UCO Bank Personal Loan: The lending of money or cash by one or more persons or organizations or entities to another person or organization is called, in financial terms, a loan. The person who took the loan (the recipient) has to pay interest over the loan amount until the principal amount is repaid.
The debt document essentially contains details such as the principal amount being borrowed, the date of repayment, and the interest charged by the lender. A loan act often involves relocating the assets for a specific period between the lender and the borrower.
The interest added on the principal amount borrowed is the incentive of the lender. If the loan occurs under legal boundaries, the borrower must follow many rules, such as the loan covenants. However, loans are mostly seen financially, but anything can be used as a loan subject in practice. Financial institutions such as bank facilities and credit card providers have been the primary providers of loans.
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Personal loans can be seen as a form of installment credit. It is different from a credit card because a personal loan makes a one-time payment of cash to borrowers. The money is borrowed for a certain amount of time, and borrowers pay back the borrowed amount and interest in regular, monthly installments over the “term” of the loan.
Personal loans come to one’s rescue when one is short of money. It is straightforward to access personal loans, and they are granted so fast that many people take personal loans often to meet expenses. This article will discuss the UCO Bank personal loan rate of interest, UCO Bank personal loan rate of interest 2020 and the UCO Bank personal loan EMI calculator.
As a commercial bank, giving loans and advances is their primary activity. UCO provides term loans and working capital required for the agricultural sector, Trade and Service sector, large or medium or small scale industry structure infrastructural sectors and helps in looking after their import and export activities and non-fund based needs such as Letter of Credit, Bank Guarantee and others.
Apart from all these, UCO banks also provide a casket of loans with conditions favourable to meet one’s personal needs. The personal loans of UCO have some salient features which make them different from other loans available in the market. Some features or benefits of the personal loans provided by UCO bank are you can grant maximum loan amount.
- There are many repayment options.
- Quick and hassle-free process of the loan application.
- Loan approval does not take much time.
- The bank does not insist upon any guarantor.
- The bank provides attractive interest rates.
- The bank provides special offers and schemes of discounts for employees of big organizations.
- The bank does not issue any security for applying for a personal loan.
The applicant should have a minimum of two years of service in the same organization, and the borrowers should have an account with a branch of UCO.
The applicant should have permanent employment in central or state government, are you, which includes the likes of departments, undertakings, entities, public sector undertakings, educational institutions, aided educational institutions and autonomous bodies.
Other than these, the applicant can also be an employee of private universities, schools, and colleges as a teaching staff member. The applicant’s income should not be less than forty per cent of the gross salary after the likes of PF, IT and other statutory deductions.
Deductions including proposed EMI of UCO cash loans, loans granted by the employer, and any other loan subject monthly take of minimum ten thousand rupees. Other income sources like rents, interest, dividends and others are also taken into account to calculate the quantum of the loan.
This is subject to documentary evidence in the form of IT returns and others. Individuals can apply for personal loans through online portals or offline methods.
Online Application: One can apply for personal loans online through the website. Individuals can fill up their personal information and work details and upload all the necessary information and documents required for the loan. Individuals can also apply after checking their eligibility for the loan.
Offline Application: Individuals can visit any branch of the bank along with all the documents and information required, fill up the form and get their loan approval process to start.
Documentation Required for UCO Bank Personal Loan
Documents required for getting the loan are
A properly filled up and signed personal loan application form along with a photograph is required.
Identity proof such as a voter card, driving license, Aadhar card, Pan card, government department ID card, and more.
Proof of the candidate’s income, such as the latest salary slip or the recent salary certificate along with Form 16. Along with these, the individuals are required to provide income tax returns for the last two financial years.
The individual must provide:
- The latest electricity bill.
- Telephone bill.
- Credit card score.
- The existing house’s lease agreement for the proof of address.
For individuals employed by the Central or the State Government, the quantum of the loan is twenty per cent of Gross Monthly Income which can be as high as fifteen lakhs.
For individuals employed by organizations outside government sectors, the quantum of the loan is ten times the Gross Monthly Income which can go as high as ten lakhs.
Individuals who the Central or the State Government employs have to pay the rate of interest as
UCO Float rate + 3.15 % i.e. 6.90 + 3.15 which sums upto 10.05 % per annum.
Individuals who are other than government employees have to pay the rate JD interest as
UCO Float Rate + 3.40% i.e. 6.90+ 3.40 which sums up to 10.30% per annum.
Non-government employees have a time period of sixty, equated to monthly repayments. In contrast, the repayment period for those employed by the State or the Central Government has to repay the loan in eighty equitable instalments.
Reasons for Rejection of Loan Application
There are various reasons why the bank rejects personal Loan applications There are majorly three reasons for the rejection of the personal loan application. These three reasons are
- A bad credit score: The creditworthiness of an individual determines their credit score. A good credit score indicates the individual’s credibility in repaying the loan. A bad credit score usually hinders the chances of getting the loan application approved. Usually, an individual with a credit score of less than 750 may face rejection for a personal loan.
- A huge existing debt: If an individual has already taken out several loans and the loan to net income ratio is more than forty percent, the bank might reject the loan application.
- Loan Enquiries: The credit report of an individual provided by the credit bureaus is known as credit enquiries. Such enquiries are done the hard way and are hence mentioned in the credit report of the individual. Even if the loan enquiries are free of cost, one should not go into too much detail. This is because too many enquiries have a negative impact on the approval process of the loan.