Corporation Bank is one of the leading public-sector banks that offer loan products and financial services to its customers. The bank provides short-term working capital funding to meet the business related financial requirements of its customers. Corporate Bank is known to provide business loan at an attractive interest rate of 10.30% onwards with flexible repayment options. There are several popular schemes such as Corp Vyapar and Corp Apni Dukan that are very much dedicated to providing financial assistance to all small and large businesses.
Corporation Bank Business Loan Interest Rate 2021
Interest rate | 10.30% – 11.80% |
Min. Loan Amount | Rs. 2 lakh |
Max. Loan Amount | Rs. 500 lakh |
Processing Fee | 1% of the loan amount |
Repayment Tenure | Secured Term /Demand loan repayable in maximum of 7 years |
Prepayment Charges | Nil |
Security | Equitable mortgage of land/building, Term Deposit, LIC policy, National Savings Certificates |
Note: The mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the bank and RBI. GST and service tax shall be levied extra on the mentioned charges.
Check – Which bank has lowest interest rate on business loan?
The bank provides the necessary amount required for construction of shop in the pre-owned company land or to purchase of readily built commercial space/shop for initiating any business or to purchase commercial/shop space under construction for the purposes related to the company.

Corporation Bank’s Apni Dukan Loan Scheme
Apni Dukan Loan Interest Rate 2021 | |
Interest rate | 12.10% onwards |
Loan Amount | As per the applicant’s profile |
Security | Mortgage of immovable property acquired out of the loan |
Processing Fee | 1% of the loan amount |
Repayment Tenure | Up to 15 years |
Prepayment Charges | Nil |
Margin | 35% on project cost |
Note: The mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the bank and RBI. GST and service tax shall be levied extra on the mentioned charges.
Eligibility Criteria
- Individual/Sole proprietorship/HUF/Joint Stock Company/Partnership firm or any other commercial entity engaged in business/trading activity either on a wholesale or retail basis for 1 year prior in seeking permission to sanction the loan
- All the units engaged in processing/ SSI units/ Commission agents/ manufacturing/ Contractors are also very much eligible for the loan provided all the stock is available/ held by them for the procedure of hypothecation
- It is very much necessary for the applicant to have either sales tax registration along with trade/business/license/permit issued by any of the Authority/Statutory/Recognized body
- All the traders and people in business engaged in business/traders either on the wholesale or retail basis holding valid license along with sufficient capacity to repay the loans
- All the applicants engaged in trading/business activities either on commission/franchise/agency/contract basis are very much eligible
- The required applicant must have done either sales tax registration along with business license/trade/ permit issued by any of the Statutory Authority/Recognized body
- Borrowers for small business loans can be individuals either singly or jointly/ Partnership firm/HUF/ Company fully engaged in trading activity either with the independent unit or the commission/franchise/agency/contract basis
Also Read: How is business loan EMI calculated?
Security Required to Avail the Business Loan
- Mortgage of the immovable property acquired out of the particular business loan
- In the real world case of ready built shop/building, the age of the building/shop shall never exceed 30 years
- The balance/residual life of the building/shop shall be at least five years more than the repaying tenor
- Authentic, equitable mortgage of land and building along with the pledge of specified financial assets. etc.
- Term-based deposits of the bank, LIC policies and the original National Saving Certificate
- Hypothecation of the amounted stock in trade and receivables of the borrower
- The particular age of the building offered as security shall never exceed the limit of 30 years
Toll Free Number: 1800-425-3555

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Disbursement & Repayment Options of Business Loan
- The loan amount, along with the borrowers/margin contribution, must be directly remitted to the builder/seller according to the case
- Margin must always be brought in cash
- In the situations of construction of building or purchase of any shop or commercial entity, the loan shall be released in particular stages based on the progress of the building activity
- There exist no circumstances where the reimbursement of purchase price is permitted.
Repayment Options
- The repayment options available in monthly instalments with maximum spread of 10 years inclusive of repayment holiday period of a maximum tenure of 12 months subjective to annual review
- In the case of construction activities, maximum repayment tenure is 15 years exclusive maximum initial repayment holiday period extending up to 24 months
- All the interest debited during the initial repayment holiday must be serviced as and when debited.
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