged on the property already mortgaged to the bank using the UCO Home Loan Top Up Scheme. Certain conditions are to be met for receiving this scheme.
The eligibility conditions are:
- UCO Bank Home Loan customers with regular payment record of at least 36 instalments after the moratorium.
- Customers having no overdue in the existing loan.
- Customers who have created a valid mortgage in favour of the bank.
UCO Bank Home Loan Eligibility
As mentioned earlier, the eligibility criteria for UCO Bank Home Loan is easy to abide by. A person having a minimum of 21 years of age to a maximum of 70 years is eligible to apply for UCO Home Loan. Even NRIs and PIOs get their loan sanctioned from UCO Bank.
The loan can be sanctioned only for any one of the purposes mentioned below:
- Purchase and construction of house or flat for residential use.
- In case of repair or renovation or extension of the existing house or flat, it shouldn't be more than 50years old.
- Home Loans from other banks or financial institutions can be transferred to UCO Bank.
- The loan can be availed for furnishing the residential property.
- The loan can also be used to purchase the house or flat not more than 30 years old.
Documents Required for UCO Home Loan
A very simple documentation process is carried out for processing UCO Home Loans. This helps customer avail the best of credit services as fast as possible. Documents required for UCO Home Lone include:
- Income Tax Returns of the last three years
- Duly filled application form, with photographs
- Bank Statements of last three years
- Address proof
- Salary slips
- Personal identity proof
- Property purchase agreement
Why Apply for UCO Bank Home Loan on MyMoneyMantra?
Applying for UCO Bank Home Loan via MyMoneyMantra guarantees you access to the best credit product with complete peace of mind. Being the industry pioneer, we assure you access to the best of Home Loan deals available in the market.
The striking benefits of availing a Home Loan offer with MyMoneyMantra can be listed as:
- Fast & convenient process
- Safety and protection of privacy
- Ample choice to select the deal
- Attractive rate of Interest
- As good as a tailored deal
- Complete documentation assistance
- Free guidance from Loan Expert till the disbursal
How to Apply for UCO Bank Home Loan on MyMoneyMantra?
It is completely hassle-free to apply for Home Loan through MyMoneyMantra.
Here is the step-by-step process:
- Visit MyMoneyMantra website.
- Fill the loan application form. You are required to share the basic details, including personal details, contact number, and loan requirement. An OTP is generated to verify identity and contact number.
- As you complete the verification process by filling in OTP, you will be directed to a Home Loans listing page citing the best Home Loan offers, curated according to your needs.
- You can directly choose UCO Bank Home Loan and click on Apply/ eConnect to the bank, and the loan application will be processed instantly.
- Alternatively, you can compare the rates of interest and loan terms of different lenders and choose the most affordable loan offer.
- A Loan representative will call you and guide about the bank's loan processing system. The professional guidance from MMM would come for free of cost.
- The representative will help you close the deal in the shortest possible time and follow up until the loan process completes. They will ensure that you avail doorstep pick up of documents and there is no hassle though out the process.
- The loan will be disbursed within a few days of submission of loan documents.
How to Calculate UCO Bank Loan EMI?
The Home Loan EMI is a monthly repayment amount that needs to be paid back to the lender for the loan duration. EMI is usually processed on a fixed day of the month for the entire loan period.
There are certain aspects used to calculate the EMI of your Home Loan, they are:
- P= Loan amount.
- R= Rate of interest. The minimum rate of interest provided by UCO Bank for a home loan is equivalent to 1-year MCLR, which is 8.65% p.a. (w.e.f June 2019)
- N= Tenure of the loan in months, this can be up to 360 months in case of UCO Bank
As the UCO Bank Home Loans are extended for up to 30 years, the EMI can be as low as 780 per Lakh. This helps you to pick the EMI that is affordable and suitable for your budget.
The higher tenure helps to reduce the EMI to a great extent. If you are thinking about the case of 15, 20, 30 years of tenure, 15 years loan will have a higher EMI and 30 year loan will have the lowest EMI.
The EMI you are paying consist of both interest and a principal component. Even though the EMI amount will remain constant, every month, the proportion of interest and the repayment paid through EMI will keep changing. The proportion of principal repayment in EMI will keep increasing, and the interest will keep reducing after each EMI.
Other Credit Products by UCO Bank
Apart from Home Loan, UCO Bank also extends other credit products to cater to the retail credit needs of individuals as well as corporations:
UCO Bank provides Vehicle Loans for cars and two-wheelers. The UCO Car Loan targets salaried, non-salaried, business concerns, ex-staff, and pensioners as well as NRIs. There is a specific income criterion for each of the target groups mentioned above. One has to qualify the income criteria to apply for the loan. You can avail UCO Auto Loan for new cars as well as used cars with marginal requirements established by the bank.
You can also apply for a UCO Car Loan with your existing UCO Bank Home loan. This scheme is called UCO Car Loan Combo scheme. One can apply for both new and used cars under this category.
UCO two-wheeler Scheme is an easy finance scheme for the purchase of new two-wheelers. The target customers are the salaried and non-salaried borrowers but have lower income criteria compared to the Car Loan. The scheme has no prepayment charges that might be exciting for you.
The mortgage scheme is to help firms or companies and individuals to meet their financial needs using the mortgage. Mortgage scheme is a safer option for the banks and will be helpful to individuals who seek emergency financial aid.
UCO Rent Scheme is one which offers financial help to owners of a house or warehouse or flat for the repairs, renovation and all. The repayment period is limited in this scheme to 120 months.
