CORPORATION BANK

CORPORATION BANK LOAN AGAINST PROPERTY

Apply CORPORATION BANK Loan Against Property

About Corporation Bank Loan Against Property

Loan Against Property is a loan availed against a pre-owned property. The property, whether residential or commercial, is mortgaged to avail the loan. The value of loan is directly linked to the market value of the property and the amount of loan availed thereof can be utilized for any purpose like working capital for business, funding personal needs like medical expenses, education expenses, purchase of another asset or kid's wedding or even a family vacation. The property set as collateral remains mortgaged till the time the loan amount is repaid in full. The repayment is done in equal monthly instalments (EMIs) calculated using the principal amount, rate of interest and loan tenure.

Corporation Bank, one of the oldest public sector banks operating in India since 1906, offers an entire range of loans of advances to meet diverse and unique needs of clients. It offers Loan Against Property to owners of residential and commercial properties who are looking for immediate funds to fund their personal needs. Corporation Bank offers quick and hassle-free Mortgage Loan. The process is completely formalized with low paperwork and has a competitive interest rate charge.

Features of Corporation Bank Loan Against Property

Corporation Bank offers Loan Against Property under one category, i.e., Corp Mortgage Scheme (Loan Against Immovable Property).

The features of the same are mentioned below:

Purpose of loan

  • Corporation Bank Loan Against Property can be used for any personal need, like medical expense, education, marriage, vacation, or any other purpose.
  • The loan can also be used for business purpose
  • The borrower is not required to mention the purpose of loan at the time of loan application.

Loan amount

  • The minimum loan amount for Loan Against Property is 2 Lakhs
  • The maximum loan amount for Loan Against Property  depends upon the location of the property:
    • Metro Regions: 5 Crores
    • Port Town (except Metro) & Urban Centers: 3  Crores
    • Semi Urban Centers: 25 Lakhs
    • Rural Areas: 10 Lakhs
  • The maximum loan amount cannot be more than 10 times the net annual income of the applicant.
  • The loan amount depends on the location of the property and net annual income of the borrower.

Loan margin

50% of the cost of immovable property is approved as Loan Against Property

Security

  • The property against which the loan is sought is mortgaged with Corporation Bank.
  • Age of the mortgaged property should not be more than 30 years
  • The balance life of the property must be at least 5 years more than the repayment term.
  • No third party guarantee required

Interest rate

10.85% p.a. - 12.85% p.a.

Processing fees

0.50% - 1% of loan amount sanctioned + applicable GST

Prepayment charges

No prepayment charges for prepayment of loan taken against the property

Foreclosure charges

No foreclosure charges for prepayment of loan taken against the property

Loan term

  • The minimum loan repayment tenure is 7 years
  • The maximum loan repayment tenure is 10 years
  • Loan Against Property must be liquidated in full before retirement age in case of salaried applicant and 70 years in case of self-employed or other applicants.

Benefits of Applying for Corporation Bank Loan Against Property

Numerous banks and lending institutions offer Loan Against Property. However, Corporation Bank Loan Against Property is loaded with benefits which make their product most viable. The advantages of applying for the loan are:

  • The loan quantum depends upon the location of the property
  • Floating rate of interest charged for Loan Against Property
  • Competitive interest rates starting from as low as 10.85% p.a.
  • Quick and hassle-free loan approval system
  • Less documentation procedure
  • Low rate of loan processing fee
  • No charges for prepayment or foreclosure of loan account
  • Convenient loan tenure ranging between 7-10 years
  • No hidden charges
  • No prepayment charges
  • Flexible repayment option through monthly EMIs
  • Feature of co-applicant available to increase loan eligibility
  • Loan Against Property available to individuals, corporate set-ups, HUF and Trusts

Corporation Bank Loan Against Property - Interest Rates, Processing Fees, & Other Charges

Following charges are applicable on Corporation Bank Loan Against Property:

Rate of interest

  • For MSME (CMORS/CMTSC): RLLR (7.90) + Risk Premium (2.95) = 10.85%
  • For Others (CMORT/CMTCC): RLLR (7.90) + Risk Premium (4.95) = 12.85%

Processing fees

  • For Term Loan: 1% of sanctioned loan amount + applicable taxes
  • For Running Account: 0.50% of sanctioned loan amount + applicable taxes (to be collected on the sanctioned limit and at the time of renewal each year).

