Karnataka Bank Home Loan

Table of Contents

• Karnataka Bank Home Loan Interest Rate
• Eligibility Criteria for Karnataka Bank Home Loan
• Karnataka Bank Home Loan Schemes
• Karnataka Bank Home Loans for NRIs
• How To Apply for Karnataka Bank Home Loan
• Document Checklist for Karnataka Bank Home Loan

 

Introduction

Karnataka Bank is a leading ‘A’ class commercial bank in India. It was established on the 18th of February in 1924 at Managaluru in Karnataka. The bank operates in a PAN India level with a network of 840 branches spread over 22 states and 2 union territories of the country.Over the years, the bank merged with the Sringeri Sharada bank Lts, Chitradurga Bank Ltd and the Bank of Karnataka.

The Karnataka bank has not only survived but thrived in the country for the past 94 years! And the bank has gotten this far by sticking to certain core values of the bank that the employees follow across thousands of branches scattered all over the country.

The bank believes in following the law and always ensures that the customers are also aware of the relevant sections of the IPC. This makes the process a lot easier and simplified.

Another crucial aspect of the loan application process is the submission of all important documents. The bank makes sure that its customers have everything ready, and if they require, the bank will go an extra mile to ensure that they have their relevant documents.

The bank believes in providing a holistic and soothing experience to its customers.

Karnataka Bank Home Loan Interest Rate

The bank offers extremely high loan figures with manageable interest rates so that a maximum number of people can benefit from decades of experience in the business.

Having emerged as one of the leading financial services in India, the bank offers some of the best interest rates in the Indian market right now. The interest rates that the bank offers are as follows:

Loan Amount	Karnataka Bank Floating Interest Rate
Less than 25 lakhs	8.90 %
25 lakhs – 75 lakhs	8.90 %
75 lakh – 3 CR	9.25 %
Beyond 3 CR	9.60 %

Eligibility Criteria for Karnataka Bank Home Loan

To be eligible to avail a home loan form the Karnataka Bank, a borrower should be fulfil certain criteria proposed by the bank. Listed below are the eligibility criteria –

Eligibility Criteria	Karnataka Bank home loan
Age of applicant	21 – 60 years
Minimum income requirement	Rs. 10, 000 and above
Loan amount eligibility	Rs. 15 lakhs – 5 CR
Max loan amount as a percentage of property value	Not more than 80 %
Max EMI as a percentage of income	Not more than 65 %

 

The eligibility criteria that the bank follows is quite simple and as customer – friendly as it can be. The parameters as mentioned above are just the first step in a long list of verification protocols which the borrower need to follow. We can’t just give loans to people without truly verifying them and their claims.

As long as you meet with the eligibility mentioned above, you can proceed to the next step of the application process. It involves the submission of the usual documents of different proofs that are required for any kind of official verification, such as a housing loan application.

Karnataka Bank Home Loan Schemes

1. KBL ApnaGhar

Karnataka Bank’s Apna Ghar housing loan can be utilised for construction of a new house, purchase of a house or flat and also for renovation, repairs and remodelling to be made in an already existing property.

This home loan solution is available to both residents of India as well as NRI citizens.

Anybody of 18 years of age can apply for this scheme. The bank has varied income requirements from differently employed people.

 

KBL ApnaGhar: Our Flagship home loan solution

The KBL Apna Ghar home loan solution is the bank’s main loan offering. It is also the most popular loan since it deals with practically all the different kinds of real estate purchases.

Whether you want to construct a house, buy a flat or property, or even renovate, remodel or repair the house, this loan solution is applicable to your situation.

For a borrower to avail for this loan, the applicant must be over 21 years of age.

The maximum amount that the bank parts with for the construction of your house is Rs. 5 Crore. And the limit for remodelling, repair work, renovation and extension is up to Rs. 30 lakh. The maximum loan period for construction purposes is up to 30 years, and for repair work, remodelling and extension is up to 7 years.

 

Eligibility criteria for Resident Indians

Resident salaried people are expected to have a minimum monthly salary of Rs.10,000; resident agriculturists are required to have an annual income of at least Rs.1,20,000, and so do professionals, self-employed and businesspeople.

 

Eligibility criteria for NRIs

Salaried NRIs are expected to have a monthly income of at least Rs.40,000, and self – employed NRIs / businessmen / professionals are supposed to have an annual income of at least Rs.4,80,000.

The current rates of interests are available in detail on the website.

 

Amount of Finance

A salaried individual can avail a loan for around 60 times of his / her monthly salary. A businessman or a self – employed professional can availa an amount that is 5 times of the income.

 

Period of Loan

The loan can be active for a period of 30 years in case of construction and for 7 years in case of renovation.

 

2. KBL Home Comfort

This loan can be availed for renovations, refurbishing, interior works, solar heating, lighting systems, purchase of furniture etc.

By availing this loan up to 75 % of the estimated cost for the renovation work can be claimed from the bank. The maximum amount that can be availed through this scheme is Rs 100 lakhs. The maximum tenure for the loan is 120 months.

