Corporation Bank-Personal Loan

Corp Personal

For all your personal financial needs

1. Eligibility

Permanent employees of Central / State Government Offices, Profit making Public Sector Undertakings and Public Limited Companies, Schools, Colleges, Universities and Research Institutions, Pensioners drawing pension through our Bank and individuals with income other than salary/pension

2. Purpose

To meet any genuine personal expenses relating to family functions, education, travel, marriage, medical etc.

3. Loan Amount

i) For salaried persons the maximum loan amount shall be 12 times the take-home pay, where an undertaking letter has been obtained from the employer -

[a] to route the salary through our Bank till the loan is closed in full

or

[b] to deduct and remit the loan instalments to the Bank every month until closure of the loan in full.

ii) For salaried persons whose salary is routed through our Bank, but where no undertaking letter from employer is not available, the maximum loan amount shall be restricted to 6 times the take-home pay.

iii) In case of pensioners drawing pension through our Bank, the maximum loan amount shall be restricted to 6 months' pension.

iv) In case of individuals with income other than salary/pension, the maximum amount of the loan shall be 25% of the gross annual income.

4. Rate of Interest

15.25% p.a. w.e.f 11.08.2008

5. Security

Nil

6. Guarantee

Suitable Third Party guarantee to be obtained in all cases.

7. Repayment

Within a maximum period of 60 months in Equated Monthly instalments. Total deductions [including the deduction towards the proposed Loan ] not to exceed 50% of the take-home pay.

8. Service Charges

1.50% of the loan amount subject to a minimum of Rs.500/-

Corp Vidya - Education Loan

Eligibility Criteria:

Student Eligibility

v Student should be an Indian National.

v Should have completed previous qualifying examination.

v Secured admission to professional/ technical courses in India or Abroad through Entrance Test/Merit Based Selection process.

v Person already in gainful employment are not eligible for loan under the scheme except for pursuing evening course covered under the scheme of approved institute.

Courses Eligible:

a. Studies in India

v Graduation Courses : BA, B.Com, B.Sc., etc

v Post Graduation Courses : Masters & Phd.

v Professional Courses : Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc.

v Courses like ICWA, CA, CFA etc

v Courses conducted by IIM, IIT, IISc, XLRI, NIFT etc

v Regular Degree/Diploma courses like Aeronautical pilot training, shipping etc., approved by Director General of Civil Aviation/Shipping, if the Course is pursued in India. In case the course is pursued abroad, the Institute should be recognized by the competent local aviation/shipping authority.

v Courses offered in India by reputed foreign universities

v Evening courses of approved institutes.

v Nursing/Teachers training courses for periods of one year & above from recognized colleges/institutes leading to Diploma/Degree.

v Other Courses leading to diploma/degree etc. conducted by Colleges/universities approved by UGC/Govt /AICTE /AIBMS/ ICMR etc

v Courses offered by National Institutes and other reputed private institutions.

v Vocational Training and skill development study courses will not be covered under the model educational loan scheme, as the scheme is framed to provide Bank loans for higher studies

Courses Eligible

b. Studies abroad

Graduation : For job oriented professional/ technical courses offered by reputed universities
Post Graduation : MCA, MBA, MS etc
Courses conducted by CIMA - London, CPA in USA etc

c.Other conditions:

v The courses eligible for financial assistance under the scheme should be conducted by the colleges/ universities/ institutions which are either recognized by the government /affiliated to a university/deemed university or conducted by autonomous institutions like IIT, IIM etc or approved by AICTE /accredited to Department of Electronics, Government of India, courses offered by reputed universities/institutions abroad.

v Correspondence courses / computer part time /certificate courses are not eligible for finance under the scheme.

Expenses considered for loan

v Fee payable to college/school/hostel

v Examination/Library/Laboratory fee

v Purchase of books/equipments/instruments/ Uniforms

v Caution deposit*

v Travel expenses/ passage money for studies abroad

v Purchase of computers - essential for completion of the course

v Insurance premium for student borrower

v Any other expense required to complete the course - like study tours, project work, thesis etc.

