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 – 2021
| Categories | Interest Rate & Charges |
| MUDRA Loan MSME Loan amount up to Rs 25 lakh
| 8.85% onwards 9.85% onwards
|
| 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.
UCO Bank MSME Loan Schemes
- Artisans Credit Card
- E-Rickshaw Under Mudra Scheme
- Laghu Udyami Credit Card
- Pradhan Mantri MUDRA Yojana (PMMY)
- Prime Minister’s Employment Generation Programme (PMEGP)
- Scheme For Financing Two Wheeler Under Mudra
- Standup INDIA
- Swarojgar Credit Card
- UCO Bunkar Rinn Yojana
- UCO Doctor Scheme (Revised)
- UCO Roop Sangam
- UCO Trader
- UCO Udyog Bandhu
- UCO Vyapar Samridhi
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, MSMEs, etc.
Documentation Required
The following are the required documents while applying for UCO bank business loan:
- Duly filled application form with passport-sized photographs
- Business Plan
- Business and applicant’s PAN card
- For Identity Proof: Voter’s ID card, Driving license, Valid Passport and Aadhar card
- For Address Proof: Telephone bill, Electricity bill, Registered Lease Deed and Bank statement
- Business address proof
- Business Continuity Proof: Sales Tax Challans, Shops and Establishment certificate, Certificate of incorporation and Partnership deed
- Income Proof: Updated bank statements for last 6 months, Last 2 year’s Income Tax returns
- Company establishment certificate
- Any other document required by the UCO bank
Features and Benefits of the UCO bank
The contrasting features and benefits provided by UCO bank are as follows:
- 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
- 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
Must Read: Collateral Free Loans For Startups: All You Need To Know
UCO Bank Business Loan Customer Care Number
| Toll Free Number | 1800 274 0123 |
| Customer Grievances | hopgr.calcutta@ucobank.co.in |
FAQs
Q. What is the maximum repayment tenure for business loans in UCO Bank?
Ans. The maximum repayment tenure for business loans in UCO bank is up to 10 years.
Q. What is the processing fee for business loans in UCO Bank?
Ans. The processing fee charged by UCO bank varies from scheme to scheme.
Q. Is it really possible to get a business loan without collateral security?
Ans. Yes, you can opt for an unsecured business loan to avail it without collateral or security.
Q. What is the interest rate of the MSME loan offered by UCO Bank?
Ans. The MSME loan or business loan interest rate offered by UCO bank is 9.85% onwards per annum.
Q. What options are there for small business loans for women entrepreneurs?
Ans. UCO bank has introduced a loan scheme for women entrepreneurs named as UCO Roop Sangam. This scheme can be availed by women of minimum age of 20 years and maximum up to 60 years. The maximum loan amount offered is up to Rs. 10 lakh with the interest rate as low as 8.85% onwards.
Also Know: What are some best Schemes for women to start business from Govt of India or Banks?
Q. What are the types of startup business loans that are available to me?
Ans. To start your own business you can choose from loan options, such as Mudra loan under PMMY, Stand-up India, CGTMSE, PMEGP and MSME loan.
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.
Q. 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.