The Abhyudaya Co-Operative Bank Limited is a multi-state Scheduled Bank which was first established in the year 1964 by the collected effort of social workers and labor activists. Later in September 1988 the bank was converted to a Scheduled Bank by the Reserve Bank of India. Today the bank operates in three states of Maharashtra, Gujarat and Karnataka and wishes to expand its operations further in other states of the country.
The bank has only one type of Savings Account which requires maintenance of a minimum balance of Rs.300 which also happens to be the minimum amount of money required to initially open the account. The account renders all the basic banking transactions and earns interest @4% p.a. which is calculated on the daily balances maintained in the account and credited every half-year in March and September.
The Abhyudaya Co-Operative Bank Limited offers a range of six types of deposit schemes and any scheme can be chosen by individuals for saving purposes. The schemes offered are the following:
- Monthly Income Deposit Scheme: an account requiring a minimum deposit of Rs.500 for opening and interest on the deposit is payable monthly either in cash or through credited the account held by the depositor. The customer can also avail a loan of up to 90% against his deposits
- Quarterly Interest Deposit Scheme: in this scheme the minimum deposit requirement is also Rs.500 and interest is paid quarterly through cash or account credit. Loans up to 90% of the deposit value can also be taken in this scheme of deposit
- Fixed Deposit Receipt: a traditional fixed deposit account where the interest is paid along with the principal on the date of maturity of the deposit. The minimum deposit required to opt for this scheme is Rs.500
- Quarterly Interest Cum Reinvestment Plan: with only Rs.500, one can open this account. Interest will be earned quarterly and reinvested with the deposit to earn further interest. Loan is also available against the deposit up to a maximum limit of 90%
- Recurring Deposit Scheme: in this scheme the depositor has the facility to make monthly deposits of smaller amounts which would cumulate into a large corpus. The account can be opted with a minimum monthly deposit of Rs.50 and loans up to 90% can also be availed on the deposits
- Abhyudaya tax Saving Scheme: a scheme of fixed deposit designed with the objective of saving tax under Section 80C. The minimum value of deposit should be Rs.5000 and the deposit has to be held for a minimum tenure of 5 years to make it eligible for tax exemption.
|Deposit Tenure||General||Senior Citizen|
|7 days to 90 days||6%||6%|
|91 days to 180 days||6.75%||7%|
|181 days to 15 months||7%||7.25%|
|36 months to 120 months||7%||7.25%|
The fixed deposits earn a rate of interest which depends on the tenure chosen. The general range of interest rates for the bank’s fixed deposit schemes is 6.0% to 7.25%. Senior citizens get an additional interest rate which can be 0.25% or 0.50% with the latter being more common.
The Abhyudaya Co-Operative Bank Limited also has multiple types of loan schemes for varied requirements and purposes. These include:
- Personal Loan: a loan granted to meet expenses of a personal nature like buying gadgets, furnishing a home, marriage expenses, etc. The maximum available amount of loan is Rs.5 lakhs which should be repaid within 5 years
- Special Cash Certificate Facility for Salary Earners: individuals earning a salary can avail of this facility which is granted for 36 months up to a maximum of Rs.50, 000
- Housing Loan: loan given to fund housing expenses like buying or constructing a house, renovations, etc. The maximum loan available is Rs.70 lakhs which should be repaid within 240 months or 20 years
- Education Loan: loan granted to students for further education which comes with an upper limit depending on whether education is sought in India or abroad. For India, the maximum limit is Rs.10 lakhs to be repaid in 10 or 15 years and for foreign education the limit exceeds to Rs.20 lakhs to be repaid in 10 or 15 years
- Vocational Education Loan: loan for the purpose of undertaking any type of vocational education course approved by eligible authorities
- Loan against Pledge of Gold Ornaments: gold loan which is offered against the value of 22 Karat gold jewelry or ornaments
- SOD against Pledge of Gold Ornaments: a secured overdraft facility against 21, 22 or 23 karat Gold ornaments with a value of Rs.25, 000 to Rs.15 lakhs and which has to be repaid within 12 months
- Loan/SOD against Government Securities: government securities can be pledged to avail a loan or a secured overdraft up to 90% of the value of the securities pledged
- Loan / SOD against Term Deposits: term deposits held with the bank can be pledged to avail loan which would be limited to 90% of the balance in the deposit account
- Vehicle Loan (Private): loan for buying a private vehicle for private purposes with a maximum of Rs.75 lakhs
- Vehicle Loan (Commercial): loan granted to fund purchases of a commercial vehicle to be used for commercial purposes with a maximum limit of Rs.100 lakhs
- Taxi - Auto Loans: specific loans provided to buy a taxi or an auto. The maximum allowable amount is 90% of the on-road price of the vehicle
- Loan against Property: loans up to Rs.100 lakhs can be taken by mortgaging any private or commercial property
Other Loans: some other specialized loans are:
- SOD against Immovable Property
- Rent Securitization Loan
- Loans for repairs/renovations of flats/houses, Shops and Galas
- Loans & Advances to Medical Practitioners
- Loans & Advances to other Professionals
Though the bank has a limited reach, yet it also has the facility of internet banking like its contemporaries. Every customer of the bank is provided with a unique user id using which the customer can log into his account and carry out banking transactions online easily. Whether it is making fund transfers, monitoring individual accounts, applying for loans or investing in fixed deposit schemes, internet banking has the solution for every need.