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Home Loan

Corporation Bank offers home loans to its customers at very attractive rates and the features of the loan are also good. Any individual wanting to finance his housing needs can approach the bank for availing a Home Loan. The home loan scheme offered by the bank comes under the name of Corp Home and is detailed below for a complete analysis:


Variants of Corporation Bank Home loans
 

Corporation bank offers various schemes of home loans for various purposes. These are
 

  • Corp Home
  • Corp Ghar Shobha Scheme
  • Corp Ghar Sansar
  • Corp Site (for purchase of site/plot)
  • Corp Home Premium – NRI
  • Pradhan Mantri Awas Yojna (PMAY)

Corp Home Loan

Features of Corporation Bank Home Loans
 

The loan has the following notable features which require a mention:
 

  • The project cost which would be taken into consideration by the bank for granting the loan would be only the purchase price of the house or the flat excluding any other relevant costs like the documentation charges, stamp duty or registration costs. However, if the purchase price is lower than or limited to Rs.10 lakhs, the project cost may include the above-mentioned costs (registration costs, stamp duty and documentation charges).
  • The loan fulfils multiple purposes like financing the construction of a house or a flat, meeting the cost of purchasing a ready-made or under-construction house or flat, taking over any outstanding balance of a home loan taken from other institutions or banks, financing the purchase of a plot of land or a site and constructing a house thereon, financing the purchase of a roof-top Solar PV.

Home Loan Amount
 

The amount of loan granted by the bank would depend on the geographical area of the property. If the loan is taken for purchase of a plot of land or a site and for constructing a house thereon, the cost of the site or the plot should be more than 60% of the project cost. The following table shows the amount of loan granted in relation to the area where it is taken:

 

Area

Maximum amount of loan

Maximum amount of loan for site

Metro areas

Rs.500 lakhs

Rs.100 lakhs

Port Town areas (excluding metro areas) & Urban centers

Rs.100 lakhs

Rs.50 lakhs

Semi-urban centers

Rs.50 lakhs

Rs.25 lakhs

Rural Centers

Rs.25 lakhs

Rs.10 lakhs

 

 

  • The bank also requires a security while granting the loan. The primary security would be the mortgage of the house or flat which is purchased through the loan. If an older house or flat is purchased, it should not be more than 30 years old. A co-obligation of the spouse is compulsory if a third party guarantee is not available. If the applicant is unmarried, divorced, widower or a widow, co-obligation of the parents, son, daughter, brother or sister or a suitable third party guarantee would be required. The co-applicant in this case may be of any age.
  • The individual can choose to prepay his loan any time he wishes and the bank would not charge any prepayment penalty from the applicant
  • When buying a ready house or a flat, the bank would disburse the loan along with the margin money directly to the builder or the seller. If the loan is taken for a house or flat which is under construction, the loan would be granted in stags based on the progress of the undergoing construction.
  • There is a repayment holiday under this loan scheme which is also called the moratorium period. The moratorium period is granted for a maximum period of 18 months.
  • The loan should be repaid within a maximum tenure of 30 years which also includes the moratorium period granted. The repayment tenure would depend on the age of the person availing the loan, the age of the property and the type of the property for which the loan is taken. For salaried class individuals, the repayment tenure would not exceed their age of retirement. For non-salaried individuals, 70 years is the maximum age by which the loan needs to be repaid in full.
  • The Equated Monthly Installments (EMI) or Notional Interest of any existing loan and any proposed loan should not exceed 50% to 70% of the borrower’s net monthly income.
  • Salaried individuals can avail of flexible, progressive or step-up installment facilities to repay their loans
  • Applicants can also avail of another loan to enhance the funding from the first loan subject to terms and conditions of the bank
  • The property for which loan is sought and which is the primary security under the loan should be insured and the insurance premium would have to be paid by the borrower.
  • The home loan has a processing fee of 0.50% of the loan amount up to a maximum of Rs.50, 000

