• New India Co-Operative Bank Personal Loan

    New India Co-Operative Bank 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.

    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 a personal loan to both self-employed and salaried individuals while charging an attractive rate of interest. Read on to know more about New India Co-Operative Bank’s personal loan.

    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
    • Within Mumbai: Rs.1,010 plus actual conveyance
    • Beyond Mumbai: Rs.2,000 plus actual conveyance
    Recovery charges Rs.1,530/Rs.2,550
    Stock/security inspection
    • Within Mumbai: Rs.1,010 plus actual conveyance
    • Beyond Mumbai: Rs.2,000 plus actual conveyance
    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 15.50% p.a. to 21.50% 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

    1. Does New India Co-Operative Bank require applicants to have guarantors?
    2. Yes, applicants are required to have at least 2 guarantors.

    3. What is the daily reducing balance method of interest calculation?
    4. 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.

    5. Is there a difference in the interest that is charged on personal loans for salaried employees and personal loans for self-employed individuals?
    6. 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.

    7. I am a self-employed individual. What is the maximum loan amount that I can avail?
    8. 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.

    9. What are the customer care channels through which New India Co-Operative Bank can be contacted?
    10. Customers can contact the lender on +91 – 22 – 66 58 66 58 or send an email to customercare@newindiabank.in


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    New India Co-Operative Bank Personal Loan Reviews

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