Cosmos Bank is Indias one of the oldest and the second largest Urban Co-operative Banks. It was founded in 1906 with headquarters in Pune. Over the years, the bank has strengthened its financial base though its innovative business practices. It deals in a range of banking services like commercial banking, retail banking and private banking. Cosmos Bank operates in 7 Indian states and has over 140 branches. The bank has more than 2 million active customers and around 80,000 shareholders.
The home loan department of the Cosmos Bank is a vast and well established unit. It offers home loans under two schemes to fulfill loan requirements of individuals from different walks of life. Cosmos Bank offers home loans for different purposes like purchase of built-up houses, purchase of site and subsequent construction thereon, loan for extension, repair, renovation and furnishing of property. The Home Loans offered by Cosmos Bank are available at a rate of interest of 6.70% p.a.
Additional Info: Also check SBI Home Loan EMI Calculator
The Cosmos Bank offers Home Loans under two schemes. Depending upon their requirements, borrowers can choose the most appropriate home loan scheme.
|Product Name||Interest Rate||Tenure||Processing charges||Type of Customer|
|Cosmos Home Loam Scheme|
6.70% p.a. for women
Upto Rs. 10 lakh ? 1% of the loan amount, subject to maximum of Rs. 5,000
Above Rs. 10 lakh - 0.50% of the loan amount, subject to maximum of Rs. 5,000
|Salaried and self-employed|
|Cosmo Home Delight Scheme (Top-Up)||6.70% p.a.||Years remaining in the original loan||Consult bank branch||Existing Home Loan customer|
Additional Info: Looking for 25 Lakh Home Loan? Check EMI & Apply.
Additional Info: Looking for 10 Lakh Home Loan? Check EMI & Apply.
As the EMI amount is to be repaid every month, the EMI schedule makes the customer aware of the total outflow that he/she will incur over the entire loan term. EMI schedule is a calculation Performa that highlights the total amount repaid and the end of the loan term at a fixed rate of interest.
Below is the EMI schedule of the Cosmos Bank. The stated table enlists the EMI amounts payable corresponding to different loan principal amount and different loan tenures. The rate of interest used to prepare the EMI schedule is 6.70% p.a.
|Loan Amount||Loan Tenure|
|10 years||15 years||20 years|
|Rs. 25,00,000||Rs. 28,642||Rs. 22,053||Rs. 18,935|
|Rs. 50,00,000||Rs. 57,284||Rs. 44,107||Rs. 37,870|
|Rs. 70,00,000||Rs. 80,198||Rs. 61,750||Rs. 53,018|
The above table highlights the importance of loan tenure while availing a home loan. As the loan term increases, the EMI amount reduces considerably with the same home loan principal amount. A reduced EMI over a prolonged period of time is easy to sustain and therefore most preferred among home loan seekers.
On the other hand, it is important to understand the Principal to Interest Break-Up ratio. As the tenure of the home loan increases, the Home Loan Interest Rate charged thereon increases even with same principal and rate of interest values. In the initial years of home loan repayment, a major portion of the home loan EMI is settled against the interest chargers. It is only in the subsequent years that the settlement is reversed.
Shown below is the EMI break-up table. The table underlines the break-up proportion of the EMI amount. The table is prepared for a principal amount of Rs. 1 Lakh at the rate of interest of 6.70% p.a.
|10 years||15 years||20 years|
|EMI per lakh||Rs. 1,146||Rs. 882||Rs. 757|
|Total amount repayable to bank (P+I)||Rs. 1,37,482||Rs. 1,58,785||Rs. 1,81,775|
|Total interest paid over the loan tenure||Rs. 37,482||Rs. 58,785||Rs. 81,775|
|Principal to Interest Break-Up||66.8 : 33.2||55.9 : 44.1||45.7 : 52.5|
The above table shows the Principal to Interest Break-Up a loan amount of 1 lakh. As the home loan tenure increases, the Principal to Interest Break-Up ratio also changes. As the home loan term increases to the maximum, the interest charged thereon also increases significantly. It is pertinent to mention that interest amount is the charge that the bank demands for granting a home loan and with every increase in the interest portion; the home loan gets dearer. Therefore, choosing the loan tenure which strikes a perfect balance between the principal and interest portion is very important.