Corp Ghar Shobha Scheme

Features of Corporation Ghar Shobha Scheme
 

  • A term loan offered for repairs/renovation /improvement//extension or furnishing of existing house/flat.
  • It can be availed as a takeover loans also from other Banks/Institution, wherein the loan should be originally sanctioned only for repairs/renovation /improvement//extension or furnishing of existing house/flat.
  • The quantum of finance is as per the location of property. For Metro and Urban centres, the loan amount is 20 lakhs and 15 lakhs respectively. Whereas for semi urban and rural centres, maximum loan amount could be 12 lakh and 8 lakhs.
  • The mortgage of property shall be taken as security.
  • Age of the house / flat should not be more than 30 years and the repayment period cannot exceed residual life of the property.
  • The property should be duly insured at the cost borne by the borrower.
  • For loan up to Rs.1 lakh, Equated Mortgage of property is not mandatory. However the loan other financial assets such as LIC Policies/term deposits/NSCs etc shall be taken as security.
  • The Maximum loan tenure can be up to 10 years, however this shall not exceed the retirement age for salaried borrowers and more than 70 years of age for non salaried borrowers.

Corp Ghar Sansar

Features of Corporation Ghar Sansar Scheme
 

  • A term loan scheme for the existing borrower of Corp Home Scheme, Corp Home- Premium NRI and Corp Ghar Shobha Schemes to meet any personal or domestic expenses.
  • The applicant should have regular source of income and adequate repayment capacity.
  • The loan amount offered under this scheme is minimum Rs 1 lakh upto maximum Rs. 10 lakh
  • The existing mortgage of the property shall be continued further after maintaining the prescribed margin.
  • No third party guarantee required
  • The Maximum loan tenure can be up to 7 years, however this shall not exceed the retirement age for salaried borrowers and more than 70 years of age for non salaried borrowers.
  • Nil prepayment charges are applicable for this scheme.
  • The property should be duly insured at the cost borne by the borrower.

Corp Site (for purchase of site/plot)

Features of Corporation Site (for purchase of site / plot) Scheme
 

  • A demand loan scheme under the corporation bank home loan finance variants to finance the purchase of a residential plot allotted by the local development authority or housing board
  • Maximum loan amount that can be availed is Rs.25 lakh or 75% of the total cost of plot including registration charges, whichever is lower.
  • The loan is disbursed directly to the local development authority or housing board through a demand draft.
  • The maximum loan repayment tenure is 60 months.
  • No third party guarantee is required; however an undertaking from the applicant is required to deposit the plot allotment letter.
  • The plot loan is offered to salaried resident individuals, Non salaried individuals, Self Employed and professional with at least 2 years of banking relationship with the bank

Corp Home Premium – NRI

Features of Corporation Home Premium - NRI Scheme
 

  • An exclusive home loan for the Non-Resident Indians having an Indian passport or Persons of Indian Origin having the foreign passport. , aged between 18 to 60 years.
  • The loan can be availed as singly or jointly with any close relative who are NRI/ PIO or a Resident individual Indian, residing overseas for at least 1 year. 
  • The loan is offered for the
  • Purchase of any completed house /flat/under construction flat.
  • For undertaking construction of house on a pre-owned plot. 
  • To purchase a plot and construction of house thereon.  
  • As a takeover loan from other Banks/Institution already sanctioned.
  • The Minimum loan amount offered is Rs.5 lakh & the Maximum amount could be Rs.500 lakh based on repayment capacity of the applicant and location.
  • Equated Mortgage of the property is required as security, whereas Co–application of spouse is mandatory. In case the spouse is also residing abroad, the bank at its own discretion can accept any other close relative residing in India as co-applicant or a suitable third party guarantee
  • The Maximum repayment tenure is 30 years, which includes initial repayment holiday to the maximum extent of 18 months. However this shall not exceed the retirement age for salaried borrowers and more than 70 years of age for non salaried borrowers.
  • The emi can be paid as overseas Remittance done from normal banking channels, funds from the NRE or NRO accounts, local remittance by co applicants or their close relatives.

