Corporation Bank Personal Loan Interest Rates

In addition to the above-mentioned documents, you will have to submit a duly filled application form and other certificates or proofs that the bank may need to check your loan eligibility.

*The floating rate of interest is linked to the MCLR and subject to yearly reset.

Factors Affecting Corporation Bank Personal Loan Interest Rate

Corporation Bank Personal loan interest rates are not the same for all borrowers. It varies depending on certain factors which are listed below:

1. Nature of job or occupation: Depending on whether you draw pension or salary through the bank branch, the interest rate will differ for your personal loan. Corporation Bank offers personal loans at varying interest rates to applicants based on whether their salary is routed through the bank and if the undertaking letter is available. If the applicant doesn't draw salary or pension through the bank the interest rate charged could be higher.
2. Quantum of loan: The amount of loan offered by the bank to its customers varies depending on their employment status. Likewise, the interest rate varies with the loan amount. Use the online personal loan EMI calculator to choose a loan amount and loan tenure that is affordable to you so that you can repay the loan without defaulting.
3. Credit score: Most banks check your credit score when approving a personal loan because the score indicates your creditworthiness. Lenders, generally, consider applicants with poor credit scores to be high (lending) risk individuals. Hence such loan applications are rejected.
4. Loan tenure: Long loan tenure usually means a lower interest rate while a short loan tenure means a higher interest rate. Although the interest rate charged is lower for a long loan tenure, the interest paid over time is higher.
5. Existing customers: Corporation Bank offers comparatively lower interest rate personal loans to existing customers who route their salaries or pensions through the bank branch.

In addition to the above-mentioned factors, your income and repayment capability may also affect your personal loan interest rate.

Key Things to Know About Corporation Bank Personal Loan Interest Rates

1. Interest rates for Corporation Bank personal loans are linked to the Base Rate and are likely to change with changes in base rate.
2. Applicants are required to provide a collateral/guarantor in order to obtain a personal loan and it is possible to get favourable interest rates on account of this collateral.
3. Any change in the repo rate could impact the interest rate charged by Corporation Bank.
4. Floating interest rates can change with changes in the base lending rate.

Corporation Bank Personal Loan EMI Example (Illustration)

It helps to understand how your personal loan repayment works. Loans are repaid in the form of equated monthly installments (EMIs). To help you understand how the interest is charged and how much the loan costs you on a monthly basis, here are two examples with amortization tables. The table gives you a breakdown of the principal loan amount, interest, EMI, and outstanding due for each month.

1. Miss. Karishma has a monthly income of Rs.25,000 and takes a loan of Rs.1 lakh at an interest rate of 10.75% p.a. for a loan tenure of 1 year. Listed below is the amortization table for her loan repayment.

For Salary of Rs.25,000 Per Month

Principal loan amount - Rs.1,00,000

Monthly personal loan EMI - Rs.8,827

Total interest due - Rs.5,918

Processing fee - Rs.1,500

Total amount payable - Rs.1,07,418

2. Miss. Cecilia has a monthly income of Rs.50,000 and takes a loan of Rs.3.5 lakh at an interest rate of 12.25% p.a. for a loan tenure of 3 years. Listed below is the amortisation table for her loan repayment.

For Salary of Rs.50,000 Per Month

Principal loan amount - Rs.3,50,000

Monthly personal loan EMI - Rs.11,667

Total interest due - Rs.70,006

Processing fee - Rs.5,250

Total amount payable - Rs.4,25,256

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