This home loan has largely the same eligibility criteria as the previous home loan solution.

 

3. KBL Ghar Niveshan

Karnataka Bank’s Ghar Niveshan housing loan can be utilised for the purchase of a house site. In other words, a plot of land that is not developed.

This home loan solution is available to both residents of India as well as NRI citizens.

Anybody of 21 years of age can apply for this scheme. The bank has varied income requirements from differently employed people.

 

Eligibility criteria for Resident Indians

Resident salaried people are expected to have a minimum monthly salary of Rs.10, 000; resident agriculturists are required to have an annual income of at least Rs.1,20,000, and so do professionals, self-employed and businesspeople.

 

Eligibility criteria for NRIs

Salaried NRIs are expected to have a monthly income of at least Rs.40, 000, and self – employed NRIs / businessmen / professionals are supposed to have an annual income of at least Rs.4,80,000.

The current rates of interests are available in detail on the website.

Through this loan scheme, the borrower can avail up to 80% with Rs 50 lakhs, of the registration value of the site. The maximum tenure for the re – payment of a loan under this scheme is 60 months.

Moreover, as a guarantee, the bank require a mortgage of the plot to be acquired along with the sign of a guarantor.

Karnataka Bank Home Loans for NRIs

NRIs are people who reside out of the mother country for various reasons like employment, education and other financial needs. NRIs are usually the ones that require the biggest loans and the bank has customised a whole bunch of different facilities for them.

NRIs are often not sure about investing their hard-earned money in India. If you are an NRI, then you only need to take a peek at the following amalgamation of different services we offer:

• Indian currency bank accounts and deposits
• Foreign currency bank accounts and deposits
• Investments on repatriation and non-repatriation basis
• Investment in immovable property

 

The NRIs can lawfully engage in the purchase of movable and immovable property in India. And if they wish to take the help of a housing loan solution, then all of KBL’s home loan solutions are available for them. Moreover, the bank offers to solve all your issues related to housing, including procuring the right documents according to the law.

 

Eligibility criteria for NRIs 

Although there is no real difference in the way the government treats resident Indians and NRIs, the latter group do have their own set of guidelines according to which they must function.

When it comes to any kind of investment in the country, the verification procedures become stringent and also very detailed. Below is a list of important eligibility criteria for NRIs –

• 18 years of minimum age
• Proof of residence outside India
• Indian passport
• Minimum monthly income for salaried employees to the tune of Rs. 40,000
• Minimum yearly income for business people to the tune of Rs. 4,80,000

 

As long as you meet these requirements, you can apply for a loan or even invest in some other entity.

The bank has been dealing with loan applications for as long as it has been in business, and the experience tells us that clarity of the eligibility criteria are of paramount to a good and clean application.

It is better to be clear about the different documents and proofs that you will need to furnish once you initiate the loan application process. The bank has a very customer-friendly policy when it comes to these matters.

How To Apply for Karnataka Bank Home Loan

The application process is quite simple and straightforward. Below stated is the entire process:

1. Select the loan solution

The bank’s website is very simple and easy to use. Be sure to check out all of the different housing loan solutions that the bank has listed.

Also, be mindful of your own reasons for the loan. The loan solutions are very versatile and accepted by people from many different backgrounds, both cultural and economic. Read the entire description thoroughly for each and every one of the loan solutions and you will find the loan solution that best suits your requirements.

Once you’ve selected your loan solution, you can move forward to the next step.

2. Check the eligibility

The crux of all loan applications, eligibility is the most crucial aspect of the bank’s loan application also.

If you find that you are lacking in even one parameter, then the possibility of you getting a home loan from KBL falls into a question. This being the case it is imperative for the borrower too ensure that the eligibility does not become a hindrance in the path to buying a new home.

Once you’ve got the eligibility jotted down, you can move on to the final stages of the application process.

3. Fill the form and submit the documents

Every loan solution that the bank provides has a different form which needs to be filled and submitted for your application to actually move ahead in the verification process.

Along with the form, you will be required to furnish documents that prove your age, residency and income.

So keep your PAN card, telephone bill and past salary slip handy. These documents will prove your identity and also point out your residential location without a doubt.

Finally, when you finish with this step, you must submit the form along with copies of the required and relevant documents.

The forms are lengthy and very detailed. You will need to fill in all the blanks for your application to truly proceed.

Once you have finished with these above said steps, a service agent from the bank will contact you and guide you right till the end of the process.

Document Checklist for Karnataka Bank Home Loan

Below is a list of all the documents that you will be required to furnish for the application at various stages:

• Age proof (Aadhar card, PAN card, driving license)
• Residential proof (Aadhar card, PAN card, passport, driving license, telephone bill etc.)
• Passport size photograph
• Completely filled out form
• Letter of appointment by employer
• Salary slips of the past three months at least
• Bank statements for business people and self-employed professionals.
• Passport or PIO card copy
• Letter of appointment by current employer
• Bank statements of the past two years
• Loan history