Karnataka Bank Home Loan

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Karnataka Bank Home Loan

Karnataka Bank Home Loan Key Features

Feature Value
Interest Rate 6.90% onwards
EMI / Lakh Rs. 662
Loan Tenure Up to 30 years
Loan Amount Percentage based on property value
Loan to Value Ratio Up to 90% of property value
Loan Available on the Following Types of Property
  • New flat
  • Ready to Move-in House
  •  Plot From MHADA, DDA, etc.
  • Home construction
  • Home extension
  • Home renovation
Special Offer for Women Interest rate concession of 0.05%
Processing Fee Up to 0.5% of loan amount excluding GST
Prepayment Charges No prepayment charges for floating rates
Part Payment Charges Nil
Guarantor Required Nil

Please Note: The above figures are only indicative and are subject to change without any prior notice.

Karnataka Bank Home Loan Interest Rate

Karnataka Bank Home Loan Schemes Interest Rate For Women Interest Rate for Others
Karnataka Bank Home Loan 6.90% – 7.95% 7.00% – 8.00%
Karnataka Bank Reach Loan 8.75% – 14.00% 8.75% – 14.00%
Plot Loan 7.05% – 8.05% 7.10% – 8.10%
Rural Housing Loan 6.90% – 8.70% 7.00% – 8.70%
Home Improvement Loan 6.90% – 7.95% 7.00% – 8.00%
Home Extension Loan 6.90% – 7.95% 7.00% – 8.00%
Home Loan Top Up As per home loan slabs As per home loan slabs
Home Loan Balance Transfer 6.90% onwards 6.90% onwards

Please Note: The above rates and values are floating in nature and are based on adjustable rates. These are subject to change at the time of loan disbursement.

Karnataka Bank Home Loan Eligibility Criteria 

Salaried Individual:

  1. The applicant’s nationality should be Indian.
  2. The applicant must be between the age group of (Minimum) 18 years to (Maximum) 65 years.
  3. Must have working experience and a legitimate source of salary i.e working under the same employer for at least one year.

Self Employed Individual:

Applicants who are not professionally engaged in the working sector but have their own source of steady income are also eligible for the Karnataka Bank Home Loan. This includes everybody who is a:

  • Traders
  • Commission agent
  • Contractors

The following criteria must be met to apply for a home loan:

  1. The applicant’s nationality should be Indian.
  2. The applicant must be between the age group of (Minimum) 18 years to (Maximum) 65 years.

Self Employed Professionals:

Applicants who are professionally engaged in the working sector are also eligible for the Karnataka Bank Home Loan. This includes everybody who is a:

  • Doctors
  • Lawyers
  • Charted Accountant
  • Architect
  • Consultant
  • Engineer
  • Company Secretary

The following criteria must be met to apply for a home loan:

  1. The applicant’s nationality should be Indian.
  2. The applicant must be between the age group of (Minimum) 18 years to (Maximum) 65 years.

Additional Criteria for Co-applicants:

  • Co-applicant must be a family member of the primary applicant.
  • All co-applicants are not required to be the co-owners of the property.

Please find more information on Eligibility by visiting Dialabank.

Karnataka Bank Home Loan Interest Rates & Offers 

The interest rate on home loans has been reduced by Karnataka Bank, one of the country’s leading private banks. The latest home loan interest rate from Karnataka Bank is 0% lower, with rates beginning at 8.55 per cent. Karnataka Bank provides a variety of home loan products that can be used for the buying of a home, home renovation, expansion, or enhancement. A few items could have different interest rates.

Characteristics:

  • The interest rate on a home loan from Karnataka Bank starts at 8.55 per cent.
  • Processing fees of up to 0.25 per cent, with a minimum of ₹250, are charged by Karnataka Bank.
  • The term of a home loan will vary from 5 to 30 years.

Karnataka Bank Home Loan Procedure

For current Karnataka Bank customers, the home loan clearance and verification process is easy and much faster. They will apply online and get pre-approved deals on low-interest home loans. Instantly, the loan balance is transferred to their account.

Some consumers use a common implementation process. The borrower may apply either online or by downloading the application form from the official website, or by visiting the Karnataka Bank branch closest to them. They can also contact Karnataka Bank’s home loan customer service to complete the application.

