CORPORATION BANK-MITRA

1. Eligibility

All the confirmed Employees/ Executives/ Officials of the LIC of India, LIC Housing Finance Ltd., LIC Mutual Funds and other insurance companies under public sector and their subsidiaries whose salary is routed through our Bank.

In the case of Agents of LIC - a minimum period of 5 years service and are receiving regular commission through the Bank.

The sanction of loan facility may be restricted upto the age of 65 years.

2. Purpose

To meet personal/ domestic expenses/ contingencies

3. Amt. of Finance

The maximum loan amount shall be

a) restricted to 12 months' gross emoluments in the form of Clean Demand Loan subject to EMI not exceeding 50% of takehome pay without quantitative restrictions.

b) restricted to 6 months gross emoluments in the form of clean Overdraft without quantitative restrictions.

Over Draft facility will be made available only to the employees of LIC of India, LIC Housing Finance Ltd., LIC Mutual Fund and New India Assurance Co Ltd.

In the case of Agents of LIC, the eligible Demand Loan / Overdraft limit is to be fixed at 60% of the average annual commission receipts during the immediate preceding 3 financial years with a maximum of Rs.1.50 lakh without any security and the balance with collaterals.

4. Nature of facility

Either as Demand Loan or Clean Overdraft limit

5. Rate of Interest

For Demand Loan /Overdraft - 13.75% w.e.f. 03.02.2009

6. Repayment

The Demand loan is repayable within a maximum period 60 months in Equated Monthly Installments. The Loan / OD to be repaid in full before the retirement of the employee subject to annual review

7. Securities

No securities insisted upon for the overdraft facilities to the Executives/Officials/Employees of LICI, LICHFL LICMFLand NIACL.

In the case of loans to the Agents of LIC exceeding Rs.1,50,000 the facility should be fully secured by collaterals like NSCs (with margin of 15% on face value) and/or LIC policies (with a margin of 10% on Surrender Value).

8. Guarantee

Third party guarantee is mandatory in the case of class-II, III and IV Employees of LIC and all insurance cos and Agents of LICI [ Guarantee of other employees of insurance cos. An employee/ agent can guarantee one loan]. A third party guarantee may also be obtained.

In case of loans sanctioned to LIC Agents, the loan shall be guaranteed by another LIC agent/LIC employee having reasonable level of income and networth.

9. Service Charge

NIL

CORPORATION BANK-IPO SCHEME

1. Purpose

To provide finance to general public to subscribe to IPO/Public Issues /Rights /ESOP of reputed Corporate / Corporates approved by the Bank from time to time.

2. Eligibility :

Individuals (such as salaried persons, professionals, businessmen, pensioners etc.) either individually in their own names or jointly with others, with sufficient income to service the loan.

3. Nature of facility
Demand Loan

4. Loan amount
Minimum Rs.0.20 lakh and Maximum Rs.10.00 lakh

5. Margin
50% of the value of shares subscribed (issue price + price)

6. Rate of Interest
12.25% with effect from 11.08.2008

7. Penal Interest
@ 2% over and above the applicable interest rate on the overdue portion or at rates as prescribed from time to time.

8. Repayment Holiday
NIL

9. Repayment period

(a) In the event of refund of application money
The loan account has to be closed immediately.

(b) In the event of allotment of share
Total loan amount along with interest shall be repayable in maximum 36
Equated Monthly Installments [EMI]

10. Security
Pledge of shares allotted

11. Service charges
0.50% of the loan amount subject to a minimum of Rs.500/-

12. Guarantee
Suitable third party guarantee

Please click here for list of implementing Branches identified under the Corp IPO scheme

CORPORATION BANK - SITE PURCHASE LOAN

CORP SITE ( CCPL)

LOAN FOR APPLICATION MONEY

1.Eligibility

Salaried Individuals confirmed in service. Non salaried class engaged in business, professional and self employed persons who are IT assesses and having minimum of 2 year’s satisfactory dealings with the bank.

The applicant should be eligible to apply to the local development authority as per their rules for site/plot.

The applicant should undertake to construct the house in the allotted site/plot with in a maximum period of five years.

Applicant should be preferably the Bank’s customer. New customer should be well introduced to the bank with proper due diligence exercise.

2.Purpose

To finance the application money(initial deposit) payable to local development authority for allotment of residential site/plot.

3.Amount

Maximum loan amount is Rs.1 lakh or initial deposit payable whichever is less , but should not exceed 12 times of monthly take home pay in case of salaried persons.

100% of gross annual income as declared in the income certificate produced to development authority in case of other than salaried persons.

4. Margin

For existing customers with 2 years satisfactory track record, and those who are drawing salary through the bank : Margin is NIL.
For others : 15% of the application money.

