UCO Bank

Apply UCO Bank Loan Against Property

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.

Eligibility for the UCO Bank LAP

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.

Interest and Other charges on the UCO Bank LAP

The rate of interest for UCO Property Loan Scheme is 1-year MCLR + 2.15 % i.e. 10.55% p.a. (floating) for priority sector loans and 1-year MCLR + 3.15% i.e., 11.15% (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 + 1.30% i.e., 9.70% 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 + 2.50% i.e., 10.90% p.a.

The rate of interest for UCO Swabhiman is 1-year MCLR + 2.65% i.e. 11.05% p.a.

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

Other Charges

Type of charge

Description

Processing charge

For UCO property the processing charges for a term loan will be 1% of the sanctioned loan amount and for an overdraft facility, the charges will be 0.50% of the sanctioned limit. The renewal charges for the OD facility will be 0.50% of the limit with a maximum of 15000/- every year.

For UCO Rent the processing charges will be 1% of the sanctioned amount with a maximum of 2.00 lakhs. For review every year in the case of Drop Line OD facility, the charges will be 225.00 per lakh with a minimum of 250/- and a maximum of 56000/-.

For UCO Swabhiman the processing charges will be 0.25% of the sanctioned amount.

Pre-payment charges

No pre-payment charges if the pre-payment is done through own funds and 1% of the pre-paid amount if done through a balance transfer.

Documentation charges

Loan quantum

Charges

Up to 25000/-

Above 25000/- and up to 2.00 lakhs

Above 2.00 lakhs and up to 5.00 lakhs

Above 5.00 lakhs and up to 10.00 lakhs

Above 10.00 lakhs and up to 25.00 lakhs

Above 25.00 lakhs and up to 50.00 lakhs

Above 50.00 lakhs and up to 5.00 Crores

Above 5.00 Crores

Nil

350/-

1500/-

2200/-

2500/-

4500/-

6000/-

15000/-

Processing charges and Security for the UCO Bank LAP

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.

Types of the UCO Bank LAP

The different variants under UCO Bank LAP are:

  • UCO Property Loan Scheme
  • UCO Rent
  • UCO Swabhiman

Features of the UCO Bank LAP

Name of the product

Purpose

Quantum

Interest

Security

Repayment

Charges

UCO Property Loan Scheme

The loan can be used for the business requirements of MSE units and for any other purpose that falls within the priority sector norms.

The loan can also be used for personal requirements like planning a wedding, consolidation of loans, for higher education, for planning a vacation, for medical emergencies etc.

The loan will be 60% of the distress sale value of the property with a minimum of 2.00 lakhs and a maximum of 2.00 Crores for individuals and 5.00 Crores for the self-employed.

In case the property is rented out, then the valuation has to be suitably adjusted to arrive at the realisable value of the property due to the occupancy by tenants.

The loan can either be availed as a Term Loan or an Overdraft facility. In the case of an overdraft facility, the transactions have to be routed through the OD/CC account.

1-year MCLR + 2.15 % i.e. 10.55% p.a. (floating) for priority sector loans and 1-year MCLR + 3.15% i.e., 11.15% (floating) for non-priority loans.

.

Security by way of equitable/

registered mortgage of the property.

In the case of States like Maharashtra, Tamilnadu, Gujarat, and Madhya Pradesh the equitable mortgage with the memorandum of entry/recital evidencing the mortgage are required and it has to be necessarily be registered.

Term loans should be repaid within 144 months and the overdraft facility will be renewed every year.

Interest has to be serviced every month for the overdraft facility and the minimum credit to the account should be more than the interest debited.

Processing charges:

1% of the loan amount if the loan is availed as a term loan and 0.50% of the sanctioned limit if the loan is availed as an overdraft.

Renewal charges at 0.50% of the limit with a maximum of 15000/- will be collected every year for an overdraft facility.

UCO Rent

The loan can be used for any productive purpose like the investment in securities, repairs and renovation of the existing property, consolidation of debts, etc

The loan will be 70% of the future rent receivables less the advance deposit, Income tax, and other statutory deductions, if the premises is leased-out to MNCs, Corporates, Banks, Other Financial Institutions, Government Organizations, Insurance Companies, etc.

For others, the loan amount will be 55% of the rent receivables for the unexpired lease period less the advance deposit, income tax, and other statutory deductions.

The minimum loan amount will be 1.00 lakh.

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 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 + 2.50% i.e., 10.90% p.a.

Security by way of equitable/

registered mortgage of the property.

In the case of States like Maharashtra, Tamilnadu, Gujarat, and Madhya Pradesh the equitable mortgage with the memorandum of entry/recital evidencing the mortgage are required and it has to be necessarily be registered.

