UCO Bank Car Loan Interest Rate November 2026: 7.70% for CIBIL 825
The UCO Bank car loan interest rate is 7.70% to 10.25% p.a. on a new car, floating on UCO Float, 8.30% since 8 October 2026. A CIBIL score of 825 or more gets 7.70%, the lowest published starting rate among the 30 lenders we track; 600 to 649 pays 10.25%. Electric cars run 7.60% to 9.20%.
UCO Bank car loan in 2026: two routes, one 14-row grid
UCO Bank, a public sector bank, lends for a new car in two ways. The STP Car Loan is the open route: from ₹1 lakh, no printed ceiling, 6 to 84 months. The Pre-Qualified Vehicle Loan, or PQVL, goes to selected UCO savings and Suvidha salary account holders: ₹1 lakh to ₹20 lakh (₹10 lakh for a first-time borrower), ages 21 to 60, with processing and documentation charges waived until 31 December 2026.
Both routes float on UCO Float plus a spread for your CIBIL band, less a 0.60% discount once the score reaches 700; funding stops at 90% of the on-road price.
One caution: UCO's site still carries an older rates page on a UCO Float of 8.05% (7.45% to 10.00%), a June 2025 PQVL page showing 8.20% to 8.50%, and a September 2026 pre-qualified page with a four-step ladder of 7.70%, 8.30%, 8.40% and 8.50%. All differ from the circular effective 8 October 2026, which we follow. All 30 lenders are on our car loan hub.
UCO Bank car loan EMI
Loan amount: ₹8,00,000 at UCO Bank's published rate range. Reducing-balance EMI; processing fees and insurance are extra.
Compare car loan ratesYour monthly EMI
₹16,106
for 60 months
₹9,66,390
Total payable
₹8,00,000
₹1,66,390
Interest is 17.2% of what you repay. A shorter tenure cuts it; a lower rate cuts it more.
UCO Bank car loan interest rate: how the CIBIL ladder works
UCO Float is the repo rate of 5.50% plus 2.80%, so 8.30%. When the RBI raised the repo rate 25 basis points on 7 October 2026, UCO moved its Float from 8.05% to 8.30% the next day, and every row with it.
Band by band
A score of 825 or above has a zero spread, so the 0.60% discount gives 7.70%. Scores of 800 to 824 pay 7.90%, 750 to 799 pay 8.00%. From 726 to 749 the bank splits borrowers into Category A, Category B and others at 8.25%, 8.35% and 8.45%; from 700 to 725 the same tiers pay 8.55%, 8.65% and 8.75%.
First-time borrowers (CIBIL 0, minus 1 or below 300) get no discount but a thin spread: 8.40%, 8.65% or 8.75%. Below 700 the discount goes: 650 to 699 pays 9.30%, and 600 to 649 pays 10.25%, that row only with a UCO salary account. One footnote: the 750 to 824 and first-time rows apply only to accounts with no agent (DSA) payout, so skip the sales agent.
Electric and used cars
Electric cars get a 0.70% discount, so each row is 0.10% lower: 7.60% at the top, 9.20% at 650 to 699, no 600 to 649 row. Used cars have no grid: add 2 percentage points to your card rate for a certified-dealer car, 3 for any other, so a 7.70% borrower pays 9.70% or 10.70%, over at most 60 EMIs.
The floor in EMIs
Borrow ₹10 lakh over 5 years at 7.70% and the EMI is ₹20,133, with ₹2,07,987 of interest. Over 7 years the EMI falls to ₹15,437 but interest rises to ₹2,96,722, so the longer term costs ₹88,735 more (2,96,722 less 2,07,987). On our car loan interest rates table of 30 lenders, UCO's floor ranks first, under the 8.50% median.
