Corp Home - Housing Loan
Corp Bank offers a variety of loans to choose from. The various retail loans are given as 'Corp Schemes' highlighting the traditional Corp Bank commitment on giving the best in terms of service, speedy disposal and of course at a very competitive interest rates.

Corp Home - Housing Loan scheme is one of the best offers to fulfill your dream house.

Eligibility

1. Residents/NRIs holding Indian Passports conforming to normal borrower standards with independent & regular source of income
2. Applicant/s should be in the age group of 18-50 years
3. Where property is held in joint names, all the joint holders should join as co-applicants to the loan.
4. Any one of the close relative may join as co-applicant in case applicant's income is not sufficient to service the loan.
5. Spouse, father, mother, brother, son, daughter only are close relatives.
6. Where property is owned by applicant's parents/spouse who does not have independent/regular income, they should join as co-applicant only irrespective of their age.
7. If the applicant/co-applicant is in service, he should have 2 years of confirmed service.

Purpose

• For construction of house/flat, purchase of ready built house /flat.
• For repairs/renovation/extension/improvement of existing house/flat.
• For take-over of housing loans from other banks/institutions.

Rate of Interest

Float Interest Rate	:	9.25
Float Loan Eligibility	:	19 to 27
Tenure	:	20

Processing Fee : upto Rs 5 lakh- 0.50% of loan or min Rs 1000 & max Rs 2500, above Rs 5 lakh & upto Rs 15 lakh- 0.50% of loan or min Rs 2500 & max Rs 7500, above Rs 15 lakh & upto Rs 20 lakh- 0.50% of loan or min Rs 7500 & max Rs 10000, above Prepayment Charges: 0.50% of amount.

Charge for Changing Floating to Fixed: 1% of the outstanding balance

Notes :-

1. Additional rate of interest of 0.50% for loan for acquiring second/subsequent house for loans availed on or after 01.04.2007. This is not applicable for repair/renovation/construction upto first floor.
2. Maximum tenor under Fixed rate loans restricted to 20 years for salaried class and 15 years for other category of borrowers.
3. 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.

Security

Mortgage of house/flat purchased out of Bank Finance

Guarantee

• Third party guarantee at the discretion of the sanctioning authority.
• Wherever third party guarantee is not obtained, co-obligation of spouse is mandatory.
• However, ZO may permit waiver of co-obligation of spouse.

EMI & Eligible Income

In case of salaried class, where gross income is upto Rs.2 lakhs, EMI, including the installments/notional interest in respect of existing and proposed loan together should not exceed 40% of net income

In case of salaried class, where gross income is above Rs.2 lakhs, EMI, including installments/notional interest in respect of existing and proposed loan together should not exceed 50% of net income.

In case of other than salaried class, EMI, including installments/notional interest in respect of existing and proposed loan together should not exceed 50% of net annual income

Conversion Charges

• From Floating to Fixed: 1% of the outstanding balance, inclusive of upto date interest as on the date of conversion.
• From Fixed to Floating : Not allowed
• Re-Scheduling of loan to lower tenor to get the benefit of lower rate of interest is not allowed under floating rate of interest option.

Loan for Site

• Where loan is availed for purchase of site & construction of house thereon, cost of site/land should not exceed 60% of project cost.
• In such cases, construction should commence within 12 months.
• Construction should be completed within 24 months.
• In case of default in construction of house, rate of interest to be charged to such loan is COBAR+0.50%+3%. (COBAR+Term Premium+ Spread)

Take Over of Loan

• Take over of housing loan availed with other banks/institutions/employer is permitted under the scheme.
• In principle clearance shall have to be obtained from Zonal Office.
• Repayment period should not exceed leftover repayment period of transferor bank & loan amount should not exceed 75% of market value.
• Age of the property should not exceed 10 years.

Second Loan for Enhancement

• Maximum of two loans may be permitted for purchase/construction/repair.
• Enhancement of loan may be permitted during pre EMI or post EMI period.
• Loan for enhancement shall be treated as separate loan. However loan amount should be aggregated for computation of rate of interest.

For Repairs/Renovation/Extension

1. Loan for repair/renovation/extension may be sanctioned.
2. Second loan as for repair/renovation shall not be given within 12 months of availing first loan, if the age of the property is within 5 years.
3. If the age of the property is more than 5 years, second loan may be permitted for repairs/renovation, within 12 months of availing first loan.
4. Loan for repair/renovation shall be treated as an independent loan and shall not be aggregated for computation of interest rate.
5. For loan upto Rs.1 lakh, EMG of house/flat may not be insisted upon. In such cases, the loan shall be fully secured by financial assets such as shares/debentures/units/LIC policies/deposits/NSCs, subject to maintaining prescribed margin against such securities.

Disbursement

1. Loan amount shall be directly remitted to the seller. No reimbursement of purchase price is permitted under the scheme.
2. In case of flat/ property under construction, loan shall be released in stages depending upon the progress of construction.

Insurance

1. Property shall be covered under insurance under Reinstate value method.
2. The cost of land, expenses incurred towards Stamp duty, registration - although forming part of the loan amount/value of the property - are to be excluded while arriving at the value of the property for insurance purpose.

Corp Griha Raksha

Insurance of the borrower under Corp Griha Raksha may be considered at the option of the borrower. Premium amount may be added to loan amount.