UCO Bank
Loan Against Property

UCO Bank is a public sector bank that was established in the year 1943 and its headquarters is in Kolkata. The bank supports every segment of the economy through financial participation in Agriculture, Service Sector, Infrastructure Sector, Trade and Commerce, etc. and is in par with the changing scenario. It has over 3000 branches across the country.

Among other services like deposits, insurance products, internet banking, mobile banking, debit cards, credit cards, providing loans and advances is the primary activity of the bank. They have products designed for all the sectors like the retail sector, corporate sector, MSME sector, infrastructure sector, etc. Besides this, they have specially designed products for personal needs. Loan against property is one such product that caters to the personal needs of their customers. The bank offers flexible repayment options with a reasonable rate of interest.

Below is the comparison of UCO Bank mortgage loan interest rate with loan against property interest rates of other lenders. You can compare the rates offered by different lenders to choose the best option:

The rate of interest for UCO Property Loan Scheme is 1-year MCLR + 2.55 % i.e. 11% p.a. (floating) for priority sector loans and 1-year MCLR + 3.55% i.e., 12% (floating) for non-priority loans.

For UCO Rent, if the premises is leased-out to the bank branch, then the rate of interest is 1-year MCLR + 1.15% i.e. 9.55% p.a. and if it is leased-out to MNCs/State/Central Government Organisations, Corporate concerns, Other Banks, Financial Institutions, Insurance companies etc., the rate of interest will be 1-year MCLR + 1.70% i.e., 10.10% p.a. The rate of interest if the premises is leased-out to anybody other than the ones mentioned above, the rate of interest will be 1-year MCLR + 2% i.e., 10.40% p.a. if the repayment period is below 36 months and 1-year MCLR + 2.25% i.e., 10.65% p.a. if the repayment period is above 36 months. For commercial and real estate, the rate of interest will be 1-year MCLR + 2.90% i.e., 11.30% p.a.

The rate of interest for UCO Swabhiman is 1-year MCLR + 2.65% i.e. 12.35% p.a.

The current MCLR of UCO Bank is 8.40% p.a.

Other Charges

The following are the eligibility criteria for availing of the UCO Bank LAP:

• Salaried individuals, self-employed individuals/professionals and businessmen, and pensioners are eligible for the loan.
• The applicants should be in the age group of 21 years to 65 years.
• The applicant should be owning a property in his/her name.
• A regular income with sufficient repayment capacity is mandatory to be eligible for the loan.
• The upper age limit of the applicant at the time of applying for the loan is 65 years and 70 years at the time of maturity of the loan for both the salaried and the self-employed.
• The minimum salary stipulated for salaried individuals is 30000/- p.m. in Metros and 20000/- in all the other centers.
• The minimum income per annum for the self-employed should be 4.00 lakhs as per the latest ITR.
• The net take-home salary after all the statutory deductions, deductions for present loans and the proposed EMI should not be less than 40% of the gross income of 10000/- whichever is higher.
• The income of the co-borrower will be considered for assessing the eligibility. Parents/Spouse/Children can be co-borrowers.
• A loan will be granted against residential/commercial property and non-agricultural land.
• In the case of UCO Rent, the loan will be given against residential houses/flats/warehouses/go downs, etc. the property can either be in the name of an individual or a firm/company. The loan will not be sanctioned against properties belonging to Co-operative Societies.
• Senior Citizens are eligible for the UCO Swabhiman-Reverse Mortgage loan.
• The age of the property should not be more than 50 years if it is a plot with building and in the case of a flat/apartment, the age should not be more than 30 years.

The following are the documents required for loan against property of UCO Bank. The documents have to be submitted along with two passport-sized photographs and a relevant loan application.

KYC Documents

• Voter's ID Card
• Aadhar Card
• Pan Card
• Driving Licence
• Utility Bills
• Passport

Income Proof for salaried individuals

• Salary slips for the last 6 months.
• Form 16 and ITR for the last 2 years
• Bank Account statement for the last 6 months.