5. Rate of Interest wef 11.08.2008

Towards Application Money: 14.25%

In case of refund of application money: 14.25% for the entire period

Land Allotted by HB/UDA 14.25%

In case of Premature closure or normal closure of A/c. without availing Housing Loan from our Bank for construction: 14.25% for the entire period of loan

6. Disbursement

Directly by DD to Development authority along with application form.
DD should not be handed over to the borrower.

7. Security

An undertaking from the borrower to deposit the allotment letter issued by Development authority with the bank.

8. Guarantee

Third party guarantee to be obtained. However sanctioning authority may waive the same based on merits of the case.

9. Repayment

Within 12 months or 15 days from the date of refund whichever is earlier.
EMI should not exceed 50% of take home (including proposed loan).

10. Service charges

Minimum Rs.500/- irrespective of loan amount.

11. Delegated lending power

Only identified branches can sanction the loan of Rs.1 lakh or application money whichever is less.

Note Branches will be identified by Zonal Office after ensuring that the nodal branch has entered into prior arrangement with the development authority/ housing board to pay the refund,/ send allotment letter./ title deeds directly to the branch.

CORP SITE ( CCPL)

LOAN FOR PURCHASE OF ALLOTTED SITE/ PLOT

1. Eligibility

Salaried Individuals confirmed in service. Non salaried class engaged in business, professional and self employed persons who are IT assessees and having minimum of 2 year’s satisfactory dealings with the bank.

NRI is also eligible.

The applicant should be eligible to apply to the local development authority as pe their rules for site/plot.

The applicant should undertake to construct the house in the allotted site/plot with in a maximum period of five years.

Applicant should be preferably the Bank’s customer. New customer should be well introduced to the bank with proper due diligence exercise .

2. Purpose

To finance the purchase of land allotted by the local development authority / housing board as residential site/plot.

3. Amount

Maximum loan amount shall be 75% of the total amount payable plus registration charges or Rs.8 lakhs whichever is lower.

4. Margin

25% of the total cost of site/plot.

5. Rate of Interest

13.25 % w.e.from: 01.06.2007. ( in case of premature closure or closure of the loan at the end of the 5th year without availing housing loan for construction of the house interest will be charged at 13.25% (COBAR) from date of first disbursement to the date of closure.

6. Disbursement

Directly by DD to Development authority.
DD should not be handed over to the borrower.

7. Security

An undertaking from the borrower to deposit the allotment letter issued by Development authority with the bank. EMG of site/plot allotted/purchased from the development authority.

8. Guarantee

Third party guarantee is not mandatory.

9. Repayment

Within 60 months in EMI.
EMI should not exceed 50% of take home (including proposed loan).

10. Service charges

0.50% of loan amount subject to Minimum Rs.1000/-

11. Delegated lending power

Branch head of identified Urban/Metro branches can sanction maximum loan of Rs.8 lakh.

Note
Branches will be identified by Zonal Office after ensuring that the nodal branch has entered into prior arrangement with the development authority/ housing board to pay the refund,/ send allotment letter./ title deeds directly to the branch.

CORPORATION BANK

Loans

Corp Bank offers a variety of loans to choose from. The various retail loans are given as 'Corp Schemes' highlighting the traditional Corp Bank commitment on giving the best in terms of service, speedy disposal and of course at a very competitive interest rates.

Corp Bank offers Housing Loans, Education Loans, Consumer Loans for purchase of consumer durables like TV, washing machines, music systems and other electronic goods, loans against future rent receivables on leased out building/premises, loans to purchase two-wheelers & four-wheelers, loans against shares, loans for purchase of medical and other such sophisticated equipments, loan to acquire office premises/building & furniture, personal loans, loans to women to buy pure gold/jewelery, loan against mortgage of property etc.

The Bank’s Benchmark PLR, Known as COBAR (Corporation Bank Benchmark Advance Rate) stands revised at 12.50% per annum, with effect from 1.1.2009

Interest calculation on credit facilities will be done on the basis of 365 days only, irrespective of whether the year is leap year or not.

CENT SUVIDHA

An overdraft scheme to tie up temporary mismatch of salaried employees whose salary is routed through Savings account with our branches.

Purpose: To meet any personal exigencies.

Eligibility: Salaried employees of Corporate Clients/ Schools / Colleges/ Universities/ Other Organizations whose salary is routed through Savings accounts of our branches with satisfactory operation at least for one year.

Quantum of Loan: One month's net salary, Maximum Rs.20,000/-.

Facility: Overdraft facility to be renewed annually.

Rate of Interest: Click here to view Interest Rates

Processing Charges: Nil

Documents required: Undertaking from the employer to credit monthly salary.

CENT- MULTIPURPOSE

Facility & Purpose

CENT MULTI PURPOSE scheme is targeting those borrowers who have the capacity and are willing to avail a minimum specified loan amount under at least one or more specified Retail Loan Schemes.


