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Karnataka Bank Home Loan

Karnataka Bank home loans provide ready financial assistance to borrowers in their homeownership journey. Karnataka Bank is a trusted name with almost 100 years of experience in banking services. Their home loan products ensure affordable property financing for home seekers and investors. Karnataka Bank helps purchase, construct and renovate a home. The bank also helps refinance an existing loan. 

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Features & Benefits of Karnataka Bank Home Loan

Wide Usage

The loan amount can be used for purchase, construction and refinance purposes. The bank’s loans also provide borrowers to avail loans for renovating their existing homes. 

Secured Loans

A borrower is required to submit a security as a guarantee in order to gain a home loan from the bank. The mortgage of the concerned property/ land serves as that security. 

Affordable Interest Rates

Karnataka Bank’s housing loans are available at competitive rates. Depending upon the scheme, the bank’s home loan interest rate can range from 8.75% – 11.02%. 

Up to 5 crores

Home loans from Karnataka Bank can provide monetary assistance of up to 5 crores. The loan amounts and LTV ratios differ according to different schemes and for different borrowers. 

Comfortable Repayments

Karnataka Bank housing loans can be repaid in a maximum of 30 years in Equated Monthly Instalments (EMIs). The loan depends on multiple factors like the requested amount, the applicant’s financial standing and repayment capacity.  

Appreciating Asset

Properties are lucrative investments that help in achieving wealth generation. Newly constructed houses can be rented out to earn additional income or be sold at higher rates in future to make sizable profits. 

Easy Application

The bank accepts offline and online home loan applications. Borrowers looking for quick approvals can especially take advantage of online applications, as they offer digital KYC and faster loan disbursements.

Eligibility Criteria for Karnataka Bank Home Loans

Home loan seekers satisfying the following criteria can apply for a Karnataka Bank Housing Loan.

1) Eligible Candidates: Salaried/ Self-Employed/ Agriculturalists

2) Minimum Age:  18 years for KBL Apna Ghar Loan. 21 years for KBL Ghar Nivesh Loan

3) Residential Status: Indian citizens/ NRIs with Indian Passports

4) Minimum Income: The minimum income levels specified by the bank are as follows:

  • Salaried Persons: Gross monthly salary of ₹10,000 for Indians/ ₹40,000 for NRIs
  • Self-Employed Applicants: Gross Annual income of ₹1,20,000 for Indian citizens/ 4,80,000 for NRIs.
  • Agriculturists: Net annual income of ₹1,20,000
  • 5. For the KBL Home Comfort Loan, an applicant must be an existing home loan borrower.

Documents required for Karnataka Bank Home Loan

Customers with accounts in Karnataka Bank as well as other banks can apply for Karnataka Bank housing loans. The applicants will be required to produce the following documents at the time of application:

  • PAN Card
  • KYC Documents (Aadhar Card/ Voter’s ID/ Utility Bills/ Others)
  • Last 6 months’ salary account statements (for salaried applicants)
  • Last 12 months’ operative bank account statements (for self-employed applicants)
  • Colour passport-size photographs

Types of Karnataka Bank Home Loans

Karnataka Bank housing loans are available in three categories. Let us take a look at their distinct features.

KBL – Xpress Home Loans

This Karnataka Bank Home Loan offers finances for the purchase or construction of a new house or remodelling of an existing one. It is also called ‘KBL Apna Ghar Loan’.

Take a look at the highlighting features of this home loan.

  • Maximum Loan Tenure: 30 years for purchase/ construction loan. 7 years for renovation loan
  • Maximum Loan Amount: Up to ₹5 crores for purchase/construction loan. Up to ₹30 lakhs for renovation loan
  • Security: Mortgage of the concerned property with the bank. Spouse/ Third party guarantee
  • Eligible Amounts: 60 times the net monthly salary of a salaried applicant. 5 times the annual earnings of self-employed/ agriculturists
  • Repayment Mode: EMIs for general applicants/ Yearly repayments for agriculturists 
  • Margin: 10-25% on new constructions/ 30% for houses older than 10 years.

KBL- Xpress Home Comfort

This Karnataka Bank housing loan is sanctioned for furnishing and fixture purposes. They offer a comfortable application process through digital processing and instant principal sanction facilities to an applicant.

Here are the loan’s highlights:

  • Eligible Candidates: Borrowers who have already availed a Karnataka Bank Home Loan
  • Maximum Loan Tenure: 10 years
  • Maximum Loan Amount: 1 crore
  • Security: Hypothecation of assets purchased from loan amounts. An existing mortgaged property with the bank. Spouse/ Third party guarantee
  • Eligible Amounts: Up to 75% of the cost of purchases to be made for renovation purposes
  • Repayment Mode: Equated Monthly Instalments (EMIs)
  • Margin: Up to 25% 

KBL- Xpress Ghar Nivesh

‘Ghar Nivesh’ Karnataka Bank housing loans are available for the purpose of purchasing a vacant site meant for new construction. Take a look at the loan’s features.

  • Maximum Loan Tenure:  7 years
  • Eligible Amounts: Up to 80% of the property’s value for properties valued not more than ₹75 lakhs. 
  • Security: Mortgage of the house site with the bank. Spouse/ Third party guarantee
  • Loan Repayment: EMIs for general applicants/ Yearly repayments for agriculturists
  • Margin: Up to 20%

How Does the EMI Calculation Work for Karnataka Bank Home Loans?

Karnataka Bank housing loans can be repaid through Equated Monthly Instalments (EMIs). EMIs divide the loan repayment into periodic monthly payments and make loan settlement easier for a borrower.

The bank calculates EMIs on a home loan using the following formula:

P x R x (1+R)^N / [(1+R)^N – 1]

Where,

  • P is the principal loan amount
  • N is the tenure in months and, 
  • R is the prevailing rate of interest.

For a hassle-free EMI calculation, you can also use the Karnataka Bank Home Loan EMI Calculator available online on Pluto Money website.