Abhyudaya Co operative Bank Limited

Abhyudaya Co operative Bank Limited Home Loan

Apply Abhyudaya Co operative Bank Limited Home Loan

About Abhyudaya Co-operative Bank Home Loan

Abhyudaya Co-operative Bank Ltd. was initially established as a Co-operative Credit Society in 1964 by a dedicated group of labour activists and social workers to serve the financial requirements of mill workers in Mumbai. It became a scheduled bank in September 1988. Over the years, it has become a leading co-operative bank in the country with an active presence in the states of Gujarat, Maharashtra, and Karnataka. The bank offers a multitude of banking services, including Housing Loan.

Abhyudaya Co-operative Bank Home Loan

Interest Rate

Starting from 8.60%

Loan Tenure

20 years

Maximum Loan Amount

70 Lakhs

Loan to Value (LTV) Ratio

80% to 90%

Who can apply

Indian Residents

Salaried Persons

Self-Employed Persons having a regular source of income

Co-applicants

Compulsory - Family members

EMI

874 per Lakh

Why Abhyudaya Co-operative Bank Home Loan?

Abhyudaya Co-op Bank offers attractive Home Loans to suit the requirements of its clientele. Indian residents residing in Maharashtra, Gujarat, and Karnataka can apply for housing loans up to a maximum amount of 70 Lakhs. The interest rates and service charges on housing loans offered by Abhyudaya Co-op Bank are competitive. Other attractions include a quick turnover period, transparency in dealings, and attractive eligibility norms.

Abhyudaya Co-operative Bank offers excellent value to its housing loan customers. Some other reasons to opt for this loan are:

  • Excellent LTV ratio
  • Complete transparency with no hidden charges
  • Attractive rates of interest
  • Reasonable service charges
  • No penalty on prepayment of housing loan
  • Income Tax concessions as applicable
  • An active performer in Pradhan Mantri Awaas Yojana (PMAY)

Features and Benefits of Abhyudaya Co-operative Bank Home Loan

Here are some attractive features and advantages of Abhyudaya Co-operative Bank Home Loan:

  • Abhyudaya Co-operative Bank offers housing loans for different purposes such as the purchase of a house or flat, construction of a residence, and extension to existing flat or house.
  • The takeover of housing loans from other banks and financial institutions is also available
  • Apart from repairs and renovation to the existing house, Abhyudaya Co-operative Bank extends the facility to repairs of shops and galas.
  • Medical professionals and practitioners can avail loan from Abhyudaya Co-operative Bank for setting up clinics and purchasing medical equipment, including ambulances.
  • Abhyudaya Co-operative Bank offers a maximum Home Loan of 70 Lakhs
  • Indian residents are eligible to apply for a Home Loan from Abhyudaya Co-operative Bank
  • Abhyudaya Co-operative Bank has an attractive interest rate structure
  • Abhyudaya Co-operative Bank has relaxed eligibility norms
  • The repayment period for Home Loans is a maximum of 20 years including moratorium of 1 month.
  • The LTV ratio offered is a maximum of 90% of the cost of the property
  • Abhyudaya Co-operative Bank has a simple documentation procedure
  • Abhyudaya Co-operative Bank is an active participant in the Pradhan Mantra Awaas Yojana

Abhyudaya Co-operative Bank Home Loan Interest Rate

The Home Loan interest rates of Abhyudaya Co-operative Bank are linked to its Prime Lending Rate (PLR). The PLR of the bank w.e.f. 01.01.2019 is 13%.

