UCO Bank Home Loan

Table of Contents

• UCO Bank Home Loan Interest Rates
• Eligibility Criteria for UCO Bank Home Loan
• UCO Bank Home Loan Types
• UCO Bank Home Loan for NRI or PIO
• How To Apply for UCO Bank Home Loan
• Document Checklist for UCO Bank Home Loan

 

Introduction

UCO Bank previously known as the United Commercial Bank was founded in the year 1943 and is now a global commercial bank managed by the Indian Government. UCO bank provides financial service to its customers with 4000 branches and 2 representative branches abroad.

UCO Bank Home Loan Interest Rates

Interest Rates are as of 2019

UCO Bank offers highly competitive interest rates on all home loans. The interest rates are based on the MCLR (Marginal cost of funds-based lending rate). The interest rates for all loans are determined by the RBI.

The EMI for the home loan is dependent on the interest rates are given below. The EMI can be calculated by utilising the EMI calculator on the bank’s website.

 

Financial product	Up to Rs 30 lakhs	Between Rs 30 Lakhs and Rs 75 Lakhs	Above Rs 75 Lakhs
UCO Home Loan	MCLR of 1 Year	MCLR of 1 Year + 0.10%	MCLR of 1 Year + 0.25%
UCO Pre-approved home loan	MCLR of 1 Year	MCLR of 1 Year + 0.10%	MCLR of 1 Year + 0.10%
UCO Top – Up Home loan	MCLR of 1 Year + 1.40%	MCLR of 1 Year + 1.40%	MCLR of 1 Year + 1.40%

It is important to note that the final pricing and the interest rates of the loan will be determined according to the loan amount, the financial product availed and the internal loan assessment parameters of UCO bank.

 

Interest rates and other fees

The interest rates for a UCO Bank home loan range from 8.75% to 9.05%. This varies based on the financial product, the repayment capabilities of the loan applicant and based on various other eligibility criteria.

Different home loan schemes have fluctuating interest rates. They are highly dependent on the 3-month MLCR or the Marginal cost of funds-based Lending Rate as determined by the FBIL. These change from one financial year to another.

 

	UCO Bank Home loan	UCO Bank Pre Approved home loan	UCO Bank Top – up home loan
Processing fee	0.5% of the loan amount with the minimum amount being Rs.1500 and the maximum Rs. 15000.	0.25% of the loan amount with the minimum amount being Rs.1000 and the maximum Rs. 10000.	0.10% of the loan amount with the maximum being Rs. 10000.
Prepayment charges	NIL	NIL	NIL

Eligibility Criteria for UCO Bank Home Loan

1. UCO Home Loan

• The applicant must be at least 21 years old at the tile of applying for the loan and should not be over the age of 70 when the tenure of the loan ends.
• The applicant must be salaried. If they are self – employed, they must be drawing a regular minimum salary. The EMI to salary balance ratio must be satisfactory according to the standards of UCO bank.
• The applicant must have at least two years of work experience at the time of applying for the loan.
• A good credit score is a must while applying for a home loan from UCO Bank. The accumulated credit score can be checked online on the CIBIL website.
• The loan applicant must be of Indian nationality.

 

2. UCO pre-approved home loan

• The applicant must be at least 21 years old at the tile of applying for the loan and should not be over the age of 70 when the tenure of the loan ends.
• NRIs and PIOs are also eligible for the loan.
• The applicant must be salaried. If they are self – employed, they must be drawing a regular minimum salary. The EMI to salary balance ratio must be satisfactory.
• The applicant must have at least two years of work experience at the time of applying for the loan.
• A good credit score is a must while applying for a home loan from UCO Bank. The accumulated credit score can be checked online on the CIBIL website.

 

3. UCO top – up home loan

• The applicant must be at least 21 years old at the time of applying for the loan and should not be over the age of 70 when the tenure of the loan ends.
• The loan applicant must have a regular payment record of at least 36 payments after the moratorium period.
• The applicant must have at least two years of work experience at the time of applying for the loan.
• A good credit score is a must while applying for a home loan from UCO Bank. The accumulated credit score can be checked online on the CIBIL website.
• No overdue must exist in the existing Home Loan account of the loan applicant.
• A valid mortgage should have been created in favour of the bank.

UCO Bank Home Loan Types

Main home loan by UCO Bank

The UCO Bank home loan scheme offers loans to applicants for the purchase of an already built home and for the construction of a new home. UCO Bank ensures that the schemes are tailored to your requirements.

The loan can also be used for the repairs or renovation of a house provided that it is not more than 50 years old.

The tenure for these ranges from 5 years to 25 years according to the repayment capacity of the loan applicant.

 

UCO Bank offers home loans that cover:

• 90% of the cost for loans up to Rs 30 lakhs
• 80% of the cost for loans above Rs 30 lakhs but below Rs 75 lakhs
• 75% of the cost for loans above Rs 75 lakhs

The rates of interest are calculated on the MCLR for one year.

 

Quantum of the loan that can be availed by UCO bank under the main home loan scheme

Location	Construction or the purchase of a home or apartment	Repair, renovation or refurbishment
Sei-urban or Urban	No upper limit	Rs. 25 lakhs
Rural	No upper limit	Rs. 7.5 Lakhs

 

Amount of loan that can be taken under these schemes

The amount of loan that is disbursed by UCO Bank differs from one financial loan scheme to the other. It is also based on a host of factors such as the salary of the loan applicant, the repayment capacity and the complete cost of the property being purchased.

The maximum period of payment for the loans is 25 years. Beyond which if the loan is not paid up, it would be considered defaulting. The amount can be paid utilising Equated Monthly Installments (EMI) which can be calculated on the bank’s website.

