New India Co-Operative Bank Personal Loan
Headquartered in Mumbai, New India Co-Operative Bank is a leading lender that offers its banking and loan services in a number of states across the country. The lender offers personal loans up to Rs.5 lakh for salaried and self-employed individuals at attractive interest rates.
- Only 2 guarantors required
- Long repayment term
- Maximum loan amount subject to up to 30 times the monthly salary of the individual or a maximum of Rs.5 lakh.
- Interest calculated on a daily reducing balance basis
Features and Benefits
- Customisable Loan Amount: Individuals can avail any loan amount up to Rs.5 lakh.
- Flexible Repayment Term: Based on your EMI repayment capacity, you can opt for a loan tenure when applying for this loan.
- Interest Calculation: The lender calculates the interest for this loan on a daily reducing balance basis.
- Pre-Payments are Permitted: Borrowers are allowed to prepay their loans. Also, New India Co-Operative Bank does not charge a pre-payment fee or commitment fee even if the borrower makes pre-payments, unless the loan has been taken over by another bank or financial institution.
Interest Rate
Interest Rate | Loan Amount | Processing Fee |
11% p.a. onwards | Up to Rs.5 lakh | As per the lender's terms and conditions |
Fees and Charges
In addition to the interest rate and the processing fee, lenders may also charge certain other fees during the repayment tenure. The various fees that are commonly charged by New India Co-Operative Bank are as follows:
Fee Type | Amount |
Charge levied for unsuccessful execution or ECS/SI or cheque bounce | Rs.650 |
Duplicate statements | Rs.140 |
1st Loan notice charge | Rs.220 |
2nd Loan notice charge | Rs.650 |
Legal notice charge | Rs.1,010 or actual fee payable to the advocate |
Pre-payment charges (in case the loan is taken over by another lender) | 2% of the outstanding loan balance plus taxes |
Charge for visiting defaulters |
|
Recovery charges | Rs.1,530/Rs.2,550 |
Stock/security inspection |
|
Solvency certificate | 0.10% of the loan amount |
Who Can Avail a Personal Loan from New India Co-Operative Bank?
This loan can be taken by:
- Salaried individuals and salaried professionals who have been employed for the past three years.
- Self-employed persons and professionals who have been running profitable businesses for at least 2 consecutive years prior to applying for the loan.
How the EMI Calculation for New India Co-Operative Bank Personal Loan works?
To understand how a personal loan that is taken from New India Co-operative Bank will work, let's consider an illustration. Ram borrows a sum of Rs.4 lakh from New India Co-Operative Bank. He chooses a loan tenure of 1 year and is charged an interest of 13% p.a.
As per the scenario given above, Ram will need to pay a monthly EMI of Rs.35,727. Over the course of the loan term, the total interest paid will amount to Rs.28,723. He will, thus, be repaying a total sum of Rs.4,28,723. The repayment details are as follows:
Month | Principal Paid (A) | Interest Paid (B) | Total Payment (A+B) | Outstanding Loan Balance |
1st Month | Rs.31,394 | Rs.4,333 | Rs.35,727 | Rs.3,68,606 |
2nd Month | Rs.31,734 | Rs.3,993 | Rs.35,727 | Rs.3,36,873 |
3rd Month | Rs.32,077 | Rs.3,649 | Rs.35,726 | Rs.3,04,795 |
4th Month | Rs.32,425 | Rs.3,302 | Rs.35,727 | Rs.2,72,370 |
5th Month | Rs.32,776 | Rs.2,951 | Rs.35,727 | Rs.2,39,594 |
6th Month | Rs.33,131 | Rs.2,596 | Rs.35,727 | Rs.2,06,463 |
7th Month | Rs.33,490 | Rs.2,237 | Rs.35,727 | Rs.1,72,973 |
8th Month | Rs.33,853 | Rs.1,874 | Rs.35,727 | Rs.1,39,120 |
9th Month | Rs.34,220 | Rs.1,507 | Rs.35,727 | Rs.1,04,900 |
10th Month | Rs.34,590 | Rs.1,136 | Rs.35,726 | Rs.70,309 |
11th Month | Rs.34,965 | Rs.762 | Rs.35,727 | Rs.35,344 |
12th Month | Rs.35,344 | Rs.383 | Rs.35,727 | Rs.0 |
*Note: In the above-mentioned example, it is assumed that no processing fee was charged by the lender.
Compare New India Co-Operative Bank personal loan with loans from other lenders
Particulars | New India Co-Operative Bank Personal Loan | HDFC Bank Personal Loan | Kalyan Janata Sahakari Bank Personal Loan |
Interest Rate | 11% p.a. onwards | 10.85% p.a. to 21.00% p.a. | 13.10% for salary account holders and 13.5% for others? |
Processing Fee | As per the lender's terms and conditions | Up to 2.50% of the loan amount | 0.75% of the loan amount |
Pre-closure/Foreclosure Fee | Nil | 2% to 4% of the outstanding principal | Nil |
A personal loan can help individuals obtain the required funds in the event of an emergency, in a hassle-free manner. That said, you should ensure that you check your personal loan eligibility, familiarise yourself with the various features and benefits of the loan, and read through the fine print before applying for the loan.
About the Bank
When you borrow a personal loan from a bank, the lender will charge a certain interest on the borrowed sum. The interest rate directly affects the cost of your loan. For this reason, it is advisable to compare the interest rates levied by various lenders before applying for a loan to a particular lender.
FAQs on New India Co-Operative Bank personal loan
- Does New India Co-Operative Bank require applicants to have guarantors?
Yes, applicants are required to have at least 2 guarantors.
- What is the daily reducing balance method of interest calculation?
Since your interest is calculated on a daily reducing balance basis, the lender will calculate the outstanding principal on a daily basis and calculate the interest only on the sum that is outstanding.
- Is there a difference in the interest that is charged on personal loans for salaried employees and personal loans for self-employed individuals?
Yes, if you are a salaried employee, you will be charged an interest of 11% p.a. Business owners and self-employed individuals will be charged an interest of 15% p.a.
- I am a self-employed individual. What is the maximum loan amount that I can avail?
Self-employed individuals and professionals can avail a loan of up to 2 times their net taxable income, subject to a maximum amount of Rs.5 lakh, while salaried individuals can avail a loan amount of up to 30 times their net salary, subject to a maximum loan amount of Rs.5 lakh.
- What are the customer care channels through which New India Co-Operative Bank can be contacted?
Customers can contact the lender on +91 - 22 - 66 58 66 58 or send an email to customercare@newindiabank.in
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