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0
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10L
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20L
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30L
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40L
%
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5
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7.5
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10
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12.5
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15
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17.5
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20
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0
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1
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2
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3
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4
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5

Total EMI

49,919

Total Interest

69,80,559

Total Payments

1,19,80,559

Break-up of Loan Amount
Created with Highcharts 4.2.2 50,00,000 69,80,559 Total Interest Principal Loan Amount
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About Corporation Bank

Corporation Bank PLC is a nationalized bank in India operating in the Public Sector of the economy. The bank was nationalized in the year 1980 and evolved over the years from an institution with limited geographic spread to one covering the entire subcontinent. Headquartered in Mangalore, Corporation Bank boasts a pan-Indian presence numbering about 4,724 service branches and more than 3,000 ATMs. This institution is also regarded as one of the pioneers of taking digital banking to rural communities in the country and they provide a wide variety of services to corporate and individual clients.

Types of Personal Loan Offered by Corporation Bank

In terms of uniqueness, Corporation Bank offers only one kind of Personal Loan to members of the public however; this loan caters to the need of 4 categories of persons. They are:

  • Permanent Employees of Central/State Agencies: Public Servants who are working for the Central or any State government can apply for this loan.
  • Permanent Employees of Reputable Firms: Employees of reputable firms who have worked with the same employer for at least 2 years may also apply.
  • Pensioners: Retired Pensioners who draw their pensions from Corporation Bank branches are included. The individual may formerly have worked for the Central government, a State government, or a private concern.
  • Other: Individuals who do not earn a salary but earn income by being self-employed may also apply for this loan as long as they have a constant income and have consistent dealings with the bank.

What is EMI?

Also known as Equated Monthly Income, EMI refers to the monthly payments borrowers make to lenders in the service of a loan already received. This component is an all-important aspect of loan finance without which, giving and accepting loans is unfeasible. Although lenders give out Personal loans in a lump sum, they do not expect the borrower to repay the loan at once. Rather, the entire sum, which includes the loan amount and interest amount, is broken down into monthly installments. The borrower pays these installments from the very first month after the loan is collected to the last month of the loan contract. EMI also has a direct relationship with the loan amount, interest rate, and tenure. To make the process simple for borrowers, bankers often create multiple avenues for EMI payment such as the use of Post-dated cheques, a standing order signed by the customer for the bank to withdraw the EMI amount from a personal bank account, Electronic Clearing System and even online banking. The amount one pays as EMI depends on how much is borrowed, the interest at which the loan is issued and the loan tenure.

Features of Corporation Bank Personal Loan

Corporation Bank has quite a large number of short and long terms loans on offer with their Personal Loan being only one of them. Here are some of the features of this scheme.

Purpose

This loan is issued to meet personal needs

Minimum amount

0.10 lakh

Maximum amount

3.50 lakh

Processing fees

1.50%

Maximum age

60 years

Interest rate

Cibil Score higher than 700 (10.75%)

Cibil score lower than 700 (11.25%)

Loan tenure (Max)

60 months

Lowest EMI

 

Corporation Bank Personal Loan EMI

Corporation Bank offers customers a maximum amount of 3.50 lakh and how much they pay as EMI is determined by three major factors and they are

  • The amount issued as a loan to the customer
  • The interest
  • The tenure

Customers are only given an amount that they qualify for based on their monthly income and repayment ability and EMI is charged monthly for as long as the loan contract lasts. Find in the table below an empirical table of different EMIs for different loan quantum covering various periods under review.

  Tenure

Loan amount

12 months

24 months

48 months

60 months

1,00,000

8,827

4,649

2,527

2,162

2,00,000

17,653

9,298

5,145

4,324

3,00,000

26,480

13,948

7,717

6,485

3,50,000

30,893

16,272

9,003

7,566

Note: The interest rate used in calculating the EMI in the table above is 10.75%

EMI Calculator

Since the EMI calculator was introduced, it has become a very reliable tool used by people to make accurate EMI projections. An EMI calculator is an online tool used by loan applicants to evaluate the total cost of a Personal loan. By total cost, we mean the total loan amount and the interest amount combined. This tool is a breath of fresh air for those who find manual calculations quite cumbersome. It saves users the time and stress of doing long calculations and not only that, but the EMI calculator also provides accurate figures.