 

Financial product by UCO  Bank	Minimum loan under the scheme	Maximum loan under the scheme
UCO Bank Home loan	Rs. 1 lakh	Rs. 25 lakhs for repairs and renovation in an urban area and Rs. 7.5 lakhs in a rural area. No upper limit for construction or purchase of a new property.
UCO bank pre-approved home loan	Rs. 1 lakh	Rs. 25 lakhs for repairs and renovation. No upper limit for construction or purchase of a new property.
UCO bank Top – up home loan	Rs. 1 lakh	Rs. 25 lakhs

UCO Bank Home Loan for NRI or PIO

NRIs and PIOs are permitted by the RBI to purchase land and begin constructing a house, provided that they have a blood relative residing in the country.

UCO bank is instrumental through the entire process from the beginning of the loan application process to the disbursement of the loan.

There is no upper limit on the home loans that can be availed by non-resident Indians, Overseas Citizens of India, and persons of Indian origin.

One can apply for the home loan independently or with a co-applicant. Adding a co-applicant helps to maximise the loan amount sanctioned to you. The home loan requires a guarantor who is a resident of India.

The loans can be used to purchase houses, villas, apartments from approved projects in India. They have to be from legitimate development authorities such as MUDA, MHADA etc.

All home loans for NRIs and PIOs are disbursed in accordance with the Foreign Exchange Management Act of 1999.

With the attractive interest rates offered by UCO bank, buying your dream home or constructing one is only a few formalities away.

 

Home loan eligibility for NRIs

Any non-resident Indians or Persons of India origin are eligible for a home loan by UCO Bank. They can build and buy property in most major cities in India.

There is no upper limit on the amount sanctioned by UCO bank. It is highly dependent on the salary of the loan applicant. The loan to property value ratio is a high 90%.

The loan tenure can range from 5 years to 30 years.

The interest rates for the home loans range from 8.65% to 8.95%.

 

The eligibility criteria for NRIs to avail a home loan from UCO Bank – Residents of all foreign countries is as follows:

• Minimum age must be 21 years. Age of the borrower plus repayment period should not exceed beyond 70 years of age.
• Must be salaried or self – employed or having a business unit and must be staying abroad for at least two years at the time of loan application.
• Must have a minimum gross annual income equivalent of Rs. 1,50,000 per month to be eligible for the home loan schemes by UCO bank.
• The applicant requires a co-applicant for the loan who must be an Indian resident as well as a blood relation to the borrower.

 

The loan disbursed to NRIs or PIOs can be utilised for the following purposes:

• Purchase of a readymade or already existing row house, independent home, villa, or apartment.
• Purchase of a house or apartment that is currently undergoing construction and nearing completion.
• Acquisition of a loan against a property owned by the borrower

 

Security for the loan sanction:

• No third-party guarantee required
• Requires equitable mortgage of home loan property financed

 

Amount of loan that will be sanctioned to NRIs by UCO bank:

Gross Monthly Income (GMI)	Percentage of loan that will be sanctioned
Up to Rs 1,50,000	50% of Gross Monthly Income
Above Rs 1,50,000	60% of Gross Monthly Income

 

Documentation required to apply for a UCO bank Home Loan as an NRI or PIO:

Personal Documents	Financial Documents
Two copies of the most recent passport-sized photographs	Last one-month salary slip before applying for the loan
Passport copies and original along with the visa page	Last two years work contract, P60 or B4 of the specific country of residence
PAN Card, Voter’s ID or Driving License	Bank statement of the last three months showing the credit of consistently drawn salary
	Most recent sale deed of the property
	All receipts, letters of allotment and payment plans for properties that are currently undergoing construction

 

UCO Bank also offers insurance covers for the home loan under various schemes like UCO Griha Rakshak Yojana scheme and UCO Griha Rakshak Plus. You can rest assured that in the event of an unforeseen circumstance, the payments will be covered and you and your family will not find yourself in financial debt. Any death or permanent disability of the borrower is covered by this insurance product.

The scheme UCO Griha Jeevan Suraksha can be employed to cover the outstanding loan amount in case of accidental or natural death of the borrower.

How To Apply for UCO Bank Home Loan

The process of applying for a home loan from UCO Bank is quite straightforward, paperless and hassle-free.

• The online request form for UCO home loan can be found on the bank’s website.
• Upon filling up the application form, interested parties can submit the form along with all the documents listed below to the nearest UCO Bank branch.
• Upon document verification, in – person verification and various other in – house processes, the loan will be processed.
• Sanctioning of the loan may take up to 2 weeks from the date the completed application has been submitted to UCO bank.

The website also has an eligibility calculator that can be used by the customers before applying. The website also has an EMI calculator to estimate how much one will end up paying per month against the loan. This is based on the fixed obligation to income ratio. The loans by UCO bank have a minimum EMI of Rs. 858 per month.

Document Checklist for UCO Bank Home Loan

Personal and KYC Documents	Financial documents
Two passport-sized photographs	Allotment Letter, Payment Plan and receipts will be required for properties which are under construction.
Aadhar Card number or PAN card for proof of identity	Last three month’s salary slips
Driving License, Voter ID card, electricity bill or PAN Card for the address proof	Recent Sale Deed with the previous link
Date of birth proof	Form 16 and Income computation and balance sheets
Duly filled and signed the application form	Receipt of property proof
	Income tax returns for the past two financial years
	Articles of association and proof of association of the company.
	Last three months’ bank statement from the date when the home loan is being applied for

Upon submission of the required documents and the duly filled and signed application form, the home loan will be processed by the personnel at UCO bank.

The entire process should not take more than a couple of weeks.  The applicant will be intimated about the processes regularly.