Cosmos Bank

Cosmos Bank Loan Against Property

Apply Cosmos Bank  Loan Against Property

About Cosmos Bank Loan Against Property

Cosmos Bank is one of the oldest urban co-operative banks and has been in existence for over a century. The bank was established in the year 1906 with its headquarters in Pune. Cosmos Bank is one of the first co-operative banks to implement the Core Banking System. By receiving the authorized dealer AD license from the Reserve Bank of India, Cosmos Bank became the third co-operative bank to receive such a license in thirty years. It is also the first co-operative bank to acquire a license for operating a currency chest and the currency chest is located in Pune. The bank offers services to other banks through this currency chest.

Cosmos Bank offers various deposits and loan products for both the retail and the corporate sector. If you are in need of immediate funds for any personal or business requirements and have a property that is idle, then you can encash the investment made by availing a mortgage loan from Cosmos Bank. The bank also offers loans against the rent receivables of a property which is leased-out by creating the mortgage of the leased-out property along with the assignment of future rent receivables of the property in favour of the bank.

Types of Cosmos Bank Loan Against Property

There are two variants for the Cosmos Bank Loan Against Property:

  • Cosmos Property Mortgage Loan
  • Lease Rental Discounting

Features of Cosmos Bank Loan Against Property

The features of both the schemes under Cosmos Bank Loan Against Property are detailed below:

Name of the Product Purpose Quantum Interest Security Repayment Charges

Cosmos Property Mortgage Loan

The loan can be used for consolidation of debts, higher education, planning a foreign trip, construction on a plot with inadequate title deeds, business purpose, etc.

A document evidencing the end-use as per the purpose mentioned in the application has to be provided.

  • The loan quantum will be up to 70% of the market value of the property, subject to a maximum of 3 Crores.
  • The loan can be availed either as a term loan or as an overdraft facility.

The rate of interest starts at 11% p.a.

  • Registered Mortgage of the property against which the loan is granted.
  • A personal guarantee of two persons acceptable to the bank.
  • The term loan has to be repaid within a period of 10 years.
  • The overdraft will be subject to review every 15 months.

Processing charges:

  • 1% of the loan amount for a loan up to 10 Lakhs
  • 0.50% of the loan amount for a loan above 10 Lakhs.

 

Pre-payment charges:Nil

Lease Discounting Scheme

The loan can be used for any personal requirement, like the purchase of another business property, for construction of premises that is proposed to be leased out, renovation of the existing business property, etc.

  • The maximum loan will be subject to the maximum net receivables.
  • The loan can be availed only as a term loan.
  • Initially, when the construction of the premises to be leased out is in progress the loan will be granted as project finance and will be converted to a term loan once the construction is complete and leased-out and the final lease agreement submitted.

The rate of interest is 9.50% p.a. to 10.50% p.a.

  • Equitable mortgage of the property, if all the original title deeds as per the Legal Scrutiny Report are available. Registered.
  • Equitable Mortgage only in the State of Maharashtra.

The repayment period will be up to the unexpired lease period subject to a maximum of 15 years.

Benefits of Taking Cosmos Bank Loan Against Property

The advantages of taking the Cosmos Bank Loan Against Property are:

  • The rate of interest is competitive
  • The loan is granted against residential/commercial property and residential plots that are legally declared as non-agricultural land.
  • The processing charges are nominal and pre-payment allowed without any charges
  • Quick and easy documentation
  • Quick sanction
  • No hidden charges

Interest Rate, Processing Fees, & Other charges for the Cosmos Bank Loan Against Property

The rate of interest for Cosmos Property Mortgage Loan is 11% p.a. and the rate of interest for Lease Rental Discounting is 9.50% p.a. to 10.50% p.a.

