Features Of Corporation Bank Home Loan
Corporation bank is well reckoned as a second public sector bank. And, here we are discussing few of the basic features of corporation bank home loan. With a home loan, not only loan scheme and interest rates are important to know. You must be aware of few other things as well like prepayment penalty, loan term and eligibility.
In case of this corporation bank home loan with floating rate of interest, there will be a pre-payment penalty around 0.5% of the amount charged from you on the pre-payment of home loan. And, in case of fixed rate of interest options, prepayment penalty will be charged around 1% of the loan amount, which is prepaid.
Eligible loan amount is calculated after deducting the stipulated margin or down payment from the total cost of the project, subjected to the repayment capacity of individual. For this housing loan, the repayment capacity is considered at 40% of the net income in case of salaried persons with gross annual income of up to Rs. 2 lakhs and at 50% of net income in cases with gross annual income exceeding Rs.2 lakhs. The approved loan applications, which are complete in all respect, would generally be disposed off within a maximum period of 2 working days in case the same falls within branch manager’s powers.
Technically, with secured loan insurance is offered by the bank, but under this loan scheme, the house has to be insured at borrower's cost. In the interest of the borrower, it is always advisable to insure the house against all normal risks as per the future uncertainties concern.
Corporation bank also arranges insurance cover under corp jeevan griha raksha scheme in association with LIC of India to the borrower. It is a single premium product in which one time premium is payable to LIC and will be financed by the Bank as part of the project cost, if required.