Prepayment charges

Nil

*Corporation Bank Loan Against Property Interest Rates are linked to its Repo Linked Lending Rate (RLLR) w.e.f 15.11.2019. The current RLLR is RBI Repo Rate + Spread, i.e., 5.15% + 2.75% = 7.90%.

Eligibility Criteria for Availing Corporation Bank Loan Against Property

Customers seeking Loan Against Property from Corporation Bank must fulfill the below-mentioned eligibility criteria:

  • All individuals between the age group of 18 - 65 years are eligible to apply for a Loan Against Property.
  • Individual can be self-employed or salaried
  • The property, whether residential /commercial/ industrial/ built-up or land site, must be registered in the name of the individual applying for the Loan Against Property.
  • Private limited companies, HUF (Hindu Undivided Family), NRI (Non-Resident Indian), Partnership Firms, and Trusts are also eligible to apply for a Corporation Bank Loan Against Property.
  • Corporation Bank Loan Against Property can be applied with co-applicant(s) to supplement repayment capacity subject to a maximum of two co-applicants.
  • Partnership firms, private limited companies, Trusts and HUF partners, directors, trustees, and coparceners with regular and independent income can become co-applicants of the Loan Against Property.
  • Corporation Bank does not allow loan against third party property and property owned by sister or associate concerns.

Documents Required for Corporation Bank Loan Against Property

Applicant willing to apply for a Corporation Bank Loan Against Property must submit a duly filled application form to the form supported by the following documents:

For Salaried Employees

Proof of identity

  • Two passport size photographs of the applicant
  • Passport/ Driving License/ Aadhar Card/PAN Card/ Voter ID

Proof of residence

Registered Rent Agreement/3 month utility bill/ Passport

Proof of income

  • 2 year ITR statement
  • 6 month salary slip
  • 2 year Form 16
  • 6 month bank statement

Property ownership documents

  • Conveyance deed
  • Allotment letter
  • Sales deed
  • Latest property tax receipt
  • Possession letter
  • Power of attorney
  • Copy of the approved plan of construction or extension
  • Occupancy certificate

Proof of banking record

In case of existing and ongoing loans, 6 month bank account statement highlighting the debit of EMIs.

For Self-Employed

Proof of identity

  • Two passport size photographs of the applicant
  • Passport/ Driving License/ Aadhar Card/PAN Card/ Voter ID

Proof of business address

  • Registered Rent Agreement/3 month utility bill/ Passport
  • GST Registration Number

Proof of income

  • 3 year ITR statement
  • 3 year Balance sheet and profit and loss account
  • Business incorporation details with address proof.
  • Individual and Company's bank account statement

Property ownership documents

  • Conveyance deed
  • Allotment letter
  • Sales deed
  • Latest property tax receipt
  • Possession letter
  • Power of attorney
  • Copy of the approved plan of construction or extension
  • Occupancy certificate

Proof of banking record

In case of existing and ongoing loans, 6 month bank account statement highlighting the debit of EMIs.

Documents required for Corporation Bank Loan Against Property for Trust

  • PAN Card of all Trustees and Property Owners
  • Passport of all Trustees and Property Owners
  • Individual 3 year IT statements of Trustees and Property Owners
  • No objection certificate by all Trustees
  • Copy of Trust Deed
  • Balance Sheet and IT Returns of the Trust

Documents required for Corporation Bank Loan Against Property for HUF

  • Loan must be applied by Karta
  • No objection certificate from all coparceners
  • PAN of the HUF
  • Identity proof of Karta
  • Address proof of Karta

Why Apply for Corporation Bank Loan Against Property through MyMoneyMantra?

MyMoneyMantra is one of the largest online platforms dealing with banking and financial products and services in India. It brings together the information and details of different products and services offered by different banks and non-banking financial companies (NBFCs) on its common platform, thus aiding easy comparison and evaluation.

