UCO Bank offers ₹25 crore contractor lines
UCO Bank launched a Contractor Scheme offering working‑capital overdrafts, term loans and guarantees up to ₹25 crore to support construction projects and contractors. That product roll‑out reflects continued bank appetite to underwrite project‑backed working capital. (x.com) (x.com)
The bank’s application template for the Contractor product lists mandatory identity and business registrations including UDYAM (MSME) number, PAN and asks applicants to confirm filing of latest GST returns and income‑tax returns. (uco.bank.in) The same UCO form structures credit requests into fund‑based and non‑fund lines — it provides line items for overdraft and term‑loan amounts and separate fields for LC/BG (letters of credit / bank guarantees). (uco.bank.in) Third‑party loan aggregators and product summaries position the UCO Contractor product with headline interest‑rate ranges near 9.80–10.00% per annum for the contractor segment. (paisabazaar.com) The application explicitly requires projected financials — sales, working cycle months, inventory, debtors and creditors — and a specified promoter(s)’ contribution column to underwrite project‑backed working capital. (uco.bank.in) UCO’s recent disclosures show sustained balance‑sheet expansion that supports higher project lending: total business rose about 12.18% to Rs 4.88 lakh crore with advances up roughly 16.2% year‑on‑year in the quarter cited, while quarterly net profit was reported at Rs 739.51 crore and FY25 net profit disclosures showed further annual gains. (theprint.in) Back‑office and control moves tied to the rollout include public empanelment notices for stock‑and‑receivables auditors and zonal empanelment of contractors, indicating the bank is strengthening collateral audit and vendor‑management workflows for construction exposures. (commerceclub.in)
