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Being the oldest co-operative banks in the urban settings of India, Cosmos Bank also known as Cosmos Co-operative Ltd. is first established in 1906 and has successfully completed a century in 2006. It is indeed the first bank to execute CBS (Core Banking System) across the network with 137 outlets that use the Finacle-Infosys Banking Software. Having received an AD (Authorized dealer) from RBI, it is the third bank in the entire India to have that kind of license in the past thirty years.
The Headquarters of Cosmos Bank is located in Pune ever since it has been started by Shankar Hari Barve and Sadashiv Gore. With the multi-state status tagged to it, the bank is fully operative in seven different states including Andhra Pradesh, Tamil Nadu, Telangana, Maharashtra, Madhya Pradesh, Gujarat and Karnataka. The bank as of date has 80,000 shareholders and around two million customers in its bag. Cosmos Bank is the first co-operative bank in India that has been granted legit permission to run a Currency Chest, offering and extending its services to other banks.
Over the years, Cosmos Bank has evolved and now is called a professionally sustainable, “Financial Institution” that includes both innovation and credibility. The bank has nurtured all of the traditional ethics, values and morals in its practices in serving both the big and as well as small customers.
Simultaneously, Cosmos Bank has also started adopting new banking technologies and tools to elevate its services. The Cosmos, as a bank has carved attractive and functional elements in practice like creating customised services, adopting prudent banking schemes, involving integrity and heritage in advancements by employing professional people whose best interests lie in enhancing the services.
Types of Cosmos Home Loan
Cosmos home loan is available as a single variant but both for the native residents of India and also for the NRIs. The loans are available for people who want to purchase a new/reselling house/flat/condominium/bungalow or for the construction of the house/flat/condominium/bungalow etc. The loan can also be taken for issuing loan from other financial institutions as well.
The attractive features of Cosmos Home loan alleviation of interest based on the reducing balance of the loan amount. Also, the enhancement of the eligible amount of Home Loan is given after considering the income of other family members as well apart from the bread winner. No penalties or any prepayments are drawn if you can foreclose the loan with your funds within the time.
Cosmos Home Loan Scheme
The Cosmos Home Loan is predominantly lent under the name, “Cosmos Home Loan Scheme” with a limit up to 70 lakhs. If you’re dealing with a new flat, the loan will be given to 80% of the total flat value including share money, registration fees, processing fees, stamp duties and also mortgage expenses. If you’re taking the loan for a resale flat, 70% of the total valuation is given in cases where the property is not older than 20 years.
With the equitable mortgage, the repayment period of the loan is around 20 years and in takeover cases, the repayment period less of 20 years or the unexpired period. The bank will be asking for two guarantors to safeguard your home loan without any prepayment charges and foreclosure charges. The interest of the home loan, as mentioned above is calculated on the reduced balance day by day, and a comprehensive insurance is covered for the property based on the policy.
Required Documents for Cosmos Home Loan
Photograph, Residence Proof, Identity Proof with photo validation of the Applicant and as well as the Guarantors. If the person is a monthly salaried person, the bank statement of previous 6 months, salary slip of previous 3 months, ITR for the previous 3 years should be submitted. If the person is a businessman, ITR of previous 3 years, Profit and Loss statements of the previous 2 years along with bank statement and balance sheet for the previous 6 months are to be submitted.
Housing Loan – Rate of Interest – Applicable from Feb 2017 – For New Loans:
- Women – 9 – 15%
- Others – 10 – 15%
Cosmos Home Loan Charges
1. If the loan amount is up to 10 Lakhs – 1% of loan amount + Sr. Tax.
2. If the loan amount is above Rs. 10 Lacs – 50% of loan amount + Sr. Tax.
3. Share Money – 1 % of the total sanctioned amount or Rs. 5000/- (Whichever is more).
4. Prepayment Charges Absolutely no prepayment charges.
Cosmos Home Loan Foreclosure Charges
Within the tenure where the floating ROI of the home loan is applicable, there won’t be any applicable foreclosure charges. If the loan is sanctioned at a fixed ROI after the reset has been done for the three years, the charges will be @1% on the outstanding loan with daily balance reduction given that the account is closed before three years. After three years, the charges will not be applied.
How do you close Cosmos Bank Home Loan through CreditSeva?
A borrower tends to secure the home loan while keeping the property as collateral. The lender, whoever has given the amount tends to have the authority of selling the home. Closing the home loan relieves the borrower from clearing the debt, and as a result, it also gives the title of the loan property completely to the person who obtained the loan for it. Therefore, this particular procedure has to be done with utmost diligence to avoid any hassles that have the potential to put your property at risk. By following the strict guidelines provided by the CreditSeva, the Cosmos Home Loan can be closed with the help of dedicated assistance.
If you’re looking forward to foreclosing your home loan using CreditSeva, you have to follow the following steps:
1. Initially, sign in to the CreditSeva account with your credentials.
2. After choosing the Cosmos Home Loan, follow the step-by-step guidance given by the CreditSeva experts.
Closing Loan after Loan tenure completion through CreditSeva
Loan closure after completion of the tenure: A Home Closure loan can be closed after completing the tenure through Credit Seva. Once you’re done paying all the EMIs, you can log in to Credit Seva and provide the EMI proofs so that the home loan can be closed after the loan tenure.
Closing Loan by Prepayment through CreditSeva
You can also choose to pay the home loan before the tenure period through prepayment and close the loan. The CreditSeva will transfer the amount to your bank and wait for the lender to calculate the dues and keep a check on the repayment transactions for the ascertainment. Once everything is done, the loan will be closed, and your documents will be given back.
