UCO Bank Car Loan Interest Rates
UCO Bank car loan interest rates start at 7.70% p.a. for new cars and go up to 8.60% p.a. under the STP Car Loan, depending on your credit score and applicant category. The pre-qualified PQVL car loan for selected savings account customers is priced at 8.20% p.a. to 8.50% p.a.
UCO Bank Car Loan
Features | New Car Loan | Used Car Loan |
Interest rates | 7.70% p.a. to 8.60% p.a. for the STP Car Loan, depending on credit score and applicant category 8.20% p.a. to 8.50% p.a. for the PQVL (pre-qualified) car loan, depending on credit score | Contact the bank |
Loan tenure | Up to 7 years | Up to 5 years |
Processing fee | STP Car Loan: 0.50% of the sanctioned amount, up to a maximum of Rs.5,000, plus GST PQVL: Nil | 1% of the loan amount, up to maximum of Rs.1,500 |
Loan amount | Minimum Rs.1 lakh STP Car Loan: need-based maximum PQVL: up to Rs.20 lakh, or Rs.10 lakh for new-to-credit customers | Rs.15 lakh if the car is purchased from a certified car dealer Rs.5 lakh for other car owners |
Prepayment charges | NIL | NIL |
Margin (down payment) | Minimum 10% | 20% of valuation if the car is purchased from a certified dealer 30% of valuation for other car owners |
Applicant age eligibility | STP Car Loan: 21 to 70 years PQVL: 21 to 60 years | 21 to 70 years, including the loan tenure |
Vehicle age eligibility | Not applicable | Car must not be older than five years |
Note: Interest rates updated on 23 October 2026.
UCO Bank currently offers two car loans for the purchase of a new car for personal use: the PQVL (Pre-Qualified Vehicle Loan) for selected UCO Bank savings account customers who meet predefined criteria, and the STP Car Loan for salaried and non-salaried applicants. Both are floating-rate term loans.
STP Car Loan Interest Rates by Credit Score and Applicant Category
Credit score (CIBIL) | Category A (p.a.) | Category B (p.a.) | Category C (p.a.) |
825 and above | 7.70% | – | – |
824 | 7.90% | – | – |
750 to 799 | 8.00% | – | – |
700 to 749 | 8.25% | 8.35% | 8.45% |
0, -1 or below 300 | 8.40% | 8.50% | 8.60% |
Note: Interest rates updated on 23 October 2026.
Category A applies to permanent employees of the Central Government, State Governments, PSUs, autonomous bodies controlled by the Government, Government institutes, Government-aided institutes, and Nifty 500 or Fortune 500 companies who maintain a salary account with UCO Bank.
PQVL Interest Rates by Credit Score
Credit score (CIBIL) | PQVL interest rate (p.a.) |
775 and above | 8.20% |
750 to 774 | 8.30% |
700 to 749 | 8.40% |
0 or -1 (new to credit) | 8.50% |
Note: Interest rates updated on 23 October 2026.
UCO Bank car loan Eligibility, Charges and Other Terms
Features | Details |
Purpose | Purchase of a new car for personal use |
Eligible applicants | PQVL: selected UCO Bank savings account customers who meet predefined criteria STP Car Loan: salaried applicants (confirmed employees of private or public limited organisations, Central and State Government employees and PSU employees) and non-salaried applicants (established professionals, self-employed individuals, businesspeople, farmers and agriculturists) |
Minimum net annual income (STP Car Loan) | Rs.5 lakh p.a. in metro centres and Rs.4 lakh p.a. in other centres, as per the income tax returns of the last three years |
Credit score requirement | Minimum CIBIL score of 700, or insufficient credit history (score of -1 or 0) |
Repayment tenure | 6 to 84 months, with no moratorium |
Security | No collateral security is required |
Documentation charges | PQVL: Nil STP Car Loan: Rs.250 per lakh, up to a maximum of Rs.25,000, plus GST |
CIBIL charges | Actual, i.e. Rs.150 plus GST |
Repayment mode | Auto recovery from your UCO Bank savings account |
Penal interest | 2% p.a. on the defaulted amount if an EMI is delayed by one month or more, from the due date |
Point of contact | Your base UCO Bank branch |
Factors affecting UCO Bank Car Loan Interest Rates
There are multiple factors affecting the interest rate offered to car loan customers by UCO Bank. Some of the common factors playing a key role have been listed below -
Market Fluctuations: UCO Bank's car loan rates are floating and linked to the bank's benchmark rate. When the RBI changes the repo rate or the bank's cost of funds changes, your rate can change too. Borrowers must be financially prepared for this when they avail a car loan and must plan as required.
