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Home Loan

Cosmos Co-operative Bank Ltd, one of the oldest existing urban co-operative banks in India, was formed in 1906. Headquartered in Pune, Cosmos Bank currently offers its services at 38 major cities across India. Cosmos Bank is reckoned to be pioneer in implementing Core Banking solution using the Finacle software. The Cosmos bank also was only third bank in India to be awarded an Authorized Dealer license from the Reserve Bank of India.


Cosmos Bank offers multiple products and services consisting personal banking, corporate banking and NRI banking products. For personal banking segment, there is a wide assortment of loans offered by Cosmos bank including home loan products. The Cosmos Bank Home Loan Scheme caters the needs of people aspiring to have their own house. The home loan available through Cosmos Bank can be availed for Purchase/construction of a new house/flat, property for resale or for transfer of an existing home loan lender.


Benefits of cosmos bank home loan
 

  • Nil prepayment charge in case the borrower wish to pre-close their home loan if the same is repaid with own funds.
  • For the computation of home loan eligibility amount, the income of family members is also considered for higher eligible loan amount eligibility.
  • The Maximum quantum of loan amount offered in home loan from Cosmos bank is Rs 70 lakh.
  • Cosmos bank home loan is offered a maximum term of 20 years.
  • One of the best housing loan scheme with loan margin for a new property as high as  80% of the gross value of the flat
  • Expenses such as registration, loan processing fee, mortgage expenses, share money, stamp duty etc is also accounted for the loan amount in the Cosmos housing loans.
  • Loan margin in Cosmos housing loans scheme for a resale property shall be up to 70% of the agreement cost or the valuation price, whichever is lesser.
  • One of the significant features of cosmos bank home loan is that the interest is computed on a daily reducing balance.

Variants of Cosmos Bank Home loan
 

The Cosmos Co-operative Bank limited home loan product is offered in two variants
 

  1. Cosmos Home Loan Scheme
  2. Cosmos Home Delight Scheme (TOP – UP)
Cosmos Home Loan Scheme

The key features of Cosmos bank Home loan Scheme is
 

  • Loan amount up to Rs. 70 lakhs.
  • Loan can be availed for purchase / construction of house/flat.
  • Cosmos home loan repayment period will be 20 years.
  • For takeover loan either the unexpired period or maximum loan tenure of 20 years whichever is less is offered.
  • No prepayment charges for home loan schemes in cosmos bank.
  • Cosmos bank housing loan is offered to resident individual, self employed or professionals.

Margin
 

  1. For new Property – Up to Maximum 80% of the net value of the property including registration charges , loan processing fee ,stamp duty payable , mortgage expenses share money etc
  2. For Resale property - Maximum up to 70% of agreement cost or the valuation amount whichever is lower.

Security & Insurance
 

  • Registered equitable mortgage of property/ house.
  • 2 guarantors acceptable to the Bank will have to be provided.
  • All title documents has to be submitted to the bank
  • All-inclusive Insurance cover of the property as per bank’s policy

Documents for home loans: Below is the list of documents required by the bank wherever an applicant apply for a Cosmos home loan.
 

  • ID proof as well as residence and business address proof.
  • Legal Documents: there are legal documents that need to be submitted by the applicant for mortgaging the property and these might differ from state to state and the property type.

In case of guarantor, following documents are necessary:
 

  • Assets & Liabilities statement of the guarantor
  • Photographs, ID proof, residential and business address proof
  • Present bankers provided signature identification

Additional documents required for salaried persons:
 

  • Latest salary certificate in original.
  • Latest acknowledged TDS certificate/ITR
  • Advance IT payment challan copies.

Property documents
 

All bank-mentioned property documentation ranging from sale deed, land tax paid receipt, non encumbrance certificate, NOC certificate, valuation report and more.


Fees and charges
 

  1. Processing Fee- Rs. 3,000 for loan amount up to Rs. 25.00 lacs  & Rs. 5,000 for loan amount above Rs. 25.00 lacs up to Rs. 70.00 lacs – 
  2. Share Money 1 % of home loans sanctioned or Rs. 5000/- whichever is lower.
  3. Foreclosure charges
  1. For Floating rate of Interest- Nil foreclosure charges
  2. Fixed rate of interest - 1% on loan outstanding balance will be , in case the loan closed before 3 years.