Income Proof for the self-employed

• Audited financial statements like the Balance Sheet and P & L Account for the last 3 years.
• ITR with income computation for the last 3 years.
• Bank Account statement for the last 12 months.
• Bank statement for loan account for the last 12 months.

Business Proof:

• Shop Establishment Act Registration Certificate.
• GST Certificate with GST Returns for the last 1 year.
• Partnership Deed
• Memorandum of Association
• Articles of Association
• Certificate of Incorporation

Property Documents

Chain of the title deeds to prove a marketable title along with the sanctioned plan

Processing charges:

For UCO Property

1% of the sanctioned amount if the loan is availed as a term loan and 0.50% of the sanctioned limit if the loan is in the form of an overdraft facility. Renewal charges at 0.50% of the limit with a maximum of 15000/- will be collected for the overdraft facility every year.

For UCO Rent:

1% of the sanctioned amount with a maximum of 2.00 lakhs. Renewal charges for the Drop Line OD facility will be collected every year at 225/- per lakhs with a minimum of 250/- and a maximum of 56000/-

For UCO Swabhiman:

The charges will be collected at 0.25% of the sanctioned amount.

Security:

Security by way of equitable/registered mortgage of the non-agricultural land/residential flat/residential house/commercial property situated in metro/urban/sem-urban centres either in the name of the borrower either individually or jointly.

In some of the States like Gujarat, Madhya Pradesh, Tamilnadu and Maharashtra the creation of equitable mortgage attracts stamp duty along with the memorandum of entry/recital evidencing the creation of equitable mortgage and it has to be necessarily registered.

In the case of UCO Rent in addition to the mortgage, the rent has to be assigned to the bank.

The loan will not be sanctioned against third party property.

In case the property is intended to be given on rent after availing the loan from the bank, permission from the bank has to be obtained. In the case of non-obtention of permission, such occupation will be treated as trespassing and the bank will take appropriate steps.

The Bank will grant permission only if the premises is rented out to an employee in reputed organisations/MNCs/Reputed Companies/Government Organization/Insurance Companies/Corporates/Insurance Companies.

If a commercial property is mortgaged, then a tripartite agreement has to be executed between the owner of the property, the lessee of several portions of the commercial property and the bank stating that the rent shall be directly credited to the owner's loan account with Bank regularly till the entire loan outstanding is cleared.

Under circumstances where the property has to be sold, the borrower has to clear the entire outstanding fort the release of the title deeds or can substitute with a property of equal or higher value if the borrower intends to continue the credit facility.

The different variants under UCO Bank LAP are:

• UCO Property Loan Scheme
• UCO Rent
• UCO Swabhiman

The following are the advantages of availing the UCO Bank LAP:

• Simple and quick loan processing and sanction.
• Easy and simple documentation.
• A reasonable rate of interest and other charges like processing charges and pre-payment charges.
• No hidden charges.
• The loan is provided against residential/commercial property, non-agricultural land or residential flat/apartment.
• Flexible repayment period up to 10 years.

Calculating the EMI before applying for a loan against property is very essential to plan your monthly finances. If you do not go through this ordeal before applying for the loan you will be in for a rude shock when the EMI figure appears.

With the EMI calculator, you can calculate the Loan Against Property EMI by providing the loan amount, loan tenure and the rate of interest. You can use the user-friendly MyMoneyMantra EMI calculator for the calculation. To use the calculator, you will have to follow some simple steps.

• Access the website of MyMoneyMantra.
• Choose the EMI calculator available on the financial tools tab.
• Provide the loan amount, loan tenure and the rate of interest.
• The EMI will be calculated instantly.
• You can then try various combinations as per the quotes available on the website till you get a lucrative EMI.
• After deciding on the EMI and the loan provider, you can apply for the loan through MyMoneyMantra.