Pradhan Mantri Awas Yojna (PMAY)

Features of Pradhan Mantri Awas Yojna (PMAY)
 

  • A housing loan scheme for the Economically Weaker Section (EWS) & Low Income Group (LIG) families.
  • The loan is available for Resident individual aged between 18 years to 65 years as either singly or jointly and with regular source of income.
  • EWS households are considered to be families having an annual income upto Rs 3 lakh and  LIG households as families with an annual income above 3 lakh and lower than Rs.6 lakh.
  • Applicant from EWS/ LIG group can avail this loan scheme for the construction of house/flat, towards the purchase of any completed or under construction property in notified urban area
  • The loan can also be availed for carrying out any repairs or extension in the property such as addition of rooms, kitchen, toilet etc.
  • The Maximum Loan amount for EWS augment is Rs.10 lakh, whereas for LIG segment, the Maximum Loan amount offered is Rs.20 lakh.
  • The equated Mortgage of property financed is taken as security under the scheme.
  • Nil processing charge and prepayment charges
  • The maximum repayment term is offered for 15 years which includes a moratorium period of maximum 18 months. The term cannot exceed the retirement age for salaried borrowers and more than 70 years of age for non salaried borrowers.
  • The Property to be financed shall be in operating area of the corporation bank branch i.e. within a radius 15 km to maximum 50 km as per centre/ city.
  • The property should be duly insured at the cost borne by the borrower. Additionally the applicant can also opt for Life insurance cover at the option/cost of the borrower.
  • The applicants from EWS/LIG group are entitled for an interest subsidy of 6.5 % on the interest rate. The subsidy is applicable for loan amount upto Rs.6 lakh and for a term of 15 years.

Corp Home Loan Eligibility

The bank asks for the fulfillment of some general eligibility criteria which include:
 

  • A resident individual, NRI or a PIO can opt for this loan scheme either singly or on a joint basis
  • The individual availing the loan should be aged 18 years to 65 years.
  • The individual should have an independent and a regular source of income.
  • The spouse of the applicant can join as a co-applicant if loan is taken on a joint basis. Other than the spouse, one close relative can also joint as a co-applicant so that three individuals can jointly avail of the loan. The close relative can be the father, mother, son, daughter, sister or brother
  • If the property which is mortgaged is jointly owned by the individual’s close relatives, all joint owners will have to act as co-applicators irrespective of their age and number.
  • Salaried Individuals confirmed in service. Non-salaried class engaged in business, Professional and self-employed persons who are IT assesses and having minimum of 2 years satisfactory dealings with the bank
  • The applicant should be eligible to apply to the local Development Authority as per their rules for site/plot. The applicant should undertake to construct the house in the allotted site/ plot within a maximum period of five years

In case of Corp Ghar Sansar
 

  • The existing housing loan borrowers enjoying loan under Corp Home Scheme including variants, Corp Home- Premium NRI and Corp Ghar Shobha Schemes and having regular income and sufficient repayment capacity.
  • Main applicant shall invariably have income.
  • Where the house property is in the name of close relative/s, who does not have regular/ independent income, he/she must join as co-applicant or guarantor, irrespective of age.
  • Maximum of ONE co-applicant may be obtained for arriving at repayment capacity.
  • The applicant will be eligible for the loan only after completion of 12 months from the date of commencement of repayment and provided the repayment is regular.
  • In case of housing loans taken-over from other banks, commencement of repayment period at transferor bank may also be considered. In other words, the applicant will be eligible for loan after completion of 12 months from the date of commencement of repayment at transferor bank and our bank put together.
  • The applicant who has closed his existing housing loan with our Bank will also be eligible for loan under the scheme provided the repayments were regular and loan was closed in normal course or prematurely closed.
  • In case of salaried class, repayment period shall not exceed the retirement age.
  • In case of other than salaried class repayment tenor shall not exceed 70 years of age, unless co applicant has independent income to service the loan.

In case of Corp Ghar Sansar
 

  • Non-Resident Indians[NRIs] between 18 to 60 years, holding Indian passport or Persons of Indian Origin [PIOs] holding foreign passport, singly or jointly with close relative who can be either NRI or PIO or a Resident Indian, conforming to normal borrower standards with independent & regular source of income and is residing abroad for a minimum period of one year. 
  • In addition to spouse maximum of one resident close relative [Father, Mother, Daughter, Son, Brother, Sister] may join as co applicant Gross annual income of the NRI/PIO & co- applicant/s together shall be a minimum of Rs.10 lakhs. If the applicant is unmarried/divorcee /widow/ widower, co-application of parent/s   [irrespective of their age] OR Son, Daughter, Brother, Sister OR a suitable third party guarantee may be obtained.

