ˆÅ¸œ¸øÄ£½©¸›¸ ¤¸ÿˆÅ Corporation Bank

( A Premier Public Sector Bank )

( ¬¸¸¨¸Ä¸¢›¸ˆÅ ®¸½°¸ ˆÅ¸ ‚ŠÏµ¸ú ¤¸ÿˆÅ)
œÏš¸¸›¸ ˆÅ¸¡¸¸Ä¥¸¡¸, ”¸ œ¸½ ¬¸¿. 88 Head Office, PB No.88,
Ÿ¸¿Š¸¥¸»£ - 575 001 Mangalore – 575 001
e-CIRCULAR
Retail Lending Division
Email : Horls@corpbank.co.in
Index No.
HO Circular No. 579/2010 21-July-2010
52.00/24/2010

TO ALL THE BRANCHES / OFFICES

Subject : INTRODUCING NEW VARIANTS UNDER CORP HOME AND CORP

VEHICLE SCHEME “CORP HOME SMART” (CHSMT) & “CORP VEHICLE
SMART” (CVSMT) - REVISED CIRCULAR

HIGHLIGHTS

1.0 "Corp Home Smart" & " Corp Vehicle Smart" new variants
under Corp Home & Corp Vehicle loan Schemes have been
introduced.

2.0 The variants are under operation from 19.07.2010 to

31.12.2010 .

3.0 The Circular 575/2010 dt. 19.07.2010 issued in this regard

stands withdrawn and superseded by this Circular.

1.0 Please refer to HO.Circular 575/2010 dt.19.07.2010 communicating

introduction of special variants 'Corp Home Smart" and " Corp Vehicle Smart"
Scheme under Corp Home and Corp Vehicle Schemes.

2.0 As there is revision in rate of interest, the Circular 575/2010

dt.19.07.2010 stands withdrawn.

3.0 This Circular supersedes the Circular 575/2010 dt. 19.07.2010,

issued earlier.

Page 1 of 6
4.0 Where the loans have already been initially disbursed on or after
19.07.2010 under "Corp Home Smart" Scheme, necessary communication
indicating revised interest rate shall be sent to the borrowers and obtain
acknowledgement for the same.

5.0 Where loans have already been sanctioned Under "Corp Home Smart"
Scheme but pending for disbursement, necessary modification in CSI shall
be obtained from the Sanctioning Authority.

6.0 Housing and Vehicle loans are continuing to be thrust area for retail lending
of the Bank. In order to give boost to housing and vehicle loan sector and to
fall in line with other peer Banks and to provide stable interest rates, it is
decided to introduce new variants of Housing & Vehicle loans.

[A] “ Corp Home Smart” - salient features of the Scheme are as under:

a) The Scheme will be under operation from 19.07.2010 to

31.12.2010.

b) The Scheme is applicable only for fresh loans sanctioned and initially
disbursed on or after 19.07.2010 and upto 31.12.2010. However, it
will also be applicable for loans sanctioned prior to 19.07.2010 but
initially disbursed between the above said period.

c) All Corp Home loans may be sanctioned under nomenclature “Corp

Home Smart” (CHSMT) , during the period.

d) However, if any customer opts/insists for housing loan under

general Scheme ( i.e Corp Home), such request may also be
considered as per prevailing Interest Rates as applicable for Corp
Home Scheme.

e) 50% of applicable Processing Charges are waived. ( for our staff

members, Processing Charges are waived as per HO Cir 43/2009
dt.23.01.2009)

Page 2 of 6
 f) Rate of Interest:

Rate of Interest Upto Rs. 50 lakhs Above Rs. 50 lakhs

Loan Tenor Floating Fixed Floating Fixed
First year- fixed 8.25% p.a # 8.25% p.a # 8.25% p.a # 8.25% p.a #
Next two years- fixed 9.25% p.a # 9.25% p.a # 9.25% p.a # 9.25% p.a #
Fourth year onwards 2% above the 3.50 % above 2.50% above 4.00 % above
Base Rate, the Base the Base the Base Rate,
then Rate, then Rate, then then prevailing
prevailing. prevailing at prevailing. at the time of
Currently the time of Currently reset, with a
effective rate reset, with a effective rate reset
being 9.75% reset being 10.25% frequency of 5
frequency of years.
5 years.

# Rate of interest during the first three years of loan period shall not be less than
the prevailing Base Rate.

g) Loans for our staff members shall be opened in the system under Sub-
Type -2 as they are eligible for interest concession of 0.50% ( as per
HO.Cir 375/2005) inspite of the resultant rate going below the Base Rate.

h) The interest rates indicated above during the first three years of loan
period shall be made applicable to respective loan on anniversary date
of first disbursement of loan, provided, during the said period the
rate indicated above is not less than the prevailing Base Rate.

i) Except for the salient features mentioned hereinabove , all other terms
and conditions of Corp Home Scheme, including those pertaining
to permitting deviations from Scheme guidelines shall be applicable for
the loans sanctioned under this Scheme.

j) Documentation: Documents prescribed under Corp Home Scheme

only shall be obtained. Rate of interest as applicable on date of
initial disbursement shall be filled in loan documents.

k) Credit Sanction Intimation (CSI): CSI shall be invariably issued and

duly acknowledged by the borrower/s.

