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Best Home Loan Cooperative Bank

House is one of the most preliminary needs for humans apart from food and clothing. Owning a house provides a great pleasure and emotional satisfaction so it is the dream of almost all of us and therefore, we want to buy our own house as soon as we can. Currently property rates are too high and it is not possible for everyone to purchase it through his/ her personal financial resources.

To resolve this problem, banks and other financial institutions have started financing through home loan to buy a house property at attractive interest rates to the people based on their eligibility criteria. With the availability of several banks and competitive interest rates, the home buying has become an easy for the people. Buying a home is very big decision and involves a huge sum of money. It is advisable that for buying a house, you should apply for a home loan rather than depleting all the resources at once.

Top Cooperative Banks Offering Home Loan

Below table will show you the list of all Cooperative Banks who are extending home loans with their interest rates and tenure. This table will be offering you a chance to pick a bank of your choice under one roof:

Top Cooperative Bank Home Loan Interest Rate

BankInterest RateTenure
Ahmedabad Mercantile Cooperative Bank8.40% - 8.50%20 Years
Kalupur Commercial Cooperative Bank8.25% - 8.50%20 Years
The Mehsana Urban Cooperative Bank9.50%Flexible
Nutan Sahakari Bank Ltd8.25% - 8.50%Flexible
Rajkot Nagrik Sahakari Bank Contact your branch15 Years
Sardar Bhiladwala Pardi Pepls Co Bk9.00% - 10.25%15 Years
The Surath Peoples Cooperative Bank 9.00% - 9.50%15 Years
Amanath Cooperative Bank Ltd. Bangalore12% - 14%Flexible
The A.p. Mahesh Cooperative Urban Bank 11% - 15%15 Years
Abhyudaya Cooperative Bank 8.40 % - 8.50%20 Years
Apna Sahakari Bank 9.50% - 9.75%20 Years
Bassein Catholic Cooperative Bank 8.95%20 Years
Bharat Cooperative Bank (mumbai) Ltd., Mumbai8.50% - 10.00% 20 Years
Bharati Sahakari Bank10% - 10.50%15 Years
Bombay Mercantile Co Op Bank Ltd8.90% - 9% 10 Years

Why to Choose Cooperative Banks to Avail Home Loan?

  • Cooperative banks offer personalised services to their customers
  • They offer an extensive range of loan products with attractive interest rate choices
  • You get better chances of getting your home loan sanctioned and may also get a lower rate of interest on home loan, in case you are an existing customer of a cooperative bank
  • You will get quick and hassle-free loan approval process

Home Loan Process

Outlined below is the stepwise process of availing a Home Loan:

Decide on How Much You Can Afford: You have to consider all your incomes and expenses along with future obligations before deciding how much EMI can you afford to pay. You must always remember that total EMIs should not be more than 40% of your income.

Calculate the Amount you can pay as Down-Payment: You should accumulate maximum resources that you can bring to secure amount for down payment for home. Larger the down payment, lesser you need to take home loan which will lower your financial burden.

Perform thorough Research: Go through the details provided on lender's websites, check the types of loan, do interest rate analysis by taking help of any advisor. One of the best ways is to take the help of online mortgage aggregators to compare the interest rates and other charges associated with home loan. After that select the lender from whom you want to take home loan.

Meet the Lender you Selected: Visit the lender's office, collect all the relevant information & negotiate with the lender on interest rate and other terms based on your credit score & repayment capacity. Get your home loan eligibility checked.

Arrange for Required Documents: Keep ready with all the necessary documents that are required to be submitted along with home loan application.

Apply for Home Loan: Submit home loan application along with necessary documents. Check your application completely before submitting it.

Get Loan Approval & Read the Fine Print in depth: Get sanction letter from the lender. Read the loan agreement very carefully and sign it.

About Pre-Approved Home Loan

A pre-approved home loan is usually offered by banks to their customers who have a good track record of timely repayment of their dues or debt obligation. It is often offered at lower interest rates.