In case of Pradhan Mantri Awas Yojana (PMAY)
 

  • For construction of house/flat, purchase of ready built house/flat/flat under construction in urban areas.
  • For carrying out repairs/ extension/addition of rooms, kitchen, toilet etc., to existing dwelling unit in urban areas.
  • The houses constructed/acquired should be in the name of the female head of the household or in the joint name of the male head of the household and his wife, and only in cases when there is no adult female member in the family, the dwelling unit/house can be in the name of male member of the household.
  • Repairing work to the existing house can be undertaken in houses which are kutcha, semi pucca and require extensive renovation.
  • The carpet area of the house/flat being constructed / purchased should be up to 30 square meters and 60 square meters for EWS and LIG, respectively in order to avail of this credit linked subsidy. The beneficiary, at his / her discretion, can build a house of larger area but interest subvention would be limited to first Rs.6 lakh only.
  • For extension/repair, the area limit will be 30 square meters and 60 square meters of built up area for EWS and LIG category respectively.
    Note: Carpet area is defined as the area enclosed within the walls, actual area to lay the carpet. This area does not include the thickness of the inner walls.
  • Individual houses financed under the scheme should have provision for basic civic services like water, sanitation, sewerage, road, electricity, etc.
  • The minimum size of houses constructed should conform to the standards provided in National Building Code (NBC).
  • The houses should be designed and constructed to meet the requirements of structural safety against earthquake, flood, cyclone, landslides etc. conforming to the National Building Code and other relevant Bureau of Indian Standards (BIS) codes.
  • Beneficiaries who already own land in any urban area but do not have any pucca house in their name or in the name of their spouse or any dependent child will also be covered under the scheme. In such cases cost of the land will not be included in the scheme.

Rate of Interest & Processing Fee

The home loan offered by the bank is charged at both floating rate of interest and fixed rate of interest. The rate of Interest under all retail loans are linked to 1 year MCLR (9.50%) from 1st September, 2016

 

SI no

Scheme

Rate of Interest

Processing Fee

1

Corp Home & NRI( Upto Rs. 2 Crores)*Floating

9.60%

100% waiver under Monsoon Offer- 2016 (till 30-09-2016)

2

Corp Home & NRI( Above Rs. 2 Crores)*Floating

9.85%

100% waiver under Monsoon Offer- 2016 (till 30-09-2016)

3

Corp Home & NRI( Upto Rs. 25 lakhs)*Fixed

12.60%

100% waiver under Monsoon Offer- 2016 (till 30-09-2016)

4

Corp Home & NRI( Above Rs. 25 lakhs)* Fixed

13.10%

100% waiver under Monsoon Offer- 2016 (till 30-09-2016)

5

Corp Ghar Shobha

10.00%

0.50% , Min Rs. 1000

6

Corp Ghar Sansar

10.00%

1% or Max. Rs 10000/-

7

Corp Site/Plot Loan

15.25%

Application money: Rs.500/- irrespective of loan amount Allotment money: 0.50%, subject to a minimum of Rs.1000/-


Margin Fee
 

For Corp Home Scheme
 

The bank also keeps a margin when granting a loan. The margin requirement depends on the amount of loan taken. For loans amounting to Rs.30 lakhs the margin kept is 10%. For loans above Rs.30 lakhs and up to Rs.75 lakhs, 20% margin is kept and for loans over Rs.75 lakhs, 25% margin is maintained by the bank.
 

For Corp Ghar Shobha Scheme
 

The margin is kept at 25 % on the project cost and total value of the property.
 

For Corp Ghar Sansar Scheme
 

Margin is maintained @ 25% on un-encumbered value of the property.
 

For Corp Ghar Sansar Scheme
 

The margin is maintained @ 10 %.
 

For Corp Home Premium - NRI)
 

The Margin is maintained at 10% to 25% as per loan amount.

Corporation Bank Home Loan EMI Calculator

Calculating the incidental Equated Monthly Installment on the amount of home loan sought has been made easier with an online facility of calculating the relevant EMIs through our web portal. By visiting Paisabazaar.com and providing the details with respect of the loan type (home Loan), the amount of the said loan and the repayment tenure, once can easily calculate the incidental Equated Monthly Installment which would be payable for the loan.


Applying for a Corporation Bank Home Loan
 

An individual can apply for a Home Loan from Corporation Bank Home Loan by logging on to the Paisabazaar.com website and completing the online application process of the Corporation Bank Home Loan.