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Car & Vehicle Loan

UCO Bank Car Loan Interest Rate 2026: STP Car Loan, Bike Loan and EMI

UCO Bank car loans start at 7.45% (7.35% for EVs) for a CIBIL score of 825+, rising to 10.00%, on the card updated 13 August 2026.

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Written by Ananya Iyer

Updated on 17 September 2026·6 min read

On this page8 sections
Credsir Car & Vehicle Loan guide cover with a percent icon

UCO Bank’s car loan interest rate starts at 7.45% a year for a new petrol or diesel car and 7.35% for an electric car, for borrowers with a CIBIL score of 825 or more. The rate rises to 10.00% at lower scores, per the bank’s rate card last updated on 13 August 2026. All UCO car loans are floating and linked to the bank’s UCO Float rate of 8.05%.

UCO Bank car loan at a glance

Item Position on 17 September 2026
New car loan rate 7.45% to 10.00%, by credit score and employer category
Electric car loan rate 7.35% to 8.95%
Used car loan rate Card rate plus 2% (certified dealer) or plus 3% (any other seller)
Benchmark UCO Float 8.05% (repo rate 5.25% plus 2.80%), from 11 December 2025
Loan amount From ₹1 lakh; no upper cap on UCO Car; ₹20 lakh cap on the pre-qualified loan
Tenure Up to 84 months (new car); up to 60 months (used car)
Minimum CIBIL score 700 for the STP and pre-qualified loans; new-to-credit applicants can also apply
Processing and documentation charges Waived on car loans, including electric cars, until 31 December 2026
Prepayment charge Nil
Penal interest 2% a year on the overdue amount if an EMI is late by a month or more

UCO Bank car loan interest rate by CIBIL score

The same card applies to UCO Car, the STP Car Loan and the Pre-Qualified Vehicle Loan (PQVL). Each rate is UCO Float (8.05%) plus a spread, minus a strategic discount of 0.60% for most petrol and diesel borrowers and 0.70% for most EV borrowers.

CIBIL score Petrol or diesel car Electric car
825 and above 7.45% 7.35%
800 to 824 7.65% 7.55%
750 to 799 7.75% 7.65%
726 to 749 8.00% / 8.10% / 8.20% 7.90% / 8.00% / 8.10%
700 to 725 8.30% / 8.40% / 8.50% 8.20% / 8.30% / 8.40%
No score (−1, 0) or below 300 8.15% / 8.40% / 8.50% 8.05% / 8.30% / 8.40%
650 to 699 9.05% 8.95%
600 to 649, salary account with UCO 10.00% Not listed

Where three rates are shown, the first is for Category A, the second for Category B and the third for everyone else. Category A covers permanent employees of central or state government, PSUs, government-controlled bodies and institutes, and Nifty 500 or Fortune 500 companies who keep their salary account with UCO Bank. Category B covers the same employees whose salary account is elsewhere. The PQVL rate applies only at a score of 700 or above, or to new-to-credit applicants.

Business borrowers are priced by CIBIL MSME Rank instead, from 8.05% at CMR-1 to 9.55% where no rank exists. To see how your score affects car loan pricing across lenders, read our guide on the credit score needed for a car loan.

What is the STP car loan at UCO Bank?

STP stands for straight-through processing. UCO Bank’s STP Car Loan is its digital application for a new car, run on the bank’s STP vehicle loan portal. The rate card is the same as for a branch loan. The main conditions are:

ItemDetails
Who can applyconfirmed employees of reputed private or public companies, government and PSU staff with six months’ service, and self-employed people, professionals, businessmen and farmers.
Incomenet annual income above ₹5 lakh in metro centres and ₹4 lakh elsewhere. Salaried borrowers need salary credits in each of the last six months and take-home pay of at least ₹20,000 after the new EMI.
Age21 to 70 years, including the repayment period.
Loan sizethe lowest of 90% of the on-road price, your FOIR-based eligibility, the scheme limit and the amount you ask for. The margin is 10%.
Cooling-off period3 days from sanction or disbursement.
Chargesprocessing fee of 0.50% of the loan, capped at ₹5,000 plus GST, and documentation of ₹250 per lakh, capped at ₹25,000. Both are waived on car loans until 31 December 2026.

