Corporation Bank Home Loan
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1. Eligibility:v Residents /NRIs/ PIO holding Indian Passports conforming to normal borrower standards with independent & regular source of income. v Age of the borrower/s shall be between 18 years to 60 years subject to the condition that repayment period (including repayment holiday if any,) shall not go beyond the retirement age, in case of salaried class, and 70 years of age, in case of other than salaried class. v Where property is held in joint names, all the joint holders should join as co applicants to the loan. v In addition to spouse, maximum of one close relative as co applicant required for supplementing repayment capacity. v However, where the property to be mortgaged is jointly owned by close relatives, all the joint owners to join as co applicants, irrespective of their age and numbers. v Where property is owned by applicant’s parents/spouse who do not have independent/ regular income, they should join as co applicant only, irrespective of their age. v If, applicant is unmarried/divorcee, co obligation of parent/s (irrespective of their age) or third party guarantee is required. v Applicant /Co applicant must be confirmed in the service & should have two years of aggregate service in previous & present employment together.
2. Purpose :v For construction of house/flat, purchase of ready built house/ flat. v For repairs/renovation /extension/improvement of existing house/flat. v For take-over of housing loans from other Banks/Institutions.
3. Loan Amount:Area Loan Amount Loan for Site Metro & Port Town Centres Rs. 500 lakh Rs. 30 lakh Urban Centres Rs. 50 lakh Rs. 15 lakh Semi Urban & Rural Centres Rs. 25 lakh Rs. 10 lakh For Repair /Renovation/Extension/ Improvement : Rs. 5 lakh Loan amount is based on location of the property. 4. Margin for Loan:
above 1 crore to 2 crore : 25%
above 2 crore to 3 crore : 30%
above 3 crore : 35%5[a] Repayment Period:
Age of the House/Flat
[Maximum age of the House/Flat shall not exceed 30 years]Margin for Loan Amount.
Upto Rs.1.00 CroreRepayment Period Up to 10 years 20% 25 years Above 10 years & up to 20 years 20% 20 years Above 20 years & up to 30 years 25% 15 years Repair/renovation/extension 20% 5 years V Repayment period not to exceed retirement date for salaried persons and 70 years of age for other than salaried persons. 6. Rate of Interest: [with effective from 4th May, 2009]
Fixed Rate:Loan Tenor Up to Rs.30 lakh Above Rs.30 lakh
& up to Rs.50 lakhAbove Rs.50 lakh Up to 5 years 11.00% 11.50 % 11.50% Above 5 & upto 15 years 11.00% 11.50 % 11.50% Above 15 years & up to 20
years11.00% 11.50 % 11.50 % Above 20 & upto 25 years 11.00% 11.50 % 11.50 % V Maximum tenor under Fixed rate loans restricted to 20 years for salaried class and 15 years for other category of borrowers. v Housing loans under Fixed Rate of Interest is offered upto 20 years only. The rate of interest will be reset at the discretion of the Bank once in 5 years.
Floating Rate:Loan Tenor Up to Rs.30 lakh Above Rs.30 lakh
& upto Rs.50 lakhAbove Rs.50 lakh Up to 5 years 8.75 % 9.50% 10.00% Above 5 & upto 15 years 9.50 % 10.00% 10.50% Above 15 years & upto 20
years9.75 % 10.50% 10.75% Above 20 & upto 25 years 10.25 % 10.75% 11.00% 8. EMI and Eligible Income :
EMI/Notional interest of existing and proposed loan together as a percentage to net income will be applicable as per guidelines
v Interest debited during the initial repayment holiday period will be accumulated and added to principal and EMI is fixed based on the balance outstanding at the beginning of the repayment period. v However, borrower has the option to service the interest debited during repayment holiday period to reduce his liability. v Regular & verifiable income only considered. V Salary, Pension, Business income, Agricultural income etc., are eligible. V In case of seasonal income, Quarterly/Half Yearly/ Yearly installments are fixed. V Rent saving AND/OR Future rent may be considered to the maximum of 50%, based on actual rent prevailing in the area where the property is situated. Such income should be stable and shall be available for repayment, during the entire repayment period. V Wherever the main applicant is an IT assessee, his Income Tax savings on availing housing loan is considered to arrive at repayment capacity.
(This provision is applicable for main applicant only, provided he is an IT assessee and on availing the loan, is eligible for such IT relief)Revision in EMI:
V EMI is fixed at the time of sanctioning of loan based on loan amount in relation to loan tenor. V If the interest rate is revised during the period of loan, EMI will be revised at the date of annual review of loan. V Borrower may request to fix EMI for principal amount along with interest debited during initial repayment holiday period. V In such cases, tentative EMI will be fixed at the time of loan sanction. V Interest debited during the initial repayment holiday period will be accumulated and added to principal and EMI will be fixed based on the balance outstanding at the beginning of the repayment period. V However, borrower has option to service the interest debited during initial repayment holiday period to reduce his liability. V In case the borrower avails loan amount lesser than the sanctioned amount, EMI will be fixed only on the amount disbursed. No further disbursement shall be made thereafter. However, rate of interest to be charged is based on the loan amount originally sanctioned. 7. Processing Charges:
Up to Rs.5 lakh 0.50% of loan subject to min Rs.1,000/- & max. Rs.2,500/- Above Rs.5 lakh &
upto Rs.15 lakh0.50% of loan subject to min Rs .2500/- & max.Rs.7500/- Above Rs.15 lakh &
upto Rs.20 lakh0.50% of loan subject to min Rs.7,500/-& max.Rs.10,000/- Above Rs.20 lakh 0.50% of loan subject to min Rs.10,000/- & max.Rs.50,000/ 8. Pre Payment Penalty:
a) Prepayment charges shall not be levied when the loan amount is paid by the borrowers out of their own fund/sources
b) In all other cases, Prepayment charges shall be levied as under:
0.50% on loan amount prepaid under the floating rate option
1.00% on loan amount prepaid under the fixed rate option.Published on August 4, 2010 · Filed under: Corporation Bank Home Loan, Home Loan;
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