Corporation Bank launches FLEXI Home Loan
Corporation Bank has introduced ‘Corp Flexi Home Loan’ a variant of the housing loan with attractive feature of Progressive Monthly Installment (PMI) ie. repayment linked to increase in future salary earnings. The scheme provides for “step-up installment facility” under Corp Home Scheme.
The Scheme is to facilitate the younger borrowers expecting income growth in the years to come, and would like to avail higher quantum of loan than the normal eligibility. Under the Scheme, instalments will be flexible/progressive/step up, in tune with increase in income. (
The Scheme is ony for salaried class ) The Corp Flexi scheme is offered with two options.
Option 1 | v | Loan amount will be 130% of the normal entitlement. |
| v | First 5 years, EMI is based on present repayment capacity for normal loan entitlement (100%) |
| v | Next 5 years, EMI will be normal for full loan (130%) |
| v | Balance period, EMI will be for balance repayment period on the balance outstanding at the end of 10th year. |
Option 2 | v | Loan amount based on present repayment capacity. |
| v | First 5 years, EMI at 70% of normal EMI |
| v | Next 5 years, normal EMI. |
| v | Balance period, EMI will be for balance repayment period on the balance outstanding at the end of 10th year. |
Other conditions | v | No relaxation permitted from the prescribed margin. |
| v | Certificate from employer regarding salary structure for the next 5 years compulsory. |
No collateral securities other than mortgage of the house property is stipulated.
The loan may be availed for construction of a new house/flat, purchase of ready-built house/flat, repairs, renovation or extension of existing house/ flat and foreclosure of existing housing loan liability with a bank or housing finance agency – where the balance repayment period is 15 years or more.
The rate of interest, prepayment charges, processing charges, margin, security, and other terms and conditions are as applicable to CHome Loans .
CorpFlexi provides for repayment in progressive monthly installments (PMI) of increasing amounts is the ideal scheme for the young people in the early stages of their careers who expect substantial increase in income during the course of their employment .
The Bank arranges insurance cover under Corp Jeevan Griha Raksha Scheme to the borrower in association with LIC of India. The one time premium payable to LIC has to be borne by the Borrower and will be financed by the Bank as part of the project cost, if needed.
