Abhyudaya Co operative Bank Limited

Apply Abhyudaya Co operative Bank Limited Loan Against Property

Abhyudaya Cooperative Bank Loan Against Property

Abhyudaya Cooperative Banks Loan against Property is one of the most sought after loans by individuals and businesses in need of finance to pursue one form of economic interest or the other. The bank offers property loans against the actual value of a property. The property in question serves as collateral/security for the loan for the entire tenure.

About Abhyudaya Cooperative Bank Loan Against Property

Abhyudaya Cooperative Bank is one of the foremost private banks in India that offers different loan schemes to borrowers. One of their flagship loans is the Abhyudaya loan against property. Borrowers looking to access this scheme get as much as 60% of the total value of the property they bring forward for the loan. To better improve the chances of borrowers to repay the loan within the allotted tenure, the bank offers detailed customized options at attractive interest rates and flexible repayment structure.

For business people and salaried individuals who require capital to exploit an available investment opportunity, this loan is a perfect scheme to apply for. The processing period takes only 3 days maximum and if your application is approved, funds will be disbursed immediately. Abhyudaya also operates a doorstep service for applicants who may be too busy to visit any of their branches to apply directly. Below are the features of the Abhyudaya Cooperative Bank Loan.

  • This loan is only meant for business purposes
  • Self-employed and Salaried individuals may apply for this loan
  • The property to be mortgaged must be an immovable property registered in the name of the applicant
  • The property owner may also act as a co-applicant for the loan if the actual applicant is a non-earning spouse or child
  • Maximum loan tenure is 7 years
  • The lender maintains a margin of 40% on the property value
  • The applicant requires regular membership to avail this loan
  • Only one surety with a means of repaying the loan is required
  • The property presented must have insurance cover
  • The processing fee charged on the loan is 1.30% of the loan amount for applicants in urban areas such as Mumbai, Pune, Thane and Raigad
  • Processing fee for semi-urban and rural areas is 0.70%
  • The interest rate for this loan starts from 13.50%
  • Share linkage of the loan amount sanctioned is 2.5%
  • The maximum loan amount is 1 Crore

Eligibility for Abhyudaya Bank Loan Against Property

Only applicants who are eligible for this loan will be successful in availing it. The eligibility criteria for applying for this loan are listed hereunder.

  • The applicant must either be a self-employed applicant or a salaried individual
  • The applicant must be an Indian resident
  • The value of the property must have a value that is more than 60% of the loan amount requested
  • The minimum acceptable monthly income is 8000
  • The maximum acceptable monthly income is 2000 subject to 40% EMI deductions

Interest Rate and Charges for Abhyudaya Cooperative Bank Loan Against Property

Below are the interest rates and charges for the loan schemes under Abyudaya Cooperative Bank's Loan against property.

In general, an interest rate of 13% annually is charged on priority loans while a rate of 13.50% is charged on non-priority loans.

Surety Loan Loan Amount Interest Rate
With 50% collateral or more Up to 5 lakh 12.50%
Without Collateral or less than 50% securities Up to 5 lakh 13.00%
Business Loan against immovable Property Loan Amount Interest Rate
Priority Loan Up to 5 lakh and above 13.00%
Non-Priority Loan Up to 5 lakh and above 13.50%

Types of Abhyudaya Cooperative Bank Loan Against Property

Abhyudaya offers eligible applicants two basic loan schemes under their loan against property. They are the

  • Surety Loan
  • Business Loan against immovable properties

Surety Loan

The Surety Loan is issued to a borrower who has another individual standing in as surety for him or her. The surety in question is responsible for taking up the EMI payment in case the borrower defaults in payment.

Business Loan against immovable Properties

This loan is similar to the Surety loan but with the borrower bearing the full responsibility of repaying the EMI in full. This loan scheme is only issued for business purposes only.

Both the Surety and The Business Loan against immovable properties have similar features. We highlight them below.

Purpose: Both loans are issued to individuals who have financial commitments to keep. Applicants may either be salaried individuals or self-employed

Collateral: Residential and Commercial properties are accepted as Security for both loans

Amount: Under the Surety Loan and the Business Loan against immovable property, you can avail as much as 60% of the current value of the property.

Loan Repayment: Borrowers can apply for a short or longer tenure of not more than 7 years.

Charges: Depending on the loan amount applied for, charges are communicated to the applicant upfront before the loan is disbursed. No hidden charges

Customized package: Both loans are flexible and can be customized to meet the demand of the individual applicant.