A pre-approved home loan is:

  1. An approval of home loan as per your eligibility by the bank or financial institution
  2. Valid for a limited period of time
  3. Approved after checking your income, repayment history and credit score
  4. Offered to the potential borrowers

Benefits of Pre-approved Home Loan:

  • You can plan your finances in a better way after knowing your pre-approved home loan amount
  • Banks generally offer this loan at comparatively lower rate of interest
  • Loan processing time will be very short and you will get the loan amount in faster manner
  • You will have better negotiation power with the seller once you know eligible loan amount in advance

About Pradhan Mantri Awas Yojana (PMAY)

PMAY is an affordable housing scheme for providing houses to all the eligible beneficiaries by 2022. "Housing for All" Mission for urban area will be implemented during 2015-2022. Credit linked subsidy (CLSS) will be provided on home loans taken by eligible urban beneficiaries for acquisition or construction of house.

It is provided in 2 categories:

  1. CLSS - EWS / LIG: EWS beneficiaries have an annual income upto Rs. 3.00 lakhs and LIG beneficiaries have an annual income between Rs. 3.00 lakhs to Rs. 6.00 lakhs.
  2. CLSS (MIG-I/II): MIG-I beneficiaries have an annual income above Rs. 6.00 lakhs to Rs. 12.00 lakhs and MIG-II beneficiaries have an annual income above Rs. 12.00 lakhs to Rs. 18.00 lakhs.

(1) Credit Linked Subsidy Scheme (CLSS) EWS / LIG

Credit linked interest subsidy at 6.50% will be provided to the eligible borrowers in EWS/LIG category for 20 years or actual tenure of the home loan, whichever is lower, as per the guidelines of Government of India.

Important Features:

  1. Applicants must belong to LIG & EWS categories
  2. Maximum Loan Tenure: 20 Years
  3. Interest subsidy: 6.50 % p.a.

(2) Credit Linked Subsidy Scheme (CLSS) - MIG

Credit linked interest subsidy at 4% or 3% will be provided to the eligible borrowers in MIG-I/ MIG-II category up to 31.03.2019, as per the guidelines of Government of India. CLSS-MIG had been implemented initially for a period of one year i.e. from 01.01.2017 up to 31.12.2017, but has now been extended up to 31.03.2019.

Important Features:

  1. Applicants must belong to MIG-I & MIG-II categories
  2. Maximum Loan Tenure: Upto 30 years
  3. Maximum Tenure for subsidy: Upto 20 years or actual tenure of the home loan, whichever is lower
  4. Interest subsidy of 4% for the loan amount up to Rs 9 lakhs for MIG-I segment.
  5. Interest subsidy of 3% for the loan amount up to Rs 12 lakhs for MIG-I segment.

Tips from Our Side

Home loan is one of the most important decisions that a person takes and it has its effects on his financial planning for the next 15 to 20 years. That is why, one must perform proper research and analysis & best of the home work before availing a home loan.

At the end, it is to be mentioned here that for first time home buyers, tax deduction upto maximum of Rs.50,000 is available under section 80EE of Income Tax Act, 1961 (subject to certain conditions). This is over and above the above 2 deductions of Rs 1.5 lakhs under Section 80C and Rs 2 lakhs under Section 24 of the Income Tax Act 1961.

How to Apply for Pre-Approved Home Loan?

It is observed that many banks offer pre-approve home loans to their existing account holders. They do so on considering a few important parameters such as the cash and other transactions in their salary accounts, their repayment history, if they have taken any loan or they are credit card holders.

The process of applying for a Pre-Approved Home Loan is just same as that of a regular home loan. The applicant needs to go through following step by step process for applying for Pre-Approved Home Loan:

  • Step(1): First of all, check your home loan eligibility based on your age, salary and loan tenure.
  • Step(2): Fill up the home loan application form. Write in key personal, financial and employment information in their relevant sections in the form.
  • Step(3): Mention in your home loan application that "Property is not identified".
  • Step(4): Attach all the necessary documents with the form.
  • Step(5): Attach the cheque towards processing fee. Remember, this processing fee is non-refundable even if you do not apply for home loan from the lender.
  • Step(6): Submit the same with the lender for processing your application for Pre-Approved Home Loan. Your application will get approved after checking your income, repayment history and credit score.