Corporation Loan Against Property Mar 2020

Last Updated 15th Mar 2020

Corporation Bank Mortgage Loan Interest Rates

27th March 2020 – RBI cuts Repo Rate by 75 bps to 4.4%

Notice: MyLoanCare team is fully functional. You can apply for Loan Against Property, check eligibility and submit documents online.

Corporation Bank offers Loan Against Property starting at interest rate of 11.35% which is one of the best mortgage loan rates in India. Check Best Offers

Processing Fee Upto 1.00%
Max Tenure 10 years
Lowest EMI ₹ 1,397 per lakh
Prepayment, Foreclosure Charges Allowed with nil charges for floating rate loans to individuals
Age Min 18 and Max 65 years for Salaried
Min 18 and Max 65 years for Self Employed
Apply for Loan Against Property @ 8.70%* Get upto ₹ 5,000* Cashback
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Corporation Bank Floating Rate Loan Against Property
Corporation Bank Mortgage Loan Interest Rates
Corporation Bank Loan Against Property Floating 11.35%
Corporation Bank Loan Against Property Floating
Loan Amount Rate
Upto ₹ 30 Lakh 11.35%
₹ 30 Lakh - ₹ 75,00,00011.35%
₹ 75 Lakh - ₹ 1,00,00,00011.35%
Above ₹ 1 Cr 11.35%
Loan against property rate in Corporation depends upon
  • Loan amount: Property loan rates in Corporation depends upon the loan amount you apply for. You can get minimum loan of ₹ 2 Lakh from Corporation.
  • Your Net Monthly Income: Income helps you in identifying your rate of interest. Higher the income, higher will be your repayment capacity which will increase your eligibility for higher loan amount.
  • Type of loan opted for: Corporation offers differential rates for different profile of customers and also fixed and floating rate schemes. Loan against property interest rates may be higher or lower for special loan product.
  • Type of property: Typically, loan against prime residential properties are easier to get and can be availed at the lowest rates compared to loan against commercial and industry properties.
  • Your profession: Corporation may charge a higher interest rate on a mortgage loan by a salaried as compared to a self-employed professional or a businessman. A self employed professional or businessman is expected to deploy loan proceeds for productive purposes in his occupation or business compared to salaried who will most likely take a mortgage loan for his personal purposes.

Interest Rate and its impact on Corporation Loan Against Property Eligibility

Corporation has detailed criteria to determine a potential borrower’s eligibility for mortgage loans. Some of the key criteria are:

Eligibility Criteria Details
Age 18 to 65 years
Loan Amount ₹ 2 Lakh to ₹ 5 Cr
Minimum Credit Score 650 and above
Loan to Value Ratio Upto 50%
FOIR (Fixed Obligations to Income Ratio) 0.65
  • Age: Age is one of the important factors to examine your eligibility. Corporation Bank offers loan to salaried and self employed from the age of 18 years. Any person taking loan at the age of 18, can get loan of up to 15 years, thus reducing servicing burden on his existing income and hence, improving his loan amount eligibility.
  • Income: Property loan is mostly taken by self employed individuals primarily to meet their business requirements. However, in order to increase the loan amount you may club the income of family members like your spouse, parents, children and siblings.
  • CIBIL Score: Past CIBIL history and repayment record of existing loans and credit cards has adverse impact on your loan eligibility. If you have a poor repayment record, then you may find it difficult to get a loan. A regular repayment record not only improves your chances of getting a loan, but also increases your loan eligibility. Corporation Bank grants loan to borrowers with a CIBIL score of 650 and above.
  • Loan Amount: Corporation Bank gives you an amount ranging from ₹ 2 Lakh to ₹ 5 Cr. To improve chances of approval, apply for a loan amount that you can comfortably service.
  • Property Value: The value of the property to be mortgaged is used to calculate maximum loan eligibility based on the maximum permissible LTV ratio which can range upto 50% depending on the type of property. Corporation Bank will conduct a detailed property assessment to establish that all legal titles are in place, assess the market value of the property, and its sale ability. LTV is calculated based on the estimated fair market value or registered value, whichever is lower.
  • Fixed Obligations to Income Ratio (FOIR): The bank will also calculate the proportion of your fixed obligations to your income to calculate the Fixed Obligations to Income Ratio, known as FOIR. Fixed obligations include estimated average monthly expenses and EMIs you are paying on other existing loans. Minimum FOIR to be eligible for a Corporation Bank mortgage loan is 0.65.

Corporation Bank Loan Eligibility Calculator

Corporation Bank Property loan Eligibility is the amount of loan you can avail based on an assessment of your repayment capacity as well as the value of property. You can use eligibility calculator to get a fairly accurate estimate of your potential eligibility subject to the information provided by you.

