Corporation Bank is a public sector banking company headquartered in Mangalore, India. At Corporation Bank, what motivates them is the passion to excel in banking by maintaining highest standards of service to their customers, backed by innovative products and services which makes them one of the leading Public Sector Banks in the country, catering to a wide range of customers - from individuals to corporate clients.Resident individual either singly or jointly /NRI/PIO , between 18 to 65 years, with independent and regular source of income. In case of property jointly owned with close relatives , all joint owners shall join as co applicants irrespective of their age. Including spouse, maximum of two close relatives [ Father, Mother, Spouse, Daughter, Son] may join as co applicant to supplement repayment capacity.In case of salaried person, applicant/s shall be confirmed in the present service & shall have two years of aggregate service in previous and present employment together.Continue reading to view more details about this loan.
At least 18 years old
Less than 65 years old
Salaried or self-employed
with regular income
Earn more than the minimum
Earn more than the minimum
Loan capped @ 75% to 90 % of property value
EMIs of other loans lower
Make your spouse a co-applicant,
and her income will add
to your eligibility
Choose longer tenure loan up to 30 years
Alternatively add your parents
|Interest Rate||9.60% to 9.85%|
|Loan Tenure||30 years|
|Guarantor Required||No Guarantor Required|
Owning a home or a piece of land is something we all dream and work hard towards. In times where real estate price is always heading north, relying upon one of the most trusted ways of funding such as home loan is a wise move to make. A home loan offers funding for a variety of housing needs where a large portion of the monetary requirement is fulfilled by the bank/institution. You can repay the loan in monthly installments over a term chosen by you.
With a footprint across India, Corporation bank needs no introduction. This state owned bank offers a plethora of retail loans which includes housing loans at affordable rates and pleasing benefits. The bank offers loans for the following housing requirements for resident Indians as well as NRIs.
High Quantum of Loan:
With a loan from Corporation bank, you can look forward to getting maximum funding. The maximum loan amount is determined on the basis of the location of the property. The points below provide details of the maximum loan amount offered in various centers.
Low margin for borrowers:
The most common concern of home loan borrowers is their share in the project costs since banks do not fund 100%. With Corp bank, the margin is minimal. For loan amount of up to Rs.30 lakhs, the margin is 10%, from Rs.30 to 75 lakhs, its 20% and for loans above Rs.75 lakhs, it's capped at 25%.
The first level of collateral comes in the form of mortgage where the property purchased is pledged to the bank until full repayment of the loan. The age of the property in question should not exceed 30 years. If a third-party guarantee is not available, the spouse of the applicant should sign in as co-applicant. If the primary applicant is unmarried, immediate relatives such as parents and siblings can sign up as a guarantor.
No prepayment charges:
At any time during the repayment term, you can consider paying off the loan without incurring penalty since Corporation bank does not charge a fee for early repayment of the loan. Another area where you can save money compared to loan offers from other banks.
The bank offers up to 30 years to repay the loan amount along with applicable interest charges in EMIs. The borrower is free to choose a term as per their convenience. The term offered also includes a moratorium period of up to 18 months. The repayment tenure chosen should not exceed the retirement age for for salaried borrowers and 70 years for others.
Once approved, the loan will be remitted directly to the builder or seller by the bank. The remittance will also include the margin. For construction loans, the loan will be released during various phases of construction as and when there is a requirement.
The rate of interest charged by Corporation bank on home loans is determined on factors such as loan amount, type of interest calculation (fixed or floating) and the benchmark rates. As mandated by the RBI, it follows the MCLR (Marginal Cost Based Lending Rate) system for arriving at the base rate. The MCLR as on August 1, 2016 is as follows:
The table below will offer further insights into the interest rates offered.
Floating rate system:
|Loan amount||Interest rate|
|Up to Rs.2 crores||9.65% (MCLR + 0.1%)|
|Above Rs.2 crores||9.90% (MCLR + 0.35%)|
Fixed rate system:
|Loan amount||Interest rate|
|Up to Rs.25 lakh||12.65% (MCLR + 3.1%)|
|Above Rs.25 lakh||13.15% (MCLR + 3.6%)|
The rates for related loans are:
Corp Ghar Shobha (repairs and renovation): 10.05% (MCLR + 0.5%)
Corp Ghar Sansar (top-up on existing loan): 10.05% (MCLR + 0.5%)
Corp Surya Rashmi (for solar PV sets): 9.65% (MCLR + 0.1%)
These rates are subject to periodic revision. Make sure to check with the nearest branch of Corporation bank for latest rates.
Yes, insuring the property is mandatory as per the contract. The premium of such an insurance policy must be borne by the borrower. Depending on the location of the property and availability, you may be offered an insurance by the bank through third party insurers.
If the price of the house/flat/plot is more than Rs.10 lacs, only the purchase price is covered under the loan. Otherwise, registration charges, documentation charges & stamp duty will be a part of the loan amount.
The bank does offer flexibility in repayment such as progressive and step up. This facility is only available to the salaried class of borrowers.