Mahanagar Cooperative Bank Personal Loan: The lending of money or cash by one or more persons or organizations or entities to another person or organization is called, in financial terms, a loan. Financial institutions or workplaces such as banks and credit card providers have been the primary providers of loans.
Personal loans can be seen as a form of installment credit. It is different from a credit card because a personal loan makes a one-time payment of cash to borrowers.
This article will discuss the Mahanagar Cooperative Bank personal loan rate of interest, Mahanagar Cooperative Bank personal loan rate of interest 2021 and the Mahanagar Cooperative Bank personal loan EMI calculator.
Want to compare Mahanagar Cooperative Bank Personal Loan with other bank personal loans for lowest interest rates and extra offerings? Just keep an eye on our Complete Guide on Personal Loan & choose the suitable bank to apply for the loan.
Mahanagar Cooperative Bank
- Mahanagar Cooperative Bank Overview
- About the Mahanagar Cooperative Bank
- Mahanagar Cooperative Bank Personal Loan Features
- How to apply for Personal Loan in the Mahanagar Cooperative Bank
- Mahanagar Cooperative Bank Personal Loan Eligibility Criteria
- Mahanagar Cooperative Bank Personal Loan Documents Required
- Reasons for Rejection of the Loan
- Mahanagar Cooperative Bank Personal Loan Features
- Mahanagar Cooperative Bank Personal Loan Types
- Myths about Personal Loan
- Conclusion on Mahanagar Cooperative Bank Personal Loan
The Mahanagar Cooperative Bank was established on the 6th of November, 1973 and had its headquarters in Mumbai. As a co-operative bank, it provides all the existing financial services to its customers, such as home loans, personal loans, fixed deposits, gold loan, PPF account, E-Wallet and many others.
Originally named as “The Ahmednagar Sahakari Bank Ltd.” the new name came “The Mahangar Cooperative Bank Ltd.” into the action on 21sr January, 1998. Nine days later, the bank was given a “A” grade classification from the Reserve Bank of India. The bank has a total of sixty-seven branches across the country. Five of their branches provide non-stop 12-hour services.
The Mahanagar Cooperative Bank has certain salient features which makes them different from their other comparatives in the market. These features are
- The bank has a “A” grade certificate from the Reserve Bank of India.
- Mahanagar Cooperative Bank is the fastest growing bank in the cooperative sector.
- They have a huge market area in the region of Maharashtra.
- One of the few banks in the cooperative sector to have introduced the “Total Bank Automation”.
The ways for applying for a personal loan in the Mahanagar Cooperative Bank are
- Online Application: One can apply for personal loans online through the website. Individuals can fill up their personal information and work details and upload all the necessary documents for the loan. Individuals can also apply after checking their eligibility for the loan.
- Offline Application: Individuals can visit any branch of the bank and all the documents and information required, fill up the form and get their loan approval process to start.
The applicant should have a minimum of three years of service in the same organisation, and the borrowers should have an account with a branch of Mahanagar Cooperative Bank.
Deductions from income sources and others are also taken into detention to calculate the quantum of the loan. Thus, for the personal loan, an individual can be eligible for if
- The individual is between the age of twenty-one and fifty-eight.
- The individual should be an employee of the State or the Central Government or in any other public sector or an employee of a reputed private sector corporation.
- The individual should have a regular flow of income, be it salaried or self earning.
- The individual should have three years of experience in the job or work the individual is doing while applying for the personal loan.
The documents required by the Mahanagar Cooperative Bank to apply for a personal loan are
- A properly filled up and signed personal loan application form along with a photograph is required.
- Proof of identity includes a driving license, Aadhar card, Pan card, government department ID card, etc.
- Proof of regular income includes the latest salary slip or the recent salary certificate along with Form 16. Along with these, the individuals are required to provide income tax returns for the last two financial years.
- Proof of address includes, the latest telephone bill, Bank statement, latest credit card statement, latest electricity bill, the lease agreement of the existing house and others.
- The banking statement or the bank passbook with the entries of the last six months.
Many times, a personal loan application is rejected by the bank for various reasons. However, there are majorly three reasons which we will discuss.
- Bad credit score: The creditworthiness of an individual determines their credit score. A good credit score indicates the individual’s credibility in repaying the loan. Conversely, a bad credit score usually hinders the chances of getting the loan application approved. Usually, an individual with a credit score of less than 750 may face rejection for a personal loan.
- An existing debt: If an individual has already taken out several loans and the loan to net income ratio is more than forty per cent, the bank might reject the loan application.
- Loan Enquiries: The credit report of an individual provided by the credit bureaus is known as credit enquiries. Such enquiries are done the hard way and are hence mentioned in the credit report of the individual. Even if the loan enquiries are free of cost, one should not go into too much detail. This is because too many enquiries harm the approval process of the loan.
The personal loan of Mahanagar Cooperative Bank provides certain features, which we will discuss below.
- You can grant the maximum loan amount.
- There are many repayment options such as different installments.
- The bank does not insist upon any guarantor.
- The bank provides attractive interest rates.
- The bank provides special offers and schemes of discounts for employees of big organisations.
- The bank does not issue any security for applying for a personal loan.
The Mahanagar Cooperative Bank provides a number of personal loans ranging from
- Housing Personal Loan
- Educational Personal Loan
- Vehicle Personal Loan
- Consumption Purpose Personal Loan
Some well-known myths about personal loans are
Pre-payment and Penalty: One of the most common myths surrounding personal loan is the fact that pre-payment of the loan attracts penalty. This usually does not happen until and unless the lender wants to chaege any penalty.
A good credit score is needed for the approval of the loan: This myth is true but partially not completely. A good credit score is required for the approval process of the loan but in most situations the lender takes a look into the other factors of the customer such as income, type of employment, etc before approving the loan.
Negotiablity of the interest rate: Often it is misunderstood that the interest rate of a personal loan cannot be negotiated. While in reality, customers with a high credit score and good income can negotiate the rate of interest.
Thus, this concludes the article detailing personal loans and, in particular, Mahanagar Cooperative Bank Personal Loan. It is very necessary to understand the basics requirements and methods to apply for personal loans. This article details a few of the important things to know and understand in order to apply for a personal loan.
Apart from the details provided in the article one must always read carefully the terms and conditions a specific bank puts out before applying to it for a loan.