How to close Cosmos Bank Home Loan completely?
The Cosmos Home Loan closure can be done in four different ways:
1. Prepayment of the Cosmos Home Loan
2. Completion of Cosmos Home Loan Tenure
3. Bad Cosmos Home Loan Account
4. Settlement of Cosmos Home.
Cosmos Home Loan Closure through Prepayment
The Cosmos Home Loan can be closed by prepaying the loan amount before the tenure period. To do this,
1. Start off with making a visit to any of the Cosmos Bank branch or the branch that you have taken the loan itself. Make sure that you visit the place keeping the working hours in mind, excluding the weekends for faster closure.
2. Once you enter the branch, meet the representative who will ask you to complete the usual formalities and mandatory document checks which indeed will consume a bit of time. If you have any doubts, make sure that you ask the representative about them.
3. The representative will then ask you to fill a disclosure form in which you will be asked to mention the income and its sources. The pre-closure is done based on the approximation provided by the details you have given.
4. After calculating the total pre-payment on the whole, you will have to draw a check in favor of Cosmos Bank and should be handed to the employee of the bank.
5. As soon as you make the payment, a receipt will be given to you as a confirmation that you have paid the whole loan amount without any troubles.
6. As a borrower, you can even ask for an amortisation sheet from the bank which usually lists out all the EMIs that have been paid since the start of the loan.
7. After paying the full loan amount, you will have to wait for the bank to send the property deed handing the property to you through registrar after 15 days and in cases where you fail to receive, you can directly collect it from the branch.
Cosmos Home Loan Closure by Tenure Completion
1. The second method of closure can be adopted after completing the tenure period. In this case, the borrowers are recommended to start the home loan closure as soon as they have paid the last EMI.
2. The user has to send an application letter by post asking for the closure of Cosmos Home Loan with the Cosmos Bank with documents attached (all the EMI payment proofs) after the last EMI is paid.
3. Once your application is received, you have to wait for a period of minimum of 15 days in order to receive the property deed, as mentioned above.
Cosmos Home Loan Closure by Bad Loan Account
There might be cases where the closure happens when the bad loan account comes into the picture. The repayment becomes an issue if the borrower often suffers from the lack of sufficient balance in the loan account or in cases where he/she goes bankrupt.
1. A loan that has a bad loan account will be considered as a default functional bank account in the books of Cosmos Bank until you start the procedure for writing off the loan.
2. The Cosmos Home loans are written off as bad loans and by writing a closure as mentioned above stating the details for the same or you can try visiting the nearest Cosmos branch as well.
When you want to write off a Cosmos Home Loan:
1. The status of the person who has taken the loan will be changed from the given “Default” to “Settled”.
2. The account that usually reflects the withdrawals and the deposits, when asked for a statement will display the loan amount as a bad loan settlement which has been written off.
3. The CIBIL score of a person will be affected or reduced in cases where the loan is closed as a case of the bad loan account.
Cosmos Home Loan Closure by Settlement
There might be cases when you grow unable and can’t pay the home loan EMIs regularly, and in such scenarios, you can just close the loan by choosing the settlement. The banks usually take three months or more to evaluate the repayment recoverability.
1. If the amount is considered to be irrecoverable, it will be noted as a Non-Performing Asset in the bank books.
2. Until the total loan amount is settled, your status will show as “Default” and settle the loan, an application should be sent to the bank, or a personal visit can be made.
3. Just like the case above, the CIBIL score will be distorted because of this and to repair it; you have to be careful in your financial transactions.
Sample letter for Cosmos Home Loan Closure
The Bank Manager,
Cosmos Co-operative Bank,
Branch Address (Where the loan is initially held)
Subject: Requesting a Home Loan Closure
I, Your Name, had issued a Cosmos Home Loan under the account number, Account Number that has been repaid by me successfully. The dues have been cleared totally, and the proofs have been attached in the form of EMIs I have paid including the last EMI payment. After necessary validation, I request you to initiate the procedure of closure of the Cosmos Home Loan held by me and after processing it, to deliver me an acknowledgement with the property deed authorising the complete closure and as well as the title of the property followed by it as soon as possible.
The documents shall be due to complete the closure:
- Original documents
- CIBIL score statement
- Closure certificate
Precautions to be taken after closing Cosmos Home Loan
1. Original Documents: Once you have made the payment and your closure is done, you will be given your original documents back. Usually, the documents will include the mother deed and the title deed as well. Therefore, check the documents and also make sure that all of them are in good condition.
2. NOC certificate: NOC is a clearance certificate given by the bank stating that the bank doesn’t have any interest in your property as you have cleared the loan amount and that it is removing all the hypothecation. Make sure that you have it with clearly mentioned details including account number, the name of the borrower, date of start and closure of the loan, loan amount and repaid amount as well.
3. CIBIL update: Lenders do not usually show interest in updating the score even when the loan amount is repaid or when it’s taken. They delay it usually as it involves your credit worth and they don’t gain anything with it. It takes a month to complete the CIBIL update and during this period, pursue the bank to do it by maintaining a good relation with it.
4. Legal Clearance: A clearance certificate from a lawyer is an optional thing that you can acquire as a precaution. Usually, people don’t prefer as it involves contacting the lawyer but this will only speed the entire process up if you want to sell the house.
Wrapping up, Cosmos Home Loan is one of the most feasible loans that you can take and can be repaid within the tenure period. The interest rates and the charges are so reasonable that you might as well prepay the loan amount and close the home loan without much trouble and by contacting services like CreditSeva, it will be even more easier. What are you waiting for? It’s time that you have a home on your own, don’t you think?
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