Corporation Bank

Corp Home - Loan for Housing purposes

1. Eligibility:

v	Residents /NRIs/ PIO holding Indian Passports conforming to normal borrower standards with independent & regular source of income.

v	Age of the borrower/s shall be between 18 years to 65 years subject to the condition that repayment period (including repayment holiday if any,) shall not go beyond the retirement age, in case of salaried class, and 70 years of age, in case of other than salaried class.

v	Where property is held in joint names, all the joint holders should join as co applicants to the loan.

v	In addition to spouse, maximum of one close relative as co applicant required for supplementing repayment capacity.

v	However, where the property to be mortgaged is jointly owned by close relatives, all the joint owners to join as co applicants, irrespective of their age and numbers.

v	Where property is owned by applicant’s parents/spouse who do not have independent/ regular income, they should join as co applicant only, irrespective of their age.

v	If, applicant is unmarried/divorcee, co obligation of parent/s (irrespective of their age) or third party guarantee is required.

v	Applicant /Co applicant must be confirmed in the service & should have two years of aggregate service in previous & present employment together.

2. Purpose :

v	For construction of house/flat, purchase of ready built house/ flat.

v	For take-over of housing loans from other Banks/Institutions.

3. Loan Amount:

Area	Loan Amount	Out of which, Loan for Site/Plot
Metro & Port Town Centres	Rs. 500 lakh	Rs. 50 lakh
Urban Centres	Rs.100 lakh	Rs. 30 lakh
Semi Urban	Rs. 50 lakh	Rs. 20 lakh
Rural	Rs.25 lakh	Rs.10 lakh
Loan amount is based on location of the property.

4. Margin for Loan:

Loan Amount Rs.	Margin
Below Rs.20 Lakh:	10%
Rs.20 lakh & above and upto Rs. 2 crore:	20%
above Rs.2 crore to Rs.3 crore:	30%
above Rs.3 crore:	35%

* Property to be mortgaged for housing loan shall be primary security.
* Wherever, Site/Plot has already been mortgaged as security for any other credit
facility, loan only for construction of house may be sanctioned. In such cases, margin
of 35% shall be maintained on cost of construction.

4[a] Repayment Period:

Age of the House/Flat [Maximum age of the House/Flat shall not exceed 30 years]	Repayment Period
Up to 10 years	30 years Maximum tenor under floating rateloans is 30 years, inclusive of initial repayment holiday, if any.
Above 10 years & up to 20 years	20 years
Above 20 years & up to 30 years	15 years

* Repayment period should not exceed retirement date for salaried persons and 70
years of age for other than salaried persons.
* Maximum tenor under Fixed rate loans restricted to 20 years for salaried class and 15
years for other category of borrowers.
* Housing loans under Fixed Rate of Interest is offered upto 20 years only.

5. Security:
Mortgage of house / flat purchased out of Bank Finance.

6. Guarantee:

v	Third party guarantee at the discretion of the Sanctioning Authority.

v	Wherever third party guarantee is not stipulated, co obligation of Spouse is mandatory.

v	If, applicant is unmarried/divorcee, co obligation of parent/s (irrespective of their age) or third party guarantee is required.

7. Rate of Interest:
[Interest Rate is linked to the Base Rate ]

a] FLOATING RATE:

Loan Tenor	Upto Rs.50 lakh	Above Rs.50 lakh & upto Rs. 1 crore	Above Rs.1 crore
For all Tenors [Max. 30 Years]	BR (10.25%)	BR+0.25% (10.50%)	BR+0.50% (10.75%)

Note: The Interest Rate as above is applicable to fresh loans only

b] FIXED RATE:

Loan Tenor	Upto Rs.25 lakh	Above Rs.25 lakh
For all Tenors [Max. 20 Years]	13.10%	13.60%

8. EMI and Eligible Income :

EMI (Equated Monthly Instalment):

* The EMI stipulated in Credit Sanction Intimation while sanctioning of loan will remain the same during the entire tenor of the loan irrespective of revision in rate of interest during the tenor, except in cases, where initial repayment holiday period is given. This is may result in extension of payment period due to interest rate variations.

* Where part of the loan is prepaid, re-fixing/reduction of EMI is permittedbased on the residual balance and leftover repayment period so that the loan is closed within the original repayment tenor. A letter of request from the borrower is however required.

* Wherever initial repayment holiday period is given, EMI will be fixed at the beginning of repayment period depending upon the balance outstanding in the account.

Eligible Income:

- Regular & verifiable income is only considered
- Salary, Pension, Business income, Agricultural income are eligible
- In case of seasonal income, quarterly/half yearly/ yearly installments are also considered
- HUF income is not considered.