* building fund/refundable deposit supported by Institution bills/ receipts stands deleted

Quantum of Finance

Need based finance subject to repaying capacity of the parents/students with margin and the following ceilings:

Studies in India - Maximum upto Rs.10 lakhs
Studies in Abroad - Maximum upto Rs.20 lakhs

Margin

Upto Rs.4 lakhs - Nil
Above Rs.4 lakhs - Studies in India 5%
Studies abroad 15%

- Scholarships / assistantship to be included in margin
- Margin may be brought-in on year-to-year basis as and when disbursement are made on a pro-rata basis

Security

Upto Rs.4 lakhs : Co-obligation of parent/s. No other collateral Security

Above Rs.4 lakhs and upto Rs.7.50 lakhs : Co-obligation of parents together with collateral security in the form of suitable third party guarantee.

Above Rs.7.5 lacs : Co-obligation of parents together with tangible collateral security along with the assignment of future income of the student for payment of installments

Note:

v The loan documents should be executed by both the student and the parent/guardian as joint-borrower

v The security can be in the form of land/building/ Govt. securities/Public Sector Bonds/Units of UTI, NSC, KVP, life policy, gold, shares/mutual fund units/ debentures, bank deposit in the name of student/ parent/ guardian or any other third party with suitable margin.

v Wherever the land/building is already mortgaged, the unencumbered portion can be taken as security on second charge basis provided it covers the required loan amount with prescribed margin of 35%

v In case the loan is given for purchase of computer, the computer has to be hypothecated to the Bank.


Rate of interest

With effect from 03rd February, 2009:

Upto Rs.4.00 Lakh: Applicable for fresh loans sanctioned/initially disbursed on or after 03.02.2009 - 12.50%

Above Rs. 4 Lakh & Upto Rs.7.50 Lakh: Applicable for fresh loans sanctioned/initially disbursed on or after 03.02.2009 - 13.50%

Above Rs.7.50 Lakh: a] Secured: New Loans disbursed on or after 03.02.2009-12.00%

b] Unsecured: New Loans disbursed on or after 03.02.2009-13.50%

Interest concession of 0.50% is to be extended for education loans availed by Girls students for pursuing studies in India as well as Abroad for fresh loans sanctioned/initially disbursed on or after 04.03.2009.

v Simple interest to be charged during the Repayment holiday/Moratorium period

v 1% interest concession may be provided for loanees if the interest is serviced as and when debited.

Appraisal / Sanction / Disbursement

v The loan to be sanctioned as per delegation of powers preferably by the Branch nearest to the place of domicile of parents

Repayment:

Repayment holiday/Moratorium : Course period + 1 year, or 6 months after getting the job, whichever is earlier

The loan has to be repaid within a maximum period of 10 years after completion of repayment holiday period.

Insurance:

The student borrower may be covered under the Banks insurance scheme Corp Suraksha.

Processing Charges:

No processing/upfront charges shall be collected on educational loan for studies in India. For studies abroad, processing charges @ 1% of total loan limit sanctioned may be collected for fresh loan. These charges are scheme specific & inclusive of applicable Service Tax.

" Wherever immovable property is offered as security, property valuation charges, legal opinion charges and insurance premium of immovable property will have to be borne by the applicant."

Other Conditions:

a. Multiple loans

In case of receipt of application for more than one loan for student borrower from a family, the family as a unit has to be taken into account for considering the loan and security taken in relation to the total loan limit sanctioned, subject to margin and repaying capacity of the parent/student.

b. Take over of loans from other Banks

Student should avail education loan from any one Bank/branch.Take over of education loan availed with other bank is not permitted.

Co-obligant

The co-obligant should be parent[s]/guardian of the student borrower. In case of married person, co-obligant can be either spouse or the parent[s]/parent-in-law

Disposal of application

Loan applications have to be disposed off within a period of 7 days of receipt of application complete in all respects

Corp Mobile -Vehicle Loan

The Bank's Vehicle Finance Scheme

'CorpMobile' gives you greater value, flexibility, convenience and affordability. Perhaps you have been postponing your needs to have a two wheeler/four wheeler for quite a long time. The CorpMobile loan scheme has been designed for people like you, who would like to move up in life without paying through the nose for it. CorpMobile offers you the easiest motor cycle/Car loans with absolutely no hassles. Isn't it time to get a motor cycle/car of your own?

1. Eligibility

Individuals [Professionals/Businessmen/ Salaried class and others] NRIs, Sole Proprietorships, Partnership Firms, HUFs, Companies, Trusts/ Institutions are eligible.

For two wheelers & three wheelers:

Applicants with minimum net annual income of Rs.0.50 lakh

For four wheelers:

Applicants with minimum net annual income of Rs.1.20 lakh

Income Proof:

Salary slip, IT Return, Balance sheet etc.