A representative from the Karnataka Bank will collect the completed application form as well as all of the necessary documentation for verification. The bank will do a background check on the customer’s home and employment history. The Karnataka Bank home loan application would most likely be rejected if there are any inconsistencies with the details given. The acceptance process progresses to the final stage after going through document review and eligibility requirements. The interest rate and term of the Karnataka Bank home loan are finalized and submitted to you for approval.

Karnataka Bank Pradhan Mantri Awas Yojana Subsidy 2021

The Government of India launched the Pradhan Mantri Awas Yojana to encourage everybody to own a home. The scheme provides financial assistance to lower-income classes in society who receive less than 18 lakh rupees per annum by providing them with low-interest home loans. EWS (economically weaker section), LIG (lower-income group), MIG-1 (middle-income group-1), and MIG-2 (middle-income group-2) are the four income groups. On Karnataka Bank home loans, PMAY offers a gross subsidy of approximately 2.67 lakh rupees. Karnataka Bank’s PMAY Home loan has a 15-year maturity period.

  • Households in the Middle Income Group-II have an annual income of between 12,00,001 and 18 lakh rupees.
  • A family is described as a husband, wife, and unmarried children.
  • An adult earning member (regardless of marital status) may be considered as a separate household and be eligible for subsidy on his or her own.
  • In the case of a married couple, one of the spouses, or both of them together in shared possession, would be responsible for a single home, according to the household’s income eligibility.

Compare Karnataka Bank  Home Loan with Other Banks

Bank SBI KARNATAKA BANK
Interest Rate 6.70% – 7.05% 8.55% – 9.50%
Processing Fees Min ₹ 10,000; Up to 0.25%

Min ₹ 250;

Maximum Loan Amount ₹ 7 Cr ₹ 5 Cr
Maximum Tenure 30 Years 30 Years
Lowest EMI Per Lakh ₹ 645 ₹ 772
Benchmark Rate  RLLR RLLR
Minimum Age 18 Years 21 Years
Maximum Age 70 Years 65 Years
For Women Y N
Overdraft Facility Y – SBI Maxgain N

Karnataka Bank Home Loan Documents Required

Salaried Individual:

Valid ID and Residence Proof: A copy of Proof of Identity and Residence such as Aadhaar, PAN, Driving License, Passport, Voter ID, etc.

Income Proof:

  • Bank Statements showing salary credits from the last 6 months.
  • Latest Salary Slips from the last 3 months.
  • Latest Form-16 and IT returns
  • Employment Contract/Appointment Letter if the current employment is less than a year old.

Property Related Documents:

  • A cheque for processing fee favouring ‘Karnataka Bank.’
  • Copy of the Buyer Agreement/Allotment Letter
  • Receipt/(s) of payment/(s) made to the developer

Self Employed Individual:

Valid ID and Residence Proof: A copy of Proof of Identity and Residence such as Aadhaar, PAN, Driving License, Passport, Voter ID, etc.

Income Proof:

  • Bank Statements showing salary credits from the last 6 months.
  • Business Profile and Previous 3 years Income Tax returns (Both self and business)
  • Previous 3 years Profit/Loss Account and Balance Sheet.

Proof Of Business: 

  • Educational Qualifications Certificates
  • Business achievements (Certificate or awards if any)

Property Related Documents:

  • A cheque for processing fee favouring ‘Karnataka Bank.’
  • Copy of the Buyer Agreement or Allotment Letter 
  • Receipt/(s) of payment/(s) made to the developer

Agriculturists:

KYC Proof – PAN Card (Mandatory) and any Driving License/Voter ID/Passport

Income Proof:

  • Bank Statements showing salary credits from the last 6 months.
  • Copies of title documents of agricultural Land showing crops being cultivated

Property Related Documents:

  • A cheque for processing fee favouring ‘Karnataka Bank.’
  • Copy of the Allotment Letter / Buyer Agreement
  • Receipt/(s) of payment/(s) made to the developer

Additional requirements for Co-applicants:

Passport size photograph of all co-applicants to be affixed on the Application Form and signed across

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Common Documents for Salaried and Self-Employed

Terms  Salaried Self Employed
Application Form with photo and signed by Primary Borrower and Co-borrower(s)
Identity Proof of Primary Borrower and Co-borrower(s) – PAN Card (Mandatory)
Residential Address proof of Primary Borrower and Co-borrower(s) – Any one of passport, Aadhaar card, voter I card, landline bill, registered rent agreement, driving license, bank statement or passbook or utility bill. Bills and statements must not be more than 3 months old
Office address – ownership/ lease / rent agreement/ utility bill

Different Home Loan Schemes By Karnataka Bank

Karnataka Bank Home Loan – For Resident Indians

This type of loan is specifically for those individuals who are Indian residents and require funds to purchase a house or a plot for further construction.

