Abhyudaya Co-Operative Bank Home Loan EMI Calculator

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.

• Abhyudaya Co-Operative Bank home loans can be availed by salaried employees and self-employed professionals.
• Maximum home improvement loan amount offered by Abhyudaya Co-Operative Bank is 70 lakh.
• Maximum loan repayment tenure is 20 years.
• Loan eligibility is up to 90% of property value for loans less than 28 lakh.
• Loan eligibility is up to 80% of property value for loan amount between 28 lakh to 70 lakh.
• Borrowers enjoy 1 month moratorium period.
• For home loans availed for purchase of under-construction flats, the moratorium period can go up to 18 months, subject to loan maturity within 20 years.
• Rate of interest for loan up to 28 lakh is 8.10% p.a.
• Rate of interest for loan value between 28 lakh - 70 lakh is 8.10% p.a. However women applicants can avail home loan @ 8.05% p.a.
• The lowest EMI is Rs. 843 calculated at 8.10% p.a. for a 20 year loan.

Additional Info: Also check Rs. 1 Crore Home Loan EMI

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 8.10% p.a. and 8.55% p.a. as charged by the bank for loan amount below and above 28 lakh respectively.

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 8.10% p.a.

For example, for a home loan of 1 lakh the borrower will repay a total amount of 1,46,228 with a term of 10 years. With the increase in loan tenure the amount to be repaid increases to 1,73,058 for 15 years and to 2,02,242 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.

No single factor determines the home loan EMI. There are many factors that have an influence on the home loan EMI as listed below. 

• Loan amount- The amount borrowed is one of the most important factors that determine the EMI. The EMI is high for high principal values.
• Interest rate- The home loan interest rate levied by the bank has a major impact on EMI amount. The rate of interest is linked to the repo rate of the RBI. The EMI amount increases with an increase in the rate of interest.
• Loan Term- There is an inverse relation between loan term and EMI. If the tenure is long, the EMI amount decreases and vice versa.
• Occupation of the Applicant- The employment status of the home loan applicant has a bearing on the EMI. An applicant with a stable job with regular cash inflows will be able to get a loan at lower rate of interest as compared to an applicant with unpredictable earnings.
• Credit Score- Applicants who enjoy a high credit score are most sought after by lenders. Thus, these individuals have more bargaining power and can negotiate rate of interest and processing charges and can get a better deal and thus enjoy lower EMI.
• Existing bank customers- Any lender would like to extend a business relationship with an existing customer who has a good repayment history. Such customers can avail certain loyalty benefits and get a lower home loan EMI.

Additional Info: Looking for 25 Lakh Home Loan? Check EMI & Apply.

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:

• Reconsider Principal Value- It is the principal amount that attracts interest, so one should go in for the lowest home loan principal. For high value property it is prudent to merge small properties than relying entirely on home loan to finance the high cost.
• Reconsider Financial Status- Be sure that your inflows can accommodate the current expenses and additional financial liabilities comfortably. Opt for an EMI amount that does not prove to be financially stressful.
• Reconsider The Term- The home loan tenure helps in determining the interest portion, which is the cost of availing a home loan. While the longest will result in the lowest EMI, it will attract highest interest, making the loan expensive.
• Check eligibility- Home loans are sanctioned depending upon the applicant profile. A home loan eligibility calculator enables the applicant to know the maximum amount of loan eligibility he/she is eligible for.
• Assess your FOIR ratio- FOIR (Fixed Income to Obligations Ratio) suggests the repayment capacity of the applicant. Based on current income and expenses, an FOIR of more than 50% of the inflows is accepted by Abhyudaya Co-Operative Bank.

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.

Additional Info: Also check Pradhan Mantri Awas Yojana