Housing Loan Interest Rate Spread Applicable Interest Rate

Up to 28 Lakhs

All borrowers

PLR - 4.40%

8.60%

More than RS. 28 Lakhs and up to 70 Lakhs

Women beneficiaries

PLR - 4.30%

8.70%

Other borrowers

PLR - 4.20%

8.80%

Loans for Repairs and Renovations

To existing Home Loan borrowers

PLR - 2%

11%

To others

PLR - 1%

12%

Types of Home Loans Offered by Abhyudaya Co-operative Bank

Housing Loan

Purpose

  • Purchase of flat or house, either new or resale
  • Construction of flat or house
  • Extension, repairs, and renovations to existing flat or house
  • Balance Transfer of housing loan from other financial institutions

Maximum Eligible Amount

  • 70 Lakhs for a housing loan
  • 10 Lakhs for extension, repairs, and renovations

Eligibility Criteria

  • Individuals having a regular source of income are eligible for a Home Loan. It could be business persons, professionals, or salaried persons.
  • Property should necessarily be in the name of the principal applicant
  • Co-applicant is necessary for all housing loans

Agreement value up to 28 Lakhs

The maximum loan amount is 90% of the agreement value with a maximum of 25 Lakhs

Agreement value above 28 Lakhs

The maximum loan amount is 80% of the agreement value subject to a ceiling of 70 Lakhs

Repayment Tenure

  • Maximum repayment tenure of 240 months (20 years) including 1 month moratorium for outright purchase of new houses/flats.
  • In the case of purchase of resale houses/apartments, the maximum repayment period is restricted to the residual life of the house/flat subject to a maximum of 240 months.
  • In case of loan for construction of house/flat, moratorium period of 18 months is available but repayment tenure including the holiday period should not exceed 240 months.
  • Home Loan Balance Transfer cases will have maximum repayment tenure of 240 months less the EMIs paid to the previous financial institution.

Sureties

  • For Home Loans up to 25 Lakhs, one guarantor with a net monthly salary/income of 15,000 or more.
  • For Home Loans above 25 Lakhs, one surety with net monthly income/salary above 25,000 or two sureties with net income/salary more than 15,000 per month.
  • In case of joint housing loan agreement with husband and wife both employed in reputed company/organisation, there is no need for surety for housing loans up to 25 Lakhs. For amounts higher than 25 Lakhs, one guarantor with a net salary/income above 15,000 per month is necessary. 

Prime Security

Equitable mortgage of the house/flat financed by Abhyudaya Co-operative Bank.

The house/flat should be insured for full value with bank clause.

Collateral

If available, Abhyudaya Co-operative Bank accepts LIC policies, NSCs, FDR as collateral.

Pradhan Mantri Awas Yojana (PMAY)

PMAY is a credit-linked subsidy scheme formulated by the Central Government. The terms and conditions of PMAY are the same for all banks and financial institutions participating in the project.

  • Abhyudaya Co-operative Bank considers all applicants eligible under PMAY in the statutory towns in the states of Maharashtra, Gujarat, and Karnataka.
  • Each eligible category has its ceiling for carpet area, amount of loan, and maximum subsidy
  • The moratorium will be within the loan repayment tenure
  • The applicant should satisfy all eligibility norms as stipulated by Government of India for PMAY
  • Interest subsidy will be released upfront on the sanction of the loan
  • The beneficiary should not have availed any Governmental assistance under any housing scheme
  Economically Weaker Sections Low Income Group Middle Income Group - 1 Middle Income Group - 2

Scheme validity

31.03.2022

31.03.2022

31.03.2020

31.03.2020

Total Family Income

Up to 3 Lakhs

More than 3 Lakhs and up to 6 Lakhs

Higher than 6 Lakhs and up to 12 Lakhs

Greater than 12 Lakhs and up to 18 Lakhs

The carpet area of the house

30 sq metres

60 sq. metres

160 sq. metres

200 sq. metres

The loan amount for determining subsidy

6 Lakhs

6 Lakhs

9 Lakhs

12 Lakhs

Processing Fees

Nil up to 6 Lakhs

Zero up to 6 Lakhs

Nil up to 9 Lakhs

Nil up to 12 Lakhs

Maximum eligible subsidy

2,67,280

2,67,280

2,35,068

2,30,156

Ownership of house

One applicant should be a female member

One female applicant is compulsory

Either male or female

Either male or female

Abhyudaya Co-operative Bank Home Loan Eligibility

Applicant should meet the following eligibility criteria to obtain Home Loan from Abhyudaya Co-op Bank:

  • Any business person, professional, self-employed individual, or salaried person having a regular source of income is eligible for the loan.
  • Property should be in the name of the primary applicant
  • Having a co-applicant is mandatory to apply for the loan. Co-applicant can be an earning or non-earning spouse, son, daughter, father, or mother of the Principal Borrower. The income of the co-applicant can be added to the Principal Borrower's income to calculate the eligible loan amount. In the absence of the said co-applicants, brother or sister can be a co-applicant, but their income will not be clubbed for eligibility calculation.
  • In the case of joint Housing Loan, the Purchasers or Owners) will be the borrowers. Hence, separate co-applicants are not needed.

Abhyudaya Co-operative Bank follows simple eligibility criteria for calculating the maximum permissible Home Loan to an individual. It considers the lower of the following calculations:

Eligibility as per Agreement Value

Up to 28 Lakhs

The maximum Home Loan is 90% of the agreement value with a ceiling of 25 Lakhs

Above 28 Lakhs

Maximum housing loan is 80% of the agreement value subject to a maximum of 70 Lakhs

Eligibility as per Repayment Capacity

Eligibility = Repayment Capacity X 100,000 / EMI for 1,00,000

Repayment Capacity

Net Monthly Income less minimum take-home pay less Loan deductions

Minimum take home Pay

Minimum take home pay is restricted to 40% of the net income/salary with a minimum of 8,000 and maximum 20,000

Factors that determine the eligibility amount

The following factors determine the Home Loan eligibility:

  • Agreement value of the property
  • Income and repaying capacity
  • Age of the borrower

Ways to improve eligibility

  • Disclose all kinds of income including rental income
  • Repay some of the loans having a short residual repayment period
  • Include a co-borrower from the family having a regular source of income
  • Avail Home Loan early to enjoy benefits of an extended repayment tenure

Who can be a co-applicant for the Abhyudaya Co-operative Bank Home Loan?

A co-applicant is necessary for all Abhyudaya Co-operative Bank Home Loans. 

  • All co-owners of the property should be co-applicants to the housing loan
  • Family members can be co-applicants
  1. Spouse, son, daughter, father, or mother can be an eligible co-applicant to the principal borrower. The bank considers the income of these co-applicants while determining the eligibility of the primary borrower.
  2. Brothers and sisters can also join as co-applicants, but the bank does not consider their income for eligibility purposes.
  3. In the case of joint home agreements, there are multiple owners to the house. Hence, there is no need to include a separate co-applicant. The co-owners automatically become co-applicants.

Abhyudaya Co-operative Bank Home Loan - Effect of CIBIL Score

A good CIBIL score or credit rating is necessary for availing the Abhyudaya Co-operative Bank Home Loan. All banks consider the repayment record of the borrower before approving loans. CIBIL report is the ideal document that enables banks to access the credit history of borrowers. Abhyudaya Co-operative Bank considers CIBIL scores of 575 to 600 as good enough for secured loans like Home Loans. In the case of personal or unsecured loans, the CIBIL score should be more than 700 or 750.

Documents Required for Abhyudaya Co-operative Bank Home Loan

Abhyudaya Co-operative Bank requires the following documents for processing the Home Loan.