Car Model: Banks sometimes give different interest rates for different car models. The bank looks at the resale value and the popularity of the car model when it offers car loans at a particular interest rate. Most car loans require you to pledge the car as security. This is called hypothecation. If you can't repay, the bank can seize the car and sell it to recover its money. Every time a borrower opts for a car loan, the car model and repayment capacity should always be kept in mind to avoid unnecessary complications.
Down Payment: Banks look into the down payment amount done by a prospective borrower, when a car loan is availed. Though the down payment amount can be decided by the borrower according to the financial situation, banks always prefer individuals who make higher down payments. A bigger down payment often gets you a better rate. A lower rate means a smaller EMI each month.
Income: Banks generally approve car loans for customers who meet a certain income criteria. UCO Bank requires that depending on the type of applicant, the necessary income criteria have to be met. The borrower's income is generally given weightage because the loan has to be conveniently repaid without any arrears and disruptions. The borrower should be able to sustain the new car loan along with other debts and liabilities, with the current income shown. Depending on the income factor, banks might offer a better interest rate for borrowers in general.
Summary
UCO Bank car loan interest rates are floating and vary with your credit score and applicant category, and the bank currently offers the pre-qualified PQVL and the STP Car Loan for new cars. A UCO Bank car loan needs no collateral security and carries a minimum margin, with the details listed in the tables above. Check the tables above for the current UCO Bank car loan interest rate, fees and eligibility before you apply at your base UCO Bank branch.
FAQs on UCO Bank Car Loan Interest Rate
1.What is a UCO Bank car loan?
A UCO Bank car loan is a term loan from UCO Bank that helps you finance the purchase of a car for personal use. The bank currently offers it as the pre-qualified PQVL and the STP Car Loan. Both are described in the tables above.
2.What types of UCO Bank car loan are available?
UCO Bank offers the PQVL for selected savings account customers who meet predefined criteria and the STP Car Loan for salaried and non-salaried applicants. The UCO Bank car loan interest rate and loan amount differ between the two.
3.Is the UCO Bank car loan interest rate fixed or floating?
The UCO Bank car loan interest rate is floating, which means it can change when the bank's base rate changes. The rate you receive also depends on your credit score and applicant category, as shown in the rate tables above.
4.What is the processing fee on a UCO Bank car loan?
The UCO Bank car loan processing fee is charged on the sanctioned amount, and it differs between the PQVL and the STP Car Loan. The current fee is listed in the table above.
5.Can I prepay or foreclose my UCO Bank car loan early?
Yes, you can prepay your UCO Bank car loan, and the applicable prepayment terms are listed in the table above. Check them before you close your UCO Bank car loan early.
6.Who is eligible for a UCO Bank car loan?
UCO Bank car loan eligibility covers selected UCO Bank savings account customers for the PQVL and salaried and non-salaried applicants for the STP Car Loan. Income, age and credit score norms apply, and the details are listed in the eligibility table above.
7. Is a credit score required for a UCO Bank car loan?
Yes, UCO Bank checks your credit score when you apply for a UCO Bank car loan, and a minimum score applies. A better credit score also helps you qualify for a lower UCO Bank car loan interest rate.
8.Do I need to provide collateral for a UCO Bank car loan?
No, UCO Bank does not ask for separate collateral security for a UCO Bank car loan. The car itself is typically pledged to the bank through hypothecation, as explained under the car model factor above.
9.How is a UCO Bank car loan repaid?
A UCO Bank car loan is repaid through auto recovery of EMIs from your UCO Bank savings account. Keep enough balance in the account on each EMI due date.
10.What happens if I delay a UCO Bank car loan EMI?
UCO Bank charges penal interest on the defaulted amount if a UCO Bank car loan EMI is delayed beyond the period set by the bank. The penal interest terms are listed in the table above.
11.How can I apply for a UCO Bank car loan?
You can start your UCO Bank car loan application through your base UCO Bank branch, which is the bank's point of contact for the loan. Keep your income and identity documents ready, as the documentation requirements depend on the loan type.
12.What factors affect the UCO Bank car loan interest rate?
The UCO Bank car loan interest rate depends on factors such as your credit score, applicant category, loan amount and repayment tenure. Market conditions, the car model and the size of your down payment can also influence the UCO Bank car loan interest rate you are offered.
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