UCO Bank car loan rates as published
| New car | 7.7% to 10.25% p.a. |
|---|---|
| Who gets the lowest rate | CIBIL 825 and above, individuals (spread 0.00%, strategic discount -0.60%) |
| Rate basis | Floating (UCO Float (RLLR) 8.30%) |
| Used car | Yes |
| Electric car | 7.6% to 9.2% p.a. |
| Lender's effective date | 8 October 2026 |
| Read on | 9 November 2026 |
UCO Bank's published rate table
14. UCO CAR / STP CAR LOAN / Car Loan PQVL, Individuals: rate by CIBIL band (Spread, Strategic Discount, Effective Rate)
| CIBIL band | Category | Spread | Strategic Discount | Effective Rate |
|---|---|---|---|---|
| CIBIL >= 825 | 0.00% | -0.60% | 7.70% | |
| >=800 AND <=824 | 0.20% | -0.60% | 7.90% | |
| 750<=CIBIL<=799 | 0.30% | -0.60% | 8.00% | |
| 726<=CIBIL<=749 | i) CATEGORY A | 0.55% | -0.60% | 8.25% |
| 726<=CIBIL<=749 | ii) CATEGORY B | 0.65% | -0.60% | 8.35% |
| 726<=CIBIL<=749 | iii) OTHER THAN CATEGORY A AND B | 0.75% | -0.60% | 8.45% |
| 700<=CIBIL<=725 | i) CATEGORY A | 0.85% | -0.60% | 8.55% |
| 700<=CIBIL<=725 | ii) CATEGORY B | 0.95% | -0.60% | 8.65% |
| 700<=CIBIL<=725 | iii) OTHER THAN CATEGORY A AND B | 1.05% | -0.60% | 8.75% |
| CIBIL 0, -1 & <300 | i) CATEGORY A | 0.10% | 0.00% | 8.40% |
| CIBIL 0, -1 & <300 | ii) CATEGORY B | 0.35% | 0.00% | 8.65% |
| CIBIL 0, -1 & <300 | iii) OTHER THAN CATEGORY A AND B | 0.45% | 0.00% | 8.75% |
| 650 <= CIBIL < 699 | 1.00% | 0.00% | 9.30% | |
| 600 < CIBIL < 649 | Maintaining Salary Account with us | 1.95% | 0.00% | 10.25% |
Business concerns: CMR 1 8.30%; CMR 2 8.55%; CMR 3 to 4 8.80%; CMR 5 to 6 9.30%; not available 9.80%; external rating AAA 8.00%, AA 8.35%, A 8.45%, BBB 8.55%, others 8.80%. '*RoI on Car Loan PQVL is applicable only for CIBIL 700 and above, -1, 0, and below 300.' 'The rate of interest shall also be applicable for STP vehicle and pre-qualified vehicle loan scheme.' Pre-used cars (note under the business concern heading): '2% over and above the applicable card rate' if purchased from a certified car dealer, '3% over and above the applicable card rate' for all others. The same individual grid is printed on the STP Vehicle Loan page (/uco-vl, UCO Float 8.3, Last Updated On 12/10/2026).
EMI at UCO Bank's published rates
| Loan amount | 5 years | 7 years |
|---|---|---|
| ₹5 lakh | ₹10,067 interest ₹1,04,020 | ₹7,719 interest ₹1,48,396 |
| ₹10 lakh | ₹20,133 interest ₹2,07,980 | ₹15,437 interest ₹2,96,708 |
| ₹15 lakh | ₹30,200 interest ₹3,12,000 | ₹23,156 interest ₹4,45,104 |
| Loan amount | 5 years | 7 years |
|---|---|---|
| ₹5 lakh | ₹10,685 interest ₹1,41,100 | ₹8,365 interest ₹2,02,660 |
| ₹10 lakh | ₹21,370 interest ₹2,82,200 | ₹16,731 interest ₹4,05,404 |
| ₹15 lakh | ₹32,055 interest ₹4,23,300 | ₹25,096 interest ₹6,08,064 |
Reducing-balance EMI on the loan amount alone. Processing fee, insurance and registration are paid separately.
UCO Bank car loan processing fee and charges
UCO prints three processing fees. The STP Car Loan page says 0.50% of the sanctioned amount, capped at ₹5,000 plus GST, with documentation of ₹250 per lakh up to ₹25,000. The PQVL page says nil, under a 100% waiver until 31 December 2026. A 2018 service charges schedule still lists "UCO Car" at 1%, maximum ₹1,500; we treat it as outdated.
On a ₹10 lakh loan
| Charge | STP Car Loan | PQVL |
|---|---|---|
| Processing fee | ₹5,000 (0.50%, the cap) plus GST | Nil to 31 December 2026 |
| Documentation | ₹2,500 (₹250 per lakh) | Nil |
| CIBIL report | ₹150 plus GST | ₹177 with GST |
So STP costs ₹7,500 before GST (5,000 plus 2,500); at 18% GST the processing fee alone is ₹5,900 (5,000 plus 900).
Closing early
Both pages state nil prepayment charges, and the RBI's 2025 directions on pre-payment charges forbid them anyway on a floating-rate loan to an individual for personal use sanctioned from 1 January 2026, in part or in full, with no lock-in. Late payment charges are not printed; under the RBI's penal charge rules since 1 April 2024 they must be a separate fee shown in your Key Facts Statement. More on car loan processing fees and charges.