The formula used in calculating EMI is straightforward and represented as:

EMI = [P x R x (1+R)^N]/[(1+R)^N-1],

The formula can be interpreted as thus:

EMI  = Equated Monthly Installment

P = Principal amount (the amount you apply for a loan)

R = Rate of Interest (The lender provides this information

N = Loan Repayment Tenure (in months)

Using this calculator is free and no restriction is placed on the number of times you use it or how often it is used. If after your first try you do not get a suitable EMI figure, you can always adjust the tenure and amount then recalculate. In case of any difficulties or you need expert advise, you can contact MyMoneyMantra's experts to help you out.

How to use MyMoneyMantra EMI Calculator?

MyMoneyMantra's EMI calculator is very easy to use. Once you have the interest rate, the tenure, and the loan amount, you can input the figures into the calculator to get your EMI.

To use this calculator, all you have to do is:

  • Visit MyMoneyMantra website online
  • Once the page is fully displayed, you will see boxes for the various data
  • Input the various data in their appropriate boxes (Principal amount interest rate, tenure in months)
  • Click the "Calculate" button underneath and wait for a short while

Note: You may not get an acceptable EMI figure at the first try. So endeavor to adjust your data and retry until you get an acceptable figure

Benefits of using an EMI Calculator before taking a Personal Loan

Here are some of the benefits of using an EMI Calculator.

  • Makes calculating EMI easy: An EMI calculator makes calculation very easy even if you are calculating for several months at a go. All you have to do is affix the appropriate data in their respective fields. You do not require any expert experience to do your own financial projections.
  • Figure Accuracy: Making a mistake is not something you should worry head about with this tool. It is very accurate and the results you get will be no different from what you will be charged by the lender should you go ahead to apply for the loan. Just make sure that you use the correct figures.
  • Free Tool: You do not have to incur extra costs when calculating EMI. MyMoneyMantra EMI calculator is free.
  • Only a few steps required: Only a few steps are required to calculate your EMI. Using the calculator is time-saving
  • First-Hand evaluation: Evaluating your financial capacity to repay the loan is now possible even before you apply for it. This tool will give you updated information about the entire loan cost. Using it as an aid, you will be able to know the entire amount you will pay as interest on the loan. Before this was only possible by seeking external expert advice but not anymore. Now you have all the data readily available.
  • Make the right choice: When faced with more than one loan scheme promising the same benefits, you can make a suitable choice that best serves your interest by using the calculator to make a decision. This is one great way to save money if you ask me.

Factors that can impact your Personal Loan EMI amount?

Before you apply for a personal loan, the first thing you need to concern yourself with is how much the loan will cost you. Even though you have a calculator at hand, it is also important that you identify some of the factors that may raise or reduce EMI. Understand these factors too are just as important. Here are some of the factors that affect the EMI amount.

  • Loan Amount: The loan amount can affect just how much your lender will charge you as EMI. This is why borrowers are advised not to borrow what they are offered but what they can afford. If you borrow a large amount as a loan, you should prepare for a much larger EMI amount payment in the long run. Financial prudence is hugely advised as far as taking up loans is concerned.
  • Tenure: The loan tenure or period is also a major factor. Longer tenure provides borrowers with ample repayment windows to repay the loan. Additional months allow you to reduce how much you pay every month as EMI. If you take up a loan for 2 years or more, you will have more time to pay it back and the lender will charge you a lesser EMI compared to the higher EMI a 1-year loan will attract.
  • Interest rate: Also keep a close eye on the interest rate. Loans that have a higher interest rate attract a higher EMI every month. This is because the interest rate determines the interest amount. The higher the rate the higher the total interest amount.
  • Repayment schedule: This is not a universal factor but it still influences EMI sometimes because lenders charge EMI differently. Some lenders charge a much higher EMI during the initial months of the contract and reduce it as the debt balance reduces. Other on the other hand, charges a lower EMI at the beginning and gradually increase it subsequently. Then, there are lenders who evenly spread payments across the period. Endeavor to ask your lender about their repayment structure before you fill a loan application form.
  • Your Credit Score: Not all lenders use Credit Scores as a basis to levy EMI charges but some do. In the case of Corporation Bank, applicants who have a CIBIL score lower than 700 are charged a much higher interest rate (11.25%) compared to applicants with a credit score of 700 and above (10.75%). Do check with your lender to ascertain if Credit Score is used as a basis when charging EMI on personal loans.
  • Your income: Your personal income may also come into play. First, you must meet the required income criteria to qualify for a loan in the first place. After that, your income will be used to evaluate your repayment capacity. A much higher income to loan debt ratio may attract a higher EMI if the lender feels that you can pay it due to your large income. If the debt to income ratio is much higher, your EMI may be reduced. Do note however, that this is a grey area and not every lender operates such a policy but for lenders who do, EMI may be affected.