Other Charges

Type of Charge Details

Processing fee

  • 1% of the loan amount for a loan up to 10 Lakhs
  • 0.50% of the loan amount for a loan above 10 Lakhs

Pre-payment charges

Nil

Legal charges

At actuals

Stamp duty

As applicable to the respective State

Issuing of NOC

Nil

Eligibility for Cosmos Bank Loan Against Property

The following are the eligibility criteria that have to be complied with to avail of the Cosmos Bank Loan Against Property:

  • The loan can be availed by salaried individuals, self-employed individuals/professionals, and businessmen.
  • The loan will be granted against residential/commercial property. If the security offered is a plot without structure, then it should be legally declared as a non-agricultural land and should be well-bounded and the bank's hypothecation board should be present. A loan against a plot will be granted only in special cases.
  • If the property is a commercial property, the age of the property should not be more than 30 years and in the case of residential property, the age of the property should not be more than 25 years.
  • The residual life of the property and the type of construction will be confirmed by way of the valuation report and personal visit of the executives of the bank before sanctioning the loan. The residual life should be more than the repayment tenure.
  • Both the commercial and residential property with the building should have a completion certificate from a competent authority.
  • The submission of PDCs for EMI is mandatory
  • The repayment capacity for Cosmos Property Mortgage Loan will be as per the income of the applicant after considering all the deductions for the existing commitments.
  • For Lease Rental Discounting the repayment capacity will be based on the future rent receivables.

Documents Required for Cosmos Bank Loan Against Property

Documents required for the loan are:

Proof of residence of the applicant as well as the guarantor

  • Voter's ID Card
  • Driving License
  • Aadhar Card
  • Utility Bills

Photo ID Proof of the applicant as well as the guarantor

  • PAN Card
  • Passport
  • Voter's ID Card
  • Driving License

Income Proof of Salaried Individuals

  • Salary Slip for the last 3 months
  • Form 16 and ITR for the last 2 years
  • Bank account statement for the last 6 months

Income Proof of the Self-employed

  • Audited balance sheet and P & L Account for the last 3 years
  • ITR with income computation for the last 3 years
  • Bank account statement of all accounts for the last 12 months
  • Bank account statement of loan account for the last 12 months

Property Documents

All legal documents as mentioned in the Legal Scrutiny Report of the panel valuer

Other Documents

  • Completion Certificate from the competent authority for the residential/commercial property with a structure.
  • Final Lease Agreement in the case of Lease Rental Discounting
  • A letter from the lessor that the rent has to be directly paid to the Bank
  • Proof for evidencing the end use of the loan as per the purpose mentioned in the loan application.

Why Apply for the Cosmos Bank Loan Against Property through MyMoneyMantra?

Applying for a loan consists of filling up the relevant loan application, collecting all the documents as per the checklist provided, and submitting to the loan provider. It does not end there. Multiple visits to the loan provider to follow-up for the status of the application, reply for endless queries, and so on, are also a part of the process. It is definitely a tedious procedure, but before applying for the loan there is a lot of groundwork that has to be done before you finally decide on the loan provider you are going to approach. You will have to compare the different offers in respect of the rate of interest and other charges from various financial institutions and then decide on the one that suits your requirements.

You can be spared of all these tedious ordeals by applying for the loan through MyMoneyMantra. The loan experts of MyMoneyMantra will offer their guidance in the following aspects:

  • They will compare all the offers of different financial institutions and will help you choose the product that suits your requirements.
  • They will offer assistance in assessing eligibility depending on your income and repayment capacity.
  • They will assist you with the documentation which will reduce the turnaround time
  • They will also provide an insight into the various processing charges and will help you choose the offer that is beneficial.
  • With an array of products from various financial institutions, you will have a variety of choices.
  • They will also determine your eligibility as per your profile
  • They will analyze your repayment history and will offer their advice if there is any need for improvement.
  • They will help to understand the fine print wherever the offers are overly attractive

How to Use MyMoneyMantra EMI Calculator?

Calculating the EMI by applying the formula manually is a very tedious task. It involves complicated and confusing calculations. The best way to calculate the EMI is by using the EMI Calculator available on the website of MyMoneyMantra.

All you have to do here is enter the three variables that are required. The loan amount is the amount borrowed for a particular purpose. The loan tenure is the maximum repayment period that you intend to choose within the stipulated period allowed by the loan provider. The rate of interest i.e, the interest applied to the amount you intend to borrow.