Cosmos Home Delight Scheme (TOP – UP)

The key features of Cosmos Home delight scheme are
 

  • Home delight loan is offered for the renovation /Repairs, Interior decoration, purchase of Home appliances or furniture.
  • Offered as Overdraft or Term Loan
  • Existing rate of interest is 12.50%. p.a.
  • The Maximum tenure for  Cosmos bank home loan repayment is 60 months 
  • The maximum tenure of loan under Overdraft scheme is  36 months 
  • The Maximum Loan amount for top up scheme is Rs. 5.00 lacs .
  • Maximum Rs. 2.00 lacs can be given under Overdraft facility.
    In case the  loan eligibility is less than Rs. 5 lacs, loan can be sanctioned as Term loan only
  • Loan tenure will be 5 years or residual period of housing loan whichever is less

Eligibility
 

  • Existing borrowers or co – borrower availing Cosmos Bank Housing Loan scheme.
  • Minimum 25% or Rs. 5 lacs whichever is lower
  • Existing customer with proven track records and sound repayment history with no event of loan default.
  • Since the Cosmo Home delight Scheme is an unsecured loan, such customers who have  already availed any other unsecured loan scheme of INR 5 lakhs and above from cosmos bank or any other lender are  not  eligible to avail another  loan simultaneously from cosmos bank.

Security & Guarantor
 

For the cosmos Top-up loan scheme, 2 guarantors are required. The Borrower can continue with their existing home loan guarantors by providing a fresh consent. However for cases wherein the existing guarantors are not available top up loan liability, any new guarantor may be accepted subject to bank’s satisfaction.


Fees & charges
 

  1. Processing fee - 0.25 % of the loan amount sanctioned
    Share Money – 5% on Cosmo Home Delight (Top–Up) loan sanctioned amount.
  2. Nil foreclosure charges
  3. Stamp Duty- Applicable as per Government .rules and regulation.

Documents required
 

  • Duly filled Cosmos bank home loan application form
  • The Disbursement of loan amount will be made only post ensuring all the conformity is done.
  • Fresh Agreement cum Undertaking
  • In case of new guarantor, the Additional documents is required for the guarantor

Cosmos home loan interest rates Calculation

Cosmos Bank home loan can be availed either on floating or fixed rate of interest.
 

  • Interest on the amount of Cosmos home loans  will be applied at the prevailing rate of interest per annum on daily reducing balance with monthly rests,
  • In case the loan is availed at floating rate, the interest amount shall be calculated at the then existing floating Home Loan Interest Rate which is calculated on a daily reducing balance at monthly rests. The Bank can decide on whether to increase or decrease the EMI amount or increase the tenure for repayment or both post revision in the interest rate.
  • In case of fixed rate, the Interest is charged at the published fixed interest rate which is reducing daily as the balance decreases. The interest rates are revised at the end of every 2 years.
  • COSMOS bank may at its prudence lay down the revision period for computation of interest. Further, Cosmos Co-operative Bank limited home loan have the provision for the revision of rate of interest rightfully in the event of major instability in interest rates during the period of agreement.  The Home Loans offered under fixed interest Rate option will continue to with the existing Rate of Interest and being unaltered by any changes in the published Base Rate. However, loan of Fixed Rate of interest are subject to “Force Majeure” clause and henceforth the interest reset by the end of every 2 years on the basis of fixed rate of Interest then prevailing. it is pertinent to reiterate that in case the borrower is not satisfied with to the revised fixed interest rate, they may request Cosmos bank within 15 days of notification receipt from Cosmos bank to terminate the loan agreement and thereafter the borrower will have to repay the loan and all other due amount completely in full and final settlement as duly agreed in the pre- closure clause part of the loan Agreement.

 

Cosmos Bank Home Loan EMI Calculator

Cosmos Bank offers home loan EMI calculator to the applicant to help them calculate how much they have to pay towards home loan in future. The home loan EMI calculator hence proves to be a handy tool to find out just how much the home loan is going to put extra burden on the financial planning of the applicant.  This information can especially help you budget the finances in the future and know the Cosmos home loan eligibility towards home loan. The applicant prior submitting can check and plan their loan application amount with the help of this calculator. EMI calculator empowers customer to have their financial planning intact post availing the loan.

