Corporation Bank Home Loan

Table of Contents

• Corporation Bank Home Loan Interest Rates
• Eligibility Criteria for Corporation Bank Home Loan
• Corporation Bank Home Loan Schemes
• Corporation Bank Home Loan Types
• Corporation Bank Home Loan for NRI or PIO
• How to Apply for Corporation Bank Home Loan
• Document Checklist for Corporation Bank Home Loan

 

Introduction

Corporation Bank is reputed to be the pioneers in a number of spheres in the Indian banking system.  It was nationalized only in 1980, but was one of the first public sector banks to come up with an IPO.

It is also one of the first public sector banks to have introduced technology solutions in their varied operations; penetrating the rural and semi-urban market with a wide variety of banking services through the Business Correspondent model.

Corporation Bank, with its headquarters in Mangalore has designed an array of home loan products to the eligible borrowers in a very broad canvas. The taglines propagated for home credit products are an indication of the bank’s cherished hallmark.

• Attractive rate of Interests.
• Speedy sanctions.
• Simple Documentation.

Corporation Bank Home Loan Interest Rates

Interest Rates are as of 2019

The primary concern for any home loan aspirant is the cost of capital for the loan amount to shell out. It is natural to query about the overall cost one has to bear for servicing over the long tenor.

A glimpse of the interest regime in vogue in the bank is effective from 15th July 2019.  Corp Bank offers two types of interest, Fixed and Floating. The rates are MCLR linked subject to periodic reset.

Rate of Interest applicable from 15th July 2019. The two MCLR factors used are: 3 months MCLR 8.50% 1 Year MCLR 8.85%
Scheme	Type	Interest	Processing Fee
Corp Home Loan	Floating	8.60 % to 9.25 %	0.50 % max Rs.50000
	Fixed	11.95 % to 12.45 %
PMAY	On Amount	8.95 % to 9.20 %
Corp Ghar Sobha		9.35 %
Corp Ghar Sansar		9.35 %	1 % max Rs.10000

Eligibility Criteria for Corporation Bank Home Loan

The eligibility factors at Corp Bank that is going to impact your application is as follows:

An indicative eligibility norm for the housing loan at Corp Bank
Target	Resident individuals either singly or jointly NRI and PIO
Age	Minimum 18 years and maximum 60 years.70 years for the salaried
Co-borrower	Spouse and any other close blood relative for supplementary repayment
Purpose	Construction of house or flat. Purchase of house or flat under construction. Purchase of a plot and construction of house as per norms Takeover or balance transfer of housing loan
Quantum	Minimum Rs.15 L and maximum Rs.5C The amount is dependent upon location of property.
Margin	From 10% to 25% depending on the quantum of loan
Tenure	Maximum 30 years.
Others	Property should be within the command area of the branch 15 to 50 kms
	Insurance of the property at borrowers cost is mandatory.

 

It is evident from the above that the canvas is spread very wide. There are individual schemes for restoration and renovation as well as top up home loan where the norms might be slightly at variance from these to meet the specific purposes of the loan.

Name of the scheme	Eligibility Criteria
Corp GharSobha	Tenure	Maximum 10 or 15 years including a holiday of 6 months.
	Quantum	Metro: Rs.20L. Port Town other than Metro and Urban: Rs. 15L Semi Urban: Rs.12L Rural: Rs.8L
	Margin	25% on the cost of project or the property.
Corp GharSansar	Tenure	Maximum 7 years
	Quantum	Minimum: Rs.1L. Maximum: Rs.10L
	Margin	25% on un-encumbered value the property
PMAY	Tenure	Maximum30 years
	Eligibility
	MIG 1		MIG II
	Household Income Rs.6L to Rs.12L		Household Income Rs.12L to Rs.18L
	Quantum		Rs.5C
	Margin		Same as Home Loan

Corporation Bank Home Loan Schemes

As already stated, there are home loans for specific reasons other than the generic described above. The cost of capital involved in those schemes are:

Different Housing Loan Schemes at Corp Bank effective from 15th July 2019 3 months MCLR 8.50% 1 Year MCLR 8.85%
Scheme	Type	Interest
Corp Home Loan	Floating	Govt Emp.     3 M MCLR + .0.10	8.60%
		Up to Rs.2C    1 Y MCLR + 0.10	8.95%
		Above Rs.2C   1 Y MCLR + 0.35	9.20%
	Fixed	Up to Rs.25 L  1 Y MCLR + 3.10	11.95%
		Above Rs.25 L 1 Y MCLR + 3.60	12.45%
PMAY		Up to Rs.2 C     1 Y MCLR + 0.10	8.95%
		Above Rs.2 C   1 Y MCLR + 0.35	9.20%
Corp GharSobha		1 Y MCLR + 0.50	9.35%
Corp GharSansar		1 Y MCLR + 0.50	9.35%

Corporation Bank Home Loan Types

Now that you know the different schemes of Corp Bank loans, it is also in order that you learn in greater details the different types of loans on offer at the bank. The names of the loans are suggestive of the type of loan they primarily are.

 

Main Home Loan – Corp Bank Home Loan

The primary home loan product with the bank is the Corp Bank Home Loan, which is primarily targeted at the resident borrower. For the NRIs and PIO, Corp Bank has specialized schemes.

This loan is the primary home loan covering an entire gamut of purposes that you can think of. The quantum has many shades:

 

Quantum of Loan:

• Minimum Rs.25L
• Maximum Rs.5C

The quantum of loan is dependent on the location of the property. Accordingly these are the norms defined for them.