Prepayment fee: Fees on prepayment is levied on the outstanding amount after the first 6 months of getting the loan.

Processing fee: There is a standard processing fee of 1.30% on loan amount which must be paid upfront.

Overdraft facility: Borrowers can enjoy an overdraft facility which allows them to make use of the full loan amount for an approved limit with interest charged only on the amount used.

Advantage of taking Abhyudaya Bank Loan Against Property

Just in case you are contemplating on taking up a loan against property from Abhyudaya Cooperative Bank, there are several benefits you should take note of. Here are some of the advantages of taking this loan for your financial convenience.

Low EMI Charges

Abhyudaya charges very low Equated Monthly Installment payments to customers compared to other lenders. This is because the lender allows borrowers to spread their payment across a very wide repayment window. This enables them to pay back very small amounts rather than lump sums, which may be too much of a burden.

Attractive Rates of interest

With rates of interest starting from 13%, you can avail of this loan and never worry about a debt pile up because of excessive rates. The bank operates a floating rate policy that changes based on the prevailing RBI rate. A drop in the RBI rate leads to a drop in the rate charged by Abhyudaya Cooperative Bank.

Hassle-free Processing

The process of applying for this loan is one of the easiest in the Indian banking industry. All it takes is only a few steps and you are done. The documents required to complete the documentation process are also few and easily accessible. What's more? Abhyudaya Cooperative Bank also operates a door to door service for interested applicants who may not be able to make it t any of their branches in person.

Residential and Commercial Properties are acceptable

This lender accepts both commercial and residential properties. This non-discriminatory practice increases the security options of borrowers looking to avail this loan.

Low Processing fees

If you are an urban resident, you only get to pay as 1.30% as processing fee on the loan amount while rural residents pay fees as low as 0.7% of the loan amount. This thereby reduces your level of indebtedness as you won't have to pay excessive charges as processing fees.

Minimal EMI deduction

Abhyudaya only deducts 40% of your net monthly income and nothing more. This practice ensures that you are not left cash strapped after paying your EMI for the month. Having 60% of your income left to settle other financial responsibilities is an advantage many other lenders don't afford borrowers.

Fast loan processing

All it takes is a period of three working days for your application form to be processed. In periods of emergencies, the process can even be fast-tracked.

Speedy Loan disbursal

The disbursal of loans occurs within one week after the loan has been approved and a sanction letter issued to you.

Documents required for Abhyudaya Cooperative Bank Loan Against Property

In order to be able to avail of this loan, the first thing you need to do is to fill and submit an application form along with your personal documents. To avoid application rejection, make sure you only fill in your correct details and attach your valid documents. Find below the documents for both salaried and self-employed applicants.

Documents for Salaried Applicants

  • Loan application form with clear photograph
  • Any of these can be used to proof residence/ Aadhar Card, Ration Card, Telephone Bills, Electricity Bills, Voter ID
  • Any of these can be used to proof Identity/ Driving License, Voter ID, Employer ID Card, Aadhar Card, and Employer ID Card
  • For Proof of Income/ Bank Statement showing salary payment entries for the last 6 months, Salary Slip for 6 months, Form 16 (2 years)
  • Photocopies of documents related to the property to be used as collateral.

Documents for Self-employed Applicants

  • Loan application form with clear photograph
  • Any of these can be used to proof residence/ Aadhar Card, Ration Card, Telephone Bills, Electricity Bills, Voter ID
  • Any of these can be used to proof Identity/ Driving License, Voter ID, Employer ID Card, Aadhar Card, and Employer ID Card
  • For Proof of Income/ Bank Statement showing entries for the last 6 months, Certified financial statement for the last 3 years, Form 16 (2 years)
  • Photocopies of documents related to the property to be used as collateral

Why Apply for Abhyudaya Cooperative Bank Loan Against Property through MyMoneyMantra?

When applying for a loan against property, most lenders operate two application avenues. An offline and an online window. The offline window involves the applicants paying a visit to the operating branch of the bank to fill an application form by hand. While this is the usual practice, some lenders also allow applicants to fill and submit applications online through their corporate portal or third-party websites. For applicants applying to a lender who operates an online application process, MyMoneyMantra is a reliable platform for such an endeavor.

Using MyMoneyMantra to apply for a loan against property has its perks. With and through MMM you can.