Other Important terms & Conditions

  • The Cosmos Co-operative Bank limited home loan amount can be utilized only for the purpose as intended in the loan application form. The legible purposes for which Cosmos bank home loan can be sanctioned are purchase or construction of house/ flat, repairs or renovation of property.
  • The Premium towards Home Loan Insurance can be added to the loan amount. This however is optional and applicant has to mention the same before they apply for Cosmos bank home loans
  • For loan amount less than Rs. 20 lakhs, Cosmos home loan offers a maximum permissible Loan to value ratio is 90% of the gross assessed property value. For loan amount higher than INR 20 lakhs, maximum offered LTV ratio is 80%.
  • Interest on the amount of Cosmos home loans  will be applied at the prevailing rate of interest per annum on daily reducing balance with monthly rests,
  • In case the loan is availed on Floating rate of interest, the interest amount shall be calculated at the applicable floating rate using the daily reducing balance methodology.
  • The Bank can decide on reducing/increasing the EMI amount or increasing/reducing the repayment tenure or both if interest rate is revised.
  • In case of fixed rate, the interest is charged at the published fixed rate on the basis a daily reducing balance basis. The interest rates are revised at the end of every 2 years.
  • COSMOS Bank may at its prudence determine the revision period for computation of interest. Further, Cosmos Co-operative Bank limited home loan has the option of revising rates as per prevailing market conditions.
  • The Home Loans offered under fixed interest Rate option will continue at the existing rate of interest and remain unaltered by any changes in the published Base Rate. However, loan of Fixed Rate of interest are subject to “Force Majeure” clause and henceforth the interest reset by the end of every 2 years on the basis of prevailing market conditions.
  • If a borrower is not satisfied with to the revised fixed interest rate, they may request Cosmos bank within 15 days for termination of the loan agreement and thereafter, the borrower will have to repay the loan and related dues in full as part of the final settlement as duly agreed in the pre- closure clause part of the loan Agreement.
  • If mortgage of the property being financed is not possible towards Cosmos Co-operative Bank limited home loan, Bank may accept, at its discretion, security of adequate value in the form of Life Insurance policies, shares/debentures, Government Promissory Notes any other tangible security as may be deemed suitable.
  • For the case wherein customer has defaulted in the payment towards monthly EMI amount as duly agreed with the bank, Cosmos bank reserves the right to charge an additional 2% p.a. on the deficit amount over the pre-set rate.
  • This amount is over and above the contracted rate of interest if the EMI is due for a period more than 30 days from the actual payment date.
  • The Cosmos home loans are to be repaid in the form of EMI or Equated Monthly Installment amount for the tenure of the loan as mentioned prior sanction of loan. The installment that needs to be paid for repayment begins from a date as specified in the loan sanction letter
  • The liability towards the bank will be over only post payment of all outstanding dues in the loan account including penal charges, if applicable.
  • Applicant at their own discretion includes other variable such as Stamp duty charges, Registration Charges and other Documentation charges in the overall loan sanction amount.
  • The margin applicable on the cosmos home loan is computed on the basic project cost which doesn’t include any expenses incurred towards stamp duty fees, registration charges and other documentation charges.
  • Pre-payment or pre-closure charges will be applied on the home loan from Cosmos Co-operative Bank Limited, no matter what the loan tenure or source of funds used for prepayment. However in cases, where Home loans are pre-closed before three years; processing charges, if any, waived/charged at concessional rate at the time of sanction/disbursement shall be recovered in full.
  • The Cosmos home loans are secured by Registered Equitable mortgage or extension of mortgage in case of tip up loan of the property against which the loan has been sanctioned.
  • If mortgage of the property being financed is not possible, Bank may accept, at its discretion, security of adequate value which can be in the form of Shares or Debentures as the case may be, Life Insurance plans, Promissory Notes from the Government, Precious or gold ornaments, property, land or any other such tangible security that is considered appropriate.
  • The loan amount approved in Cosmos bank home loans has to be utilized as per the purpose mentioned in the loan application form as well as according to the manner prescribed in the loan agreement. Prior to undertaking any construction /modification or extension of a house/flat, the borrower has to ensure that all such construction /modification is sanctioned/approved by relevant authorities.
  • The property should be free from any encumbrance and comprehensively insured against any natural or manmade calamity equal to the market value
  • Applicants at their own discretion may include other variable such as stamp duty charges, registration charges and documentation charges in the overall loan sanction amount.
  • The margin applicable on the Cosmos home loan is computed on the basic project cost which doesn’t include any expenses incurred towards stamp duty fees, registration charges and other documentation charges.

Apply for Cosmos Home Loan Online

You can apply for a Cosmos home loan through Paisabazaar.com. All you need to do is provide some key details about yourself in order to view the home loan options available to you. Based on the data available including processing fees, tenure, interest rate etc. you can choose the Cosmos home loan and apply for it. Subsequently your application will be evaluated and the bank representative will contact you for completion of the various formalities.