Corporation Bank is targeting to treble its home loan portfolio to Rs 800 crore by March 2000.
The bank, in a statement issued today, said it plans to market its housing loans among the personal segment. With a view to give added thrust for home loans, specialised Housing Finance Cells are being established at 100 select branches in potential centres exclusively to cater to the needs of home loans customers.
"Under the bank's CorpHome Scheme, which has been fine-tuned recently and made more customer-friendly, loans can be availed for all purposes relating to housing activity such as construction, repair, renovation, extension or takeover of housing loan liability from another housing finance liability," the release said.
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Loans up to Rs 10 lakh are available at 12.25 per cent interest and for a loan of Rs 1 lakh with 20 year tenure, the equated monthly installment works out to Rs 1,110. Loans up to Rs 50 lakh will be sanctioned.
The minimum contribution by a borrower for a new construction of purchase of up to 5-year-old house has been reduced to 15 per cent.
The maximum tenure of a housing loan availed from the bank is 20 years and there is also a provision for a repayment holiday of up to 18 months during the initial construction period. "These loans carry no prepayment nor any other hidden charges," the release said.