UCO Bank Home Loans Review
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2 Comments
Company Profile
UCO Bank is a commercial bank and Government of India Undertaking. It was founded in the year 1943. UCO Bank has country-wide presence. It also enjoys overseas presence with profitable overseas operations, has a strong capital base, with a high proportion of long term liabilities and a well diversified asset portfolio. UCO Bank boasts of a large and diversified client base and fully computerized branches at major centers with branch representation in top 100 centers (as per deposits) in India.
UCO Bank has a fairly large basket of loan products specially designed to suit an individual customer’s personal needs. UCO Bank’s Home Loans termed ‘UCO Shelter’ can be availed for purchase of new independent house/ready built flat for residential purpose; construction of independent house on the site already owned by the applicant or site proposed to be purchased from own sources; purchase of old house/flat, free from tenancy and constructed as per approved plan; extension/repair/renovation of existing house/flat; takeover of home loans availed from other banks/Financial Institutions subject to certain terms, and furnishing of house to be constructed/acquired with UCO Shelter Loan.
Analysis
Loan to Value Ratio-
The quantum of loan is decided as per loan entitlement subject to a maximum of 85% of the total project cost of construction/purchase price of house/flat. Required margin of 15% may be by way of cost of land.
Quantum of loan for furnishing will be 75% of cost of such furnishing subject to a ceiling of 20% of loan eligible for construction/acquisition of house/flat.
The area-specific maximum limits for construction/purchase are as under:
Rural Areas: Rs.25 Lac
Semi-urban/Urban/Metro Areas: Rs.100 Lac
Maximum limits for Repair/Extension/Renovation are Rs.7.50 Lac in rural areas and Rs.25 Lac in Metro/Urban/Semi-Urban areas.
Purchase of Land – financing the cost of land in deserving cases upto 50% of cost of land purchased from Urban Development Authorities/Government Bodies subject to the ceiling of 30% of the project cost (i.e. Cost of land + Construction Cost).
Tenure-
UCO Bank Home Loans are available for a maximum tenure of up to 25 years.
Interest Rates-
UCO Shelter – Floating Rate (w.e.f. 01.01.2010) Period of Loan
For Loan Amount of Upto
Rs.20 lacsAbove Rs.20.00 lacs Upto
Rs.30 lacsAbove Rs.30.00 lacs Upto
Rs.50 lacsAbove
Rs.50 lacsUpto 5 years Margin 25% or more 8.50% p.a. 8.75% p.a. 9.25% p.a. 9.50% p.a. Margin less than 25% 9.00% p.a. 9.25% p.a. 9.75% p.a. 10.00% p.a. Above 5 years but upto 10 years Margin 25% or more 8.75% p.a. 9.00% p.a. 9.50% p.a. 9.75% p.a. Margin less than 25% 9.25% p.a. 9.50% p.a. 10.00% p.a. 10.25% p.a. Above 10 years but upto 15 years Margin 25% or more 9.00% p.a. 9.25% p.a. 9.75% p.a. 10.00% p.a. Margin less than 25% 9.50% p.a. 9.75% p.a. 10.25% p.a. 10.50% p.a. Above 15 years but upto 20 years Margin 25% or more 9.00% p.a. 9.50% p.a. 10.00% p.a. 10.00% p.a. Margin less than 25% 9.50% p.a. 10.00% p.a. 10.50% p.a. 10.50% p.a. Above 20 years but upto 25 years Margin 25% or more 9.75% p.a. 9.75% p.a. 10.00% p.a. 10.00% p.a. Margin less than 25% 10.00% p.a. 10.25% p.a. 10.50% p.a. 10.75% p.a. N.B. The above Interest Rates applicable on all fresh sanctions as well as existing accounts liable for reset only. UCO Shelter – Fixed Rate (w.e.f. 01.04.2010) Period of Loan For Loan Amount of Upto
Rs. 20 LacAbove Rs. 20 lac
and
upto Rs. 30 lacAbove Rs. 30 lac
and
upto Rs. 50 lacAbove
Rs. 50 lacUpto 5 years 10.50% 10.75% 11.50% 11.50% More than 5 years &
up to 10 years10.75% 11.00% 11.50% 11.50% More than 10 years &
up to 15 years11.00% 11.25% 12.00% 12.00% More than 15 years &
up to 20 years11.00% 11.50% 12.25% 12.25% Above 20 years &
up to 25 years11.50% 11.75% 12.25% 12.50% N.B.:
1. The existing condition on reduction of interest rate by 0.25%, if margin is 25% or more, would continue.
2. The revised rate of interest is applicable to new loan accounts sanctioned on or after 1st April, 2010.Tax Benefits-
Tax relief on principal and interest components of UCO Bank’s Home Loan scheme would be available as per provisions prevailing under Income Tax Act, 1961.
Prepayment Charges-
Prepayment is charged @ 2%, if the loan is prepaid within 3 years. No prepayment charges thereafter. However, no pre-payment charges are levied if loan is pre-paid from own sources.
Processing Fee-
The processing fee covers the cost of technical valuation and title search report of an individual’s property along with other administrative costs that are involved in the processing of the loan. UCO Bank charges 0.5% of the loan amount minimum Rs.1000, however, only 0.25% payable on issuance of in-principle sanction. Balance amount payable on final sanction. No processing fees are charged for take over loan.
Published on August 6, 2010 · Filed under: UCO Bank Home Loan;
2 Responses to “UCO Bank Home Loans Review”
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S.Kumar said on July 10th, 2011 at 2:54 pm
Sir, I want Loan for house renovation ( My house is to be completed) The Loan amount is Rs.6 lakhs. in low rate of Interest
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charu said on July 13th, 2011 at 5:08 am
To get a loan for renovation of your house, you have few options like Personal Loan, House renovation loan or if you have already taken a home loan you can also go for top-up loan.
The best suitable option would be to go for top-up loan or Home renovation loan as personal loans is very costly. However, if you have not taken any home loan, home from Axis bank and Bank of Baroda will be a good option considering their interest rates.
Axis Bank : 11.75% p.a. (Floating rate)
Bank of Baroda Home Improvement loan: 12.5% p.a.(Floating)
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