Specific Information for Home Loan Scheme
Eligible Profiles Available to Salaried and Sef-employed Individuals
Loan Amount Up to 90% of the value of Property
Interest Rate 6.90% onwards
Processing Fee Up to 0.50% of the loan amount or Rs. 3,000 (whichever is higher) + GST
Loan Tenure 30 years

Karnataka Bank Home Loan for NRI/PIO – For NRIs and PIOs

This type of loan is available to those who are NRIs, PIO, and OCI. The loan helps the individual who is willing to:

  • Purchase a flat, row house, bungalow in India from private developers in approved projects.
  • Properties can be purchased from Development Authorities such as DDA, MHADA, etc.
  • Construct on a plot allotted by a Development Authority in India or a freehold/leasehold plot.
  • Properties can be purchased in an existing Co-operative Housing Society, Apartment Owners Association, Development Authorities settlements, or privately built-up homes.

Karnataka Bank Plot Loans – For Buying a New Plot

This type of loan is specifically established for those individuals who are looking to purchase a new plot. This loan supports buying a new direct allotment plot or a plot from the resale.

Specific Information for Plot Loan Scheme
Eligible Profiles Available to Salaried and Sef-employed Individuals
Loan Amount Up to 80% of the value of Property
Interest Rate 6.90% onwards (0.05% concession to women)
Processing Fee Up to 0.50% of the loan amount or Rs. 3,000 (whichever is higher) + GST
Loan Tenure 15 years

Karnataka Bank Top Up Loans – For Karnataka Bank Home Loan Borrowers

This scheme helps the borrowers to get additional funding over their already opted home loan. The funds from this scheme can be used for various personal and business purposes.

Specific Information for Top-Up Loan Scheme
Eligible Profiles Available to Salaried and Sef-employed Individuals
Loan Amount Up to 90% of the value of Property
Interest Rate New Customer – 8.30% onwards

Existing Customer – As per Home Loan Slabs

Processing Fee  Up to 0.50% of the loan amount or Rs. 3,000 (whichever is higher) + GST
Loan Tenure 15 years

Karnataka Bank Home Extension Loans – For Adding Space in Your Home

This type of loan is specifically for those individuals who want to extend or add space to their home property.

Specific Information for Home Extension Loan Scheme
Eligible Profiles Available to Salaried and Sef-employed Individuals
Loan Amount Up to 90% of the value of Property
Interest Rate 6.90% onwards
Processing Fee Up to 0.50% of the loan amount or Rs. 3,000 (whichever is higher) + GST
Loan Tenure 20 years

Karnataka Bank Home Loan Balance Transfer – For All Home Loan Borrowers

Karnataka Bank Home Loan Balance Transfer is available to those customers who are willing to lower their repayments.

Specific Information for Home Loan Balance Transfer Scheme
Eligible Profiles Available to Salaried and Sef-employed Individuals
Loan Amount Up to Rs. 50 Lakhs
Interest Rate 6.90% onwards
Processing Fee Up to 0.50% of the loan amount or Rs. 3,000 (whichever is higher) + GST
Loan Tenure 30 years

Karnataka Bank Home Loans under Pradhan Mantri Awas Yojana

This type of loan is specially established for EWS/LIG, families under MIG-I, and MIG -II categories. The validity of this scheme is up to 31 march 2022 (EWS/LIG), 31 march 2021 (Families under MIG-I and MIG -II categories).

Specific Information for Home Loan Pradhan Mantri Awas Yojana Scheme
Eligible Profiles Available to EWS/LIG, MIG-I, and MIG -II
Loan Amount No Cap
Interest Subsidy 3.00% onwards
Maximum Subsidy Up to Rs. 2.67 Lakhs
Loan Tenure 20 years

Karnataka Bank Reach Loans – For Indians With Income Of At least Rs. 10,000 Per Month

This type of loan is specifically for those individuals who are Indian residents with an income of Rs. 2 Lakhs per annum. This loan can cover the costs of purchasing a new or already built house, a new plot for further construction, renovations, and extension or construction on both residential and non-residential properties.