UCO Bank car loan fees and charges
| Processing fee | STP Car Loan: 0.50% of the sanctioned amount, maximum Rs. 5,000 + GST; PQVL: Nil ('100% waiver of Processing Charges and Documentation Charges for Car Loans (including EV car) up to 31.12.2026'); service charges page (Service Charges in Retail Loan Schemes w.e.f. 15.05.2018): UCO Car '1% Maximum Rs. 1500/-' |
|---|---|
| Prepayment and foreclosure | Nil (STP Vehicle Loan page: prepayment charges nil for both STP Car Loan and PQVL) |
| Documentation charges (STP) | Rs. 250 per lakh, maximum Rs. 25,000; PQVL: Nil |
| CIBIL charges | Actual, Rs. 150 plus GST (STP page); Rs. 177 including GST (PQVL page) |
| Note | Three fee figures conflict: STP page 0.50% max Rs. 5,000 plus documentation; PQVL nil with waiver to 31.12.2026; service charges page 1% max Rs. 1500 dated 2018. |
Who qualifies for a UCO Bank car loan
Salaried applicants must be confirmed employees of a reputed company or a government body, with salary credited in each of the past 6 months. Non-salaried applicants can be professionals, self-employed people, business owners or farmers.
Age, income and score
Age is 21 to 70 under STP, counted to the end of repayment, and 21 to 60 under PQVL. A salaried borrower must keep ₹20,000 a month in hand after all EMIs including the new one; a non-salaried borrower needs net annual income of ₹5 lakh in a metro or ₹4 lakh elsewhere, per the ITR. Minimum CIBIL is 700; first-time borrowers are accepted.
Loan size and papers
The loan is the lowest of 90% of the on-road price (ex-showroom plus registration, road tax and insurance), what your repayment capacity supports, the scheme cap and what you asked for. UCO prints no checklist; carry PAN and Aadhaar, salary slips or the ITR, bank statements and the dealer's quotation.
UCO Bank car loan eligibility and limits
| Who can apply | Salaried: confirmed employees of reputed private/public companies or government bodies with salary credited in each of the past 6 months; non-salaried: established professionals, self-employed, businessmen, farmers; PQVL: selected UCO savings account / UCO Suvidha salary account customers meeting predefined criteria |
|---|---|
| Age | 21 to 70 years including repayment period (STP); 21 to 60 years (PQVL) |
| Income | Salaried: minimum monthly take-home Rs. 20,000 after deductions and existing liabilities including proposed EMI; non-salaried: minimum net annual income Rs. 5 lakh (metro centres) / Rs. 4 lakh (other centres) per ITR; minimum CIBIL 700, new-to-credit (-1/0) allowed |
| Loan amount | STP Car Loan: minimum Rs. 1 lakh, maximum need-based; PQVL: Rs. 1 lakh to Rs. 20 lakh (Rs. 10 lakh for new-to-credit) |
| Tenure | 6 to 84 months, no moratorium (STP / PQVL); Personal Loans & Advances page: 84 EMIs new car, 60 EMIs pre-owned car |
| Funding | Minimum margin 10% of on-road price (ex-showroom price + registration + road tax + insurance); loan is the lowest of 90% of on-road price, FOIR-based amount, scheme maximum and amount requested |
How to apply for a UCO Bank car loan
Three doors: the official apply link on this page; a branch, where the STP Car Loan is processed and where you'd settle your Category; or PQVL, if UCO has already flagged your account. UCO publishes no sanction or disbursal timeline, so ask before you book the car.
How to choose the right car loan
Compare the rate for your CIBIL band, the fees on your loan size and the exit cost, not the banner rate. Then read the Key Facts Statement, due before you sign since 1 October 2024: one APR with every charge in it, the repayment schedule, whether prepayment charges apply, valid for three working days. Check the reset clause: at a reset you must be offered a higher EMI, a longer tenure or a mix, or you may prepay. Run your figures on the car loan EMI calculator.
Common mistakes
Taking 7.70% as your rate when your score sits in the 750 to 799 band (that row is 8.00%). Choosing 7 years for the smaller EMI without pricing the extra interest. Applying through an agent and losing the no-DSA rows. Missing a PQVL offer in your UCO account.
Apply on UCO Bank's siteOpens the lender's own page. BankCreds is not a lender and takes no part in the application.
Who the UCO Bank car loan suits, and how it compares
UCO suits a borrower scoring 750 or more who wants the lowest floating floor on our table and doesn't mind a public sector branch. UCO account holders gain more: PQVL drops every fee but the credit report.
Look elsewhere for a fixed rate, which UCO doesn't publish, for a score under 600, where the grid ends, or for more than 90% funding. The trade-off is floating risk, as October's repo rise showed.
