Corporation Bank to offer housing, vehicle loans at base rate

Corporation Bank will offer housing and vehicle loans at 10.25 per cent for certain slabs from June 1. In fact, 10.25 per cent is Corporation Bank’s base lending rate.

Addressing presspersons here on Friday, Chairman and Managing Director Ajai Kumar said the “monsoon bumper offer” would be in force from June 1 to September 30.

Under this offer, housing loans up to Rs 50 lakh would be offered at a floating rate of 10.25 per cent. Loans above Rs 50 lakh would be offered at 10.50 per cent. There would not be any processing charges or pre-payment penalty, he said.

The interest on vehicle loans of up to Rs 5 lakh would be 10.45 per cent, and for loans above Rs 5 lakh and below Rs 10 lakh, 10.40 per cent.

Vehicle loans above Rs 10 lakh would be offered at an interest rate of 10.25 per cent. Asked about the reason for offering vehicle loans above Rs 10 lakh at base rate, Ajai Kumar said many people were going for vehicles in that range. Earlier, the bank thought of fixing it at Rs 25 lakh. “Then we saw that many people go for vehicles in the Rs 10 lakh range,” he said.

The bank was expecting to get fresh business of about Rs 4,000 crore during the ‘monsoon bumper offer’ period, he said.

Stating that retail lending was a focus area, he said retail credit had registered 39 per cent growth during 2012-13.

SB ACCOUNTS

Ajai Kumar said the bank had launched a savings bank (SB) account called ‘Corp Saral Plus’.

Targeted at the common man, he said the customer did not have to maintain a prescribed minimum or average balance in the account. In addition, the customer would be offered a personal accident insurance of Rs 5 lakh for a fee of Rs 50 per annum, he said.

vinayak.aj@thehindu.co.in

Source: thehindubusinessline