Central Bank of India, is one of India’s oldest and largest state-owned commercial banks. Usually, the home loan is a big amount taken for a longer period upon which interest is levied. In this article, we will cover all possible questions related to the Central Bank of India Home Loan.

1. Top home loan schemes of Central Bank of India

Central Bank of India Home Loan Schemes

Description

Cent Home Loan

To construct/acquire a new home/flat or acquire an existing home/flat which has a remaining life of applied loan tenure + 10 years. The scheme also considers renovation, repair, and alteration of existing home/flat.

Cent Home Double Plus Scheme

Two aspects—Overdraft facility and term loan. The former can be taken to construct/acquire new or existing homes/flats or extend existing houses. The latter for repair/renovation of house/flat, vehicle purchase, refurbishing home, furniture purchase, solar energy equipment purchase, children’s marriage/education/medical expenses, and family vacation/trip.

TopUp Facility To Cent Home Loan Beneficiaries

You can take this loan for personal needs. You cannot use the money borrowed under this scheme for speculative, real estate, or capital market activities, or activities prohibited by law. The loan amount ranges from Rs.2 lakh up to Rs.50 lakh.

Cent Home Loan Scheme for Purchasing 3rd or 4th House/Flat

This scheme allows you to borrow for construction/acquiring a new house/flat or acquiring an existing house/flat, which is not older than 40 years and has a remaining life of the loan tenure + 10 years.

Cent Home Loan to Employees of Central State Govt PSU

This scheme is dedicated to all permanent employees of Central and state governments and PSUs of Central government. The property or other tangible securities will be mortgaged for financing.

Cent Combo (HL and Vehicle Loan)

The bank provides a concession if the home loan and vehicle loan are taken together. The average annual income of the applicant for the last two years, as per IT return filed, should be a minimum Rs.4 lakh. The minimum home loan amount is Rs.20 lakh. 

2. Interest rate of Central Bank of India home loan

The current Repo Based Lending Rate (RBLR) is 6.85% + CRP.

Internal Risk Rating Score

CIBIL/CRIF above 725

OR

Experian above 750

CIBIL/CRIF 701-725

OR

Experian 726-750

CIBIL/CRIF 675-700

OR

Experian 700-725

71-100

(CBI-1 to 3, i.e. LOW RISK)

RBLR

RBLR+0.10

RBLR+0.20

50-70

(CBI-4 to 6, i.e. MEDIUM RISK)

RBLR+0.25

RBLR+0.35

RBLR+0.45

<50

(CBI-7 to 10, i.e. HIGH RISK)

3. Features and benefits of Central Bank of India home loan

  • Central Bank home loans are available for both salaried and non-salaried applicants.
  • Home loans are granted to applicants above the age of 18 years.
  • The maximum tenure of the loan is 30 year or until the borrower reaches 75 years, whichever is earlier.
  • The tenure can be up to 10 years in the case of repair or renovation.
  • Interest rates are determined based on Internal Risk Rating Score.
  • Various home loan schemes are offered for the varying needs of customers.

4. Who is eligible for Central Bank of India home loans

  • Individuals who have completed 18 years of age as on the date of application.
  • Groups of individuals, including cooperative societies, have a legal, identified, and regular income source either singly or jointly with parents, sons, or spouse.
  • NRIs are also eligible.

The bank offers home loans based on the Net Annual Income-wise graded ratio as given in the below table:

Net Annual Income

EMI/NMI Ratio (Maximum)

<=Rs.1.20 lakh

20%

>Rs.1.20 lakh<=Rs.3.00 lakh

30%

>Rs.3.00 lakh<=Rs.5.00 lakh

55%

>Rs.5.00 lakh<=Rs.8.00 lakh

60%

>Rs.8.00 lakh<=Rs.10 lakh

65%

>Rs.10.00 lakh

66.67%

Where Net Monthly Income (NMI) is the difference between Gross Monthly Income (GMI) and all statutory deductions and taxes (excluding all existing and proposed EMI).

Loan Margin (may vary with schemes)

1. Salaried Borrower

Construction/purchase of new/existing house/flat or cost of extension of existing house/flat (including the cost of land)

Loans up to Rs.30 lakh 

90% of the cost

Rs.30.00 lakh up to Rs.75 lakh 

80% of the cost

Above Rs.75 lakh

75% of the cost

Repairs/renovations/extension/alterations of existing house/flat

Up to 75% of the cost; maximum of Rs.10 lakh

Plot for constructing housing unit (Not for standalone plots)

75% of the registered value of the flat; a maximum of 75% of the total cost of the housing unit

2. Non-Salaried Borrower

Construction/purchase of new/existing house/flat

Loans up to Rs.75 lakh 

80% of the cost

Loans above Rs.75 lakh 

75% of the cost

Cost of extension of existing house/flat (including the cost of land)

75% of the cost

Repairs/renovations/extension/alterations of existing house/flat

75% of the cost; maximum of Rs.10 lakh

Plot for constructing housing unit (Not for standalone plots)

75% of the registered value of the flat; a maximum of 75% of the total cost of the housing unit

5. Documents required for Central Bank of India home loans

Salaried employee

Self-Employed

Duly filled loan application form

Duly filled loan application form

2 passport-size photo

2 passport-size photo

Identity Proof – Passport, Driving Licence, Voter ID, or PAN

Identity Proof – Passport, Driving Licence, Voter ID, or PAN

Address Proof – Registered Rent Agreement, last 3 months’ Utility Bill, or Passport

Address Proof – Registered Rent Agreement, last 3 months’ Utility Bill, or Passport

Income Documents – Last 6 months’ payslips, last 2 years’ Form 16, last 6 months’ bank statement showing salary credit and any EMI debit

Business Proof – GST registration, incorporation details in case of companies, business address proof, profit and loss account and balance sheets certified by CA, copy of partnership deed, and proof of business existence and business profile

6. Fees and charges

Processing Fees

0.50% of the loan amount; up to Rs.20,000

7. Home loan EMI calculator

An important tool like Home Loan EMI calculator helps you evaluate and plan your budget.


Frequently Asked Questions (FAQs)

How does the bank determine the home loan amount?
The permissible home loan amount will usually be the maximum acceptable LTV ratio or the permissible EMI/NMI ratio, whichever is low.
What is the moratorium period available for home loans?
You may avail up to 24 months of moratorium period in the case of constructing the house. For a moratorium period between 18 months and 24 months, the pre-EMI interest is to be paid by the borrower as and when applied.
Is there a specific credit score required to get a home loan?
Central Bank of India requires a minimum credit score from selected credit reporting agencies for you to qualify for a home loan.

Credit Reporting Agency

Minimum Credit Score

TransUnion CIBIL

675

Experian

700

CRIF

675

Where can I access the home loan application form?

You can access the home loan application form on the official website of the Central Bank of India’s official website’s official website. You can also visit the bank branch for the application form. Please note that the application form may vary base you are looking at.

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