Applying for a Loan Against Property through MyMoneyMantra thus not only provides comprehensive information about the product along with details like interest rate and other charges but also allows the applicant to utilize tools like EMI Calculator to take a more informed and pro-active decision.

The advanced software of MyMoneyMantra allows users to keep all personal and banking details safe and handy and therefore acts as a quick method to check eligibility without getting into difficult and confusing inputs.

MyMoneyMantra provides one single link for Loan Against Property and has collated all the information on a single screen.

MyMoneyMantra offers assistance for:

  • Evaluation of loan eligibility depending upon property details and banking track record
  • Evaluation of EMI and loan repayment capacity depending upon income details
  • Aids easy comparison between similar products of different banks and non-banking financial companies.
  • Highlights interest rate, processing fee, and other charges in a simple understandable form
  • Allows you to choose the most appropriate product and get the best deal
  • Helps understand the fine print of every bank product with regard to terms and conditions
  • Expedites documentation process
  • Allows online application of Loan Against Property

Why Use a Loan Against Property EMI Calculator on MyMoneyMantra?

MyMoneyMantra empowers its users with the most sought after financial tool - the Loan Against Property EMI Calculator. With the help of the calculator, loan seekers can prudently check and evaluate their loan eligibility and EMI component against the loan amount. By using the EMI Calculator on MyMoneyMantra, one can reach the ideal amount of EMI by trying various combinations of its three parameters - interest, principal amount and loan tenure.

As the EMI amount is to be paid monthly over the entire term of the loan, it is important that it is neither too high nor too low. A very high EMI will lead to financial stress whereas too low EMI will make the Loan Against Property an expensive proposal.

An EMI comprises of two components - principle and interest. Even though the EMI amount remains the same for the entire loan tenure, the proportion of each of these two components varies every month. The amortization schedule provides a month-wise breakup of every EMI that has to be paid by the borrower throughout the loan tenure and shows the principal and interest break-up for each EMI.

How to Use MyMoneyMantra EMI Calculator?

MyMoneyMantra allows its users to calculate loan eligibility and affordable EMI using its online EMI Calculator.

To use the calculator, user simply has to follow the following steps:

  • Log on to the website mymoneymantra.com
  • Go to the 'Financial Tools' link appearing on the header bar and choose the link EMI Calculator from the drop-down menu.
  • Enter the required figures for principal amount, rate of interest, and loan term
  • Upon submitting the information, an EMI value corresponding to the entered variables will flash on the screen.
  • Make adjustments in the variables to reach the ideal EMI amount
  • Once you reach the ideal EMI amount, check loan eligibility for the principal amount using the loan eligibility calculator.

MyMoneyMantra collates all the information required to calculate loan EMI and eligibility of different lending institutions on a single screen. Thus it is very convenient to use MyMoneyMantra Loan Against Property Calculator and get the most effective results, promptly. This helps in taking an informed decision.

You can initiate and submit your Loan Against Property application through MyMoneyMantra. Once the filling of the application for Loan Against Property is complete, a representative of MyMoneyMantra will get in touch with you to help you through your loan application process. On approval, the loan proceeds are directly credited to your account.

Other Loan Products Offered by Corporation Bank

Corporation Bank also offers the loans mentioned below:

  • Corp Home
  • Corp Vehicle
  • Corp Rental
  • Corp Vyapar
  • PMAY - CLS for Middle Income Group
  • Pradhan Mantri Awas Yojana
  • Corp Shelter
  • Corp Doctor Plus
  • Corp Apni Dukan
  • Corp Site (for purchase of allotted site/plot)
  • Corp Site (for Application Money)
  • Corp Personal
  • Corp Vidya
  • Padho Pardesh Scheme
  • Corp Professional
  • Corp Ghar Shobha
  • Corp Shubha Vivah
  • Corp Ghar Sansar
  • Corp Skill Loan
  • Loans for NRIs

Corporation Bank - Customer Care Details

You can contact the bank via the following modes:

Contact

91-824-2861888

OR

Visit

Corporation Bank Corporate Office

Mangaladevi Temple Road

Pandeshwar

MANGALORE - 575 001

Karnataka, India

FAQs - Corporation Bank LAP

Does Corporation Bank approve a loan against the self-occupied property?