2. Purpose

For purchase of 2/3/4 wheelers/heavy road/waer transport vehicles/ for personal /transport/business/commercial purpose.

Loans for purchase of vehicles upto three years old from the date of first purchase of the four wheeler vehicle only may be considered.

3. Quantum of Loan (Maximum)

For 2 wheelers : Rs.1 lakh per vehicle

For 3 wheelers : Rs.2.00 lakh per vehicle

For 4 wheelers and heavy vehicles/water transport vehicles : Maximum Rs. 75 lakh per vehicle

4. Margin

15% of cost f the vehicle (cost of the vehicle is inclusive of Accessories/Registration/Road tax/Insurance charges) for new vehicles

25% of market value certified by the competent valuer, for second hand vehicle which have not completed 3 years from the date of first registration.

5. Rate of Interest

Applicable for fresh loans sanctioned/initially disbursed on or after 04.03.2009

Tenor upto 3 years 11.00%
Tenor above 3 years & upto 5 years 11.25%
Tenor above 5 years & upto 7 years 11.50%

6. Security

Hypothecation of the vehicle along with noting of Bank's lien in the Registration Certificate and Insurance Policy.

7. Guarantee

Not Mandatory. However, third party guarantee or any collateral securities may be stipulated, on case to case basis, by the Sanctioning Authority at his/her discretion and based on risk perception.

8. Repayment

In case of Individuals other than salaries class, the annual EMI in respect of installments/notional interest of existing & proposed loan together shall not exceed 50% of the net annual income.

In case of salaried class EMI in respect of installments/notional interest of existing & proposed loan together shall not exceed 50% of take home salary.

9. Service Charges

Two wheeler & three wheeler
0.50% of the loan amount sanctioned with a minimum of Rs.500/-.
Four wheeler
1.00% of the loan amount sanctioned with a minimum of Rs.1000/

COROPORATION BANK-HOME PLUS

In line with Government's relief package, the Bank has introduced Special Package Housing loan scheme “ Corp Home Plus”

Salient features of the Scheme are as under: :

a) The Scheme is under operation from 17.12.2008 to 30.06.2009.
b) The Scheme is applicable only for fresh loans sanctioned/disbursed on or after 17.12.2008.
c) Only loans, where first disbursement is made between the period from 17.12.2008 to 30.06.2009 are eligible.
d) Scheme is not applicable in case of housing loans taken over from other Banks/ other Financial Institutions, etc.,/ in the case of conversion of existing loans.
e) Maximum loan under the Scheme shall be Rs.20 lakhs.
f) Maximum repayment period under the Scheme shall be 20 years.

Margin: :

For loans upto & inclusive of Rs.5 lakhs . : 10%
For loans above Rs.5 lakhs & upto & inclusive of Rs.20 lakhs : 15%

Processing Charges :
Processing Charges are not to be levied.

Pre Payment Penalty :
Pre Payment Penalty is not to be charged.

Rate of Interest :

Loan upto & inclusive of Rs.5 lakhs, upto 20 years. 8.5%

Loan above Rs.5 lakhs & upto & inclusive of 9.25%
Rs.20 lakhs, upto 20 years

a) The rate of interest is fixed for first five years. However, during the period covered under the Scheme, if the Bank reduces rate of interest for Home Loans below the above rates, the benefit of the same will be passed on to the loans under this Scheme.

b) The rate of interest is subject to reset after 5 years ,at the discretion of the Bank.

c) The borrower will have an option to choose between Fixed OR Floating rate, after
five years, as may be offered by the Bank at that time.

d) No conversion charges shall be levied for conversion of account after 5 years.

1. Loan for Repair/Renovation/Extension shall not be considered under the scheme.
2. Loan under the scheme shall be only for acquiring the First House

Insurance Cover( Life) :

a) Loans under the Scheme shall , compulsorily be covered under our existing Corp
Jeevan Griha Raksha Insurance Scheme. Insurance premium shall be borne
by the Bank.

Please note that comprehensive insurance of the mortgaged House/Flat shall continue to be as per the extant guidelines at the borrowers’ cost.

Except for the salient features mentioned herein above, all other terms and conditions of our existing Housing Loan Scheme (Corp Home) shall be applicable for the loans sanctioned under this special package Scheme.

