Corporation Bank Home Loans Review
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2 Comments
Corporate Profile
Corporation Bank started about 104 years ago in the year 1906, with an initial capital of just Rs.5000. It has recorded Rs. 1, 55, 936 Crore mark in business and even far more, with over 3500 service outlets across the nation. It was nationalized in the year 1980 and has adapted itself well to the financial reforms. It offers a host of services inclusive of home loan to cater to its wide client base.
Corporation Bank loans can be availed for construction of house/flat, purchase of ready built house/ flat; for repairs/renovation/extension/improvement of existing house/flat or for take-over of housing loans from other Banks/Institutions.
Analysis
Loan to Value Ratio –
Property Value Loan available subject to credit discretion Above Rs. 1 Cr. And below Rs. 2 Cr. 75% Above Rs. 2 Cr. And below Rs. 3 Cr. 70% Above Rs. 3 Cr. 65% Few banks are more lenient when it comes to loan to value ratio.
Tenure –
Maximum tenor under fixed rate loans is restricted to 20 years for salaried class and 15 years for other category of borrowers. 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. Under floating interest rates, the maximum tenor can be extended upto 25 years.
Interest Rate –
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 % 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% Prepayment Charges – On prepayment of the loan, 0.5% on loan amount is charged under the floating rate option whereas, 1% on loan amount is charged under the fixed rate option. This is among the lowest charges in the industry.
Processing Charges -
Up to Rs.5 lakh 0.50% of loan subject to min Rs.1000/- & max. Rs.2500/- 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/ The above mentioned processing fee bracket gives tough competition to IDBI Bank’s offering charged @ 0.5% or Rs. 11, 000.
Published on August 5, 2010 · Filed under: Corporation Bank Home Loan;
2 Responses to “Corporation Bank Home Loans Review”
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arun kaul said on March 17th, 2011 at 12:15 pm
I want to avail a home loan of Rs. 18 lacs from your bank so kindly pls call back on 999083xxxx
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bintu sharma said on March 5th, 2012 at 12:34 pm
Dear Sir,
I want to avail a home loan of Rs. 1000000/- from your bank. could you please provide the detail of your loan processing. i want purchase a plot for residental purpose. could you please advise me that can you give the loan on plot.
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