Description

UCO bank, also known as the United Commercial Bank in the past is one of India’s trusted banks. Its services are spread all over the country and have more than 45 Zonal offices. It offers a wide range of financial products such as business loans, personal loans, etc. 

In this post, our primary focus on business loan products. UCO Bank offers a variety of MSME loans to cover vast types of borrowers.

Types of UCO bank business loan

  • UCO Vyapar Samridhi
  • Pradhan Mantri Mudra Yojana ( PMMY)
  • STANDUP India
  • Laghu Udyami Credit card 
  • E-Rickshaw Under Mudra Scheme
  • UCO Doctor Scheme

UCO Vyapar Samridhi

UCO Vyapar Samridhi business loan is aimed at those borrowers, who want to take a business loan without offering any collateral. The guarantee for the loan is provided under CGTMSE as per the CGTMSE guidelines. 

  • The loan is offered to both new and existing businesses. It includes small businesses as well as retail trade
  • The loan is guaranteed under CGTMSE.
  • The loan amount is available from Rs 1 lakh to Rs 10 lakhs. 
  • There is also an AD-Hoc facility. 
  • The loan repayment tenure is based on multiple factors such as the loan amount, borrower’s credibility, etc. 
  • There is no need for collateral or security. 
  • There is no processing fee for the loan up to Rs 5 lakhs. 

Pradhan Mantri Mudra Yojana ( PMMY)

Pradhan Mantri Mudra Yojana is a business loan initiative launched by prime minister Narendra Modi to boost the entrepreneurial spirit of  the young generation. The loan is available to new businesses as well as to existing business to expand it. 

  • The loan is available to Individuals, Partnership firms, Public companies, and other legal firms. 
  • The maximum loan amount is offered up to Rs 10 lakhs. 
  • The rate of interest is UCO Float rate + 0.55%. ( the floating rate is applicable from time to time). 

STANDUP India

This is short of the big brother of PMMY. Under this scheme, the loan amount is offered from Rs 10 lakhs to Rs 1 crores. 

  • The loan is available to only SC/ST or a women entrepreneur. 
  • The loan amount is offered between Rs 10 lakhs and 1 crore.
  • The loan is available for only a greenfield project. 
  • The loan should be used for setting up a new business in the service, trading, or manufacturing sector. 
  • The interest rate is MCLR+ 3% + Tenure premium. 

Laghu Udyami Credit Card

The purpose of this scheme is to offer assistance to small business units, village industries, retails traders, and self-employed, etc. 

  • The business should be up and running for a minimum of 3 years dealing with banks. 
  • The loan is available to the existing Micro & Small Entrepreneurs. 
  • The loan amount is offered up to Rs 10 lakhs. 
  • The rate of interest is UCO Float Rate + 1.55%. 
  • The borrower has to offer a collateral. 
  • There is a 10% margin covered under the LUCC scheme. 
  • The LUCC limit is applicable for 3 years. 

E-RickShaw under Mudra Scheme

The scheme aims to encourage young entrepreneurs to buy E-rickshaw. 

  •  The loan is a term loan. 
  • The E-rickshaw should be registered based on the State/Central guidelines. 
  • There should be a legal permit availed by the borrower from the local authorities. 
  • The loan amount depends upon the borrower’s needs. 
  • There is no margin. 
  • The borrower may or may not have to offer collateral depending upon the business loan application. 
  • The rate of interest is UCO Float rate + 0.55%; 
  • The loan repayment tenure is from 5 years to 7 years with a moratorium period of 3 months. 
  • The E-Rickshaw has to be insured under comprehensive insurance via Bank’s channel partner. 

UCO Doctor Scheme 

This business loan scheme is especially available to those Individuals doctors, medical diagnostics, pathological services, or medical units. Veterinary doctors are not eligible for this scheme. 

  • The doctors should be practicing for a minimum of 3 years. 
  • For a medical unit, the period should be a minimum of 3 years. 
  • The loan could be availed for financing medical equipment, renovation, medical centers, or to meet day to day financial requirements. 
  • The loan amount is offered from Rs 1 lakhs to Rs 3 crores. 
  • There is no need for collateral for loan amounts up to Rs 2 crore. 
  • The rate of interest is up to UCO Float rate + 1.55% to UCO Float rate + 2.55%. 

UCO Bank business loan interest rate

The interest rate varies for different business loan products. 

Business loan product

Rate of interest

UCO Vyapar Samridhi

8.85% to 11.85% P.A

Pradhan Mantri Mudra Yojana ( PMMY)

UCO Float Rate+ 0.55%

STANDUP India

MCLR  +  3%+  tenor premium

Laghu Udyami Credit card 

UCO Float Rate+1.55%

E-Rickshaw Under Mudra Scheme

UCO Float Rate+ 0.55%

UCO Doctor Scheme

UCO Float Rate+ 2.55%

Features and Benefits of UCO Bank business loan

  • If you need a business loan on an urgent basis, UCO bank could be an ideal choice. 
  • The processing fee is low or either NIL. 
  • The loan repayment tenure is quite flexible going up to 10 years. 
  • UCO Bank offers business loans up to Rs 2 crore without any collateral. 
  • There is complete transparency without any hidden charges in the loan application. 

The eligibility criteria for UCO Bank business loan

  • The applicant’s minimum age should be 21 years and a maximum of 60 years to apply for the loan. 
  • The applicant must have a minimum of 2 years of work experience. 
  • The business should be up and running for a minimum of 2 years. 

Required documents for UCO Bank business loan

  • PAN CARd
  • Identity proof( Voter ID card, Driving license, Valid passport, Aadhar card) 
  • Address proof ( Telephone bill, electricity bill, registered lease deed, bank statement)
  • Business continuity proof ( Partnership deed, Sales tax challans, shops and establishment certificate, certificate of incorporation) 
  • ITR for the last 2 years
  • Bank statement for the last 6 months
  • Any other document required by UCO bank

How to apply for a UCO bank business loan?

You can visit the nearest UCO Bank branch to gather all the information to apply for it’s business loan. There is also a UCO secure mobile app for further help. You can also apply online on it’s official website. 

UCO bank business loan customer care number

The UCO bank customer care number is 1800 274 0123. The official email address is UCO.Custcare@UCObank.co.in