UCO Bank offers a range of personal loans for various purposes. The UCO Bank Personal loans are usually for short-term purposes for up to 60 months. However, UCO Bank provides personal loans against property the repayment of which can extend up to 144 months. The mode of repayment of such loans is through EMI.
The equated monthly instalment or EMI as it is popularly referred to depends on three principal factors.
There is another factor that plays a crucial role in the determination of the EMI. It is the moratorium period that is available on home loans and education loans. The treatment of interest during the moratorium period affects the EMI.
In the case of home loans, the banks usually insist on the borrower to pay the interest debited to the account during the moratorium. At times, the banks can also capitalise the interest. The EMI will vary under such circumstances.
The same is the case in of education loan. The interest is capitalised in education loans. Secondly, the disbursement is in stages. Therefore, the EMI calculation is not possible at the time of sanction of the loan. The banks stipulate a tentative EMI that is subject to change subsequently.
In the case of personal loans, there is no moratorium. Hence, the EMI calculation is a straightforward one. This EMI calculator requires the customer to enter the following information.
Click on Calculate to obtain the EMI. The EMI amount is rounded off to the next higher rupee.
An example of EMI calculation:
|1 Lakh||2 Lakhs||5 Lakhs|
The calculation reveals the following:
UCO Bank links the rate of interest on its retail loans with the RLLR (Repo Linked Lending Rate) with effect from October 01, 2019. The RLLR is a market-linked rate that connects to an external benchmark rate, the repo rate.
The Reserve Bank of India announces the repo rates from time to time during its periodical credit reviews. UCO Bank adds an interest spread that depends on factors like the cost of funds for the bank and the net interest margin. This spread can vary from bank to bank. As on date, the spread of UCO Bank is 2.90%. With the repo rate being 5.15%, the RLLR works out to 8.05%.
The individual Rate of Interest on Personal Loans further depends on the category of the loan and the borrower. The interest rates applicable to its various personal loans as on date are as follows.
|Personal Loan Product||RLLR||Credit Risk Premium||The effective rate of interest|
|UCO Cash for men||8.05%||3.15%||11.20%|
|UCO Cash for women||8.05%||2.90%||10.95%|
|UCO Pensioner General Public||8.05%||3.30%||11.35%|
|UCO Bank Staff Pensioners||8.05%||2.30%||10.35%|
|UCO Gold Loan PS||8.05%||0.35%||8.40%|
|UCO Gold Loan NPS||8.05%||3.30%||11.35%|
|UCO Shopper Salary tie-up or 100% liquid security||8.05%||1.30%||9.35%|
|UCO Shopper Other cases||8.05%||2.30%||10.35%|
Know in detail: Simple Interest Formula Calculation.
The personal loan EMI calculator is a multipurpose utility tool available on the UCO Bank official webpage. The benefits of the EMI calculator are as follows.
This EMI calculator is not useful when there is a moratorium period involved in the loan, especially in cases of capitalisation of moratorium interest.
UCO Bank links the personal loan rate of interest to its RLLR. Whenever there is a change in the repo rates, the RLLR will vary. Therefore, the effective rate of interest on the personal loan will modify accordingly. It will result in an increase or decrease in the EMI amount. The bank will inform you accordingly. However, customers can check out the revised EMI using the personal loan EMI calculator.
The UCO Bank Personal Loan EMI calculator does not have any provision for calculating the EMI in the case of moratorium-based loans. However, other calculators are available on the internet that can help customers to do so.
The manual method of calculating the EMI is a complicated assignment. Here is the formula that can help customers to calculate the EMI manually.
EMI = [PXRX(1+R)^N] divided by [(1+R)^N-1]
P - Loan amount, also referred to as the principal amount
R - rate of interest per annum ( if the rate of interest is 10%, R = 10 / (12 X 100))
N - number of monthly instalments
Yes, customers can calculate the personal loan using MS Excel tables. The formula is an easy one.
Open your Excel spreadsheet. Choose the respective cell and enter the following,
Rate - the rate of interest on the loan
NPER denotes the number of monthly instalments
PV stands for the present value of the loan, also known as the principal amount
Customers can use the EMI calculator available on the UCO Bank website. Alternatively, they can use the EMI calculator that is available on the MyMoneyMantra website. The principle is the same.
This EMI calculator is better than the one available on the UCO Bank official site. It provides details of the total amount of interest payable on the loan throughout the entire loan tenure. It provides a graphical representation of the principal and interest repayment. However, it does not give the amortisation schedule.
Yes, the EMI calculator provided on the UCO Bank website is an accurate tool to calculate the EMI.
No, you cannot calculate your loan eligibility using the EMI calculator. There is a separate tool for estimating loan eligibility known as the loan eligibility calculator. This calculator requires a different set of data.
The tool seeks the following information from the user.
The calculator determines the net-take home pay before the calculation of the EMI on the prospective personal loan. Based on this calculation, the loan eligibility calculator arrives at the amount of EMI you can afford. It thus leads to the maximum amount of loan you can borrow.
Customers can use the EMI calculator to do a reverse calculation and arrive at the affordable loan amount. However, the loan affordability calculated by the customer will not tally with the amount calculated by the loan eligibility calculator.
The RLLR connects to the repo rate. However, it does not change immediately with every variation of the repo rate. Reserve Bank of India can change the repo rate at any time. The banks that link their RLLR to the repo rate change the RLLR on the first date of the month following the change in the repo rate.
The RLLR is a market-linked rate with a great deal of transparency. Customers can calculate the effective rate of interest on their personal loans and home loans by adding the required spread. Compared to the RLLR, the MCLR is a complex calculation. Banks announce their MCLR monthly. However, customers have to refer to the individual bank website to know the MCLR. The changes to the rate of interest on the loans do not happen every month. It occurs on the MCLR reset date. Usually, it is on an annual basis. Therefore, RLLR is a better rate from the customer point of view.