Corporation Bank Mortgage Loan EMI and Interest Calculator

You can also use online Corporation Bank Loan against property EMI Calculator to calculate loan EMIs. EMI is a fixed amount that you are required to pay each month towards the repayment of your loan till the end of tenure

  • EMI calculator of Corporation Bank helps you to calculate your monthly EMI at different rate of interest and also check and compare lowest EMI per lakh on LAP.
  • Higher the loan amount, higher the EMI. You can compare the estimated EMI with your monthly repayment capacity to decide on a level of EMI you can comfortably service without creating financial burden.
  • Loan tenure matters equally as higher loan tenure reduces your EMI
  • Another factor which affects your EMI is interest rate on the loan. Higher the interest rate, higher will be the EMI. However, your cumulative interest outgo will be significantly high in a longer tenure loan compared to a short tenure loan. Loan against property interest rate comparison of different banks will allow you to choose the cheapest loan and hence, improve your eligibility

What are the benefits of calculating Corporation Bank Mortgage loan EMI?

  • EMI calculator helps you to calculate your monthly EMI at different rate of interest
  • Corporation Bank Mortgage loan EMI calculator helps you to know your capacity to repay the loan after maintaining your standard of living
  • Getting an EMI estimate will help you ascertain the monthly EMI you can comfortably service, thus allowing you to choose the right combination of loan amount and loan tenure.
Other Charges

In addition to interest rates, property loan also carry some other charges which include:

  • Foreclosure Charges - These charges are to be paid in case you want to repay your entire loan amount before the end of tenure period. Corporation Bank allows prepayment of loan against property with Nil prepayment charges.
  • Processing Fee - Corporation Bank charges a processing fee of 1.00% loan amount.
  • Other Charges - Bank also charges technical and legal charges which are explained to the customer during the loan process.
Corporation Bank Loan Against Property Top up, Transfer

Transfer of LAP from another bank to Corporation Bank

Corporation Bank offers mortgage loan balance transfer from another bank. This is subject to your meeting other eligibility criteria of Corporation Bank.

You can avail additional top-up loan against property from Corporation Bank, subject to your eligibility.

Corporation Bank Loan against property documents required

For Self-Employed
  • Filled up loan application form
  • 2 Passport Size Photo
  • ITR of last 0 years
  • Identity Proof - Passport/ Driving License/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (up to 3 months old), Passport
  • Business proof such as VAT/ service tax 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
For Salaried employee
  • Filled up loan application form
  • 2 Passport Size Photo
  • ITR of last 0 years
  • Identity Proof - Passport/ Driving License/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (up to 3 months old), Passport
  • Income Documents – 6 months payslip, 2 years Form 16, 6 months bank statement showing salary credit and any EMI debit
Property documents
  • Registered Sale Deed/ Conveyance/ Lease Deed
  • Past Sale Deeds Chain (each transaction in respect of this property since first allotment
  • Latest House Tax Return/ Receipt
  • Approved Building Plan from Municipal Corporation

Frequently Asked Questions

What is Corporation Bank's loan against property interest rate?

Corporation Bank offers loan against property at rate of 11.35% with the lowest EMI of ₹ 1,397. If you are currently paying higher interest rate than Corporation Bank rate, you can opt for balance transfer of loan to Corporation Bank.

How to increase my eligibility on Corporation Bank Mortgage loan?

If your spouse or family member is earning well, you can make your spouse or family member the co-applicant for your loan. The combination of both of your income will help you in increasing your eligibility to get loan.

Do I get tax benefit on Loan against property from Corporation Bank?

There are no tax benefits available for loan against property.

How will interest rate on Corporation Bank LAP change in future?
  • Floating interest rate on Corporation Bank property loan is linked to its 1 Year MCLR, which is currently 8.30%. So, when Corporation Bank offers a loan against property at 11.35%, it applies a 3.05% premium to its MCLR to arrive at this rate
  • When RBI increases rates, the bank may increase its MCLR rate and the applicable interest rate for all existing and new loan against property would increase. When RBI cuts interest rates and the bank reduces the MCLR rate, the benefit of lower rates will have to be passed to both old borrowers and new loan account customers.
Can I foreclose my Mortgage loan? What are the charges applicable?

Yes, you can foreclose your loan anytime you want with Nil foreclosure charges.

What is the maximum loan tenure I can opt under Corporation Bank Property loan?

Corporation Bank offers maximum tenure of 10 years to repay your loan.

What is the benchmark rate applicable for Mortgage loan?

The benchmark rate applicable for property loan in Corporation Bank is 1 Year MCLR.

Can I transfer my LAP from another bank to Corporation Bank?

Yes, Bank gives you the facility to transfer your existing loan with a hassle free process. Loan balance transfer to Corporation Bank offers you to pay lower EMIs and save money.

Can I club the income of my spouse with mine and apply for joint Property loan?

Yes, you can club the income of your spouse to increase your loan eligibility if the spouse is co-owner of the property or guarantor of the loan.

What is Corporation Bank mortgage loan processing fees?

The loan processing fee charged is 1.00% of the total loan amount.

What is Corporation Bank property loan procedure?

You can apply for a Corporation Bank property loan by contacting the bank directly or by approaching them through online marketplaces like MyLoanCare. Approaching the bank through an online market place improves the chances of getting best loan rates, low processing fees and special offers in the form of cash backs. Once you approach