Specific Information for Reach Loan Scheme
Eligible Profiles Available to Salaried and Sef-employed Individuals
Loan Amount Up to 80% of the value of Property
Interest Rate 6.90% onwards
Processing Fee Up to 2% of the loan amount + GST
Loan Tenure 30 years

Karnataka Bank Rural Housing Loans – For Indians Living in Rural Areas

This type of loan is specifically for those individuals who are agriculturists, planters, horticulturists, dairy farmers, and others who are living in remote areas and are willing to buy an under-construction property or a new residential property or an existing residential property in rural and urban areas. This loan is also eligible for individuals who are salaried or self-employed!

Specific Information for Rural Housing Loan Scheme
Eligible Profiles Available to Salaried, Sef-employed Individuals and Agriculturists
Loan Amount Up to 90% of the value of Property
Interest Rate 7.00% onwards (0.05% concession to women)
Processing Fee Salaried/Self-employed – Up to 0.50% of the loan amount or Rs. 3,000 (whichever is higher) + GST

Agriculturists/ Self-Employed Non-Professionals – Up to 1.50% of the loan amount or Rs. 4,500 (whichever is higher) + GST

Loan Tenure 30 years

Karnataka Bank Home Improvement Loans – For Covering Home Renovation Costs

This type of loan is specifically for those individuals who want to renovate their homes but are not able to do so due to a lack of funds.

Specific Information for Home Improvement Loan Scheme
Eligible Profiles Available to Salaried and Sef-employed Individuals
Loan Amount New Customer – Up to 90% of the estimates from improvements.

Existing Customer – Up to 100% of the estimates from improvements.

Interest Rate 6.90% onwards
Processing Fee Up to 0.50% of the loan amount or Rs. 3,000 (whichever is higher) + GST
Loan Tenure 15 years

Karnataka Bank Home Loan Customer Care

The bank specializes in assisting you with all of your concerns, recommendations, and inquiries, among other things. The various outlets by which you can get your complaints answered are listed below.

Toll-free helpline number 1800 425 1444
Customer care phone number 080-22021507 OR 080-22021508 OR 080-22021509
Support email ID info@ktkbank.com

Advantages of Karnataka Bank Home Loan

Karnataka Bank Home Loan

Karnataka Bank Home Loan is a saviour to those who are in need of financial support relating to homes and plots. It offers the following:

  • A huge variety of home loan schemes.
  • The most helpful Pradhan Mantri Awas Yojana is also available.
  • Provide a 0.05% concession to women to encourage them for their own homeownership.
  • Provide several repayment methods to choose from and opt for the one best suited to you.
  • Full transparency as Karnataka Bank promises no hidden costs and fees.
  • Easy application with minimum documentation and paperwork.
  • Provides loan approval prior to the selection of the property.

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Karnataka Bank Home Loan Charges and Fees

Particulars Charges
Processing Fees Salaried Individuals: 0.50% of the loan amount or Rs. 3,000, whichever is higher
Self Employed Professionals: 0.50% of the loan amount or Rs. 3,000, whichever is higher
Self Employed Non-Professionals: Up to 1.50% of the loan amount or Rs. 4,500, whichever is higher
Prepayment charges No prepayment charges for floating rates
Check dishonor charges Up to Rs. 200
List of documents Up to Rs. 500
Photocopy Of documents Up to Rs. 500
PDC Swap Up to Rs. 200
Disbursement cheque cancellation charges post disbursement Up to Rs. 200
Increase/Decrease in the loan term Up to Rs. 500
Re-appraisal of loan post 6 months from sanction Up to Rs. 2,000

Please Note: The above figures are only indicative and are subject to change without any prior notice.

How to apply for Karnataka Bank Home Loan

  • Visit Dialabank for a Home Loan.
  • Go to the Karnataka Bank Home Loan page.
  • Check out all the eligibility and documents criteria for a Home Loan.
  • Fill out all the details required in the Home Loan application form.
  • Once done, our representative will soon contact you for a further stress-free process.

Karnataka Bank Home Loan EMI Calculator

Other Loan Products from Karnataka Bank

Karnataka Bank Personal Loan Karnataka Bank Gold loan Karnataka Bank Car Loan
Karnataka Bank Education Loan Karnataka Bank Two Wheeler Loan

Karnataka Bank Home Loan FAQ

How to repay my Karnataka Bank home loan?