  • Apply for this loan in a stress free manner while avoiding mistakes
  • Get accurate information regarding the financial liabilities of individual loan schemes
  • Differentiate between schemes on the basis of your personal preference
  • Identify a suitable loan for your needs
  • Collate an accurate EMI using the EMI calculator on the website

All these information can be accessed from the limitless resources available on the website. Some other equally important information you can access are:

  • Your eligibility for the loan you are about to apply for
  • Ascertain your income eligibility and repayment capacity
  • Identify the processing fee charged on each loan scheme
  • Get accurate documentation information

Besides, these benefits mentioned above, you can also gain expert assistance if you are bedeviled with any kind of difficulty when applying for a loan against property online. MyMoneyMantra has expert advisors with proven years of experience in the loan finance industry to assist you.

How to use MyMoneyMantra Loan Against Property Calculator?

If you have never used a Loan against Property calculator before, you might be quick to conclude that the tool is going to be difficult to use but this is untrue. MyMoneyMantra's calculator is specially designed for you to help you collate the financial liabilities and components of all loans offered by different lenders. The calculator provides you with all the information you need in a single screen and with it, you can research the financial market for suitable schemes.

Some of the vital details a loan against property calculator can help you with are:

  • Current interest rates
  • Prepayment charges
  • Processing fees

To ascertain your eligibility c for a loan, MMMs Loan against property calculator can also be used to calculate this with a great degree of accuracy.

The steps are as follows:

  • Log into MMM website and click Loan against Property
  • Enter relevant details such as Loan amount, interest rate, tenure and then proceed
  • The calculator will calculate the EMI charge for the loan
  • Once the information about EMI is made known to you, select the lender whose scheme is favorable to you
  • You will then be asked to fill in the relevant information
  • After completing and submitting the form, an MMM representative will get in touch with you to guide you as you process your documentation and will maintain contact until the loan is approved
  • Once approved, the funds you applied for will be disbursed into the bank account you provided

Why use a Loan Against Property Calculator?

Why should you even bother to use a Loan against Property Calculator? Well for starters, this calculator helps you ascertain whether you are eligible for the loan or not. Beyond that, it also helps you identify the EMI charge on the amount you wish to apply for. Having this vital information at your fingertips will help you decide on the lender to go for as well as the loan amount and tenure to apply for.

Frequently Asked Questions

Which Properties can be used as collateral for an Abhyudaya Cooperative Bank Loan against Property

The properties that are accepted as collateral are:

  • A self-occupied residential property
  • A commercial property such as a shop, mall, office building or storage facility

What is the maximum amount I can avail from Abhyudaya Cooperative Bank as a loan against property

The maximum loan amount you can avail is 1 Crore subject to eligibility

Does Abhyudaya Cooperative Bank allow borrowers to foreclose their loans?

Yes, the bank allows borrowers to foreclose their loans. If you have a loan with them that you wish to foreclose, simply write a letter to Abhyudaya Cooperative Bank intimating them of your decision to foreclose your current loan against property and submit the letter to the nearest branch. You will be charged a minimal fee as prepayment charge for loan foreclosure but this charge varies depending on the outstanding loan amount and interest structure.

Can I partly prepay my Abhyudaya Cooperative Bank Loan against Property?

Of course, you can as you deem fit. You can make art prepayment and no charge will be levied if the loan was issued at a floating interest rate.

How can I apply for a Loan against Property?

There are two ways to apply for this loan. The first option is an offline option. Under this arrangement, you can simply walk into any of Abhyudaya's branches, request for an application form, fill in your details and attach your documents then submit them. A second option is an online option. To use this medium, visit MyMoneyMantra's website and follow the instructions.

Will Abhyudaya Cooperative Bank charge me a penalty for EMI payment default?

Yes, you will be charged a penalty should you default on your monthly payments. Penalties are subject to existing terms and conditions.

Can I apply for an overdraft facility should I need one?

Yes, you can apply for an overdraft against the loan provided you meet certain terms and conditions.

What is the current rate of interest on Abhyudaya Cooperative Bank Loan against Property?

The current rate of interest ranges between 12.50%-13.00%

How much will I have to pay as processing fees?

There are two fees charged for this loan. Applicants in urban areas pay a processing fee of 1.30% of the loan amount. As for applicants in semi-urban and rural settings, the processing fee is 0.7%. These fees are to be paid upfront.

Is there a top-up facility for this loan?

Yes, there is a top-up facility for a loan against property. Top-ups are allowed at adjustable rates linked to the bank's prime retail lending rate. For the sake of clarity, make sure you make inquiries at the customer desk section before applying for this service.

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