Among all the lenders that provide personal loans to customers, UCO Bank is one of the oldest and trusted public sector banks in India. But one of the first and foremost factors that people should look at before applying for a personal loan is the interest rate offered by the lender. The reason being the unsecured nature of a personal loan which means an individual will not need to submit any collateral against the loan amount. One of the main reasons behind popularity among customers is the affordable UCO Bank personal loan interest rate.
If you don’t know this yet, you should know that different lenders charge different interest rates on their loan facilities. Lenders put so much emphasis on the personal loan interest rate because it directly affects your repayment amount i.e. EMI amount with which an individual repays the loan amount to the lender within a fixed tenure. You can also use UCO Bank personal loan EMI calculator to know this amount beforehand. But before coming to that, we will like to discuss those factors that affect the personal loan interest rate, and based on that your interest rate will be defined. We are explaining the same in this article. Keep reading to know more!
What are those Factors that Affect the UCO Bank Personal Loan Interest Rate?
Any lender decides the final rate of interest for any individual after assessing several factors such as monthly income, employment type, company status, existing relationship with the bank, etc. We are showing them below. Have a look!
Monthly Income of an Individual
When you are going to choose the UCO Bank personal loan interest rate, one of the most crucial factors is the monthly income. The reason is simple: an individual who is earning a higher income can easily set off a higher part of their income towards repayment as compared to an individual who is earning a lower income. That is why individuals with higher incomes are more likely to fully repay the loans as compared to people with lower incomes. So, such individuals may get lower interest rates on their loan facilities.
Employment Type and Status
Since a personal loan is an unsecured loan, lenders don’t want to face any credit risk when providing the loan. One of the crucial factors that affect the UCO Bank personal loan interest rate is the employment type and status of an individual. The reason is simple: an individual working in a reputed company is considered to be more financially stable as compared to a person who is working in a non-listed company. This is why the final rate of interest will be decided only after checking the employment reputation of an individual.
Credit score defines the creditworthiness of an individual. The important thing is that you should know that credit score does not only impact your loan approval but also the final UCO Bank personal loan interest rate. Any score of 700 or above is considered to be a good credit score among lenders. So, if an individual has a score of 700 or above, he or she may get a lower interest rate as compared to an individual who has a poor credit score.
Existing Relationship with Lender
An individual who has a savings account or salary account with the UCO bank has a higher chance to get a lower personal loan interest rate or a special processing fee because of the trust in the customers. That’s why your existing relationship with your bank can play an important role in determining your interest rate.
So, these are the factors that may affect your UCO Bank personal loan interest rate. You can also use the UCO Bank personal loan EMI Calculator to have an early estimate about the repayment amount.