Against Bank of Maharashtra, Indian Bank and Canara Bank
Bank of Maharashtra matches the 7.70% floor on the same 8.30% RLLR but needs only a score of 800 and a salary, and funds 100% of the on-road price. Its ceiling is 12%, used cars run 11.45% to 14.30%, and its scheme page charges 0.25% processing though its marketing page says no fee.
Indian Bank runs 7.75% to 9.10%, the tightest band of the four, but prints no CIBIL grid and no benchmark. Processing is a flat ₹1,200 plus GST; used cars cost 9.80% to 11.90%.
Canara Bank prices by credit risk grade: 7.75% for women in the top grade on loans above ₹15 lakh, 7.80% for others, up to 10.95%, on an RLLR of 8.25%. Its concession holds for 3 years, cars up to 3 years old get the new-car rate, and processing is waived until 31 December 2026. UCO wins on the floor and EV pricing; Canara on used cars.
Pros
- Lowest published floor on our table: 7.70% for CIBIL 825 and above.
- Nil prepayment and foreclosure charges on both routes.
- PQVL waives processing and documentation charges until 31 December 2026.
- Electric cars 0.10% below the petrol grid, 7.60% at the top.
Cons
- Floating only; no fixed-rate option is published.
- Three conflicting processing fee figures across UCO's pages.
- Category A and B, which set the rate from 700 to 749, are not defined.
- Used cars: 2 to 3 points over the card rate, 60 EMIs at most.
UCO Bank against Bank of Maharashtra and Indian Bank and Canara Bank
| What | UCO Bank | Bank of Maharashtra | Indian Bank | Canara Bank |
|---|---|---|---|---|
| New car rate | 7.7% to 10.25% p.a. | 7.7% to 12% p.a. | 7.75% to 9.1% p.a. | 7.75% to 10.95% p.a. |
| Who gets the lowest rate | CIBIL 825 and above, individuals (spread 0.00%, strategic discount -0.60%) | CIBIL score 800 & above, Salaried (RLLR - 0.60%) | Not stated | Women borrowers, CRG-PRIME, sanctioned limit above Rs. 15.00 lakh: 7.75% (other borrowers 7.80%) |
| Used car rate | Offered, rate on request | 11.45% to 14.3% p.a. | 9.8% to 11.9% p.a. | 7.75% to 10.95% p.a. |
| Electric car rate | 7.6% to 9.2% p.a. | from 7.7% p.a. | 7.75% to 9.05% p.a. | 7.7% to 10.95% p.a. |
| Rate basis | Floating | Fixed or floating | Fixed or floating | Fixed or floating |
| Maximum tenure | Up to 7 years | Up to 7 years | Up to 7 years | Up to 7 years |
| Funding | Up to 90% of on-road price | Up to 100% of on-road price | Up to 90% of on-road price | Up to 90% |
| Processing fee | 0.50% of loan | 0.25% | 1% of loan | 0.25% of loan |
| Prepayment | Nil (STP Vehicle Loan page: prepayment charges nil for both STP Car Loan and PQVL) | No Pre-Payment / Pre-closure / Part payment Charges (scheme page) | Prepayment: nil for individuals; 2% of balance outstanding for non-individuals (product page) | No pre-payment penalty. |
| Read on | 9 November 2026 | 9 November 2026 | 9 November 2026 | 9 November 2026 |
Frequently asked questions
What is the UCO Bank car loan interest rate today?
Is there a UCO Bank car loan EMI calculator?
What is the UCO Bank car loan eligibility?
What is the UCO Bank car loan processing fee?
How do I apply for a UCO Bank car loan?
Does UCO Bank give a used car loan?
What is the UCO Bank electric car loan interest rate?
What is UCO Bank's pre-qualified vehicle loan (PQVL)?
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Disclaimer. Car loan rates are indicative and subject to change. The final rate depends on the lender's assessment of your profile and the car. Last verified on 9 November 2026. BankCreds is not a lender.
Sources
- UCO Bank: UCO Bank, Repo latest (Annexure I Retail: UCO Float linked rates)
- Bank of Maharashtra: Bank of Maharashtra, Retail Interest Rates (Rate of Interest Retail Loans)
- Indian Bank: Indian Bank, Interest Rates on Personal Segment Loan Products: Floating
- Canara Bank: Canara Bank, Rates of Interest for Retail Lending Schemes linked to RLLR - 2. Canara Vehicle Loan
Last verified: 9 November 2026
Written by Ramesh Kulkarni, reviewed by BankCreds Financial Experts
BankCreds does not sell cards or take applications. Fees and rewards change; the bank's own terms on the day you apply are what count, and approval is the bank's decision.