Yes, the self-occupied property can be mortgaged to avail a loan. The property can be commercial or residential.

How much can I get as Loan Against Property from Corporation Bank?

The maximum amount of loan allowed by the Corporation Bank for Loan Against Property depends upon the location of the property and net annual income of the applicant.

The maximum limit is as mentioned below:

  • Metro Regions - 5 Crores
  • Urban Centers - 3 Crores
  • Semi Urban Centers - 25 Lakhs
  • Rural Areas - 10 Lakhs

However, 50% of the the cost of property is approved as Loan Against Property. Also, the maximum loan amount cannot be more than 10 times the net annual income of the applicant.

What is the difference between home loan and Loan Against Property?

While in both cases, the property is mortgaged with the bank until the loan is liquidated, still there is a huge difference between home loan and Loan Against Property.

Firstly, home loans are used to purchase or construct a residential or commercial property and the home loan proceeds cannot be used for any other purpose. On the contrary, a Loan Against Property is an advance against a pre-owned property. The proceeds of a Loan Against Property can be utilized to fund any personal expense like medical emergency, education, wedding or vacation.  The mortgaged property remains as a collateral with the lending institution till the loan is liquidated. The borrower can select the loan tenure. The EMI amount thus varies accordingly.

How is the Loan Against Property eligibility calculated?

The Loan Against Property is dependent upon the cost and location of the property. The age of the property to the set as collateral must not exceed 30 years. Also, the balance age of the property should be at least 5 years more than the repayment term. The maximum loan amount approved by the Corporation Bank as Loan Against Property cannot be more than 10 times the net annual income of the applicant.

What are the prepayment fees associated with taking Loan Against Property?

The various fees associated with Loan Against Property include part prepayment and full prepayment (foreclosure) charges. These charges are levied in fixed rate loan cases. Loans with floating rate of interest do not attract such charges. Corporation Bank offers Loan Against Property with no fee or charges for part prepayment and foreclosure of loan account.

Are there any processing charges for Loan Against Property cases?

Most financial institutions levy a nominal processing charge in case of approving a Loan Against Property application. The processing charge may be a fixed amount or maybe as a percentage of loan amount sought by the applicant. Corporation Bank charges 0.50% to 1% of the amount of loan sanctioned + applicable GST as processing charges for approving a Loan Against Property.

What are the stages in taking a Loan Against Property?

There are three distinct stages in a Loan Against Property case. These are Application, Sanction, and Disbursement. In the first stage, the applicant submits an application for the loan. The loan can applied for through MyMoneyMantra after checking the loan eligibility and EMI amount. The application is submitted along with the requisite documents. In the second stage, the lending institution checks various aspects, including eligibility of the applicant and approves (sanctions) a specific loan amount. In the last stage, the loan amount is transferred to the applicant's account.

What is an amortization schedule?

An EMI has two components; principle and interest. The proportion of each of these two components is different every month even though the EMI amount remains the same. The amortization schedule provides a month-wise breakup of every EMI that has to be paid by the borrower throughout the loan tenure and shows the principal and interest break-up for each EMI.

Is it possible to change the repayment tenure?

Banks and other lending institutions facilitate the prepayment of the loan. After prepayment, the balance amount can either be repaid through the original EMI amount with reduced loan tenure or recalculated EMI to be paid over the original term. The decision depends upon customer choice. In case the customer wants to get the repayment tenure changed without making any prepayment, such change will levy a nominal fee. However, the loan tenure cannot exceed the maximum term permitted by the bank or lending institution. Corporation Bank allows maximum loan tenure of 10 years.

What is the differeknce between a loan Top-Up and Loan Against Property?

A borrower may take additional loan on an existing loan. The additional amount which is given against the same property that was mortgaged earlier is known as top-up loan. The additional amount can be used by the borrower for personal use like marriage, holiday, home furnishing, purchase of car or consumer durable, and meeting business needs. The borrower has to submit an end-use letter to avail a top-up loan. However, a Loan Against Property is a fresh loan. It is taken against a pre-owned residential or commercial property. The loan amount can be used for any purpose and the borrower is under no obligation to submit an end-use letter to avail a Loan Against Property.

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