Cosmos Bank Home Loan Interest Rates start from 6.70% to 7.25% p.a for maximum up to 240 months. The Cosmos Co-Op Bank Ltd offers a range of home loans according to customers’ needs and profile. To avail the lowest home loan interest rate from Cosmos Bank, the applicant should have credit rating of 800 or above. Borrowers also get complete flexibility as processing is minimal at 0.5% to 1 % of the loan amount and there are no foreclosure or prepayment charge.
Cosmos Bank is a multi-state cooperative bank having a presence in seven states and 39 cities in India. It is the second oldest cooperative bank in India. Established in 1906, the bank is completing 113 years of its existence in India. Having its headquarters in Pune, Cosmos Cooperative Bank Ltd was established to provide banking facilities to farmers. Moneylending activities were at their worst in Maharashtra in those times. Cosmos Cooperative Bank Ltd was the brainchild of Krishnaji Sadashiv Gore and Shankar Hari Barve.
Cosmos Bank became a scheduled bank in 1990 and within seven years became a multi-state cooperative bank. Today it has 140 branches, a majority of which are in Maharashtra. It has several distinctions to its credit. Cosmos Bank was the first cooperative bank to operate a currency chest.
All its 140 branches are under the CBS platform today. It is a professionally managed institution committed to serving the interest of its customers.
Cosmos Bank caters to the retail and business sector. It offers an array of retail loans that include education loan, housing loan, vehicle loans, and personal loans. One of the most popular retail loan products is the Home Loan. It offers two types of Home Loans, the regular Home Loan and the Home Loan top-up facility.
The features of the regular Home Loan product are as follows:
Cosmos Bank Home Loan details are as follows:
Tip - Check Free Cibil Score before Applying for Home Loan
Cosmos Bank is a cooperative bank. Hence, it does not have the MCLR or the RLLR structure. It has its PLR that the bank keeps on updating frequently. The PLR of Cosmos Bank is linked to market rates. Hence, every change in the market rates affects the PLR. Accordingly, it affects the overall interest rate on Home Loans, as well.
The rates of interest on Cosmos Bank Home Loans are:
Cosmos Bank has a sizeable presence in Maharashtra, especially around Pune. Hence, it is a prominent lending institution under PMAY. Cosmos Bank caters to PMAY loans with its Central Nodal Agency being HUDCO.
Besides ensuring affordable housing finance to the urban homeless, the PMAY has the benefit of an upfront interest subsidy. The subsidy amount depends on various factors like the borrower category, loan amount, and the rate of subsidy. The interest subsidy helps to reduce the EMI burden on the borrower, as well.
PMAY - Income Eligibility
PMAY borrowers come in four different categories depending on the annual family income:
The loan amount under PMAY does not have any restriction. Borrowers can borrow up to their maximum eligibility depending on their income and other liabilities. However, the entire loan amount is not eligible for interest subsidy. There is a limit on the loan amount that is eligible for an allowance from the Government. The loan amount above the respective ceilings qualifies as unsubsidised loan.
PMAY Subsidy Calculation
Borrowers can visit the PMAU-Urban website and use the PMAY subsidy calculator to determine the subsidy amount. As detailed above, the entire loan amount is not eligible for the interest subsidy. It works in the following manner.
|Category of Borrower||Loan amount eligible for a subsidy||Rate of subsidy||Maximum amount of grant|
|EWS and LIG||6 Lakhs||6.50%||2.67 Lakhs|
|MIG-I||9 Lakhs||4%||2.35 Lakhs|
|MIG-II||12 Lakhs||3%||2.30 Lakhs|
PMAY Subsidy Treatment
The CAN for Cosmos Bank is HUDCO. Hence, Cosmos Bank has to lodge its subsidy claims with HUDCO. On receiving the same, the bank credits the interest subsidy amount upfront into the loan account. Thus, it reduces the principal liability of the borrower. The borrower, therefore, has a lower EMI to contend with for the rest of the loan repayment tenure.
Cosmos Bank official website has a loan inquiry form. The applicant can submit it online. The applicant has to enter their name, email ID, and phone number. The bank executives will contact the prospective borrower to obtain further details.
Alternatively, the customer can also apply for the Cosmos Bank Home Loan through MyMoneyMantra. The procedure is straightforward.
Additional Reading: How to Improve Cibil Score Fast?
Cosmos Bank does not have an EMI Calculator on its website. However, customers can use the MyMoneyMantra EMI Calculator to determine the EMI amount.
The calculation of EMI for the PMAY is different. Instead of the loan amount, you must enter the loan amount less subsidy. You get the correct EMI payable on the PMAY loan account.
Additional Reading: Get Loan for Low Cibil Score
Cosmos Bank calculates the Home Loan interest on the daily reducing balance method. It is the most appropriate method of calculating interest. The borrower gets the benefit of making regular repayments.
Additional Reading: What is Credit Score?
MyMoneyMantra is India’s largest phygital loan distributor. With trust of 70 lakh customers, we assure hassle free access to the best Home Loans up to 10 crore for housing loan borrowers in India. Our service is 100% free. We use latest technology and AI to serve customers across the length & breadth of our diverse country. Check Eligibility & Apply.
Know how good your score is
Get insights on how to improve it
Unlock offers as per your score
Cosmos Bank does not follow the MCLR or the RLLR structure to calculate the Home Loan interest rate. It follows the PLR system. The bank links its PLR to the market rate and passes on the benefits of the market rate fluctuations to the customers. Cosmos Bank reviews the PLR at regular intervals.
Cosmos Bank offers both fixed-rate and floating rate of interest on its Home Loans. Customers can choose their favoured mode.
It depends on various factors. Both these rates have their advantages and disadvantages.
The borrower should study the pros and cons before deciding on the appropriate option. Note that the fixed rate of interest is usually more than the floating rate on the date of its selection. Many borrowers prefer to opt for the floating rates because it is considerably lower than that of the fixed rates.
The advantages of a fixed rate of interest are as follows:
The disadvantages of a fixed rate of interest:
The advantages of a floating rate of interest:
The disadvantages of floating rates:
Typically, the EMI should change whenever there is a fluctuation in the rate of interest. However, a change in the EMI can affect the budget of the borrowers. Hence, banks prefer to maintain the EMI as constant and alter the loan repayment tenure. Therefore, the tenure increases if the rates go up and vice versa.
Cosmos Bank offers a unique type of fixed rate of interest. It inserts an interest rate resetting clause in the loan agreement. According to this clause, the fixed rate of interest is subject to review and reset every three years. It helps to protect the bank's interest if the market rates start moving up continuously.
If a customer opts for a floating rate of interest on Home Loans, there is no foreclosure penalty at all. If the Home Loan has a fixed rate of interest with a three-year resetting option, the foreclosure penalty is 1% of the foreclosure amount. This penalty applies only if the borrower forecloses the loan within three years. After three years, there is no foreclosure penalty on these loans, as well.
If you have a Cosmos Bank account, you can set up an SI mandate to recover the instalment on the due date. If you do not have an account with Cosmos Bank, you should set up an ECS mandate with the bank to ensure prompt repayment without any delay.
Cosmos Bank is in existence for more than 113 years. There should not be a better reason for you to trust this bank for your Home Loan requirements.