CORPORATION BANK-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 Loan Amount Loan for site

Metro & Port Town Centers Rs.100 lacs Rs.30 lacs
Urban Centres Rs.50 lacs Rs.15 lacs
Semi Urban & Rural Centres Rs.25 lacs Rs.10 lacs

For Repair /Renovation/Extension/Improvement Rs.5 lacs

4. Margin & Repayment Period

Age of the house/flat Margin Repayment

Up to 10 years 20% 25 years

Above 10 years & upto 20 years 20% 20 years

Above 20 years & upto 30 years 25% 15 years

Repair/Renovation/Extension 20% 5 years

Repayment period should not exceed retirement date for salaried persons and 65 years of 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 3rd February, 2009

Corp Home (Floating Rate) Up to Rs. 30 lakh*

TENOR Loans Disbursed Fresh Loans Sanctioned/
upto 02.02.2009 Disbursed on or after 4/3/2009


Up to 5 years 9.75% 9.25%
Above 5 years & upto
15 years 10.00% 9.50%
Above 15 years & upto
20 years 10.50% 10.00%
Above 20 years 10.50% 10.50%


*The above rates are applicable to all new Corp Home Loans with the limit and upto Rs. 30 Lakh.

Corp Home (Floating Rate) Above Rs.30 lakh:
Tenor Loans disbursed upto Fresh Loans Sanctioned/
02.02.2009 Disbursed on or after 3/2/2009

Upto 5 years 10.50% 10.00%
Above 5 years & upto
15 years 10.75% 10.25%
Above 15 years & upto
20 years 11.00% 10.75%
Above 20 years 11.00% 11.00%



Corp Home (Fixed Rate):

Loan Amount Loans disbursed upto Fresh Loans Sanctioned/
02.02.2009 Disbursed on or after 3/2/2009

Loan upto Rs. 30 lakh 12.00% 11.50%
Loan above Rs.30 lakh 12.50% 12.00%

Corp Home (Plus) Loans: Loans Disbursed upto Fresh Loans sanctioned/
Limit (Maximum Tenor 2/2/2009 Disbursed on or after 3.2.2009
20 Years)

Upto & Inclusive of
Rs.5 lakh 8.50% 8.50%
Above Rs.5 Lakh and
upto & inclusive
of Rs.20 Lakh 9.25% 9.25%



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 installments/notional interest in respect of existing and proposed loan together should not exceed 40% of net income
In case of salaried class, where gross income is above Rs.2 lakhs, EMI, including installments/notional interest in respect of existing and proposed loan together should not exceed 50% of net income.
In case of other than salaried class, EMI, including installments/notional interest in respect of existing and proposed loan together should not exceed 50% of net annual income


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 installments 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 0.50% of loan subject to min. Rs.1,000/- & max. Rs.2,500/-

Above Rs.5 lakhs & upto Rs.15 lakhs 0.50% of loan subject to min. Rs.2,500/- & max. Rs.7,500/-

Above Rs.15 lakhs & upto Rs.20 lakhs 0.50% of loan subject to min. Rs.7,500/- & max. Rs.10,000/-

Above Rs.20 lakhs 0.50% of loan subject to min. Rs.10,000/- & max. Rs.50,000/-

10. Pre Payment Penalty

Floating Rate Option 0.50% of amount prepaid in excess of 10 EMIs/2 Quarterly/1 Half Yearly/1 Yearly installments during the year OR pre closure of loan account.

v (No Penalty for loans sanctioned prior to 01.02.2005 )

Fixed Rate Option 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 installments.

v Penalty at 1% on the entire amount prepaid, otherwise.

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 interest 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, 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 10 year.

Option 2 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.

Other condition v No relaxation is permitted from prescribed margin of 20%
v Certificate from employer regarding salary structure shall be obtained.

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 Installments for every Rs.1 lakh of loan for various repayment periods
Rate of 5 10 15 20 25
Interest years years years years years

8.5% 2052

9.0% 2076 1267 1014 900 839

9.25% 2088 1280 1029 916 857

9.5% 2100 1294 1044 932 874

9.75% 2112 1308 1060 949 891

10.0% 2125 1322 1075 965 909

10.25% 2137 1335 1090 982 926

10.5% 2150 1349 1105 998 944

10.75% 2162 1363 1121 1015 962

11.00 2174 1378 1137 1032 980

11.25 2187 1392 1152 1049 998

11.50 2199 1406 1168 1066 1017

11.75 2212 1420 1184 1084 1035

12.00 2225 1435 1200 1101 1053

12.25 2237 1449 1216 1119 1072

This information gathered from the banks web site.

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