On providing the above details the EMI will be calculated immediately with 100% accuracy. You will find a list of calculators like the EMI Calculator, Balance Transfer Calculator, Part Pre-payment Calculator, Full Pre-payment Calculator on the website. To use the MyMoneyMantra EMI Calculator, you will have to log in to the website and then follow a few simple steps:

  • Choose the EMI Calculator from the financial tool tab available on the home age of the website
  • Provide the three variants i.e., the loan amount, loan tenure, and the rate of interest
  • The EMI will be calculated instantly
  • You can then try various combinations until you get the best EMI
  • On arriving at the EMI, you have the option to check your eligibility and get the best quotes based on your requirements and income.
  • You can then apply for the loan through MyMoneyMantra

Why Use the Loan Against Property EMI Calculator?

Arriving at the EMI before applying for a loan is very much necessary. Calculating the EMI using an EMI Calculator is the best option as you will get the result instantly on providing the variables i.e., the loan amount, loan tenure and the rate of interest. There are EMI calculators for all types of loans. Though all the calculators work on the same line, you can use the specific calculator, for instance, the EMI Calculator for Loan Against Property to calculate the EMI.

The benefits of using Loan Against Property EMI Calculator are:

  • You can avoid the complex calculations that consume a lot of time
  • The EMI Calculator helps you to calculate the EMI so as to plan your repayment systematically and avoid financial strain. In a Loan Against Property, you will have provided your property as security and in case of consistent default in paying the EMI you may end up losing the property as the bank has the right to sell the property and adjust the proceeds towards the outstanding liability.
  • The flexibility to use the calculator at anytime and from anywhere. You can calculate the EMI at the comfort of your home or your workplace.
  • There are all chances of erroneous results in manual EMI calculation whereas with the EMI calculator you will get 100% accurate results.
  • There are instances where you will have to use a loan specific calculator though the EMI calculators work on the basis of the three variables only. There are different types of calculator for different loans. You will have the choice of using the calculator meant for the scheme under which you are availing of the loan.

FAQs - Cosmos Bank Loan against Property

What is the Cosmos Bank Loan against Property?

For any emergency funds requirement, you can encash your investment in the property by availing a loan against the property. Cosmos Bank provides loan against property by putting through the equitable mortgage of the property. The property could be a residential or commercial property consisting of the land and building. A completion certificate from competent authority will be required. In special cases, a loan will be provided against residential plots that are declared as non-agricultural land by competent authorities and are well-bound.

The age of the commercial property should not be more than 30 years and the age of the residential property should not be more than 25 years. The residual life of the property and the type of construction will be ascertained by the valuation of the property and by inspection of the building by the executives of the bank.

What are the purposes for which the Cosmos Bank Loan Against Property will be provided?

The Cosmos Bank Loan Against Property will be provided for the purchase of another business property, residential plot or for construction of an already owned plot, for the higher education of your children, to plan a foreign trip, for wedding expenses, for medical expenses, for business promotion, etc.

What are the types of Cosmos Bank Loan Against Provided?

The different types of Cosmos Bank Loan Against Property are:

  • Cosmos Property Mortgage Loan
  • Lease Rental Discounting.

What is Lease Rental Discounting?

If you have a property and you have leased it out, you will be having an additional income in the form of rent from the property. You can avail of a term loan against the property by assigning the future rent receivables to the bank provided the property is leased out to corporates. The loan provided against the future rent receivables is Lease Rental Discounting.

You can use the loan so availed for any personal requirement or for business promotion, for the purchase of another business property, for renovation and repairs for the existing property, etc.

If the construction of the premises to be leased out is in progress, then the loan will be in the form of project finance and will be converted into a term loan on the production of the final lease agreement.

What is the maximum repayment tenure for the Cosmos Bank Loan Against Property?

The maximum repayment period for Cosmos Property Mortgage Loan is 10 years in the case of a Term Loan and a review every 15 months in the case of an overdraft.

The maximum repayment period for Lease Rental Discounting is 15 years or the unexpired lease period whichever is earlier.

What is the security stipulated for the Cosmos Bank Loan Against Property?

The security stipulated for Cosmos Bank Loan Against Property is the equitable mortgage of the property where all the title deed as per the Legal Scrutiny report are available. Registered Mortgage will be done only in the state of Maharashtra.

For Lease Rental Discounting, in addition to the mortgage, the future rent receivables have to be assigned to the bank. A letter from the lessor that the rent will be paid directly to the bank has to be provided.

A personal guarantee of two guarantors acceptable to the bank should be provided.

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