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Corporation Bank and Andhra Bank have been merged under Union Bank of India. Visit the Union Bank of India Home Loan Interest Rates page for more details.
Analyzing the skyrocketing property prices, most houses or flats would necessarily have to be purchased with the help of a housing loan by the common salaried people. The overall Nett cost which includes the location, budget, and many other charges like stamp duty, registration charges etc. must be considered before going ahead with your plan of purchasing a home loan.
Corporation Bank offers a suitable way to fulfill your dreams with Corporation Bank Home Loans. In this article, we study all possible aspects related to Corporation Bank Home Loans. A home loan is usually a high amount and is generally taken for a longer period upon which a rate of interest is levied. An important tool like Home Loan EMI calculator is therefore much needed to help you evaluate and plan your budget beforehand.
Corporation Bank Home loan interest rate starts from 8.85% which is one of the best interest rates available in the market. The rates vary depending upon certain criteria like occupation, the quantum of income, nature of home loan, etc.
|Loan Amount||Corporation Bank Home Loan Interest Rate|
|Upto Rs. 25 Lakh||8.85%|
|Rs. 25 Lakh – 75 Lakh||8.85%|
|Rs. 75 Lakh – 2 Cr||8.85%|
|Above Rs. 2 Cr||9.10%|
You definitely want to ensure that your lender provides auto-adjusted benefits on interest rates that extends into the future. That’s the reason why you need a credible lending institution with a dedicated and experienced workforce who will guide you through the entire process.
If the answer is YES, you must be having a lot of questions in your mind like:
Let’s understand this with a simple example: Let’s assume that your children are growing up and you want to renovate your ancestral house into a luxurious villa, so that children have more space to study, live and play. You go to corporation bank to enquire about the home loan. The cost of renovation is estimated to be 75 lakhs and you want to take a loan for 5 years. The bank is offering the loan at 8.75%.
Now, you have many options since there are a number of banks offering home loan for renovation. You need to calculate and check what the best fit is for you. Here, you can use the Home loan EMI calculator to check and compare.
The second obvious question is the source from where you will arrange the initial down payment? The simplest option you have is to approach any relative or friend. But if you want to arrange it on your own then you must really think smart and be calculative in your decision. A great way to begin is ClearTax SAVE! You have options like Savings account, RD (Recurring Deposit), SIP (Systematic Investment Plan) and many other ways to save enough for the initial down payment. Let’s find out the best way to save your money, for down payment and for other expenses too:
|Loan Value||75 lakhs|
|Time||5 yrs. (60 months)|
|Down payment||20% of Property Value = 15 lakhs|
Now, consider different methods for saving 15 lakhs down payment at Corporation Bank for the next 2 years:
|Type of Investment||Interest Rate||Maturity Amount after 2 Years|
|Savings Account||3.50%||Rs. 15,55,930 (Gains=Rs. 55,930)|
|Recurring Deposit||6.60%||Rs. 16,07,608 (Gains =Rs. 1,07,608)|
|SIP||14-18%||Rs. 1816439 (Gains = Rs. 3,16,439)|
Hence from the above table SIP is the most logical saving’s scheme; as an SIP, will enable you to invest regularly keeping in mind your goal by diversifying your investment to get desired results. You will have a renovated home you dreamed for you children sooner than you expected.
An EMI Calculator is a handy tool that calculates the monthly amount payable to the lender (Bank) every month. To calculate the EMI applicable on your loan amount, you need to use the sliders above to adjust the values of the Principal amount (P), Time duration (N), and Rate of interest (R). Follow these steps to calculate your EMI Amount.
It is generally advantageous to take a housing loan as it will allow you to get tax exemptions. However, you must consult your CA/ income tax advisor to know the benefits/disadvantages in your specific case.
To get Corporation Bank’s home loan, the eligibility standard must match. That becomes an important deciding factor for your loan amount. Following points fall under the eligibility criteria:
Further, the loan eligibility will also be dependent on the value of property selected by you. The deciding factor of the loan amount that would be granted to you will be the close assessment of the value of the property, the capacity to repay the loan amount and many others to determine the potential borrowers. So, an eligibility calculator can be used for the same. Some of the key eligibility factors are listed below:
|Interest Rate||8.85 % – 9.10%|
|Age||18 – 65 years|
|Job Stability in case of Salaried (in years)||2 years|
|Loan to Value Ratio||Up to 90%|
In addition to the mentioned interest rates, home loan also carries the processing fee, foreclosure charges, actual charges towards valuation fee, advocate’s fee for property search, title investigation report, stamp duty and other charges that are applicable. Let’s discuss some charges in detail:
You can directly go to the bank or apply online by going through the bank website. You can avail the loan at low rates and low processing charge if you opt for the online mode. They will initiate the process by collecting your documents, will check your credit score, the value of your property for which you wish to take the loan and all other associated technical and legal terms. Once it is all done, you will be intimidated.
The following documents are required along with your Home Loan application:
|Agriculturists||Salaried Customers||Businessmen – Professionals|
|Application form with photograph||Application form with photograph||Application form with photograph|
|Identity and Residence proof||Identity and Residence proof||Identity and Residence proof|
|Last 6 months bank statements||Last 6 months bank statements||Last 6 months bank statements|
|Processing fee cheque||Processing fee cheque||Processing fee cheque|
|Copies of Title Documents of Agricultural Land depicting Landholding||Latest Salary Slip||Educational Qualifications Certificate and Proof of Business|
|Copies of Title Documents of Agricultural Land depicting crops being cultivated||Form 16||Business Profile and Previous 3 years Income Tax returns (self and business)|
|Statement of previous 2 years of loans availed||Previous 3 years Profit/Loss and Balance Sheet|
The income tax laws in India provide certain benefits for taxpayers who avail a home loan. Such taxpayers are eligible for a deduction of the interest paid on such house property to the extent of Rs 2 lakhs. In case of a self-occupied house in that particular Assessment Year (AY) they can claim the entire interest paid during the AY as a deduction without any limit, that is if they have given the property on rent. Further, the principal component of such loan repayment can be claimed as a deduction from the total income under Section 80C, up to a maximum of Rs 1.5 lakhs.