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Corporation Bank Home Loan

Corporation Bank home loans can work as an ideal home buying option for you. Before you go for a home loan from Corporation Bank, you should understand the terms and conditions of such a loan clearly.

About Corporation Bank home loans

1) Eligibility Criteria for Corporation Bank home loans

Given below are the eligibility criteria for Corporation Bank home loans:
  • NRIs/Residents/Persons of Indian Origin carrying Indian Passports complying with usual borrower guidelines with regular & independent source of income can qualify.
  • The minimum age of the borrower shall be 18 years and the maximum age of the borrower shall be 60 years and this is conditional on the stipulation that the repayment term (including repayment holiday if applicable), shall not surpass the age of retirement for salaried individuals, and 70 years of age, for other than salaried individuals.
  • Where property is owned in joint names, all the joint owners should participate as co applicants to the loan.

  • Besides spouse, maximum of one close family member as co applicant is necessary for increasing repayment ability.
  • Nevertheless, where the property to be mortgaged is mutually held by close family members, all the mutual owners have to participate as co applicants, regardless of how old they are and how many they are.
  • Where property is held by the spouse/parents of the loan applicant who don’t have regular/independent source of income, they should participate as co applicant only, regardless of their age.
  • If applicant is divorced or a bachelor, co obligation of parent/s (regardless of how old they are) or third party guarantee is essential.
  • Applicant/co applicant should be confirmed in the employment and should have 2 years of combined service in past & current employment collectively.

2) Purpose for Corporation Bank Loans

Given below are the common purposes for which you will go for a Corporation Bank home loan:

  • For renovation/maintenance/extension/upgradation of existing flat/house.
  • For construction of flat/house and purchase of readymade flat/house.
  • For taking over of home loans from other banks/financial institutions.

3) Loan Amount:

Area Loan Amount Loan for Site
Urban Centres Rs. 50 lakh Rs. 15 lakh
Urban & Port Town Centres Rs. 500 lakh Rs. 30 lakh
Semi Urban & Rural Centres Rs. 25 lakh Rs. 10 lakh
For Maintenance/Renovation/Extension/ Upgradation: Rs. 5 lakh  

Loan amount is decided on the basis of where the property is located.

4) Margin for Loan:

The margin for the loan is as follows:

  • Over 1 crore to 2 crore: 25%
  • Over 2 crore to 3 crore: 30%
  • Over 3 crore: 35%

5) Security

Mortgage of flat/house purchased out of bank loan will work as security against the loan.

6) Pre Payment Penalty:

a) Prepayment charges will not be imposed when the amount is prepaid by the borrowers from their own funds

b) In all other circumstances, prepayment penalties will be imposed as under:

  • 0.50% on loan amount prepaid as per the floating rate option
  • 1.00% on loan amount prepaid as per the fixed rate option

7) Second Loan for Enhancement

Enhancement of loan may be allowed during pre EMI or post EMI period. Loan for enhancement will be considered as a separate loan. Nevertheless, loan amounts are combined for calculation of interest rate.

8) Disbursement of loan

Loan amount will be directly sent to the property seller. Repayment of purchase price is not allowed under the scheme. For properties/flats under construction, loan is issued in phases subject to the advancement of construction.

9) Insurance

Property is covered by Insurance under Restoration value method.

Insurance of the mortgaged property is compulsory and the insurance premium has to be carried by the borrower.

10) Corp Griha Raksha

Insurance of the borrower under Corp Griha Raksha scheme will be taken into account at the choice of the borrower. The amount of premium will be summed up with the loan amount.

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