General Documents - KYC Documents

  • Latest photograph of Principal Borrower and co-applicants/co-borrowers
  • Photo identity proof
  • Copy of PAN Card of all applicants and sureties
  • Residence proof document of applicants and guarantors

Income Documents - Salaried Individuals

  • Salary slips for the last three months
  • Bank statement for six months to verify the credit of salary and look for other recurring deductions
  • Form No 16A and IT returns for the previous three years

Income Documents - Business Persons and Self-employed People

  • Financial statements including B/S, P/L for the last two years
  • ITR Copy for the previous two years
  • Bank statement of the business account for one year

Property Documents

  • Title deed and all other documents related to it
  • An estimate of repairs and renovations if the Home Loan is for extension/repairs/renovations

Abhyudaya Co-operative Bank Home Loan Appraising Procedure

Purchase of flats/houses more than 15 years old

  • The structural engineer on the bank's panel certifies whether the residual life of the house/flat is more than 20 years.
  • The branch official inspects the property and verifies whether it is in good condition.

Purchase of flats in under-construction buildings

  • If the construction is less than 50% complete, the bank considers the loan application if the employer agrees to salary deductions of loan instalments.
  • Under such circumstances, the bank can ask for additional collateral in the form of LIC policy, NSC, or FDR.

The bank charges a flat fee of 3,000 for verifying the genuineness of the title and evaluating the property. If the bank rejects the loan, these charges are not refundable. In case of sanction of the loan, the bank adjusts this amount towards the service charges.

Why Apply for Abhyudaya Co-operative Bank Home Loan through MyMoneyMantra?

People residing in the states of Maharashtra, Gujarat, and Karnataka can apply for Home Loans from Abhyudaya Co-operative Bank. A reputed loan service provider like MyMoneyMantra is the ideal place to check out various loan offers from different banks before finalising the Home Loan deal. MyMoneyMantra offers the following benefits for applying for a Home Loan with Abhyudaya Co-operative Bank:

  • We help you with comparing different Home Loan products offered by other banks
  • We assist you with the loan application and document compiling process
  • Our EMI Calculator is handy for determining the probable EMI before you apply for the Home Loan
  • We assess your KYC and income documents to suggest the ideal Home Loan product

How to Apply for Abhyudaya Co-operative Bank Home Loan on MyMoneyMantra?

Abhyudaya Co-operative Bank offers Home Loans in the states of Maharashtra, Gujarat, and Karnataka. Applicants from these areas can use MyMoneyMantra website to apply for Abhyudaya Co-operative Bank Home Loan.

Visit the Home Loans section on our website under Loans tab and submit the details asked for such as gender, city of residence, place where you intend to purchase the property, the approximate value of the property and your details along with your income. MyMoneyMantra seeks your contact number to confirm the genuineness of your identity and help you out with the application procedure.

You can choose Abhyudaya Co-operative Bank as the preferred lender. MyMoneyMantra will contact you and help you to complete the application in all respects. The bank has its mechanism to verify your KYC and determine your eligibility for the Home Loan.

Other Products by Abhyudaya Co-operative Bank

Apart from housing loans to individuals, Abhyudaya Co-operative Bank offers the following products too:

Term Deposit

Current Account

Savings Account

NRE/NRO/FCNR Account

Personal Loan

Abhyudaya Vidya Vardhini Education Loan Scheme

Education Loan for higher education in India & Abroad

Central Scheme to Provide Interest Subsidy (CSIS) on Education Loan

Vocational Education Loan

SOD against pledge of Gold ornaments

Loan against pledge of Gold ornaments

Loan/SOD against Govt. securities

Loan/SOD against Term Deposit - LATD-FLXLN

Vehicle Loan - Commercial

Vehicle Loan - private

Taxi - Auto Loans

Working Capital Finance

Loans & Advances to Professionals (Other than Medical Practitioners)

Business Term Loan

Non-Fund Based - Letter of Credit

Short Term Corporate Loans

Udyog Vikas Loan Scheme

Revolving Credit Limit

Medium Term Corporate Loan

Loan to Professional - Self-employed

Loan to Women Entrepreneurs

Loan to Educational Institutes

Business Loan against Immovable Property

How to Calculate Abhyudaya Co-operative Bank Home Loan EMI?