Tips to decide the amount of EMI

Applying for a loan that you can comfortably repay should be just as important as getting the cash to settle whatever pressing financial concern you might have. The level of indebtedness you will be saddled with is dependent on the EMI amount. Here are some tips to help you decide on an EMI amount that?s convenient for you.

Consider your income

Consider your income vis a vis the EMI amount. After calculating the EMI, compare it with your current income. After EMI is deducted, will what is left be sufficient for you until the next payday? If EMI will take 40% or less from your income you can go for it. If not, you may want to reconsider due to the huge financial burden of servicing a much larger loan.

Consider other daily financial commitments

Even though you have a pressing need, do not overlook other financial commitments that you will definitely incur. Analyzing your need in isolation (what you need the loan for) may not be a bright idea as there will be others not captured in your projection. If you have other debts to settle or imminent commitment, you should consider them as well. If you pay more than you can afford as EMI you will be left stranded in the end.

Be sure of how much you need

Make sure you know just how much you need to borrow and do not borrow above the said amount. Indecision may lead to the incurring of debts that you are not prepared for. The amount you borrow will determine your EMI at the end of the day.

Lower interest rate is a lifesaver

Lower interest rates will do you a world of good if you ask me. Even before you do any calculation of any sort, on the basis of interest rates alone, you can be rest assured that the amount you will be charged as interest will be lower than that of a loan with a higher interest rate.  One smart way to pick a suitable EMI is to go for a loan with a lower rate of interest.

Don't pay too much as processing fees

Be mindful of processing fees as they have a way of increasing your EMI. This is especially true if the lender adds the fee to the EMI amount. Processing fees vary from lender to lender but make sure you inquire from your lender how much you will be charged before signing off on a loan.

The longer the loan tenure the better

To reduce EMI payments, extend the loan tenure as much as you can. Applying for a longer tenure will reduce your payments every month. Some loans have 24, 48, or 60 months tenure. Some even have 84 months tenure depending on the special arrangement between the lender and borrower. Go for a longer tenure if you can.

Change in EMI with change in Prepayment

Before we delve deeper into the subject matter, it is important to take note of what prepayment means. Prepayment is a condition included in a loan contract by a lender, which gives the borrower the opportunity to make advanced EMI payments. This condition may or may not be utilized by the borrower but it remains open. If a borrower pays future EMI charges long before the month arrives, it will reduce the outstanding amount owed. A reduction in the debt balance will reduce EMI consequentially. Also, remember that a Prepayment clause can only be activated after a period of regular EMI payment often between 6-12 months after loan issuance by the lender.

FAQs

1. What is the maximum age for this loan?

Only people who are 60 years and under may apply.

2. Who is allowed to apply for Corporation Bank's Personal Loan?

The categories of persons allowed to apply for this loan are:

  • Permanent public servants with Central/State Governments
  • Permanent employees of Multinationals/ NGOs/ Reputable companies
  • Pensioners who draw their Pension from Corporation Bank
  • Others who earn a stable income and have business dealings with Corporation Bank

3. What is the maximum amount I can apply for?

The maximum amount is 3.50 lakh but this is not an indication that you will be given this amount. Corporation Bank operates a policy of only approving loan amounts after analyzing the applicant's income history. You will only be given an amount you are able to pay comfortably from your income.

4. What factors will Corporation Bank consider before sanctioning a Loan amount?

The factors that Corporation Bank will consider are:

  • Your Cibil Score
  • Your employer
  • Your financial history
  • Presence/Absence of debts
  • Your age
  • The loan amount and tenure

5. How much does it cost to use MyMoneyMantra Personal Loan EMI Calculator?

It costs you nothing. Using this tool is free.

6.Am I allowed to use MyMoneyMantra's EMI Calculator only once a day?

No. You can use the calculator as many times as you want. There are no restrictions whatsoever.

7. Besides the EMI figure, what else will the Calculator provide?

The calculator will also provide you with the total interest amount you are to pay.

8. Will the EMI charged by Corporation Bank be any different from the figures provided by the EMI calculator?

In some cases, yes. This may be due to some charges not indicated initially. However, the difference will only be minimal. Ensure that you ask Corporation Bank for any other extra or hidden charges you may not be aware of before signing off on the loan.

9. How long will it take the EMI Calculator to reveal EMI figures?

It only takes a few seconds after clicking the Calculate button. It is fast and reliable.