UCO Bank Loan Against FD

What is a UCO Bank Loan Against FD?

UCO Bank loan against fixed deposit is a secured overdraft facility that allows you to use your FD as collateral to borrow funds. This facility is available only on specific fixed deposit schemes, namely the ‘UCO 444’ Special Deposit Scheme and the ‘UCO 333’ Special Fixed Deposit Scheme. When you take a loan against FD, you don't have to close your fixed deposit, and it still earns interest while you utilise funds when required. This allows you to manage sudden expenses without compromising your savings. 

Key Features of UCO Bank Loan Against FD

Here are the key features that make the Loan against FD UCO Bank a hassle-free and flexible financial alternative:

• Low Interest Rate: The loan is offered at an interest rate slightly higher than the prevailing UCO Bank FD rates, making it a cost-effective alternative to unsecured borrowing options.
• Pay Interest Only on Utilised Amount: Under the UCO Bank Loan Against FD facility, the fixed deposit continues to earn interest, while the borrower is charged only 2% to 3% above the FD interest rates on the loan amount actually availed. 
• Zero Processing Fee: UCO Bank loan against FD has no processing fee.
• Flexible Repayment Tenure: For a UCO Bank loan against FD, you get to select a repayment period equal to or less than your fixed deposit period.
• Loan Tenure Linked to FD: You can link your loan tenure with your fixed deposit through a UCO Bank loan against FD. The loan tenure has a limit that cannot exceed your FD's remaining tenure.

How to Apply for a UCO Bank Loan Against FD?

You can apply for a loan against FD with UCO Bank through a quick online process or by visiting the nearest branch. Here’s how to get started:

1. Online Loan Application

   You can apply easily through UCO Bank’s NetBanking or mobile app (UCO mBanking Plus).

   • Apply Online: Apply conveniently using UCO Bank’s NetBanking or secure Mobile Banking App service.
   • Log In: Sign in with your Customer ID or registered mobile number to access services.
   • Access FD Section: Navigate to the Fixed Deposits section to view all your active deposits.
   • Select FD: Choose the fixed deposit account you want to pledge for the overdraft facility.
   • Choose Loan Option: Select the ‘Loan Against FD’ overdraft option available within your account services menu.
   • Submit Request: Review the entered details carefully and submit your online application for instant bank processing.
   • Instant Approval: If FD is singly held, approval is generally granted instantly without additional requirements.

2. Offline Loan Application 

   If you prefer in-person assistance, visit the nearest UCO Bank branch.

   • Visit Branch: Visit the nearest UCO Bank branch if you prefer in-person assistance for the loan application.
   • Carry Documents: Bring the FD receipt, identity proof, and valid address proof for completing the loan requirements.
   • Request Form: Ask branch staff for the official ‘Overdraft Against FD’ loan application form.
   • Fill Form: Carefully provide your personal, deposit, and loan details in the application form.
   • Submit Documents: Attach KYC documents and FD details, then submit them with the completed application form.
   • Application Processing: The bank verifies details and processes your loan request after document submission.
   • Overdraft Activation: Overdraft limit is activated within seven working days after bank’s approval.

Who Should Consider a UCO Bank Loan Against FD?

UCO Bank loan on FD facility is a suitable option for the following segments of customers:

• Tax-Saving FD Investors: Investors with tax-saving FDs for 5 years can access funds via an overdraft without closing the FD.
• Emergency Fund Seekers: Whether for a medical bill, education fee, or foreign trip, this facility provides instant liquidity without resorting to high-interest debt.
• Small Business Owners: Business owners can use this option to meet short-term working capital requirements or operational expenses cost-effectively.
• People Avoiding Unsecured Loans: This is a safer and more affordable alternative to personal loans, especially if you already hold a UCO Bank FD.

Repayment Options for UCO Bank Loan Against FD

Repaying the loan against FD with UCO Bank is simple and flexible. Here are the available options:

• Repay Anytime: With UCO Bank Loan Against FD, you can repay the loan at your convenience, without a fixed EMI schedule. There's no requirement to pay the entire amount in a single payment.
• Multiple Modes of Repayment: You can repay the loan using NetBanking, UPI, NEFT, or by visiting your nearest UCO Bank branch.
• Repayment from Other Accounts: You can repay the loan from any other account you hold with UCO Bank, giving you more flexibility in managing your repayments.
• Auto Adjustment on FD Closure: If the FD matures and the loan is still active, the outstanding amount is automatically deducted from the FD amount.
• No Prepayment Charges: You can close the loan early without paying any extra charges or penalties.

Key Takeaways

UCO Bank loan against FD lets you borrow up to 90% of your deposit without breaking it, while your FD continues to earn interest. The loan is cost-effective, with interest charged only on the utilised amount, usually 2–3% above FD rates. With zero processing fees and flexible repayment through NetBanking, UPI, NEFT, or branch banking, it offers quick liquidity. The facility is available only under the ‘UCO 444’ and ‘UCO 333’ deposit schemes.