About Corporation Bank Loan Against Property
Eligibility: Corporation Bank Loan Against Property
1.Residents /NRIs/ PIO holding Indian Passports conforming to normal borrower standards with independent & regular source of income.
2.Age of the borrower/s shall be between 18 years to 60 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.
3.Where property is held in joint names, all the joint holders should join as co-applicants to the loan.
4.In addition to spouse, maximum of one close relative as co- applicant required for supplementing repayment capacity.
5.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.
6.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.
7.If, applicant is unmarried/divorcee, co obligation of parent/s (irrespective of their age) or third party guarantee is required.
8.Applicant /Co- applicant must be confirmed in the service & should have two years of aggregate service in previous & present employment together.
Purpose: Corporation Bank Loan Against Property
1.For construction of house/flat, purchase of ready built house/ flat.
2.For take-over of housing loans from other Banks/Institutions.
Loan Amount: Corporation Bank Loan Against Property
Margin for Loan: Corporation Bank Loan Against Property
above 1 crore to 2 crore : 25%
Repayment Period: Corporation Bank Loan Against Property
1.Property mortgaged for housing Loan is the primary security.
2.Wherever, Site/Plot has already been mortgaged as security for any other credit facility, Loan only for construction of house may be sanctioned with a margin of 35% on cost of construction.
4.Third party guarantee at the discretion of the Sanctioning Authority.
Security: Corporation Bank Loan Against Property
Mortgage of house / flat purchased out of Bank Finance.
Guarantee: Corporation Bank Loan Against Property
1.Wherever third party guarantee is not stipulated, co obligation of Spouse is mandatory.
2.If, applicant is unmarried/divorcee, co obligation of parent/s (irrespective of their age) or third party guarantee is required
Eligible Income: Corporation Bank Loan Against Property
– Regular & verifiable income is only considered
Project Cost: Corporation Bank Loan Against Property
1.Loan for construction/purchase of house in Agricultural land not to be permitted under the Scheme.
2.Project cost consists of purchase price, Stamp Duty, Registration Charges, VAT/Service Tax etc..
3.In case of ready built flat/flat under construction, sale agreement can include cost of parking area.
5.Cost of Solar Water Heating System may also be considered as one of the components of project cost
6.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 & Italian Kitchen etc., are permitted to be added in the project cost. However, cost of such items not to exceed 10% of the loan amount sanctioned, subject to the maximum of Rs.2 lakhs.
Maximum Number Of Housing Loans Permitted:Corporation Bank Loan Against Property
1.Maximum of three housing loans, is considered subject to borrower’s income/ repayment capacity, satisfactory status of the previous loans, etc.
2.All housing loan limits availed for purchase of/ construction/ repair/renovation/ extension etc., are clubbed together for the purpose of charging Rate of Interest.
Processing Charges: Corporation Bank Loan Against Property
For Fresh Loans sanctioned from 15.06.2011 to 30.09.2011 Processing Charge is waived
PrePayment Penalty: Corporation Bank Loan Against Property
a) Prepayment charges shall not be levied when the loan amount is paid by the borrowers out of their own fund/sources
b) In all other cases, Prepayment charges shall be levied as under:
0.50% on loan amount prepaid under the floating rate option
Conversion Charges: Corporation Bank Loan Against Property
1.From Floating to Fixed : 1% of the outstanding balance, inclusive of up to date interest as on the date of conversion.
2.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.
3.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.
4.Re-Scheduling of loan to lower tenor is not allowed under the Scheme.
Loan for Site & Construction of House:
1.Under the Scheme, loan for purchase of site/plot/land and construction of house thereon are considered.
2.Where loan is availed for purchase of site & construction of house thereon, cost of site/land should not exceed 60% of project cost.
3.Construction should commence within 12 months.
4.Construction should be completed with in maximum of 24 months.
5.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.
Take Over Of Loan:
1.Take over of housing loan availed with other banks/ Institutions/ employer permitted
2.Take over of loan from first financier is only permitted (i.e. First time takeover of loan only is permitted)
3.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
4.Loan amount should not exceed 75% of market value or Balance outstanding at transferor bank whichever is lower
5.Age of the property not to exceed 25 years.
6.Enhancement of loan may be permitted during pre-EMI or post EMI period.
Second Loan for Enhancement:
For Repairs/Renovation/Extension/Improvement/Furnishing Of House,
Loan against Second charge/ Pari Pasu Charge:
1.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 favor of the employer, in such cases, housing loan is considered on a selective basis only against Pari-Passu charge.
2.In such cases, value of the property must be 150% of the total loans availed against such property.
3.Loan against second charge not considered.
4.Loan amount will be 130% of the normal entitlement
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)
1.First 5 years, EMI is based on present repayment capacity for normal loan entitlement.(100%)
2.Next 5 years, EMI will be normal for full loan (130%)
3.Balance period, EMI will be for balance repayment period on the balance outstanding at the end of 10th year.
4.Loan amount will be based on present repayment capacity.
1.First 5 years, EMI at 70% of normal EMI.
2.Next 5 years, normal EMI.
3.Balance period, EMI will be for balance repayment period on the balance outstanding at the end of 10 th year.
4.No relaxation permitted from the prescribed margin.
Insurance: Corporation Bank Loan Against Property