Comparing Loan Interest Rates: UCO Bank vs Other Banks for Two-Wheelers
Loans by Team Drivio | 8th Dec 23
With a comprehensive loan rate analysis between UCO Bank and other lenders, you can get a realistic idea of the overall cost of your loan. Factor in expenses like the processing fee, preclosure charges, and late payment penalties when you apply for the loan.
Choosing the right lender for your two-wheeler involves a prudent decision. With a consistent rise in the demand for motorcycles in India, potential owners must be busy exploring affordable financing options. Rapid urbanization, traffic congestion, and fuel efficiency are just a few drivers of this rising demand for two-wheelers across the country.
Thankfully, reputed banks and NBFCs have come up with cost-effective loans to help you finance your new motorcycle. However, it’s imperative to look beyond interest rates when you select your lender. In The lending industry, UCO Bank continues to be a prominent player, offering flexibility and cost-effective loans to buyers. Comparing loan interest rates to UCO Bank's other banks will help you understand the affordability of the loan.
Being informed of all the funding options will help you shortlist the best lenders for financing your motorcycle. In this loan rate analysis guide, you will also get to know the interest rates offered by some of the other reputed private and government banks.
Borrowing A Two-Wheeler Loan From UCO Bank
While the lending industry for bike loans in India looks competitive, UCO Bank stands out with its affordability and flexibility. This government bank offers two-wheeler loans starting at 10.70% per annum, with a maximum tenure of 4 years. Most importantly, this is one of the few banks that doesn’t charge anything if you decide to pre-close the loan. This demonstrates the commitment of the bank to customer-friendly policies. It brings you the freedom to settle the loan at your convenience. Owners can now acquire their dream bikes without stressing themselves financially.
The processing charge is just 1% of the loan amount, which is lower than the charge at most banks. Have a look at the detailed breakdown of two-wheeler loan offerings by UCO bank.
- Interest rate: 10.70% per annum
- Maximum loan amount: Up to INR 1 lakh
- Income eligibility: Both salaried and non-salaried individuals
- Income eligibility: Salaried Employees, Non-Salaried Individuals
- Repayment period: 4 years
- Processing fee: 1% of the loan amount (Minimum - INR 500)
- Prepayment charges: Nil
Any borrower aged between 21 and 55 can apply for a two-wheeler loan with UCO Bank.
Comparing Loan Interest Rates UCO Bank with Other Banks
Now that you know how affordable UCO bank two-wheeler loans are, let’s take a look at how this lender performs in comparison with other private and government banks in India. This loan rate analysis will also help you understand the processing charges that add to the cost of your loan.
1. UCO Bank
While UCO Bank offers a maximum bike loan of INR 1 lakh, you may need a larger amount. However, with zero prepayment charge and just 1% of the loan amount required as the processing fee, this bank remains a top choice for lenders. Most importantly, its interest rates start from just 10.70% a year.
2. ICICI Bank
ICICI Bank is a leading private lender, offering motorcycle loans at interest rates starting from 10.05% per annum. However, this bank charges a hefty processing fee, which can be 4.75% of the loan amount. Additionally, you need to pay GST, which further makes your loan expensive.
The State Bank of India continues to be a viable choice for a broad customer base, as it sanctions larger amounts. This bank charges an annual interest rate of 12.40%, while you need to shell out a processing charge of 2%.
4. HDFC Bank
Among private lenders known to sanction larger loan amounts, you have HDFC Bank. It provides financial solutions for a wide range of borrowers. While you can get larger motorcycle loans from this lender, it charges a high-interest rate of 14.50% annually along with a 2.5% processing fee.
5. Bank of Baroda
With an annual interest rate starting at 13.65%, Bank of Baroda offers tailored financial solutions to its borrowers. This is a reputed government bank, offering substantial funding to two-wheeler owners. You need to fork out a processing fee of 2% on the loan amount once it’s sanctioned.
6. Punjab National Bank
Two-wheeler loans from Punjab National Bank come at a starting rate of 11.15% per annum. This low rate of interest can help motorcycle owners finance their bikes affordably. The processing fee at PNB is also nominal, at 0.5% of the loan amount. Depending on the amount you borrow, this varies from INR 500 to INR 1000.
7. Axis Bank
Axis Bank is a reputed private lender, and it offers motorcycle loans starting at 11% per annum. It caters to a broad range of borrowers, charging a processing fee of 2.5% on the loan amount. Thus, borrowers enjoy a balanced cost structure while funding their motorcycles.
Chart Showing UCO Bank's Rates Vs Other Banks
|Starting from 10.70% p.a.
|1% of the loan amount (Min. INR.500, No prepayment charges)
|Starting from 10.05% p.a.
|Up to 4.75% of the loan amount + GST
|2% of the loan amount
|2.5% of the loan amount
|Bank of Baroda
|Starting from 13.65% p.a.
|2% of the loan amount
|Punjab National Bank
|Starting from 11.15% p.a.
|0.5% of the loan amount (Min. INR.500, Max. INR.1000)
|Starting from 11.00% p.a.
|2.5% of the loan amount
While comparing loan interest rates UCO Bank other banks, it’s imperative to prioritize aspects like your interest rate, processing fee, administrative charges, and other hidden costs. A careful stance and proper evaluation of all these costs can help you gain a realistic idea about the overall cost of your loan. Now that we have compared UCO Bank's rates vs other Banks, borrowers can evaluate the affordability of loans and choose the lender offering maximum convenience.