Home loan cells

Corporation Bank is to enlarge its housing finance business. The bank plans to set up 100 housing finance cells to cater to the housing loan market. The interest rate charged on the housing loan scheme is 12.25 per cent for loans up to Rs 10 lakh. Loans are available for up to Rs 50 lakh.

The scheme offers a repayment holiday of up to 18 months during the initial construction period. The minimum margin is 15 per cent of total cost. The loans do not have pre-payment penalties or hidden charges. No third party guarantee and collateral security is needed. -- BL Research Bureau