UCO Bank Business Loan: Interest Rate, Documents, Eligibility

Updated: 20-02-2020 09:26:53 AM

Table of Contents :

UCO Bank Business Loan Interest Rate
Eligibility Criteria
Documents Required
Features and Benefits Offered by UCO bank
FAQs

UCO Bank, formerly known as United Commercial Bank is a government-owned commercial bank that offers a range of business loan schemes to its customers. The business loan or MSME loan interest rate offered by UCO bank is 9.85% onwards. UCO bank also provides Mudra loan that starts from 8.85% onwards. Business loans are majorly provided to MSMEs and SMEs nationwide.

UCO bank is also the provider of MUDRA loans that comes under three categories, named as Shishu, Kishor & Tarun. Let’s further discuss the interest rates, features, eligibility criteria, etc. offered by UCO bank.

UCO Bank Business Loan Interest Rate 2020
Categories	Interest Rate & Charges
MUDRA Loan Loan amount up to Rs 25 lakh Loan amount more than Rs 25 lakh up to Rs 1 crore More than Rs 1 crore	8.85% onwards 9.85% onwards 10.85% onwards 10.60% onwards & up till 11.65%
Service charges	Varies from scheme to scheme
Maximum and minimum amount of loan allowed for issuing: For the Manufacturing sector For the Service sector	From Rs 25 lakh and up to Rs 5 crore From Rs 10 lakh and up to Rs 2 crore
Tenure/Time period	Can vary from 1 year to 10 years on the basis of the scheme
Pre-payment availability and charges	Pre-payment options are available and are free of any charges

Note: The mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the bank and RBI. GST and service tax shall be levied extra on the mentioned charges.

Note: For Women Entrepreneurs, the ROI is 0.50% less than the actual or effective ROI

Check – Business Loan Interest Rate of Top Banks

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Eligibility Criteria

The eligibility criteria for applying a UCO business loan are as follows:

The applicant must be above 21 years at time of loan application submission and not more than 60 years at time of loan maturity
The applicant must have a minimum work experience of 2 years. For businesses, the business continuity of 2 years is required
Loans can be availed by private and public limited companies, partnership firms, proprietary concerns, individuals, etc.

Calculate your Monthly EMI on – Business Loan EMI Calculator

Toll Free Number: 1800-274-0123

Documentation Required

The following are the required documents while applying for UCO bank business loan:

PAN card
For Identity Proof
1. Voter’s ID card
2. Driving license
3. Valid Passport
4. Aadhar card
For Address Proof
1. Telephone bill
2. Electricity bill
3. Registered Lease Deed
4. Bank statement
Business Continuity Proof
1. Sales Tax Challans
2. Shops and Establishment certificate
3. Certificate of incorporation
4. Partnership deed
Updated bank statements preceding 6 months
Last 2 year’s Income Tax returns
Some other documents can also be required by the UCO bank

Features and Benefits Offered by UCO bank

The contrasting features and benefits provided by UCO bank are as follows:

For the urgent need of funds, UCO bank business loans are delivered within a few days after the approval of loan application
The interest is priced on the basis of the daily reducing balance. In other words, the interest rate will be credited only on the remaining capital amount to be repaid
The pre-payment of loans can be done easily if the applicant wants to clear their loan at once. No pre-payment charges are imposed by the UCO bank
Applying for the UCO business loan has become very easy with the online portal available
An applicant can gain up to Rs 200 lakh immediately without providing any security/collateral when applying for UCO business loan
UCO bank offers flexibility in the time period for repayment according to the applicant’s availability of funds and can be extended up to 10 years
UCO bank offers transparency in the loan application system with no hidden or regulatory charges

Document verification can also be achieved through the online portal

Must Read: Loan for Business Without Security in India

FAQs

Q. What is the interest rate for business loans for existing customers of UCO Bank?
Ans. The interest rates for business loans are decided on the basis of ranking in UCO bank with a good score and cash flow. If so, for better terms you can negotiate.

Q. What are the UCO business loan interest rates in 2019?
Ans. The rate of interest offered by UCO Bank for business loans in 2019 ranges from 8.85% to 11.65%.

Q. How can I repay the UCO Bank business loan?
Ans. The loans can be repaid in Equal Monthly Installments (EMIs) which is through post-dated cheques. It can also be repaid through Electronic Clearing System (ECS) as well.

Q. How to check UCO Bank business loan status?
Ans. The business loan status can be checked by contacting the customer care through the number 1800-274-0123. If you have an account you can log in and check the status online itself. Or you can contact your account manager if you are allotted with one.

How can I apply for the UCO Bank Business loan for a start-up enterprise?
Ans. You can either apply by contacting the customer care service (1800-274-0123) or through the online portal provided by UCO Bank. Other than these, you can consider visiting the nearest branch of the UCO Bank.

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