A Loan Against Securities from UCO Bank to Help Consolidate Your Debts

A low-interest loan to pay off your debts by leveraging the power of your securities

UCO Bank UCO Securities (Loan Against Securities)

This scheme helps borrowers get access to funds by pledging their securities such as National Savings Certificates (NSCs), Kisan Vikas Patra (KVP), Relief Bonds of RBI, Life Insurance Policies, etc. to the bank. The main purpose of this loan is to help the borrower to meet any contingencies and personal needs such as a wedding, overseas travel and so on. iIt can also be used to consolidate the borrower’s high-interest debts.

Features of UCO Securities (Loan Against Securities – NSC, KVP, Relief Bonds, LIC)

Why this Loan?

Loan Amount

  • The maximum loan amount allowed by UCO Bank under this loan is decided by the bank on a case-to-case basis

Interest

  • The interest rate applicable to this loan is defined as the sum of two factors: UCO Float Rate and a Spread factor of 3.65%. As of October 2020, the UCO Float Rate is 6.90% bringing the effective interest rate at 10.55%

Repayment

  • This loan must be repaid within 5 years or the remaining period of maturity of the security, whichever is less

Security Needed

  • The bank accepts pledging of securities such as National Savings Certificates (NSCs), Kisan Vikas Patra (KVP), Relief Bonds of RBI, Life Insurance Policies, etc.

Eligibility

  • The securities should be in the name of the borrower and should be transferable so that they can be pledged to the bank

Margin Money (Borrowers Contribution to Total Cost)

  • As of October 2020, this information is not mentioned on the bank’s website. Please talk to a bank representative to know more

Note: Margin money refers to the amount the borrower contributes to the overall amount required. The bank will cover the rest. So, if the total amount needed is Rs. 20 lakh and if the margin is 20%, the margin money comes to Rs. 4 lakh. The bank will provide the balance of Rs. 16 lakh.

Processing Charges

  • The bank charges Rs. 250 for processing this loan

Documents Needed

  • Loan Application Form duly filled and signed by the applicant and co-applicant, if any
  • Two Passport Size Photographs of applicant and co-applicant
  • Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card / PAN Card Issuing Letter is must
  • Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
  • Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Income/Banking Proof for Salaried Professionals: Last 3 months’ salary slip, Form 16 or income tax returns
  • Original NSC, KVP, RBI Relief Bonds, Life Insurance Policy, etc.

Reference Facts

  • UCO Bank Website: www.ucobank.com and www.ucoebanking.com (net banking)
  • Headquarters: Kolkata, West Bengal
  • Call Centre Toll-Free Number: 1800 274 0123