Abhyudaya Co operative Bank Limited 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-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)

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

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

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:

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.

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

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.

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

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.

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

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

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

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

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.

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.