Mangalore-based public sector bank, Corporation Bank, has announced its loan schemes for the festive season earlier this year than in the past.
Ajai Kumar, Chairman and Managing Director, Corporation Bank, said 'environmental situation', ‘strain on the balance sheet’ and the present being a ‘good time to grow in the retail segment’ were the reasons for the early announcement this year of the loan schemes. Retail accounts of 15 per cent as against the required 20 per cent of the bank’s loan portfolio. Mr. Kumar said he could reach the latter level.
The loans will be offered from September 1 this year for a limited period of two months. They include home loans, vehicle loans, NRI home loans, finance schemes for doctors and for those in trade and business.
The housing loan for construction of a new house or takeover of housing loans from other banks or institutions for Rs.50 lakh is 10.5 per cent, 10.75 per cent for loans of amounts up to Rs.1 crore and 11 per cent for loans above Rs.1 crore. A vehicle loan for a period of five years is offered at 11.25 per cent and 11.75 per cent for a period of seven years. Processing charges are waived for both housing and vehicle loans, he told reporters here on Wednesday. Doctors can get finance for setting up clinics, hospitals, pathology labs and for buying electromedical equipment in a scheme for them. Any registered medical practitioner, dentist, physiotherapist or firm managed by doctors can apply for the loan offered at 12 per cent rate of interest.
A loan for traders and businessmen buying and selling goods and commodities in retail or wholesale is offered for amounts up to Rs.20 lakh at 12.5 per cent interest and at 13.5 per cent for amounts higher than Rs.20 lakh.
Housing loans for NRIs is offered at 10.5 per cent for amounts up to Rs.50 lakh and 10.75 per cent for amounts up to Rs.1 crore and 11 per cent for amounts above that.
For those who take a home loan and a vehicle loan, the bank provides a reduction of 0.25 per cent in rate of interest on the latter. The bank is also setting up 10 centres that will offer gold loans.
The bank gave loans worth Rs.2,100 crore last year through the existing gold loan centres and is targeting advances worth Rs.5,000 crore this year. The public sector bank is waiting for approval from Apple to host its Android-based application on the iPad.