In a rapidly changing world, the range of possibilities has gone up substantially higher and particularly in the financial services space. Now loans are getting extended to customers for purchasing durables such as television, refrigerator, air conditioner, recliners, music systems, electronics and other products, much unlike the older days when things like these were taken by paying their price. Many a lenders have started providing consumer durable loan, which comes under the category of personal loan, to widen their reach among the masses. And one such lender is UCO Bank, which we are going to discuss in this article. The bank offers consumer durable finance for a period of upto 3 years at an interest rate of 14.10%-15.10% per annum. Processing fee charged by the bank is equivalent to 1% of the loan amount subject to a minimum of Rs 1,000. However, there are no prepayment charges. So, you can pay off the loan without bearing any charge when you deem fit to do so. Based on your income, repayment capacity, savings, you can be granted loan upto 80%-90% of the product's price from UCO Bank. The maximum loan amount equals to Rs 2,00,000 or 10 times of net monthly income.
Eligibility Parameters
| Criteria | Salaried | Self-employed |
|---|---|---|
| Income | Rs 30,000 per month at metro cities or Rs 20,000 per month at other locations. Savings of around 40% of the income each month after deducting EMIs and others or Rs 10,000 whichever is higher, must be there. | Minimum annual income of Rs 4,00,000 across all the locations as per the ITR. Savings of around 40% of the income each month after deducting EMIs and others or Rs 10,000 whichever is higher, must be there. |
| Age | 21-60 years | 21-65 years |
EMI Calculator
The EMI is calculated by using the principal loan amount, interest rate and the loan tenure. Suppose you want to buy Sony Bravia KDL 43W950C 43 inch Smart 3D Full HD LED television worth about Rs 72,000. The EMIs will come out to be Rs 2,464-2,499 if you wish to buy the said television on loan for a period of 3 years. The interest outgo and the total amount payable will be Rs 16,714-17,980 and Rs 88,714-89,980, respectively, for a 3-year loan. Let us know EMI of different periods for the same loan amount in the table shown below.
| Loan Amount | Loan Tenure | Interest Rate | EMI | Interest Outgo | Total Amount (Principal+Interest) |
|---|---|---|---|---|---|
| Rs 72,000 | 1 | 14.10% p.a.-15.10% p.a. | Rs.6,468-6,502 | Rs.5,617-6,024 | Rs.77,617-78,024 |
| Rs 72,000 | 2 | 14.10% p.a.-15.10% p.a. | Rs.3,460-3,494 | Rs.11,048-11,867 | Rs.83,048-83,867 |
| Rs 72,000 | 3 | 14.10% p.a.-15.10% p.a. | Rs.2,464-2,499 | Rs.16,714-17,980 | Rs.88,714-89,980 |
Amortization Table
| Year | Principal | Interest | Balance Amount |
|---|---|---|---|
| 1 | Rs. 20,497-20,719 | Rs. 8,849-9,491 | Rs.51,281-51,503 |
| 2 | Rs. 23,814-23,838 | Rs. 5,730-6,174 | Rs.27,443-27,689 |
| 3 | Rs. 27,472-27,720 | Rs. 2,142-2,317 | Rs. 0 |
From the EMIs and interest amount obtained on the loan amount in the table, you can figure how beneficial it is to take loan for a shorter tenure as it lessens the interest outgo from the pocket. However, the EMIs will rise on the shorter tenure. So, make sure you have enough in your hand to deal with the higher EMIs on a shorter tenure. Else, you can opt for a longer tenure to pay small EMIs with ease.
Documentation
| Proofs | Salaried Professional | Self-employed |
|---|---|---|
| Age Proof | Passport Copy/PAN Card/ Voter ID card, Photo Driving License with birth date (laminated, recent, legible)/Photo ration card with DOB/Employer certificate/ID/School/College Leaving Certificate | Passport Copy/PAN Card/Voter ID card, Photo Driving License with birth date (laminated, recent, legible)/Photo ration card with DOB/Employer certificate/ID/School/College Leaving Certificate |
| Identity Proof | PAN Card/Voter ID/Passport/Driving License, 2 passport size photographs | PAN Card/Voter ID/Passport/Driving License, 2 passport size photographs |
| Income Proof | Latest Salary Slip, bank statement for last 3 months | Latest 2 year ITR with statement showing computation of income, CA Certified or auditied profit & loss account statements and balance sheet for last 2 years, bank statement for last 6 months |
| Address Proof | Latest Telephone Bill/ Electricity Bill/Property Tax Receipt/Passport/ Voter ID | Latest Telephone Bill/ Electricity Bill/Property Tax Receipt/Passport/ Voter ID |
| Signature Verification Proof | Driving License/Passport copy/PAN Card | Driving License/Passport copy/PAN Card |
Consumer Durable Loan is Applicable on Following Items
• Refrigerators
• Washing Machine
• Laptops and Ultra books
• Air conditioners
• Recliners
• High End Audio and Home Theatre Systems
• Modular Kitchen
• Tablets
• Mobile Phones
• High End Camera and Lenses
• LED Televisions
(Updated on:1 November,2016)