MyMoneyMantra has an EMI Calculator tool on its website under Financial Tools tab. Entering the following details helps customers to calculate the Abhyudaya Co-operative Bank Home Loan EMI:

  • Proposed loan amount
  • The applicable rate of interest
  • Loan tenure

Abhyudaya Co-operative Bank Processing Fees and Other Charges

Apart from the interest rate, Abhyudaya Co-operative Bank Home Loan includes the following charges:

Processing fee

0.60% of the sanctioned loan amount plus applicable GST

Preliminary sanction letter

500 plus GST

Charges for confirming the genuineness of title

3,000 per property plus GST

Abhyudaya Co-operative Bank Home Loan Customer Care

Abhyudaya Co-operative Bank has a separate Customer Complaints and Grievances Redressal department headed by an official of the rank of Senior Manager. The contact phone numbers and email address are as follows.

  • Phone Number: 022-24115047, 24105097
  • Email address: secretarial@abhyudayabank.net

Abhyudaya Co-operative Bank Home Loan - Latest News

Pay Abhyudaya Co-op Home Loan EMI through internet banking now

Reserve Bank of India (RBI) has waived RTGS and NEFT charges for remittances made using internet banking and phone banking channels. It is now possible to pay the Abhyudaya Co-operative Bank Home Loan EMI using these channels without incurring any charges.

Abhyudaya Co-op Bank to provide direct cash transfer benefits to customers

Abhyudaya Co-operative Bank has registered with the Central Planned Scheme Monitoring System (CPSMS) for providing Aadhaar-based direct cash transfer benefits to its customers.

Frequently Asked Questions - Abhyudaya Co-operative Bank Home Loan

What is the maximum housing loan limit in Abhyudaya Co-operative Bank today?

As on date, the maximum housing loan limit is 70 Lakhs. However, the bank is considering a change in the ceiling very shortly.

Who can become a guarantor to a loan?

Any person having sufficient creditworthiness can become a guarantor to the Home Loan offered by Abhyudaya Co-operative Bank Home Loan.

What is the liability of a surety or a guarantor to the Home Loan?

The liability of the guarantor is co-extensive with that of the principal borrowers. The bank reserves its right to claim the entire payment from the surety or guarantor in the case of default by the borrower.

Does Abhyudaya Co-operative Bank consider stamp duty and registration charges while sanctioning Home Loans?

No, Abhyudaya Co-operative Bank does not include the stamp duty and registration charges while determining the eligibility of Home Loan amount. The borrower has to incur these charges.

Does Abhyudaya Co-operative Bank offer a fixed rate of interest on Home Loans?

No, the Home Loan interest rates in Abhyudaya Co-operative Bank are linked to the bank's PLR. The rates change with every increase or decrease in the PLR.

Is it compulsory for the customer to insure the house?

Yes, Home insurance is compulsory in case of availing Home Loan from Abhyudaya Co-operative Bank. The bank is a corporate agent for the New India Assurance Company. Home Loan customers can insure their homes through this company.

Is it advisable to take Home Loan insurance?

It depends on the circumstances. Customers can insure their Home Loans as a risk mitigation measure. It is not compulsory to do so.

What are the different avenues of repayment of Home Loan instalment?

Customers can repay the Home Loan instalments in many ways:

  • Post-dated cheques
  • ECS
  • Standing Instructions
  • Direct cash payment
  • Direct cheque deposit
  • Transfer using internet banking and mobile banking channels

Can the customer verify the correctness of the EMI stipulated by Abhyudaya Co-operative Bank?

Yes, customers can use the EMI Calculator available at MyMoneyMantra to verify the accuracy of EMI stipulated by Abhyudaya Co-operative Bank.

Is there any prepayment penalty in case of early closure of Home Loans with Abhyudaya Co-operative Bank?

No, Reserve Bank of India rules stipulates that banks should not charge any prepayment penalty, even in case of balance transfer of Home Loans to other institutions.

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