Abhyudaya Co-Operative Bank was established in 1965. Headquartered in Mumbai, it is one of the leading urban co-operative banks in the country. Floated with a small share capital of 5000 in 1965, the bank today has paid-up capital and reserves of almost 1300 crore. Abhyudaya Co-Operative Bank has slowly but surely ventured into every domain of banking and is reckoned as a major banking leader, especially in Maharashtra.
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Abhyudaya Co-Operative Bank home loans issues different purposes and therefore divided into different schemes. Customers can choose the most appropriate home loan scheme depending upon their home loan requirement.
|Product Name||Interest Rate||Tenure||Maximum Loan Amount||Ideal For|
|Abhyudaya Co-Operative Bank-Housing Loan||6.90% p.a. - 7.15% p.a.||20 years||70 lakh||Purchase and construction|
|Abhyudaya Co-Operative Bank-Home Improvement Loan||10% p.a. - 10.50% p.a.||7 years||10 lakh||Repair and renovation of existing residential property|
|Abhyudaya Co-Operative Bank-Commercial Improvement Loan||10.50% p.a.||10 years||No upper ceiling limit||Repair and renovation of existing commercial property|
You can also Apply for 50 Lakh Home Loan
Additional Info: Also check Rs. 1 Crore Home Loan EMI
Additional Info: Also check 75 Lakh Home Loan EMI
EMI is the Equated Monthly Installment that is paid every month in order to repay a loan. EMI can be for a home loan or any other loan or advance sought from any lending institution. It is the fixed monthly outflow and is debited automatically from the bank account on a pre-determined date. The EMI is a build-up of two components - principal and interest.
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The EMI schedule is the tabular representation of the loan along with the monthly EMI installment. It makes the customer aware of the EMI amount that would be incurred every month. It also shows the break-up between the interest and portion of every EMI installment paid.
Listed below is the EMI schedule of the Abhyudaya Co-Operative Bank. The table depicts the amount of EMI that will be paid corresponding to loan amount and loan tenure. The table is prepared at different rate of interest 6.90% p.a. and 7.15% p.a. as charged by the bank for loan amount below and above 28 lakh respectively.
|Loan Amount||Rate of Interest||Loan Tenure|
|10 years||15 years||20 years|
|28,00,000||6.90%||Rs. 32,366||Rs. 25,011||Rs. 21,541|
|50,00,000||7.15%||Rs. 58,442||Rs. 45,362||Rs. 39,216|
|70,00,000||7.15%||Rs. 81,818||Rs. 63,506||Rs. 54,903|
The above table shows that loan tenure is crucial in determining the EMI amount. The loan term and EMI are inversely related. As the loan tenure increases, the EMI amount reduces even though the home loan principal amount remains the same.
Opting for the lowest EMI is ideal when applying for a home loan. But it is important that the applicant clearly understands the EMI schedule which highlights the break-up of every EMI into the principal and interest part. Ironically, the longer the term of the loan, higher will be the interest payout, making the loan most expensive.
Mentioned below is the EMI break-up table of Abhyudaya Co-Operative Bank. The table highlights the EMI break-up proportion. The table is based upon a home loan amount of 1 lakh at the rate of interest of 6.90% p.a.
|10 years||15 years||20 years|
|EMI per lakh||Rs. 1,156||Rs. 893||Rs. 769|
|Total amount repayable to bank (P+I)||Rs. 1,48,783||Rs. 1,60,784||Rs. 1,84,634|
|Total interest paid over the loan tenure||Rs. 38,712||Rs. 60,784||Rs. 84,634|
|Principal to Interest Break-Up||67.2 : 32.8||56.4 : 43.6||48 : 52|
The above table shows the break-up into principal and interest part for home loan of 1 lakh. As the term of the home loan increases, the quantum of interest charged thereon also increases manifold, even though the principal amount remains the same. This makes the home loan expensive.
For example, for a home loan of 1 lakh the borrower will repay a total amount of 1,48,783 with a term of 10 years. With the increase in loan tenure the amount to be repaid increases to 1,77,253 for 15 years and to 2,08,278 in 20 years. The loan amount and Abhyudaya Cooperative Bank Home Loan Interest Rate remain the same. Therefore, it is very important to choose the loan tenure which balances the EMI installment with the overall interest expense.
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EMI Calculator is a mathematical formula that gives the user a fair idea about the EMI payable against different loan amounts and duration of loan. It processes results using three variables - loan quantum, interest rate and loan tenure.
The mathematical formula used to calculate a home loan EMI is:
P = Principal loan amount
R = Rate of interest
N = Loan tenure in months
For Abhyudaya Co-Operative Bank the values for each are:
P = maximum of 70 lakh
R = 8.50% p.a. for loan amounts less than 28 lakh and 6.90% for loan amount between 28 lakhs nd 70 lakhs.
N = the maximum loan tenure is 20 years i.e. 240 months
Additional Info: Also check ICICI Home Loan EMI Calculator
No single factor determines the home loan EMI. There are many factors that have an influence on the home loan EMI as listed below.
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EMI payment is an expense that is to be incurred for the entire tenure of the home loan which invariably runs into years. Therefore, the EMI amount should be a figure that poses no financial stress. To reach the ideal EMI amount:
Additional Info: Also check SBI Home Loan EMI Calculator
The home loan EMI is fixed at the start of the home loan and remains fixed for the entire term. However, the following cases may lead to a change in the EMI.
The floating rate of interest makes the total home loan payout to change. The change in the total payout is adjusted against the home loan tenure, keeping the EMI same. However, when the tenure of the home loan is already at the maximum and cannot be increased further, any increase in the total home loan payout is accommodating by increasing the EMI.
Home loans wherein the principal part is disbursed in parts and phases (trenched EMI scheme), the EMI will increase upon every disbursement of principal amount.
Additional Info: Also check Banglarbhumi West Bengal Land Record
Abhyudaya Co-Operative Bank allows its customers to prepay the home loan whenever possible. Every prepayment of lump sum amount is adjusted against outstanding principal amount. The customer then has the option to continue with the balance loan with the same EMI to be paid over a reduced term period or go in for an EMI recalculation and pay the changed EMI without changing the loan tenure.
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Abhyudaya Co-Operative Bank offers a maximum home loan up to 70 lakh.
The margin money for Abhyudaya Co-Operative Bank home loan varies depending upon the cost of the property. Applicants can avail up to 90% of property value for loans less than 28 lakh and up to 80% of property value for loan amount between 28 lakh to 70 lakh.
Abhyudaya Co-Operative Bank home loan interest rate varies with the purpose of the home loan. Housing loan start from 6.90% p.a. whereas home improvement loan start from 11% p.a.