Cosmos Bank Home Loan Eligibility

Established in the year 1906, Cosmos Bank is one of the oldest Urban Co-operative Banks and is headquartered in Pune. It has received the Authorised Dealership license from the Reserve Bank of India and is the third co-operative bank to get such a license. It is also the first bank to implement Core Banking System across all 140 branches. The software used for CBS is Finacle of Infosys. It is also one of the first banks under the co-operative sector to get permission to operate a currency chest. The bank has a currency chest at Pune.

Investment in  house property is a once in a lifetime investment and you would want nothing more than perfect. Here is a bank, Cosmos Bank which has home loan designed to get you your perfect home. The rate of interest is nominal with special rates for women beneficiaries. The repayment period is also flexible and to suit your requirement.

The eligibility criteria to avail a home loan at Cosmos Bank are:

• The applicant should be a Resident Indian
• Salaried Individuals with confirmed employment, well-established self-employed individuals/professionals and businessmen are all eligible for the loan.
• The minimum age of the applicant should be 18 years at the time of applying for the loan.
• The loan can be availed in joint names and as many as 4 co-borrowers are permitted for the loan.

The following are the features of Cosmos Bank Home Loan.

The following are the list of documents required for Cosmos Bank Home Loan.

Address Proof of both applicant and the guarantor

• Aadhar card
• Voter's ID Card
• Driving Licence
• Utility bills

Photo ID Proof of both the applicant and the guarantor

• Pan Card
• Driving Licence
• Passport
• Voter's ID Card
• Aadhar Card

Income Proof for Salaried Individuals:

• Salary slips of latest 3 months
• Bank account statement for the last 6 months
• ITR for the last 3 years

Income Proof for the Self-Employed:

• Financial documents like audited balance sheet and profit and loss account for the last 2 years.
• ITR of the last 3 years with income computation.
• Bank Account Statement of business account for the last 6 months

Property Documents:

• All legal documents required for creating a mortgage.

The above documents should be accompanied by two passport size photographs and a home loan application

The following are the factors affecting the Cosmos Bank Home Loan Eligibility.

Age: Age is one critical factor that can define your eligibility. If you intend to go for this huge investment and make repayment with ease and without any financial stress it is recommended to take the step when you are in the prime of your age/career. This will give you a longer repayment option which will give you a better eligible loan amount with an affordable EMI.

Credit Score: Do not have too many commitments if you are intending to own your dream home/perfect home. Instead, avail small loans and pay up on time just to create a credit score. No score is also not a good score. Before applying for a home loan, create a credit score by either availing small loans or with the help of a credit card. Utilise the credit card minimally and make payments promptly. This will enable you to manage a good score. A good credit score can increase your eligibility and give an added advantage of a better rate of interest.

Current loans: If your existing commitments are controlled, then the residual amount available out of your monthly income will be higher and the loan eligible loan amount also will be higher. If you have to avail a home loan which will be of a high magintude, you should keep your existing commitments controlled since this will impact the debt to income ratio and will reduce the eligible loan amount.

Income: Cosmos bank provides the option of including up to 4 co-borrowers for a home loan. You can take advantage of this provision and avail the loan in joint names since the income of the joint borrower will also be considered while arriving at the home loan quantum.

Property and LTV Ratio: Invest in a property in such a way that the market value will be reasonable or rather good. The loan amount not only depends on the income but also on the marketable value of the property. Cosmos bank provides 80% of the value of the property if the property is a new one and 70% of the value of the flat if it is a repurchase.

Employment: Your placement defines the risk attached to the loan you have applied for. If you are employed in a Government Organisation/PSUs/MNCs or you have a well-established business, then you are considered as a low-risk borrower and will be preferred by the lenders.

The following are some of the tips to increase the home loan eligibility:

• Having minimum commitments before you apply for a home loan will fetch you a higher loan amount. So contemplate on clearing the existing outstanding loans as far as possible if you need adequate funding for your perfect home.
• Manage your credit score and keep it at a higher level as far as possible. A good score will always work to your advantage. Your financial discipline will be appreciated and you will be given benefits like a better rate of interest, higher loan amount, waiver or concession in other charges collected for the home loan, a more flexible repayment option etc.
• Aim at opting for the maximum repayment period while applying for the loan. This will enable you to get a higher amount since the EMI will be less and will help you to comply with the debt to income ratio stipulated by the bank. You can always reduce the tenure by making additional payments apart from the EMI periodically.
• Include as many as 4 co-borrowers if you need a higher quantum, since the income of the co-borrowers will be included to arrive at the quantum.
• Other incomes like rental income, dividends, interest on deposits etc., will be included to income while arriving at the loan quantum. Do not forget to declare these sources if you have any while applying for the loan
• Invest in a property which will have good market value. The loan quantum depends on the value of the property apart from the income.

An EMI calculator can facilitate the following if used before applying for the home loan.

• You will get an idea of the EMI that will be payable for the loan quantum that you desire to avail. You can arrive at the affordable value by changing the variants i.e., the loan quantum, interest, and  loan tenure. You will be able to arrive at the loan quantum with the EMI that suits your pocket. With the available loan quantum, you will be able to look for a property that fits into the budget.
• If the property you wish to invest in costs you 40.00 lakhs and you apply for the same amount without knowing the eligibility, it will scale down the speed of the loan processing. Assessing the eligibility will be an added procedure for the lender.

Instead if you can assess your eligibility using the EMI calculator and apply for the exact amount and also look for a property to fit into the budget, you will be helping the lender in processing the loan faster.

• By using the EMI calculator before applying for the home loan, you will be aware of the additional burden on your monthly expenses. You can manage your expenses accordingly. If you have too many credit card dues, you can apply for a loan which would definitely be with a lower interest compared to the credit card interest and consolidate the dues. You will be getting a flexible repayment option with the new loan which will reduce the EMI burden. If you are able to clear the dues or the loans with your own sources it would be much better.