| Particulars | Salaried | Self-Employed |
|---|---|---|
| Interest rate | For Corporation Bank salary account holders with undertaking letter: 12.90% p.a. For Others: 13.90% p.a. |
13.90% p.a. |
| Loan Amount | If salary is routed through CorpBank: Up to 9 months’ net salary. If salary is routed through CorpBank and undertaking letter is available: Up to 12 months’ net salary. Minimum amount of Rs.10,000 and maximum of Rs.3.50 lakh. | Loan up to 25% of the gross annual income. Minimum loan amount: Rs.10,000. Maximum loan amount: Rs.3.50 lakh. |
| Loan Tenure | Maximum: 60 months | Maximum: 60 months |
| Lowest EMI | Rs.227 p.m. for Corporation Bank salary account holders with undertaking letter and pensioners. Rs.232 for salaried class not holding account at Corporation Bank, or holding account but undertaking letter not available. (Calculated for the minimum loan amount at the longest tenure allowed at the lowest interest rate available) | Rs.232 (calculated for the minimum loan amount at the longest tenure allowed at the lowest interest rate available) |
| Processing Fee | 1.50% of the loan amount subject to a minimum of Rs.500 | 1.50% of the loan amount subject to a minimum of Rs.500 |
| Prepayment/Foreclosure Charges | No charge | No charge |
Corporation bank offers personal loans to meet any genuine personal expense an individual could have. These personal loans can be availed at extremely competitive interest rates, enabling a borrower to repay the loan without undue burden. Corporation Bank follows a simple and hassle free procedure when it comes to sanctioning personal loans, paying close attention to the needs of a customer, which have made it a popular choice among personal loans in the country.
Corporation Bank Personal Loan Interest Rates
Corporation Bank charges different interest rates based on factors like borrower background and whether a borrower has an account with the bank. Interest rates on personal loans are closely related to the base rate charged by Corporation Bank. Interest rates on personal loans are fixed at 12.90% per annum for borrowers with a salary account with Corporation Bank. The interest rate for others is 13.90% per annum. Flexible EMI payment options ensure that a borrower is not financially overburdened by interest rates and is in a position to repay the amount at the end of its tenure.
Additional Reading:Corporation Bank Personal Loan Eligibility
How to calculate EMI on your Corporation Bank Personal Loan
Calculating the EMI on a loan is a crucial aspect as it helps plan the repayment process, allowing an individual to plan his/her resources accordingly. Calculating the EMI on your Corporation Bank personal loan is an easy task today, thanks to Bankbazaar. One could log onto the BankBazaar website and enter details of their loan in the EMI calculator, which then processes the information and provides the EMI values in a simple and easy to understand format.
A systematic breakdown of the entire loan repayment process is provided by an amortization table, indicating the variation between principal and interest during a particular tenure. The principal amount reduces after each EMI payment and it is this reduced principal which is used to calculate interest for the next term.
Example: Corporation Bank grants a personal loan worth Rs 1 lakh to Miss Priya at an interest rate of 13.75% per annum. The tenure of this loan is 5 years, with the EMI coming up to Rs 2,314 per month. The table below highlights the loan repayment timeline which Miss Priya would need to consult in order to clear the loan.
| Year | Principal paid (Rs.) | Interest paid (Rs.) | Balance amount (Rs.) |
|---|---|---|---|
| Year 1 | 14,935 | 12,832 | 85,065 |
| Year 2 | 17,123 | 10,644 | 67,943 |
| Year 3 | 19,631 | 8,136 | 48,312 |
| Year 4 | 22,507 | 5,259 | 25,805 |
| Year 5 | 25,805 | 1,962 | 0 |
Factors affecting your Corporation Bank Personal Loan Interest Rates
There are multiple factors which can affect the interest rates you pay for a Corporation Bank personal loan, some of which are mentioned below.
- Loan tenure – The tenure of a personal loan has an impact on interest rates and loans for a short tenure could attract a higher interest rate compared to loans for longer tenures.
- Repayment capacity –The repayment capacity of an individual could change the interest rates charged by Corporation Bank, as the bank might not charge a steep interest rate to someone who does not have the means to repay such high interests.
- Relationship with Corporation Bank – Individuals having a good banking relationship with Corporation Bank might be in a position to lower their interest rates, thanks to their banking history. It is possible for banks to reduce interest rates for valued customers who have displayed great commitment to their payments in the past.
- Employment details – Interest rates vary depending on the profession of a borrower. Salaried borrowers are charged a lower interest rate as they have a stable source of income and there is little risk of them defaulting on payments. Self-employed borrowers might not always have a steady source of income and might have to pay a higher interest rate as the bank could view them as risky prospects.
- Age – Corporation Bank charges a lower interest rate to pensioners, keeping in mind their limited source of income. It is possible for banks to charge higher interest rates in cases where a borrower is young (less than 25 years).
Note: Interest rates charged by Corporation Bank are at their sole discretion and subject to change.
How CIBIL score affects Corporation Bank Personal Loan Interest Rate
Corporation Bank relies on the CIBIL score of an applicant to gauge his/her loan repayment capacity and credit history. A good CIBIL score is an indication of good credit history, enhancing the chances of an applicant getting a personal loan approved at favourable interest rates. Applicants with low CIBIL scores might be viewed as risky propositions and Corporation Bank could choose to increase their interest rate accordingly.
Key things to know about Corporation Bank Personal Loan Interest Rates
- Interest rates for Corporation Bank personal loans are linked to the Base Rate and are likely to change with changes in base rate.
- Applicants are required to provide a collateral/guarantor in order to obtain a personal loan and it is possible to get favourable interest rates on account of this collateral.
- Any change in the repo rate could impact the interest rate charged by Corporation Bank.
- Floating interest rates can change with changes in the base lending rate.
Easiest way to apply for Corporation Bank Personal Loan