9. Project Cost:

v	Loan for construction/purchase of house in Agricultural land not to be permitted under the Scheme.

v	Project cost consists of purchase price only. Registration charges, stamp duty, documentation charges, VAT & Service Tax shall not be included in the project cost.

v	In case of ready built flat/flat under construction, sale agreement can include cost of parking area.

v	In case of construction of house, project cost includes construction of compound wall.

v	Cost of Solar Water Heating System may also be considered as one of the components of project cost

Where loan is availed for construction of house/purchase of ready built New flat/New house or flat/house under construction, cost of permanent fixtures such as wardrobe, wooden fittings/racks & Modular Kitchen/Solar water/Electricity system, etc., may be included in the project cost subject to the folloeing conditions:

1. Project Cost component of such items shall not exceed20% of Project Cost.
2. Loan component for such items shall not exceed Rs.15 lakh.

10. Maximum number of Housing loans permitted:

v	Maximum of three housing loans, is considered subject to borrower’s income/ repayment capacity, satisfactory status of the previous loans etc..

v	All housing loan limits availed for purchase of/ construction/ repair/renovation/ extension etc., are clubbed together for the purpose of charging Rate of Interest.

11. Processing Charges:

W.e.f. 01.07.2012: 0.50% of Loan amount (Maximum Rs.50,000/-)
Note: The charges are exclusive of applicable Service Tax

12. Pre Payment Penalty:

NIL

13. Conversion Charges :

v	From Floating to Fixed : 1% of the outstanding balance, inclusive of up to date interest as on the date of conversion.

From Fixed to Floating :The existing fixed rate loans including those already subjected to reset, where rate of interest charged is below 12% can be converted to floating rate at the option of the borrower at the time of next reset by payment of conversion charges at 1% on the loan amount outstanding as on the date of conversion.

The existing fixed rate loans including those already subjected to reset, where rate of interest charged is 12% and above , can be converted to floating rate at the option of the borrower at any time during the currency of the loan by payment of conversion charges at 2% on the loan amount outstanding as on the date of conversion.

v	Re-Scheduling of loan to lower tenor is not allowed under the Scheme.

14. Loan for Site & Construction of House:

v	Under the Scheme, loan for purchase of site/plot/land and construction of house thereon are considered.

v	Where loan is availed for purchase of site & construction of house thereon, cost of site/land should not exceed 60% of project cost.

v	Construction should commence within 12 months.

v	Construction should be completed with in maximum of 24 months.

v	In case of default in construction of house, rate of interest is charged to such loan is COBAR+0.50%+3% and the interest at this rate is applicable from from the date of initial disbursement of loan.

15. Take over of Loan:

v	Take over of housing loan availed with other banks/ Institutions/ employer permitted

v	Take over of loan from first financier is only permitted (i.e. First time takeover of loan only is permitted)

v	Repayment period should not exceed leftover repayment period of transferor bank OR repayment period prescribed under the Scheme in relation to age of the property OR Balance life of the property, whichever is shorter

v	Loan amount should not exceed 75% of market value or Balance outstanding at transferor bank whichever is lower

v	Age of the property not to exceed 25 years.

16. Second Loan for Enhancement:

v	Enhancement of loan may be permitted during pre EMI or post EMI period.

v	loan for enhancement treated as separate loan. However loan amounts are aggregated for computation of rate of interest.

17. For Repairs/Renovation/Extension:

FOR REPAIRS/RENOVATION/EXTENSION/IMPROVEMENT/FURNISHING OF HOUSE,
PLEASE AVAIL THE FACILITY UNDER `CORP GHAR SHOBHA SCHEME'

18. Loan against Second charge/ Pari Pasu Charge:

In case of resident individuals such as employees of Government/Reputed Institutions/ Organizations /Corporates, who have already availed housing loan from their respective employers by mortgaging the property in favour of the employer, in such cases, housing loan is considered on a selective basis only against Pari-Passu charge.

v	In such cases, value of the property must be 150% of the total loans availed against such property.

v	Loan against second charge not considered.

19. Corp Flexi Loans:

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, installments will be flexible/progressive/ step up, in tune with increase in income. (The scheme is only for salaried class)

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 will be 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 10 th year.

Other Conditions:

v No relaxation permitted from the prescribed margin.

v Certificate from employer regarding salary structure for the next 5 years compulsory.

20. Disbursement:

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

21. Insurance:

v Property to be covered under Insurance under Reinstate value method.

v Insurance of the mortgaged property is mandatory and the insurance premium borne by the borrower.

22. Corp Griha Raksha:

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

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Most Important Terms & Conditions:

Corp Ghar Sansar- For financial requirements of the Housing loan borrowers :