Page 3 of 6
 Rate Of Interest in CSI shall be mentioned as under:

Rate of interest , under floating rate is 8.25% p.a, or the prevailing

Base rate whichever is higher for the first year, ….% p.a or the
prevailing Base Rate whichever is higher for the next two years, and
from fourth year onwards ……% above the Base Rate then prevailing at
the beginning of the fourth year.
OR
Rate of interest , under fixed rate is 8.25% p.a or the prevailing Base
Rate whichever is higher for the first year, ….% p.a or the prevailing
Base Rate whichever is higher for the next two years, and from
fourth year onwards ……% above the Base Rate, then prevailing at the
beginning of the fourth year with a reset frequency of 5 years.

EMI clause in CSI shall be as under:

Loan shall be repayable in ………...EMIs starting from……………. EMI for the

first year is Rs………., and EMI for the next two years and from fourth year
onwards shall be re-fixed and informed at the beginning of second year
and fourth year.

l) Regarding arriving at eligible loan amount, EMI as % to net income, rate

of interest as applicable on the date of sanction (i.e 8.25%) of the loan
shall be considered.

[B] “Corp Vehicle Smart” Salient features of the Scheme are as under:

a) The Scheme will be under operation from 19.07.2010 to 31.12.2010.

b) The Scheme is applicable only for fresh loans sanctioned and initially
disbursed on or after 19.07.2010 and upto 31.12.2010. However, it
will also be applicable for loans sanctioned prior to 19.07.2010 but
initially disbursed between the above said period.

c) All vehicle loans shall be sanctioned under nomenclature “Corp Vehicle

Smart” (CVSMT) only, during the period.

d) However, if any customer opts/insists for vehicle loan under

general Scheme ( i.e Corp Vehicle), such request may also be
considered as per prevailing Interest Rates as applicable for Corp
Vehicle Scheme.

Page 4 of 6
 e) There is NO waiver of Processing Charges. ( for our staff
members, Processing Charges are waived as per HO Cir .43/2009
dt.23.01.2009)

f) Rate of Interest:

First year Second year onwards

fixed at
3.50% above the Base Rate, then
Applicable for all tenors 8.25 % p.a # prevailing. currently effective
rate being 11.25%

# Rate of interest during the first year of loan period shall not be less
than the prevailing Base Rate.

g) Loans for purchase of two wheelers & second hand vehicle shall not be
considered under this variant.

h) The interest rates indicated above for the beginning of second year
shall be made applicable to respective loan on anniversary date of initial
disbursement of loan provided, during the first year of loan period the
rate indicated above is not less than the prevailing Base Rate.

i) Except for the salient features mentioned hereinabove ,all other terms
and conditions of Corp Vehicle Scheme, including those pertaining
to permitting deviations from Scheme guidelines shall be applicable for
the loans sanctioned under this Scheme

j) Documentation: Documents prescribed under Corp Vehicle Scheme only

shall be obtained. Rate of interest as applicable on date of initial
disbursement shall be filled in loan documents.

k) Credit Sanction Intimation (CSI): CSI shall be invariably issued and duly
acknowledged by the borrower/s.

Rate of Interest in CSI shall be mentioned as under:

Rate of interest , under floating rate is 8.25% p.a or the prevailing Base
Rate whichever is higher for the first year and from second year
onwards 3.50% above the Base Rate, then prevailing at the beginning of
the second year.

Page 5 of 6
 EMI clause in CSI shall be as under:

Loan shall be repayable in ………...EMIs starting from………………. EMI for

the first year is Rs………., and EMI for the second year onwards shall be re-
fixed and informed at the beginning of the second year.

Regarding arriving at eligible loan amount, EMI as % to net income, rate

of interest as applicable on the date of sanction (i.e 8.25%) of the loan
shall be considered.

7.0 As the Scheme is proposed to be closed on 31.12.2010, loan proposals received

and sanctioned on or before 31.12.2010 shall have to be initially disbursed on
or before 31.01.2011 to be eligible for the rate of interest under the Scheme.

8.0 With the implementation of the above new Schemes, our housing & vehicle
loan Schemes have become more attractive and competitive. The Branches
shall aggressively market the Schemes to secure maximum business under
Housing & Vehicle loan segment.

9.0 Branches are advised to note the above guidelines for strict compliance.

(S.M.SWATHI)
GENERAL MANAGER

Page 6 of 6