The Pre-Qualified Vehicle Loan is a separate offer for selected UCO savings and salary account holders. It is limited to ₹20 lakh, or ₹10 lakh for new-to-credit customers, and the age limit is 21 to 60.

How to apply for a UCO Bank car loan

  1. Check your CIBIL score, since it decides which row of the rate card you fall into.
  2. Get the on-road price quotation from the dealer (ex-showroom price, registration, road tax and insurance).
  3. Open the STP vehicle loan portal from the Vehicle Loan section of the UCO Bank website, or visit a branch.
  4. Enter your mobile number or UCO account number and complete PAN and Aadhaar verification.
  5. Give income details: salary slips and bank statements if salaried, or ITRs (three years for the STP loan) if self-employed.
  6. Review the Key Fact Statement for the rate, EMI and charges, then accept the in-principle sanction.
  7. Complete documentation at your base branch; the bank pays the dealer and records hypothecation of the car.

UCO Bank car loan EMI examples

UCO Bank advertises an EMI of ₹1,531 per lakh at 7.45% over seven years. The table uses a ₹5 lakh loan over 84 months.

Rate Monthly EMI Total interest
7.45% (score 825+) ₹7,657 ₹1,43,172
7.75% (score 750–799) ₹7,731 ₹1,49,402
8.50% (score 700–725, other employers) ₹7,918 ₹1,65,132
9.05% (score 650–699) ₹8,057 ₹1,76,808
10.00% (score 600–649) ₹8,301 ₹1,97,250

Try other amounts and tenures in the EMI calculator. Because the loan is floating, the EMI can change when UCO Float moves with the RBI repo rate. The RBI’s next rate decision is due at the meeting of 5 to 7 October 2026.

UCO Bank bike loan and used car loan

UCO Bank has two two-wheeler products on its rate card:

  • UCO 2-Wheeler: up to ₹60,000, repaid in up to 48 EMIs, with a 10% margin. The rate is 13.35% for the general category, 12.10% with full liquid collateral and 12.80% with 50% liquid collateral. Salaried borrowers must be 21 to 55, others 21 to 60.
  • UCO 2-Wheeler Elite: from ₹1.50 lakh, repaid in up to 60 EMIs, at 9.00% for a score of 825 or more, 9.25% at 800–824, 9.75% at 750–799 and 10.25% at 721–749. The Pre-Qualified Two Wheeler loan uses the same rates.

For a used car, UCO Car lends on vehicles up to three years old. It finances 75% of the price quoted by an OEM-backed or reputed dealer, or 70% of the lower of price and valuation from other sellers, over up to 60 months. The rate is the applicable card rate plus 2% from a certified dealer or plus 3% from anyone else. Compare these with other lenders on our car loan interest rates page.

Frequently asked questions

What is the UCO Bank car loan interest rate in 2026?

From 7.45% for a new car and 7.35% for an electric car at a CIBIL score of 825 or more, going up to 10.00% at a score of 600–649. The card was last updated on 13 August 2026.

What is STP car loan in UCO Bank?

It is UCO Bank’s straight-through-processing car loan, applied for online with a minimum ₹1 lakh loan, 10% margin and a 700 CIBIL score. It carries the same interest rates as a branch car loan.

What is the UCO Bank bike loan interest rate?

UCO 2-Wheeler loans cost 13.35% in the general category. The 2-Wheeler Elite loan costs 9.00% to 10.25% depending on your CIBIL score.

What is the EMI for a ₹5 lakh UCO Bank car loan?

At 7.45% over seven years, the EMI is ₹7,657. At 9.05% it is ₹8,057.

Does UCO Bank charge processing fees on car loans?

The fee is normally 0.50% of the loan, capped at ₹5,000 plus GST, but UCO Bank has waived processing and documentation charges on car loans until 31 December 2026.

Can I prepay a UCO Bank car loan?

Yes. UCO Bank lists no prepayment charge, and RBI rules bar prepayment charges on floating-rate loans taken by individuals for non-business purposes.

Sources

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