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 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, which at present is 10% per annum (effective June 2015). Interest rates on personal loans for the year 2015 are fixed at 13.75% per annum for pensioners and borrowers with a salary account with Corporation Bank. The interest rate for others is 14.75% 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.
| Interest Rate (per annum) |
|
| Loan Amount | Maximum Rs 2,00,000 |
| Loan Tenure (Maximum) |
|
| EMI per lakh (lowest interest rate and maximum tenure) (Calculate EMI on Personal Loan) |
|
| Prepayment Charges | Nil |
| Base Rate (effective 01/06/2015) | 10% per annum |
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 |
There are multiple factors which can affect the interest rates you pay for a Corporation Bank personal loan, some of which are mentioned below.
Note: Interest rates charged by Corporation Bank are at their sole discretion and subject to change.
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.
