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Corp Home - Housing Loan
1. Eligibility
| v | Residents/NRIs holding Indian Passports conforming to normal borrower standards with independent & regular source of income |
| v | Applicant/s should be in the age group of 18-50 years |
| v | Where property is held in joint names, all the joint holders should join as co-applicants to the loan. |
| v | Any one of the close relative may join as co-applicant in case applicant's income is not sufficient to service the loan. |
| v | Spouse, father, mother, brother, son, daughter only are close relatives. |
| 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 the applicant/co-applicant is in service, he should have 2 years of confirmed service. |
2. Purpose
| v | For construction of house/flat, purchase of ready built house /flat. |
| v | For repairs/renovation/extension/improvement of existing house/flat. |
| v | For take-over of housing loans from other banks/institutions. |
3. Loan Amount
Area
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Loan Amount
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Loan for Site
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Metro & Port Town Centres
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Rs.100 lacs
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Rs.30 lacs
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Urban Centres
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Rs.50 lacs
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Rs.15 lacs
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Semi Urban & Rural Centres
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Rs.25 lacs
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Rs.10 lacs
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For Repair /Renovation/Extension/Improvement Rs.5 lacs
4. Margin & Repayment Period
Age of the house/flat
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Margin
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Repayment
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Upto 10 years
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20%
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25 years
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Above 10 years & upto 20 years
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20%
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20 years
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Above 20 years & upto 30 years
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25%
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15 years
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Repair/Renovation/Extension
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20%
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5 years
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Repayment period should not exceed retirement date for salaried persons and 65 yearsof age for other than salaried persons.
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 obtained, co-obligation of spouse is mandatory. |
| v | However, ZO may permit waiver of co-obligation of spouse. |
7. Rate of Interest with effect from 14th August, 2009
CorpHome (Floating Rate) Upto Rs. 30 lakh*
TENOR
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Fresh Loans Sanctioned/Disbursed on or after 04.05.2009
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Upto 5 years
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8.75%
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Above 5 years & upto 15 years
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9.50%
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Above 15 years & upto 20 years
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9.75%
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Above 20 years & upto 25 years
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10.25%
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*The above rates are applicable to all new CorpHome Loans with the limit and upto Rs. 30 Lakh.
CorpHome (Floating Rate) Above Rs.30 lakh & upto Rs. 50 Lakh:
Tenor
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Fresh Loans Sanctioned/Disbursed on or after 04.05.2009
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Upto 5 years
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9.50%
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Above 5 years & upto 15 years
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10.00%
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Above 15 years & upto 20 years
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10.50%
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Above 20 years
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10.75%
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CorpHome (Floating Rate) Above Rs. 50 Lakh:
Loan Tenor
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Fresh Loans sanctioned/ disbursed after 04.05.09
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Loan Upto 5 years
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10.00%
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Loan above 5 years & upto 15 years
|
10.50%
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Loan above 15 years & upto 20 years
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10.75%
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Loan above 20 years & upto 25 years
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11.00%
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CorpHome (Fixed Rate):
Loan Amount
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Fresh Loans sanctioned/Disbursed on or after 04.05.2009
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Loan upto Rs. 30 lakh
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11.00%
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Loan above Rs.30 lakh & Upto Rs. 50 Lakh
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11.50%
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Loan above Rs. 50 Lakh
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11.50%
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Notes:
| v | 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. |
| v | Maximum tenor under Fixed rate loans restricted to 20 years for salaried class and 15 years for other category of borrowers. |
| v | 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. |
8. EMI & Eligible Income
In case of salaried class, where gross income is upto Rs.2 lakhs, EMI, including the instalments/notional interest in respect of existing and proposed loan together should not exceed 40% of net income
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In case of salaried class, where gross income is above Rs.2 lakhs, EMI, including instalments/notional interest in respect of existing and proposed loan together should not exceed 50% of net income.
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In case of other than salaried class, EMI, including instalments/notional interest in respect of existing and proposed loan together should not exceed 50% of net annual income
|
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| v | Regular & verifiable income only shall be considered |
| v | Salary, Pension, Business income, Agricultural income etc., are eligible. |
| v | In case pf seasonal income, Quarterly/Half yearly/Yearly instalments may be fixed. |
| v | Depreciation/cash accruals may also be added to net income. |
| v | Future rental/projected income shall not be considered. |
9. Processing Charges
Upto Rs.5 lakhs
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0.50% of loan subject to min. Rs.1,000/- & max. Rs.2,500/-
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Above Rs.5 lakhs & upto Rs.15 lakhs
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0.50% of loan subject to min. Rs.2,500/- & max. Rs.7,500/-
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Above Rs.15 lakhs & upto Rs.20 lakhs
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0.50% of loan subject to min. Rs.7,500/- & max. Rs.10,000/-
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Above Rs.20 lakhs
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0.50% of loan subject to min. Rs.10,000/- & max. Rs.50,000/-
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10. Pre Payment Penalty
Floating Rate Option
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0.50% of amount prepaid in excess of 10 EMIs/2 Quarterly/1 Half Yearly/1 Yearly instalments during the year OR pre closure of loan account.