• Metro and Port Centers:
  • Maximum Loan: Rs.5C
  • Amount for site: Rs.1C
• Urban Centers:
  • Maximum Loan: Rs.1C
  • Amount for site: Rs. 50L
• Semi-Urban Centers:
  • Maximum Loan: Rs.50L
  • Amount for site: Rs.25L
• Rural Centers:
  • Maximum Loan: Rs.35L
  • Amount for site: Rs.15L

 

Margin Money:

The different rates of margin are determined by the quantum of loan. The applicable rates are:

• 10 %: For loans up to Rs.25L
• 20 %:  For loans from Rs.20L to Rs.75L
• 25 %: For loans above RS.75L

 

Repayment:

The key points to remember for repayment terms with Corp Bank Home Loan are:

• The maximum period is 30 years including a holiday of 18 months.
• The age of the property should not exceed 30 years if repurchased. If otherwise, the tenor shall be appropriately adjusted:
  • Up to 10 years: 25 Years.
  • Above 10 years to 20 years: 20 years.
  • Above 20 years to 30 years: 15 years.
• Under fixed rate of interest, the maximum repayment period is 15 years.
• For the salaried, the repayment should not exceed retirement at 60 years, which in the case of others is 70 years.

 

Corp Ghar Sobha Scheme

The primary purpose of this loan is twofold:

• Renovation and repair of house. It also permits you to augment and furnish your house.
• The takeover of an existing Home Loan with other institution subject to the norms of Corp Bank.

 

Corp Ghar Sansar

This is basically a top-up loan extended to borrowers who already enjoy a home loan under another scheme. The key features of the loan are:

• The applicant shall be eligible only after 12 months of regular repayment of the earlier loan. The same is applicable to balance transfer loans also.
• The purpose is to meet the domestic and personal expenses.

Corporation Bank Home Loan for NRI or PIO

The best part with Corp Bank is that the NRI and PIO have been treated with utmost care offering them all the schemes applicable to resident Indians. On top of the existing schemes, additionally they have Corp Home Premium – NRI to fall back upon.

In the recent past more and more NRIs have shown interest in ownership of residence in the country. Most have been driven by the opportunity to earn handsome returns through their investment. A few have purchased suitable accommodations to shelter their parents or close blood relatives. Needless to say, it also acts as a backup shelter when they finally repatriate.

 

Housing Loan for High-net-worth Individuals

High net-worth individuals are a coveted client base for any lender and Corp Bank is no exception. There are number of inherent advantages with extending home credit to such individuals.

The first advantage is that they are prone to seek loans of bigger amounts. Secondly, being low risk borrowers, the incidence of default is expected to be nil. Thus, it saves a lot of hassle and gives a heftier portfolio of home loans.

Though the Corp Bank does not offer any premier services at the present, there is a Professional Loan scheme which can meet the needs of high-net-worth professionals.

 

Amount of loan can be taken under this Corp Professional Loan Scheme

The basic purpose of this loan is to allow the professionals to build their offices or clinics to suit their professional requirements. The amounts disbursed under this scheme are:

• Metro: Maximum Loan: Rs.5C
• Port and Urban Centers: Maximum Loan: Rs.2 C
• Semi-Urban Centers: Maximum Loan: Rs.50L
• Rural Centers: Maximum Loan: Rs.10L

 

Corp Bank Home Loan for NRI

The specific home loan product for the NRI at Corp Bank is Corp Home Premium – NRI.

It has been designed to meet the needs of the resource rich NRI and PIO segment of the clientele.

The salient features of the scheme are tabulated below for your easy comprehension:

An indicative eligibility norm for Corp Home Premium – NRI
Target	NRI and PIO
Income	Minimum Rs.10L inclusive of the co-borrower
Age	Minimum 18 years and maximum 60 years.70 years for the salaried
Co-borrower	Spouse and any other close blood relative for supplementary repayment
Purpose	Construction of house or flat. Purchase of house or flat under construction. Construction of house on pre-owned plot. Purchase of a plot and construction of house as per norms Takeover or balance transfer of housing loan
Quantum	Minimum Rs.5 L and maximum Rs.5C The amount is dependent upon location of property.
Interest	As applicable to other home loans.
Margin	From 10% to 25% depending on the quantum of loan
Tenure	Maximum 30 years inclusive of a holiday of 18 months.
Security	Equitable Mortgage of the property. Spouse as co-borrower. Guarantee from a resident close relative or third party in the absence of spouse.
Mode	Remittance through banking channels. Transfer from NRE, NRO or FCNR accounts.
Others	Property should be within the command area of the branch 15 to 50 kms
	Insurance of the property at borrowers’ cost is mandatory.

How to Apply for Corporation Bank Home Loan

The normal procedure for the application process at Corp Bank is through the branch office. Even if you put in your intent online, it is only to the extent that you have shown interest to be followed up by the bank. The application process is summarized in the following steps:

1. Submission of the filled in and signed application form complete in all respects, along with requisite documents.
2. Evaluation and scrutiny.
3. Approval and issue of offer letter.
4. Acceptance of offer letter and submission of all legal documents in original.
5. Sanction, signing of the agreement and disbursal of the loan as per mutually agreed terms.

A special provision has been made in the case of NRIs called “Green Channel” where proposals are taken up with top priority.

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Document Checklist for Corporation Bank Home Loan

Type	Particulars
Property Documents	Copy of sanctioned plan Sale deed, title deed, sale agreement Estimated value of the project by an approved Engineer or Architect Search report of the deed for the specified period. Allotment letter in case of flat. Copy of land records status. Receipts for investment to the tune of margin money.
Documents for KYC	Valid Photo ID card Address Proof
Salaried	ITRs for the preceding 3 years. Latest bank statements.
Self Employed	Latest ITR Latest computation of income.
Additional documents required for NRI and PIO	Proof of Income the applicable form. Bank account statement. Proof of employment and source of steady income. . Power of Attorney (POA) executed in favor of a close relative. Credit score Report.