Corporation Bank offers personal loan for financing personal expenses upto Rs.3.5 lac at the rate of 12.95%-13.95% per annum. The maximum repayment tenure can be as long as upto 60 months. The bank charges a processing fee of 0.50% of loan amount with a minimum of Rs.500.
The distinct feature of the Corporation Bank personal loan is that it do not charges for the preclosure of loan unlike SBI, ICICI and Federal bank charging upto 5% for the preclosure of personal loan.
|Corporation Bank Personal Loan at a glance|
|Annual Interest Rate||12.99% - 18%|
|Loan Term||Up to 60 months|
|Loan Amount||Rs. 10,000 - Rs. 3.50 Lacs|
|Time of Funding||-|
Nil Prepayment Charges – Corporation bank provides the option of prepayment of your personal loan without any prepayment charges, While most of the banks like SBI,ICICI and Federal bank charges a fee upto 5% on preclosure of loan. So if you are expecting an early payment of loan Corporation bank can give you a choice of doing so without any charges
Longer Repayment Tenure – Corporation bank offers a maximum loan prepayment tenure of 60 months, which is 12 months higher in comparison of some of the industry peers like Central bank of India and Federal bank who allows a repayment tenure of 48 months at maximum.
High Prepayment Charges – The processing charges of the Corporation bank for the personal loan is at 1.50% of the loan amount with a minimum of Rs.500. These charges are higher in respect of other peers like Central Bank of India charges a flat fee of Rs.500 for the loan processing purpose.
Higher Interest Rate – The interest on personal loan is charged by the Corporation bank at the rate of 12.95%-13.95% per annum. This interest rate is a bit higher in comparison of Canara Bank charging between a range of 10.90%-13.90% and Central Bank of India charging 11.60% per annum.
Third Party Guarantee Required The Corporation bank requires a Suitable Co-applicant / third party guarantee to be provided for the personal loan.
|Bank Name||Corporation Bank||Canara Bank||Federal Bank|
|Typical APR||12.99% - 18%||10.90% - 13.90%||11.49% - 14.49%|
|Loan Term||Upto 60 months||Upto 72 months||Upto 48 months|
|Processing Fee||1.50% of the loan amount||0.50% of the loan amount||0.50% of the loan amount|
|Time to Funding||-||Within 7 days.||Within 7 days.|
|Pre-Closure||Nil||Nil||2% of the outstanding amount.|
The Corporation bank offers a personal loan at the rate of 12.95%-13.95% per annum, While the peer Canara Bank starts the range from a lower circuit of 10.90% per annum. The minimum rate of interest charged by the Federal Bank is also lower then the Corporation bank at 11.49% but the maximum cap is higher at 14.49% in comparison of 13.95% of Corporation Bank.
The Corporation bank offers a maximum loan repayment tenure of 60 months, whereas Canara bank offers a tenure of 72 months at maximum and Federal bank allows only a period of 48 months at maximum for repayment purpose. The maximum lending amount among the three banks is higher in Federal bank column as they are allowing a maximum personal loan upto Rs.10 lacs. The preclosure charges of Corporation and Canara bank are nil, While the Federal Bank charges 2% of the outstanding amount.
Unlike its peers like Central Bank of India who allows a maximum repayment period of 48 months for the personal loan, the Corporation bank provides personal loan for a longer tenure of 60 months
While most of the big players of the game like SBI and ICICI charges as high as upto 5% for prepayment of personal loan, the Corporation bank is providing prepayment facility without any charges.
Corporation bank provides the personal loan at the rate of 12.95% to the salaried individuals if the salary is routed through the branch and undertaking letter is also available. In other cases the rate of interest remains 13.95% per annum.
The loan term can be as long as upto 60 months and the maximum loan amount can be as high as upto Rs.3.5 lac. The Corporation bank charges 1.50% of the loan amount as the processing charges with a minimum charges of Rs.500.
|Personal Loan Type||Applicable Interest Rate|
|Corp Personal Loan||12.95% - 13% per annum|
To locate a branch near you click here. Enter your state/city and you will find a list of the branches available near you.
|Type of Charges||Applicable Charges|
|Processing Charges||1.50% of the loan amount.|
|Loan Cancellation Charges||-|
The Corporation Bank charges 1.50% of the loan amount as fee for processing the loan application. This is a bit high if compared with the flat fee of Rs.500 per application offered by the Central Bank of India. The Corporation bank do not charges for the prepayment of loan like other peers SBI and ICICI..
The Corporation bank links the personal loan interest with the annual MCLR of 8.95%.
The maximum amount of loan offered by the Corporation bank to the self employed individuals is 25% of their annual gross income upto a maximum of Rs.3.5 lacs.
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