Abhyudaya Cooperative Bank Home Loan Interest Rate

Abhyudaya Cooperative Bank offers a variety of loan products such as education loans, gold loans, personal loans, and Home Loans. The bank has a history of catering to the marginalised class of society. Hence, it is a prominent player in PMAY in Maharashtra, Gujarat, and Karnataka. The controlling institution for Abhyudaya Coop Bank is HUDCO. The bank forwards the subsidy claims under PMAY to HUDCO for sanction and disbursal.

Abhyudaya Coop Bank offers Home Loans for various purposes ranging from construction of a house to takeover of existing loans from other banks. Some of the salient characteristics of Abhyudaya Coop Bank Home Loan are its competitive interest rates and relaxed eligibility norms.

Abhyudaya Cooperative Bank is a cooperative bank established under the Cooperative Societies Act. It does not qualify as a commercial bank. Hence, it does not subscribe to the MCLR, Base Rate, or RLLR interest rate structure that commercial banks follow. Abhyudaya Cooperative Bank has an independent interest structure linked to its Prime Lending Rate.

The PLR of Abhyudaya Cooperative Bank depends on market fluctuations like the MCLR structure of other banks. Hence, any change in the market rates can influence the Home Loan interest rates payable by individual borrowers.

Abhyudaya Cooperative Bank announces its PLR regularly. The latest such revision is with effect from January 01, 2019. Abhyudaya Cooperative Bank links its Home Loan and other loans interest rates with the PLR by either adding a premium of deducting a discount depending on its priority.

Home Loans form an integral aspect of priority sector finance. Hence, Abhyudaya Cooperative Bank applies a discount on the PLR while determining the Home Loan interest.

The Prime Lending Rate of Abhyudaya Cooperative Bank with effect from January 01, 2019, is 13%.

• Abhyudaya Cooperative Bank offers a floating rate of interest on Home Loans
• The rates change whenever the bank changes its PLR
• The PLR is linked to market rates
• PMAY borrowers have the same rate structure

Abhyudaya Cooperative Bank calculates interest on the daily reducing balances like all other commercial banks do. Hence, the borrowers get the benefit of interest on the EMI they pay during the month.

Abhyudaya Cooperative Bank does not have an EMI Calculator on its website. However, customers can use the EMI calculator provided on the MyMoneyMantra site to determine the Home Loan EMI.

• Access MyMoneyMantra.com
• Go to Financial Tools
• Select EMI Calculator
• Input your loan amount, rate of interest and repayment tenure to get the EMI
• This calculator helps to determine the break-up of interest and principal repayment portion across the entire loan tenure.

Abhyudaya Cooperative Bank account holders can repay their Home Loan in the following manner:

• Submit post-dated cheques for the EMI amounts
• Set up a standing instruction authorising the bank to recover your loan EMI
• Pay cash at the bank branch
• Use internet banking facility to repay the loan amount

Other bank customers can adopt these ways to repay the Abhyudaya Cooperative Bank Home Loan:

• Submit PDCs in advance
• Register for an ECS mandate
• Pay cash at Abhyudaya Cooperative Bank branches
• Use their net banking facility and remit the instalment through NEFT/IMPS/RTGS

There are no facilities to apply or register your interest for a Home Loan online on the Abhyudaya Cooperative Bank website. Thus, the best way to apply for a Home Loan is to visit the bank branch in person.

Abhyudaya Cooperative Bank is an active lender in PMAY. PMAY loans are similar to regular Home Loans in many ways. However, there are restrictions concerning the eligibility of the borrowers. Similarly, the entire loan amount is not eligible for the upfront interest subsidy. Various factors decide the subsidy amount.

Eligibility of Borrowers under PMAY

The annual family income of the applicants decides the category to which the borrowers belong. The maximum loan amount eligible for the subsidy also depends on the category to which the borrowers belong.

The following factors decide the subsidy amount: