Akola Urban Coop Bank Personal Loan | Purpose. Benefits, Features, Eligibility, Mode, Documents Required and Myths

Akola Urban Coop Bank Personal Loan: The Banking System Of India plays a vital role in boosting the economy of the country. The efficient banking system is now regarded as a necessary prerequisite for the growth of the nation.

The banking system consists of the Central bank (Reserve bank of India), commercial banks, cooperative banks, and developmental banks (development finance institutes). These institutes act as meeting ground for savers and investors from India’s financial sector. Banks play an essential role in resource allocation and mobilization and also in the process of developing the country.

Curious to check other banks’ offered Personal loan features, eligibility, interest rates, tax benefits, and a repayment plan. Go with our one-stop Personal Loan Page & swipe out your doubts within no time.

The financial sector of India mainly consists of three main segments:

  1. Financial institutions -banks, mutual funds, and insurance companies
  2. Financial markets – money market, debt market, capital market, and forex market
  3. Financial products – loans, deposits, bonds, and equities.

Cooperative banks: Cooperative banks are financial entities established on a cooperative basis and are only for the bank members, which means the bank’s customers are also the owners of the cooperative bank. This bank also provides a wide range of banking and financial services.

Akola Urban Coop Bank

It is one of the Cooperative banks in India, and it provides all the financial services just like any other bank like loans, deposits, fixed deposits, recurring deposit, gold loan, facility of locker, net banking system, E-wallet, NEFT, RTGS, Car loan, bank loan, etc.

The bank has its headquarter in Nagpur and was established in 1963, and has 63 branches. The bank supports all the schemes like Jan Dhan Yojna, Atal Pension Yojana, Pradhan Mantri Suraksha Bima Yojana, and many more.

Purpose Of Providing Personal Loan

There can be all kinds of emergencies or needs in one’s life like financial emergencies, household shifting, family marriage, repayment of existing loans, payment of credit card bills and many more without keeping any collateral or property.

The facilities of cooperative banks are much easier to avail, and even the system of taking loans is much easier.

Benefits and Features of Taking a Loan

There are various benefits and features of taking a loan from cooperative banks, such as :

The loan can be quickly approved.

The interest rates are lower than a commercial bank.

There is no security involved while availing of personal loans.

The loan can be easily approved as there is no guarantor involved.

The loan amount can be maximum as there is no limit.

Many loan repayment options are not available in commercial banks.

Personal Loans Can Be Easily Applied To Banks

They have two modes to apply for personal loans:

  • Online mode – Personal loan can be easily applied from the website of bank by filling up all the necessary information and uploading all documents. The eligibility should be checked before applying for a loan.
  • Offline Mode – The loan can be applied by visiting any bank branch, along with all the required documents. After filling up the form available at the branch, the approval process can be started.

Eligibility Criteria for Approval Of Personal Loan

Age – 21 to 58 years

Salaried /Self Employed citizens with regular income

Maximum 3 years in present /business /profession.

Permanent employees of state /central govt ., Public sector undertakings, corporations, private sector companies, and reputed establishments.

Documents Required for Personal Loan Approval

Proof of identity: Passport, Voter ID, Driving License, PAN card, Aadhar Card, Government department ID card.

Duly filled application form with correct information

Bank statement or bank passbook having entries of last six months

Proof of income – Income Tax Returns of 2 previous financial years.

Proof of Address – This includes the latest electricity bill /telephone bill, existing house lease agreement, etc

Various Methods Of Repaying Loan

From the below-mentioned options, any one of the following can be used to repay the loan :

Mobile banking is provided by the bank.

Through an internet banking solution.

Standing instruction registration at the respective bank

Automated Payment through ECS (Electronic Clearing Service )

Loan Repayment Options

The loan repayment generally starts from 12 EMI and can be done up to 60 EMI’S. The repayment period also differs from one person to another, depending upon the credit score.

Security Deposit With The Bank

When it comes to security, cooperative banks are one of the banks that require no security deposit for issuing any personal loan.

Myths Regarding Personal Loan

There is a common belief that personal loans from cooperative banks are best because they are provided at lower interest rates. However, there are many more reasons other than low-interest rates such as processing fee, eligible amount other terms of the loan, etc.

Personal Loans Cannot Be Availed With Poor Credit Score

If the credit score is poor, you can get a personal loan but is generally approved on higher interest rates, ut the loan also depends on other factors such as borrower, age of the applicant, income of the applicant, etc

Good Credit Score Can Help You Get Personal Loan

Only a good credit score does not help. Other factors like regularity of income, employment type, etc., the lender considers during the approval process of a personal loan apart from a good credit score.

Interest Rates Are Not Negotiable

There is a general misconception that we cannot negotiate interest rates. Still, people with good income and good credit scores can negotiate interest rates with the lenders and get comparatively lower interest rate loans.

Longer Loan Tenure Is Beneficial

The assumption of having a longer period for loan repayment is not true as it brings high-interest rates and that to be paid for a longer period.

There Is A Need Of Regular Income for Loan Approval

There are chances where you can get your loan approved even if you don’t have a regular income. Loan approval can be easily given to you if you are a joint holder with a regular income source.

Chances Of Penalty In Case Of Loan Prepayment

It depends on lenders to change the prepayment penalty. It has been observed that many lenders do not charge any prepayment penalty.

Various Reasons Why Personal Loan Is Rejected :

  • Higher Loan Enquiries: The credit report asked by the credit bureau is called inquiry. The person should not make many queries even if it is free of cost. Too many questions lead to an effect on your credit score.
  • The Size Of Existing Debt: If the loan is already taken and the loan to net income ratio is above 40%, lenders can reject your loan application.
  • Poor Credit Score: A credit score defines the worth of any person. A credit score helps in determining the risk of default. Due to poor credit scores, personal loans can get rejected. Usually, a person with a credit score less than 750 may face personal loan rejection. The credit score is generally seen by the lender while approving any Loan.

For any further assistance you can contact your nearest branch directly or make use of the information given below:

Contact Details Of Akola Urban Coop Bank

  • BANK OFFICIAL WEBSITE – www.akolaurbanbank.com
  • CONTACT NUMBERS – 0724-2453850 to 54
  • EMAIL ID – enquiry@aucbakola.com, feedback@aucbakola.com
  • TOTAL BRANCHES – 62
  • HEADQUARTER – Nagpur
  • BANK ADDRESS – 58/59 Toshniwal Layout, Near Milk Dairy, Murtijapur Road, Akola, Maharashtra. Pin Code-444001

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