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Corp Flexi Home Loan FAQs
1. For what purposes does your Bank give Housing Loans ?
Housing loan may be availed for new construction of house/flat, purchase of ready-built house/flat, repairs/ renovation/ extension of existing house/ flat as well as foreclosure of existing housing loan liability with a bank/ housing finance agency.
2. What is the maximum loan amount considered under the Scheme ?
Area
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Loan Amount
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Loan for Site Purchase
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Metro & Port Town Centres
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Rs. 100 Lakh
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Rs. 30 Lakh
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Urban Centres
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Rs. 50 Lakh
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Rs. 15 Lakh
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Semi-Urban & Rural centres
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Rs. 25 Lakh
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Rs. 10 lakh
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Repair/Renovation/Extension...
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Rs. 5 Lakh
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Rs. 5 lakh
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3. Who are eligible for applying for Corp Flexi Home Loans ?
Salaried persons, confirmed in the service with the left over service longer than or equal to the proposed repayment period, desiring to go in for own dwelling unit are eligible for applying for housing loans under the Scheme.
4. What is the margin/ down payment expected to be brought in ?
In the case of construction/ purchase of house [not more than 20 years old], the margin is 20% of total cost [including registration charges/ stamp duty in case of purchase]; in case of house/ flat that are more than 20 years old, 25% margins will be applicable; For Repairs/ Renovation/ Extension, margin is 20% of estimated cost.
5. What are the securities required for Corp Flexi Home Loans ?
No collateral securities other than mortgage of the house property is insisted upon in the normal course.
6. Whether third party guarantee is required for Corp Flexi Home Loans ?
No; No third party guarantee is required / insisted upon for the housing loans under the Scheme except for co-obligation of the spouse.
7. How the interest on the loan is computed ?
Our Interest rates are computed on daily reducing balance method.
8. Please elaborate on the repayment period permissible for housing loans for different purposes/ borrowers?
a] The maximum permissible repayment period is 25 years or 300 months under Floating interest rate option and under Fixed interest option, 20 years for Salaried class & 15 years for others.
b] For construction of new house/flat or purchase of house/flat that is not more than 10 years old, maximum loan period permissible is 25 years for applicants are aged 35 years or below; In the case of salaried class, the repayment period should not extend beyond superannuation or 60 years, which ever is lower.
c) The above are the maximum permissible loan periods under respective category of borrowers inclusive of initial repayment holiday period of upto 18 months or upto completion of construction, whichever is earlier in case of new construction.
d) In the case of purchase of house aged more than 10 years and upto 20 years, the loan period is restricted to 20 years. For Purchase of House/flat aged more than 20 years & upto 30 years the maximum repayment period is restricted to 15 years.
9. Is there any pre-payment penalty for the amount paid in advance?
In case of housing loan with floating rate of interest, the pre payment penalty will be 0.5% of the amount pre paid and in case of fixed rate of interest option, prepayment penalty will be 1.00% of the loan amount prepaid.
10. How the eligible loan amount is arrived at/ calculated?
a) The eligible loan amount is arrived at after deducting the stipulated margin from the total cost of the project, subject to repayment capacity.
b] The repayment capacity is considered at 40% of the net income [including income from other sources] in case of salaried persons with gross annual income of upto Rs. 2 lakhs and at 50% of net income in cases with gross annual income exceeding Rs.2 lakhs.
11. What will be the time required for sanction of a Housing Loan ?
The proposals that are complete in all respects would generally be disposed off within a maximum period of 2 working days in case the same falls within Branch Managers Powers and within a week's time if the same needs to be sanctioned by Zonal Office/Retail Hub .
12. Whether insurance of the property is mandatory ?
Yes; The house has to be insured at borrower's cost. In the interest of the borrower, it is always advisable to insure the house against all normal risks.
13. Whether Bank provides life insurance cover?
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.
CORP FLEXI HOME LOAN
Example:
Nature of Applicant : Salaried Class
Monthly Salary : Rs.16,000 per month (Net Salary)
Repayment Capacity : 50 % of monthly salary i.e., Rs.8,000
Loan Amount sought : Rs.10 lakhs (Normal eligibility)
Repayment Period : 25 years
Rate of Interest : 8.50 % p.a. (say)
EMI for a loan of Rs.1 lakh : Rs.802
EMI for a loan of Rs.10 lakh : Rs.8012 (Normal EMI)
HOME FLEXI OPTION - 1 *
Pay lesser monthly instalment than the normal instalment
i.e., pay smaller instalment upto 30 % less than the normal instalment.
Loan amount Rs.10 lakhs.
First five years pay only : Rs.5,609/- i.e., 70% of normal instalment of Rs.8,012/-
Next Five years pay Rs.8,012/ - i.e., normal EMI.
Next fifteen years Rs.10,681/ - i.e., whatever short/less paid during the first five years
will be compensated by paying little more than the normal EMI
during the last 15 years of the repayment period.
HOME FLEXI OPTION - 2 *
Larger loan amount upto 130% of the normal eligibility
i.e., an opportunity to avail higher quantum of loan of 30 % more than
the normal eligibility. Loan amount Rs.13 lakhs
First five years pay only : Rs.8,012/- i.e., EMI for the normal eligible loan of Rs.10 lakhs.
Next Five years pay Rs.10,416/- i.e., EMI for the actual loan availed Rs.13 lakhs
Next fifteen years Rs.13085/- i.e., whatever short/less paid during he first five years
will be compensated by paying little more than the normal EMI for the actual loan availed
during the last 15 years of the repayment period.
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