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Personal Loan

Abhyudaya Co-Operative Bank embarked its journey as a cooperative credit society formed in the year 1964, by social workers and labor movement activists intended to provide financial support to the weaker section of society such as mill workers and other industrial labor class. Within a short span of time Abhyudaya Co-op. Credit Society upgraded itself into an Urban Co-op. Bank. In June 1965, the Abhyudaya Co-op. Bank Ltd. was formed and thereafter commences its operation and services. The Bank was granted a status of Scheduled Bank by the Reserve Bank of India in September 1988.


Within last 51 years, Not only it has shaped up as one of the prominent Urban Co-op. banks in the country, offering its services in various states, but has pioneered in offering state of the art financial services to the economically weaker section of the society.


Currently Abhyudaya Co-Operative Bank has more than 1.71 lakh members and over 18.03 lakh Depositors. Today, it enjoys the accolade for reaching a total business size worth Rs. 15, 500 Crore. Another notable achievement can be stated from the fact that bank’s Paid up Capital & Reserves have consolidated to Rs.1497 Crore and Investments are to the quantum of Rs.3866 Crore. The Abhyudaya Co-Operative Bank maintains a healthy Capital Adequacy Ratio of 12.81%.


The current strength of branch network stands at 111 branches across 3 states, and out of these 55 branches offers their financial services 365 days in a year including Sundays. The customers of Abhyudaya Co-Operative Bank can operate their bank accounts through any of the 114 ATMs of the bank and almost 2.20 lakh other bank ATMs through NFS Network Apart from regular banking services the Abhyudaya Co-Operative Bank offers Demat, Pan Card Facility, & other Online Tax Payment Services through the network of branches.


Personal Loan


Abhyudaya Co-Operative Bank is a multi-state Scheduled Bank which offers all the relevant banking facilities to its customers. The bank offers Personal Loan for personal financing and the loan has good features. Below the Personal Loan of the bank is analyzed in complete details for a better understanding:


Personal Loan key Features:
 

The loan is a multi-use loan which has the following features:

 

  • The loan can be put to multiple uses which include purchase of computers and/or its fixtures and fittings, repairs or renovations done on a house or a flat, buying a two-wheeler, meeting the expense of marriage or other religious ceremonies, undertaking any domestic or foreign trip or vacations, repayment of an existing loan or debt, meeting any medical expenses of self or of family or for any other varied purpose which should be accepted by the bank
  • The maximum amount of loan which can be taken under this scheme is limited to Rs.5 lakhs
  • The loan should be repaid within a maximum period of 5 years or 60 months
  • There is no margin requirement asked by the bank in the loan
  • Applicants applying for the loan should obtain membership by paying a nominal fee. The membership fee for loans up to Rs.1 lakh is Rs.100 and for loans above Rs.1 lakh, the fee is 1% of the loan amount granted subject to a minimum of Rs.1000 and a maximum of Rs.2000. even sureties to the loan are required to have a membership which would cost them a fee of Rs.100 each
  • If loan is taken up to a value of Rs.3 lakhs, one surety would be required for the loan. Loans valuing Rs.3 lakhs and above require one or two sureties.
  • There is no requirement of a prime security for availing the loan
  • A collateral security would be required which can be in the form of a life insurance policy, KVP, NSC, FDR, etc.
  • 1.30% of the loan amount sanctioned will be charged if the loan is availed in Mumbai, Navi Mumbai, Thane, Raigad and Pune branches while 0.70% of the loan amount would be charged from other branches as a service charge

Salary Cash Credit loan

Abhyudaya Co-Operative Bank offers cash credit personal loans to the salaried employees of reputed companies as a quick financial solution for those who are in needs of finance due to any exigency. The amount can be utilized for any legitimate purpose. Let’s discuss the detailed feature of Salary personal Loan


Special Features
 

  • The loan is sanctioned for any legitimate purpose
  • The maximum amount offered is Rs.500,000/-
  • The cash credit scheme is initially sanctioned for three years subject to yearly review
    There is a Nominal Membership charge of  Rs.100/-.
  • One third party guarantee is required to avail this loan
  • No other security is charged for the personal loan.
  • Cash Credit sanctioned on the basis of undertaking not to discontinue ECS or remittance of monthly salary without permission of the bank
  • The applicable Interest is charged on daily outstanding debt balances on monthly basis.  In case of any Credit Balance, the interest will be computed on the same as of saving account Rules.
  • A host of other free services is offered apart from the cash credit loan.
  • Service charge @1.30% of sanctioned limit is charges for applicants in Mumbai, Navi Mumbai, Thane, Raigad & Pune area branches.
  • For Branches other than Mumbai, Navi Mumbai, Thane, Raigad & Pune area branches, service charge @ 0.70% of the sanctioned limit is charged.
  • Collateral security in the form of LIP / NSC / KVP / FDR, if available.
  • The membership is charged @ Rs.100 for loan amount up to 1 lakh
  • For loan amount more than 1 lakh, the membership is charged @ 1 % of Loan amount subject to minimum Rs.1000/- & maximum of Rs.2000/-.
  • In case of the guarantor Nominal Membership of Rs.100/- each is applicable.