Additional Info: Also check HDFC Home Loan EMI Calculator
The home loan EMI is dependent upon three factors loan amount, rate of interest and loan tenure. However, numerous factors influence in addition to these three basic parameters affect the EMI. These factors are:
Principal amount: The EMI amount is primarily dependent on the principal amount. The higher the principal amount, higher will be the EMI payable. Cosmos Bank allows a maximum home loan for Rs. 70 lakh.
Rate of Interest: The rate of interest charged by the bank has a direct bearing on the EMI amount. Higher the rate of interest, higher will be the EMI. Cosmos Bank offers home loans at interest rate 6.70% p.a.
Duration of Loan: The number of years over which the loan will be repaid back to the bank is defined as the duration of the loan. The maximum loan duration allowed by Cosmos Bank is 20 years.
Job profile of the applicant: Certain banks charge different rate of interest from salaried and self-employed employees. Cosmos Bank however charges a different rate of interest from women applicants.
Purpose of Home Loan: The purpose for which the home loan is applied for affects the rate of interest, loan quantum and loan tenure. Applicants can avail home loan for purchase, construction, repair, renovation, and extension of the house.
Credit Score: Banks prefer applicants with good credit score and therefore are ready to negotiate the interest rate and processing charges to finalize the deal.
Existing bank customers: As a loyalty incentive to the existing bank customers, banks pass on certain benefits to their most valued customers. Even a small rebate in the rate of interest impacts the EMI payable in a big way.
Additional Info: Also check Rs. 1 Crore Home Loan EMI
EMI installments are to be paid monthly over a long period of time. The EMI payable should not be too high or too low. By following the below mentioned tips, one can reach an ideal amount of EMI.
Evaluate the principal amount: Evaluate the EMI amount corresponding to the principal amount you wish to apply for. Also keep in mind the tenure over which you need to repay the loan. Do not rely entirely on bank funding to fund the high value property. Merge smaller properties and go in for balance funding.
Remain within budget: Applying for a fresh loan will start a new liability. Evaluate your current financial outflows and obligations beforehand. Your home loan EMI amount should not disturb your routine expenditure.
Select the term wisely: The home loan tenure should be wisely decided. The interest outflow is highest for home loan with maximum tenures and is therefore most expensive. Opt for tenure that gives you an ideal principal-interest ratio.
Check eligibility: Home loans are sanctioned only to eligible applicants. Also, the quantum of loan approved is dependent on various factors. One should use a home loan eligibility checker to get a fair idea of the maximum amount of loan eligibility he/she enjoys.
Check your FIOR: FIOR (Fixed Income to Obligations Ratio) is the repayment capacity of the individual. It is calculated using the current income and current expenditure of an individual. As a rule of thumb, EMIs payable on all loans should be less than 50% of the inflows.
Additional Info: Also check Pan Number for Banks
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The home loan EMI calculator on MyMoneyMantra is widely accepted and enjoyed by its users. It is one of the most beneficial and powerful financial tools used today. Users of the MyMoneyMantra home loan EMI calculator enjoy the following benefits:
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Saves Time: As the MyMoneyMantra EMI calculator can be used any time, it saves a lot of time. Without having to visit the bank branch or set aside time to meet sales representatives, the user can get accurate and reliable results.
Reliable Results: The online EMI calculator eliminates the odds of human error. It calculates results using a pre-fed mathematical formula and the results are 100% accurate.
Multiple Uses: Users can not only calculate home loan EMIs, but the online home loan EMI calculator can also be used to calculate EMI values for all kind of loans and advances.
Helps in better financial planning: The online EMI calculator acts as a financial assistant. It helps in better financial planning without any bias. The user has to assess and evaluate his/her income and outflows and choose the best loan amount and tenure.
Additional Info: Also check ICICI Home Loan EMI Calculator
Cosmos Bank home loans are to be repaid in a maximum of 20 years. The bank also has a loan top-up scheme wherein the existing customer can apply for a home loan top-up. In such cases the loan has to be repaid within the unexpired term of the home loan or 20 years, whichever is less.
Margin value is the amount of money the borrower needs to pay from his pocket while the bank will fund the balance percentage. Cosmos Bank has a margin value depending upon the property
For new properties, the bank funds up to a maximum of 80% of the cost of the property. Whereas in case of resale properties, Cosmos Bank offers up to a maximum of 70% of agreement cost or market value of the property whichever is less.
Cosmos Bank home loan interest rate is linked to REPO rate. The current rate of interest charged by the bank is 6.70% p.a.