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Abhyudaya Co-operative Bank Home Loan Details

Abhyudaya Co-operative Bank Home Loan
Interest RateStarting from 7.20%
Loan TenureUp to 20 years
Maximum Loan Amount70 Lakhs
Loan to Value (LTV) Ratio80% to 90%
Who can applyIndian Residents
Salaried Persons
Self-Employed Persons having a regular source of income
Co-applicantsCompulsory - Family members
EMI720 per Lakh

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.

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. Home Loan interest rates and service charges on 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 LoanInterest Rate SpreadApplicable Interest Rate
Up to 35 Lakhs
All borrowersPLR - 4.90%7.20%
More than RS. 35 Lakhs and up to 70 Lakhs
Women beneficiariesPLR - 4.90%7.30%
Other borrowersPLR - 4.290%7.40%
Loans for Repairs and Renovations
HousePLR - 2%10.50%
Shop/GalaPLR - 1%11.00%

Types of Home Loans Offered by Abhyudaya Co-operative Bank

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 SectionsLow Income GroupMiddle Income Group - 1Middle Income Group - 2
Scheme validity31.03.202231.03.202231.03.202231.03.2022
Total Family IncomeUp to 3 LakhsMore than 3 Lakhs and up to 6 LakhsHigher than 6 Lakhs and up to 12 LakhsGreater than 12 Lakhs and up to 18 Lakhs
The carpet area of the house30 sq metres60 sq. metres160 sq. metres200 sq. metres
The loan amount for determining subsidyRs. 6 LakhsRs. 6 LakhsRs. 9 LakhsRs. 12 Lakhs
Processing FeesNil up to 6 LakhsZero up to 6 LakhsNil up to 9 LakhsNil up to 12 Lakhs
Maximum eligible subsidyRs. 2,67,280Rs. 2,67,280Rs. 2,35,068Rs. 2,30,156
Ownership of houseOne applicant should be a female memberOne female applicant is compulsoryEither male or femaleEither 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 LakhsThe maximum Home Loan is 90% of the agreement value with a ceiling of 25 Lakhs
Above 28 LakhsMaximum 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 CapacityNet Monthly Income less minimum take-home pay less Loan deductions
Minimum take home PayMinimum 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

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.

Other Products by Abhyudaya Co-operative Bank

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

Term DepositCurrent AccountSavings AccountNRE/NRO/FCNR Account
Personal LoanAbhyudaya Vidya Vardhini Education Loan SchemeEducation Loan for higher education in India & AbroadCentral Scheme to Provide Interest Subsidy (CSIS) on Education Loan
Vocational Education LoanSOD against pledge of Gold ornamentsLoan against pledge of Gold ornamentsLoan/SOD against Govt. securities
Loan/SOD against Term Deposit - LATD-FLXLNVehicle Loan - CommercialVehicle Loan - privateTaxi - Auto Loans
Working Capital FinanceLoans & Advances to Professionals (Other than Medical Practitioners)Business Term LoanNon-Fund Based - Letter of Credit
Short Term Corporate LoansUdyog Vikas Loan SchemeRevolving Credit LimitMedium Term Corporate Loan
Loan to Professional - Self-employedLoan to Women EntrepreneursLoan to Educational InstitutesBusiness 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 fee0.60% of the sanctioned loan amount plus applicable GST
Preliminary sanction letter500 plus GST
Charges for confirming the genuineness of title3,000 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

Apply for Home Loan Online @ Rs. 748/Lakh* EMI

Apply for instant home loan online at Interest Rate starting from as low as 8.20% p.a. Pay EMI of just Rs. 748 per Lakh. Loan can be repaid in flexible tenure of up to 30 years. Apply now with minimal documentation. Check eligibility & get instant approval here.

Abhyudaya Co-operative Bank Home Loan - FAQs

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

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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?

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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?

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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?

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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?

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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?

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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?

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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?

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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?

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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?

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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.