Eligibility Criteria

An applicant applying for a loan from the bank should meet the following criteria as prescribed:
 

  • Permanent salaried employees as well as non-salaried professionals and businessmen can apply for the loan.
  • If the amount of loan sought is up to Rs.2 lakhs, the minimum take-home income or salary of the applicant after adjusting the payable EMI should be Rs.6000 per month. For loans above Rs.2 lakhs and up to Rs.3 lakhs, this minimum monthly requirement increases to Rs.8000 and for loans above Rs.3 lakhs up to the maximum limit of Rs.5 lakhs, the minimum monthly income or salary after adjusting for the EMI should be Rs.10, 000

Abhyudaya Co-Operative Personal Loan Interest Rate

The loan has the following rate of interest chargeable:
 

  • The Prime Lending Rate of the Bank is 13.50%
  • If the loan is taken with collateral securities valuing 50% or more of the loan amount then 13.50% per annum rate of interest would be charged
  • If the value of the collateral securities is less than 50% of the sanctioned loan amount, a rate of interest of 14.00% would be charged on the loan

Documents required

The following list of documents would be required for availing the loan facility:
 

  • Latest photograph of the applicant
  • A valid photo identity proof
  • Copy of the PAN Card
  • A valid address proof of the applicant and the guarantors
  • If the applicant is a salaried employee, he should also submit the last 3 months’ salary slip, bank statement of the last 6 months, Form 16A and his Income Tax Return of the last 3 years along with the above-mentioned documents
  • If the applicant is non-salaried then he should furnish the last 2 years’ financial statement of his business, Income Tax Return copy and the bank statement of his business account of the last 1 year in addition to the above documents.

Documents required

The following list of documents would be required for availing the loan facility:
 

  • Latest photograph of the applicant
  • A valid photo identity proof
  • Copy of the PAN Card
  • A valid address proof of the applicant and the guarantors
  • If the applicant is a salaried employee, he should also submit the last 3 months’ salary slip, bank statement of the last 6 months, Form 16A and his Income Tax Return of the last 3 years along with the above-mentioned documents
  • If the applicant is non-salaried then he should furnish the last 2 years’ financial statement of his business, Income Tax Return copy and the bank statement of his business account of the last 1 year in addition to the above documents.

Other Terms & Conditions for Abhyudaya Co-Operative Bank personal Loans

  1. The Processing Charges and membership charges will be collected at the time of acceptance of new applications and adjusted towards service charges if the facility is sanctioned. In case of top up loans, the Service Charges will be applicable only on the enhanced limit.
  2. No prepayment charges are applied on personal loan from Abhyudaya Co-Operative Bank.
  3. The interest Rate is applicable on floating basis, until not mentioned otherwise. The applicable rate of interest will be calculated as against the daily debit balance with monthly rests to be taken and such interest to be paid on or before 15th of each month.
  4. The rate of interest as originally offered is subject to change as per the Bank’s lending policies  as well as according to the directives by RBI
  5. Abhyudaya Co-Operative Bank shall inform all such borrowers for the change of  rate of interest by publishing in any local Newspaper ,  Notice Board of the Bank or any other modes as may deem pertinent to the bank’s policy
  6. The Bank is also entitled to enhance either the amount of installments or the number of installments or both, whenever there is any revision in interest rate.
  7. In the event of any default in payment of interest, it would be capitalized and consolidated to the principal amount. This would be henceforth treated as an advance and the Bank is entitled  to charge interest at a rate as mentioned on the amount of the debit balance including the net interest amount not paid and
  8. This would lead to the payment of total capitalized amount apart from charging penal interest at the a rate  which is decided by the Bank from time to time from the date of default to the date of actual payment.

EMI Calculator

The bank allows the calculation of respective EMIs which can help customers ascertain their loan affordability. The EMI Calculation tool is available on the online website of the bank and the EMI for availing the personal loan can be computed easily. Below are some illustrations showing the EMI payable using the EMI Calculator of the bank:
 

  • A person borrowing Rs.2 lakhs from the bank under the Personal Loan scheme promises to repay the loan in 2 years and offers Rs.1.5 lakhs of collateral security. The rate of interest the bank would charge from him would be 14% and the corresponding EMI would result in Rs.9603.
  • If the borrower has borrowed Rs.3.5 lakhs in loan pledging a collateral security of the value of Rs.3 lakhs, the same rate of interest of 14% would be charged from him. If he repays the loan within 45 months, the EMI payable would amount to Rs.11, 477
  • Suppose the value of the collateral pledged is a mere Rs.2 lakhs while the loan is taken for the maximum permissible value of Rs.5 lakhs repayable in 60 months. The interest rate would increase to 14.50% and the EMI would come to Rs.11, 765.