UCO Bank Education Loan can be availed by students who want to pursue their education in India or abroad. The Educational Loan is provided for approved courses by the recognised university in India, and for abroad, professional or technical courses by reputed universities are selected. The student must be an Indian citizen and should have secured the admission for the course to apply for the loan. The loan provides a maximum of 10 Lakh for studying in India and a maximum of 20 Lakh for studying abroad.
There is no security or third party guarantee required for a loan up to 7.5 Lakh. Above the same, collateral security equivalent to the loan has to be submitted.
UCO Bank classifies Personal Loans under various schemes:
UCO Cash Scheme
The scheme extends financial assistance for legitimate purposes like medical treatment, marriage, financial liability, etc. Salaried individuals with a permanent job and two years of experience are eligible for this loan. The loan can be sanctioned for an amount up to 10 Lakh, which is determined based on your salary. No collateral security is required for availing this facility.
UCO Pensioner Scheme
This is a short-term loan sanctioned for pensioners based on their various needs like medical expense, marriage expense of children, travelling expense, etc. A maximum of 48 instalments is allowed for this loan or till the age when the pensioner turns 72 years. No collateral security is needed as the loan is given based on the pension amount. The pensioner should be receiving the pension through UCO Bank to apply for the loan.
UCO Shopper Loan Scheme
For purchasing various electronic and electrical gadgets, UCO Shopper Loan can be used. One must be a customer of UCO bank for a minimum of six months and should have regular salary jobs with one year of experience.
UCO Securities Scheme
Using this scheme, one can avail loans using the Life Insurance Policies of Life Insurance Corporation of India and bonds issued by specific financial institutions. The security bond should be in the name of the borrower to apply for the loan. Repayment should be made either before the maturity of the security bond or within five years from the date in which loan was sanctioned.
UCO Gold Loan Scheme
This is a demand loan which enables the customer to avail financial aids using the Gold as collateral security. One is eligible to apply for loans for agriculture. Micro and Small Enterprises, Education, etc. A declaration from the eligible borrowers will be required to be specific about the requirements at the time of sanction itself. One of the criteria for the amount of loan is that it is entirely based on the grams of Gold. Gold Loan is provided at the rate of interest in between 7% - 10.15%.
UCO Bank Loan Customer Care
UCO Bank is at your service for any of your queries regarding the Home Loan procedure. You can contact the UCO Bank on the toll-free number given below:
1800 274 0123
You can also contact the bank using the given email ids for your queries regarding the UCO Home Loan:
The customer service will reach out to you at the earliest to solve any of the doubts regarding the Home Loan schemes.
Latest News Snippets - UCO Bank Home Loan
Uco Bank gets 14,000 crore windfall
State-run UCO Bank gets a new lease of life with 13,000-14,000-crore of windfall inflows from Iran oil payment right. The bank expects this interest-free floating fund to boost its income.
UCO Bank planning a QIP worth 500 - 700 crore in Q4
UCO Bank has reported Q3 earnings. In an interview with CNBC-TV18, Ravi Takkar, who is the Managing Director and CEO of the bank, spoke about the results and the targets of the company in the upcoming quarter.
UCO Bank crossed the business of 1 Lakh crore by achieving 1,69,891 crore
UCO Bank successfully crossed the 1 Lakh Crore in the year of 2008-09 by achieving a total of 1,69,891 Crore worth of business.
UCO Bank registers a historic profit
UCO Bank was able to register a historic operation profit of 4940 crores and a net profit of 1510 crore.
UCO Bank launches mobile banking facility
The bank has introduced the mobile banking facility in the financial year 2008-09 itself. The customer service is given high priority, and mobile banking can be helpful to a lot of customers to operate their account.
UCO mPassbookis available in Google Playstore
UCO Bank welcomes you to the modern smartphone world with the launching of UCO mPassbook in the Google Playstore. This app can be used to check the transaction details of your account from your smartphone itself. A valid internet connection can help you check your passbook record easily in your smartphone from anywhere in the world.
UCO Bank Home Loan - Frequently Asked Questions
How long does it take to borrow a UCO Bank Home Loan?
At MyMoneyMantra we help you process your UCO Bank Home Loan as swiftly possible. After the submission of the document, it should take 5 working days or less to get the amount in your account. For further queries, contact MyMoneyMantra Customer Care.
What is the age cap to apply for UCO Home Loan?
You should be older than 21 years to apply for UCO Home Loan.
Are there any charges for foreclosure of the loan?
There are no extra charges for the foreclosure of the loan. You can prepay the loan as per your financial situation.
Can I change the way I pay the monthly amount?
Yes. You will have to give an application at the bank which states that you need to change the payment method.
Do I need a guarantor for a Home Loan at UCO Bank?
No. You do not need a loan guarantor for Home Loan from UCO Bank. Your residential property will act as collateral for the loan, but no additional loan guarantee is required.
What is the credit score requirement for UCO Home Loan?
A CIBIL score of minimum 650 is expected from the applicants to apply for UCO Home Loan.
How can I apply for UCO Home Loan most conveniently?
Through MyMoneyMantra, you can apply for the loan with ease. It is a completely online process that would require a few minutes to complete.
What is the effective rate of interest for UCO Home Loan?
The rate of interest for UCO Home Loan varies from 8.65% to 8.9% p.a.
What is the maximum tenure of Home Loan offered?
The maximum loan tenure permitted by the bank is 30 years, and the minimum is 10 years.