The scheme is designed specially for borrowers who are availing Housing Finance from our Bank and also want to avail benefit of hassle free package with certain concessions in respect of interest rates and processing charges in Retail loan scheme of CENT BUY & PERSONAL LOAN.

Eligibility

Individuals including joint borrowers, who are willing to avail minimum total loan of Rs.5.00 lakhs including Housing Loan which is compulsory and one or both of the following Retail Loan Schemes.

2.1. CENTBUY:For purchase of consumer durables or new car.

2.2. PERSONAL LOAN For meeting personal requirements such as marriage of children, Medical Expenses, Inland / Foreign Travels, Family Functions etc.

Amount of Loan

i) HOUSING LOAN Need based-Minimum Rs.2.00 lakhs.
ii) CENT BUY Minimum Rs.50000/- Maximum Rs.10 lakhs.
iii) PERSONAL LOAN Maximum Rs.1.00 lakh.

All terms and conditions of our above mentioned Retail Loan Schemes and Housing Loan Scheme shall be applicable except as mentioned below.

Margin

Name of the scheme CENT MULTIPURPOSE NORMAL SCHEME (Existing)

Housing Loan 10 % 10 %
CENT Buy 10 % 15% for Consumer Durables
20% for Car.
Personal Loan NIL NIL

Security

Housing Loan: Equitable / Registered Mortgage of House /Property / Flat Financed.

Cent Buy : Hypothecation of Consumer Durables / Vehicles financed.

Equitable Mortgage should be for the total amount of loan given under different schemes.

Comprehensive Insurance in case of house / car loans.

Rate of Interest (click here)

CENT - MORTGAGE

Immovable property mobilizing resources

Eligibility

Loan against mortgage of immovable property located in Metro / Urban / Semi-urban centers.

Target Group

Individual/s singly or jointly, Traders, Businessmen, Professionals or Self –employed persons etc. Having known and regular source of net income of Rs. 10,000/- per month or more.

Nature of facility

Term Loan and Overdraft

The Overdraft facility will be for one year and to be reviewed annually.

However DP is to be reduced by EMI on notional repayment period of 72 months, so that the loan is adjusted at the end of 72 months.

Purpose

To meet any sort of personal or business expenses, but not for speculative purpose.

Quantum of Loan

36 times of Net monthly Income of applicant/s (for salaried class) or 3 times of net annual income as per IT return (for other than salaried class) subject to max. of Rs.50.00 lakhs.

While arriving at the net monthly income / net annual income, income of spouse can be clubbed if joins as co-borrower.

Minimum loan = Rs.1 lakh
Maximum loan = Rs.50 lakh

Security

EM of non-encumbered residential house / flat, commercial or industrial property, situated in metro/urban/semi-urban centers only, in the name and possession of the borrower, either self-occupied or vacant. The property should be of value equal to 200% of the loan amount.

Partially leased out/rented property (e.g. two storeys of the building having four storeys being already leased) also may be accepted as a security. However valuation of only vacant /self-occupied portion of the property to be considered for fixing quantum of the facility and equitable mortgage of the entire property to be created.

Subsequent to availing of the loan, if the property is to be let out, Bank’s permission will be required. The Sanctioning Authorities would accord their permission only where the proposed lease is in favour of an institution of repute and lease rentals/monthly rent will be assigned to the bank.

Alternatively, the loan would have to be repaid prior to the letting out of the property.

Insurance

The property will be insured against fire, riots wherever required, against other appropriate hazards, such as, Earthquake, Flood, Lightening etc. by the borrower with usual bank clause for full value of the property through Bank insurance.

Guarantee

Personal Guarantee of joint/co-owner of the property (if any).

Rate of Interest As per bank rules.

Processing Charges :1% of loan amount.

Repayment

In Maximum 72 equated monthly installments commencing from the next month after disbursement.

Repayment to be fixed on realistic basis, which should not normally exceed 50% of gross monthly income.

Post dated cheques signed by the borrower for repaying monthly installments along with letter of deposit to be obtained.

Sanctioning Authority

BM in scale II = Rs.5 lakhs

BM in scale III = Rs.15 lakhs

CM/RM = Rs.30 lakhs

A.G.M. = Rs.40 lakhs

Dy. G.M.& Above = Rs.50 lakhs
General

Net income means total income of the borrower as per Income Tax return or other documentary evidence, less deductions for various loan installments, Income Tax and other statutory dues etc.

Valuation of the immovable property will be done by an approved valuer, who is registered with Indian Institute of Valuers, at borrower’s cost. Valuation has to be checked out with the market rate prevailing in the area where the property is situated. For this purpose reference should be made to the record with Government Departments / Municipal Authorities. Valuation report should indicate present value, sale value as well as distress value.

Joint owners or one of the joint holders of the property may also be allowed loan under the scheme. In a situation when loan is being allowed to one of the joint owners, in addition to equitable mortgage of the property the guarantee of other joint owner/s be obtained.


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