At least 18 years old

Less than 60 years old

Salaried or self-employed
with regular income

Earn more than the minimum
income required

Earn more than the minimum
income required

Loan capped @75% of property value

EMIs of other loans lower
your eligibility

Make your spouse a co-applicant,
and her income will add
to your eligibility

Choose longer tenure loan up to 20 years

Alternatively add your parents

Overview of Central Bank of India:

Central Bank of India was established in 1911 and was the first commercial bank to be completely owned and operated by Indians. The bank launched many innovative and unique banking solutions such as safe deposit locker facility, deposit insurance benefit scheme, recurring deposit scheme, home savings safe deposit scheme, among many others. After its nationalization, Central Bank further introduced additional services. It also got involved in other activities such as promotion of agricultural and small scale industries as well as medium and large industries.

Purpose:

The Central Home Loan Scheme can be availed for the following purposes:

• Purchasing a new house or existing house or flat not more than 30 years.
• For house construction.
• For house extension of an existing flat.
• Loan for buying a plot with a declaration from the borrower that the construction of house on the plot will be completed within two years.

Central Bank of India Home Loan Eligibility:

The following eligibility criteria must be fulfilled when applying for a home loan with Central Bank of India:

• Salaried individuals, self-employed individuals or any individual with a regular and valid source of income.
• Applicant’s age should be minimum 18 years during the time of loan application.

Documents Required for Central Bank of India House Loan:

The following documents are required when applying for a central home loan:

• For salaried applicants:
  • Original employment certificate.
  • Income tax return.
  • Form 16
• For self-employed applicants:
  • Upto Rs.10 lakh loan amount – Valid monthly or yearly income of borrower, income certificate from state level Gazetted officers can also be submitted.
• Agriculturists - Applicants who are agriculturists and who do not file taxes can also show an income certificate from state level Gazetted officers like the Tahsildar or Revenue Department officer or the Mandal Revenue officer.
• Above Rs.10 lakh loan amount – Applicant’s ITR should be submitted for the last years as proof of income.

Features of Central Home Loan Scheme:

Loan Margin: Central Bank of India offers home loans at following margins:

Up to Rs.20 lakh – 10%

Above Rs.20 lakh – 20%

Loan Amount:

• The bank provides 90% of the amount for loans that are less than Rs.20 lakh and 80% for loans that are more than Rs.20 lakh. The percentage is calculated from the construction host of the house, purchase price of a flat or house or extension of flat or house. The total cost does not include the registration charges, documentation fees, stamp duty and life insurance cover cost.
• The bank also provides loans to cover 75% of repair costs or renovation cost or modifications of an existing house or flat up to a maximum of Rs.10 lakh.
• The bank’s loan also provides 75% of the plot’s registered value, based on the net income. However, the plot’s cost should not cross 75% of the total housing unit’s price.

Central Bank of India Home Loan Interest Rate:

The floating interest rate of the bank has been listed with the base rate in mind. The base rate in vogue is 9.7%. The interest rate for various kinds of home loans with Central Bank are as follows:

Check with your bank on the interest rates as they are subject to revision.

Central Bank of India MCLR:

As per RBI mandate, the banks have introduced the Marginal Cost of Funds-Based Lending Rate (MCLR) which replaces the base rate of banks for new loans from April 1, 2016. The MCLR announced by Central Bank of India is:

Loan Repayment:

• A maximum period of 30 years or on applicant reaching the age of 70 years, whichever comes earlier is available on loans for house construction or purchase of flat not more than 10 years old.
• If applicant is above 60 years old, an immediate legal heir is required to be made as the co-borrower or guarantor, with the consent of other legal heirs.
• For houses more than 10 years old, a maximum tenure of 25 years or when applicant reaches 70 years.
• Salaried applicants may avail an extension on repayment period may be given beyond the retirement age, up to 70 years.

Loan Security: Central Bank of India requires you to submit the registered mortgage of the property in question. Other documents such as LIC policies, government securities, IVPs, bonds, NSCs, equivalent to 125% of the loan amount can also be provided as security to the bank.

Loan Guarantee: For salaried applicants, there is no guarantee required irrespective of loan amount. For self-employed applicants with loans up to Rs.20 lakh, there is no guarantee required. Self-employed applicants availing loans above Rs.20 lakh, instead of guarantor, spouse, father, mother, sister or brother can apply as co-applicants.

FAQs:

1. If I apply for a Central Home Loan Scheme for a loan of Rs.25 lakh, what is the loan margin that I can avail?

   Central Bank of India will provide you a margin of 20% on a loan of Rs.25 lakh.

2. I want to take a loan of Rs. 40 lakh with a loan tenure of 7 years, what is the interest rate that will be applied on my home loan from Central Bank of India?

   The bank will levy an interest rate of 10.25% on loan of Rs.40 lakh with a tenure of 7 years.

3. What are the processing charges charged by Central Bank of India for taking a home loan?

   The bank charges 0.50% of the home loan amount is charged, up to a maximum of Rs.20,000, as processing charges.

4. Will I have to pay any prepayment charges if I decide to make an earlier repayment on the home loan from Central Bank of India?

   No, the bank does not charge any prepayment charges on home loans take on floating rates.

5. Is it possible that the loan is taken over from another bank and transferred to Central Bank of India?

   Yes, the bank allows a loan take over from another bank based on certain set of terms and conditions.