In addition to the mortgage, the future rent receivables for the unexpired period has to be assigned to the Bank

The maximum repayment period is 10 years.

1% of the sanctioned amount with a maximum of 2.00 lakhs. For review every year in the case of Drop Line OD facility, the charges will be 225.00 per lakh with a minimum of 250/- and a maximum of 56000/-.

Pre-payment charges

Nil. If the pre-payment is done out of own funds and 1% of the out-standing loan amount if the pre-payment is done by a balance transfer.

UCO Swabhiman

The loan can be used to supplement the income of the senior citizens

The loan quantum depends on the value of the property and the age of the borrower with a maximum of 50.00 lakhs

1-year MCLR + 2.65% i.e. 11.05% p.a.

Equitable/

Registered Mortgage of the property against which the loan is availed.

The loan will remain till the death of the last borrower or till the borrowermoves out for good. The loan will be cleared by the sale of the property.

The legal heirs can retain the property by clearing all the dues.

Processing charges will be collected at 0.25% of the loan amount.

Pre-payment charges:

Nil if the pre-payment is done out of own funds and 1% of the outstanding loan amount if the pre-payment is done by a balance transfer.

Advantages of taking UCO Bank LAP

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.

Documents required for the UCO Bank LAP

The following are the documents required for the UCO Bank LAP. 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

Why apply for a loan through MyMoneyMantra?

The increase in the number of loan providers in the market has given rise to loan aggregators who partner with various leading financial institutions and assist the loan seekers in the process of the loan application. MyMoneyMantra is one such loan aggregator. Since the inception in the year 1989, their only goal has been providing the best deals to their customers by facilitating them with a choice of an array of products.

You can compare the rates of various financial institutions with the data available on the website of MyMoneyMantra. You can speak to their loan experts who will guide you in making the best choice as per your requirements and income. They will collect the application and the document kit from your doorstep to submit them to the loan provider of your choice.

They will also co-ordinate with the loan provider for quick loan processing and disbursement. They will make the whole process seamless and hassle-free and that too free of cost.

How to use the MyMoneyMantra EMI calculator?

Calculating the EMI before applying for a loan 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 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.

Why use the UCO Bank LAP EMI Calculator?

The benefits of using the UCO Bank LAP EMI Calculator are:

  • Easy access from anywhere at any time.
  • 100% accurate results.
  • Time saving.
  • EMI calculation beforehand will help you plan your monthly budget.
  • Various quotes available in the EMI calculator enables you to choose the best deal.

FAQs

Who can apply for the UCO Bank LAP?

You can apply for the UCO Bank LAP

  • If you own a residential/commercial property, non-agricultural land, residential plot, flat or an apartment.
  • If you are in the age group of 21 years to 65 years.
  • You should either be salaried or self-employed with a regular income.
  • A minimum monthly income of 30000/- if situated in a Metro and 20000/- if situated in other areas is mandatory for salaried individuals and an annual income of 4.00 lakhs as per the ITR for the self-employed.
  • The net take-home salary should be 40% of the gross income or 10000/- whichever is higher after all the statutory deductions, deductions of present obligations including the proposed EMI.
  • The age of the property should not be more than 50 years if a residential property and 30 years if it is a flat/apartment.

What is the quantum of loan provided for UCO Bank LAP?

The maximum quantum of loan for UCO Property Loan is 60% of the distress sale value of the property with a maximum of 2.00 Crores for individuals and 5.00 Crores for non-individuals.

For UCO Rent, the loan quantum will be 70% of the future rent receivables less the advance deposit, Income tax, and other statutory deductions, if the premises is leased-out to MNCs, Corporates, Banks, Other Financial Institutions, Government Organizations, Insurance Companies, etc.

For others, the loan amount will be 55% of the rent receivables for the unexpired lease period less the advance deposit, income tax, and other statutory deductions. The minimum loan amount will be 1.00 lakh.

For UCO Swabhiman, the quantum of the loan depends on the value of the property and the age of the borrower with a maximum of 50.00 lakhs.

What is the rate of interest for the UCO Bank LAP?

The rate of interest ranges from 9.55% p.a. to 11.05% p.a. depending on the type of loan availed.

What is the maximum loan tenure for the UCO Bank LAP?

The maximum loan tenure ranges from 120 months to 144 months depending on the type of loan availed.

What is the security to be provided for the UCO Bank LAP?

The security should be by way of equitable/registered mortgage of the property against which the loan is availed. For UCO Rent, in addition to the equitable mortgage, assignment of future rent receivables is required.

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