| v | (No Penalty for loans sanctined prior to 01.02.2005 ) |
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Fixed Rate Option
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| v | No Penalty for prepayment after completion of 5 years |
| v | No penalty for prepayment for amount not exceeding 10 EMIs/2 Quarterly/1 Half yearly/1 Yearly instalments. |
| v | Penalty at 1% on the entire amount prepaid, otherwise. |
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11. Conversion Charges
| v | From Floating to Fixed : 1% of the outstanding balance, inclusive of upto date interest as on the date of conversion. |
| v | From Fixed to Floating : Not allowed |
| v | Re-Scheduling of loan to lower tenor to get the benefit of lower rate of intererst is not allowed under floating rate of interest option. |
12. Loan for Site
| 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 | In such cases, construction should commence within 12 months. |
| v | Construction should be completed within 24 months. |
| v | 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) |
13. Take Over of Loan
| v | Take over of housing loan availed with other banks/institutions/employer is permitted under the scheme. |
| v | In principle clearance shall have to be obtained from Zonal Office. |
| v | Repayment period should not exceed leftover repayment period of transferor bank & loan amount should not exceed 75% of market value. |
| v | Age of the property should not exceed 10 years. |
14. Second Loan for Enhancement
| v | Maximum of two loans may be permitted for purchase/construction/repair. |
| v | Enhancement of loan may be permitted during pre EMI or post EMI period |
| v | Loan for enhancement shall be treated as separate loan. However loan amount should be aggregated for computation of rate of interest. |
15. For Repairs/Renovation/Extension
| v | Loan for repair/renovation/extension may be sanctioned. |
| v | 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. |
| v | 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. |
| v | Loan for repair/renovation shall be treated as an independent loan and shall not be aggregated for computation of interest rate. |
| v | 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. |
16. Loan against Second Charge Pari Pasu Charge
| v | Loan against second charge/pari pasu charge may be considered on selective basis. |
| v | In such cases, value of the property shall be not less than 150% of the total loans availed against such property. |
| v | Such loans should be sanctioned by Zonal Office only. |
17. Corp Flexi Loans
The Scheme is to facilitate the younger borrowers who are expecting income growth in the years to come, and would like to avail higher quantum of loan than the normal eligibility, may opt for housing loan under Corp Flexi option. Under the Scheme, instalments will be flexible/progressive/step up, in tune with increase in income. (The Scheme is ony for salaried class )
Option 1
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| 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 10 year. |
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Option 2
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| v | Loan amount will be based on present repayment capacity. |
| v | First 5 years, EMI will be 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 years. |
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Other condition
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| v | No relaxation is permitted from prescribed margin of 20% |
| v | Certificate from employer regarding salary structure shall be obtained. |
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18. Disbursement
| v | Loan amount shall be directly remitted to the seller. No reimbursement of purchase price is permitted under the scheme. |
| v | In case of flat/property under construction, loan shall be released in stages depending upon the progress of construction. |
19. Insurance
| v | Property shall be covered under insurance under Reinstate value method. |
| v | 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. |
20. Corp Griha Raksha
| v | 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. |
21. Equated Monthly Instalments for every Rs.1 lakh of loan for various repayment periods
Rate of Interest
|
5 years
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10 years
|
15 years
|
20 years
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25 years
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8.5%
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2052
|
|
|
|
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9.0%
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2076
|
1267
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1014
|
900
|
839
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9.25%
|
2088
|
1280
|
1029
|
916
|
857
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9.5%
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2100
|
1294
|
1044
|
932
|
874
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9.75%
|
2112
|
1308
|
1060
|
949
|
891
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10.0%
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2125
|
1322
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1075
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965
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909
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10.25%
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2137
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1335
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1090
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982
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926
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10.5%
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2150
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1349
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1105
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998
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944
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10.75%
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2162
|
1363
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1121
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1015
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962
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11.00
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2174
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1378
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1137
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1032
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980
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11.25
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2187
|
1392
|
1152
|
1049
|
998
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11.50
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2199
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1406
|
1168
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1066
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1017
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11.75
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2212
|
1420
|
1184
|
1084
|
1035
|
12.00
|
2225
|
1435
|
1200
|
1101
|
1053
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12.25
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2237
|
1449
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1216
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1119
|
1072
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22. Click here for documents to be supplied along with Home Loan application
23. Revised Application Form:
24. EMI Calculator
25. Please click here for - Checklist
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