UCO Bank, established in 1943 in Kolkata, is one of the most reputed government-owned commercial banks in India. The bank helps customers with all kinds of finance-related problems and offers them the most promising car loans for purchasing their dream car. The Bank's attractive rate of interest makes it a good choice when it comes to car loans.
When you dream of buying a new car, you should keep in mind the following things before making the right decision.
The car loans you get at UCO Bank are secure, which means in case you don't pay the amount or EMI, the lender can repossess the vehicle for which you took the loan. The second basic characteristic of the loan is that they are easy to pay and tracked through the bank's online portals. The third characteristic of the loan is that it may have a fixed interest rate on a case-specific basis. This means the interest rate may vary according to your financial situation and can be easily applied.
Along with that, other major characteristics of the UCO car loan schemes are as follows:
Loan approvals in about 30 minutes
Lower rate of interest
Upto 90% of the on-road price of the vehicle
Minimum and hassle-free documentation
No hidden charges
24*7 online payment facilities
Based on several factors, the UCO Bank's car loan interest rate may vary from up to 9.35% for new cars to about 10.90% onwards for used cars.
Processing Fee: 0.40% of the principal amount and about 1% of the loan amount or about INR 60,000, whichever is lower
Foreclosure charges: None for new cars
Part-payment charges - about 5% of the paid amount
UCO Bank Car Loan Interest Rate based on CIC Score
The minimum CIC/CIBIL score required for a new car loan is about 750 or higher. Moreover, the minimum tenure for a car loan at UCO Bank is about 5 years, with an interest rate of 9.35%.
Any auto loan is analysed and provided based on the condition of the individual and how he/she is doing financially. You need certain documentation to prove your credit score and account balances. Considering these factors, the interest rate of a car loan at UCO Bank may change drastically.
Model of the car: The model of the car determines the interest rate marginally, especially since it determines the value of the car loan you are applying for.
Down payment: The rule here is to have a good debt-to-income ratio, which means the more down payment you give for the car loan, the better interest rate you would be offered by UCO Bank.
Market fluctuations: Another major factor that may affect your interest rate is the market status. The more a market fluctuates, the worse it is for your car loan application.
Income of the individual: Since your income determines the value of the car loan you are applying for, you need to ensure that you are applying for a car loan that is strictly under your budget.
Once you've understood how the interest rates vary for a UCO car loan, you need to know if you are eligible. Here are the eligibility criterias to apply for the loan.
You need to be at least 21 years old to apply for a UCO Bank car loan, with a maximum age limit of about 70 years.
You should have a minimum annual income of 20,000 INR, excluding existing EMIs and statutory deductions. You should be earning a minimum of 5 lakhs INR in metro cities and about 4 lakhs in non-metro cities, as per the ITR of the preceding financial year.
In the case of salaried employees, you should have a minimum of 6 months of work experience and have a self-employed person.
Businessmen, farmers, and agriculturists are all eligible to apply for a car loan from UCO Bank.
In certain cases, the bank would consider the income of the spouse and parents.
The following documents need to be provided before applying for the loan:
Bank statements (of last 6 months)
IT returns or Form 16 for the last two years
Identity proof (Aadhar Card/Passport/PAN Card/ Voters ID/ Driving license)
Income proof (Latest salary slips or Form 16)
Once you have these documents, get the application form for the car loan at UCO bank duly filled out.
Verify the signatures on the form and quotation for purchasing a new car.
Visit the nearest bank branch and submit the form to the bank manager.
While applying for a car loan at UCO Bank, you may use the following tips to get the lowest interest rates ever.
Check your credit beforehand. This shall help you in making your chances of a lower interest rate from the bank much easier.
Ask for a better car loan interest rate.
Spend some savings on your car purchase.
Show a strong and positive payment history.
Yes, customers may opt for balance transfers from other car loan accounts to a new car at UCO Bank. You should do all the calculations of the loan tenure, along with the EMIs that you will pay, and then make an informed decision.
The interest rate you can expect for a car loan at UCO Bank is about 9.35% (for new cars) to 10.90% onwards (for old and used cars). The interest rates, however, may vary drastically based on several factors determining your financial status.
You need to provide your address proof, identity proof, income statement, Form 16, ITR proofs, and a duly filled car loan application form along with passport-sized photographs to the bank for a car loan.
Once you have applied for the UCO Bank car loan, you will get a margin of about 10% from the bank (on the road value of the car).
You must be between 21-70 years old including a repayment period to apply for a UCO Bank car loan.
The car loan rate formula states that the total interest is the product of loan tenure, principal amount, and interest rate the bank offers. In some cases, the bank might offer a floating interest rate, and hence you need to keep checking the total interest of a loan.
Typically, a car loan interest rate depends on different factors, including the individuals age, income, downpayment to loan ratio, credit score, and more.
Start by paying an extra EMI every year, round up your payments each year, and ensure that you opt for a shorter repayment tenure. By doing so, you avoid a lot of interest amount, and thus pay lesser than needed.
The interest-on-loan ratio is a measure of interest coverage and tells how well an individual or firm can pay back the loan borrowed.