There are different payment methods through which you can repay your Karnataka Bank home loan, this can be done:

  • By issuing Standing Instructions to pay the loan instalments through Electronic Clearing System.
  • By opting for direct deduction of monthly instalments by your employer.
  • By issuing post-dated cheques from your salary account.

When can you apply for Karnataka Bank’s top-up loan?

A year after the disbursement of the existing loan amount and the possession or completion of the financed property.

In the case of prepayment is made, is there any change in home loan EMI?

Karnataka Bank accepts a prepayment at nil charges in case of floating rate home loans. When a prepayment is made, the outstanding balance of the principal amount on your home loan gets reduced.

What is the maximum loan amount from the home loan can I get on my salary?

A customer can get the loan amount on his/her salary, depends on their repayment capacity. To determine the repayment capacity the following variables are considered: age, the number of dependants, credit history, education qualification, current liabilities, etc.

What is a Floating Interest Rate?

Floating interest rates are different from the fixed rates, the rates are not the same throughout the loan tenure. It may vary with the change in the lender’s benchmark rate.

How Dialabank can help you get a Home Loan?

Dialabank is a bridge to find the best option between several Banks and NBFCs by providing you with a detailed and structured market comparison of different banks. This eliminates the unnecessary worries about the complex information and process you have to go through if you choose to search and applying by own.

✅ How the rate of interest will change if the interest rate is linked to PLR?

Home Loan Interest Rate is linked to PLR, and any change in PLR will lead to a change in rates of interest on the home loan. Interest rates on home loan account will rise or fall with the increase or decrease of PLR, proportionately.

Who is a Co-obligate or Guarantor?

Co-obligate or guarantor is an individual who undertakes to re-pay the bank loan in case the principal borrower fails. The amount of his liability will be the same as that of the principal borrower and the Bank can take strict actions against him for recovery along with the principal borrower. Guarantor can’t say that his liability will start only after the remedies against the principal borrower are exhausted.

Is there an option for pre-closure of a loan account?

A pre-closure option is also available and charges will be levied at rates as decided by the lender

Does missing an instalment affect CIBIL?

Non-payment of EMIs as per terms and conditions will adversely affect the credit rating of the borrower.

Are there any penalty Charges?

Penalty charges of 2% will be levied on the instalment amount unpaid.

How is the calculation of interest rates is done?

Interest rates are charged on a daily balance method and are debited once a month in your loan account. A 2% penalty on the unpaid Installment amount will be charged.

News 

The Bank of Baroda has lowered its lending rate to 6.85%

Bank of Baroda, India’s third-largest bank, has its Base Repo Linked Lending Rate (BRLLR) from 7% to 6.85 per cent. The rate reduction will take place on November 1, 2020. This advantage would be available to customers who take out a home loan, mortgage loan, car loan, school loan, personal loan, or some other retail loan product. The bank has previously proposed a reduction in home and car loan interest rates. Home loan rates will now start at 6.85 per cent, auto loan rates at 7.1 per cent, mortgage loan rates at 8.05 per cent, and college loan rates at 6.85 per cent, thanks to the BRLLR revision.

Laws for interest waivers have been announced by the government

Following the hearing in the Supreme Court, the Ministry of Finance provided practical instructions for implementing the interest waiver system. According to the Finance Ministry, the mechanism for awarding ex-gratia payment (the disparity between basic and compound interest for six months) would be limited to specific loans. The interest waiver scheme can be easily accessed by borrowers up to Rs.2 crore between March 1 and August 31, 2020, according to the guidelines released by the Department of Financial Services.

Housing would be the subject of 60% of HFC loans, with no foreclosure or prepayment penalties

The Reserve Bank of India (RBI) published guidance for all housing finance firms (HFC). It had stated that all non-banking finance companies (NBFCs) would now have at least 60% of their assets (net) invested in the sector and services of providing housing finance. Many that have not met the ratio by March 31, 2024, will be required to do so.

In its festive bid, the State Bank of India declares special interest rates for home loans

Under its festive bid, the State Bank of India (SBI) has declared special interest rate discounts for its home loans. The interest rate on home loans up to Rs.30 lakh starts at 6.90 per cent p.a., while interest rates on home loans above Rs.30 lakh start at 7.00 per cent p.a. Many who apply via the bank’s YONO mobile application will get a 5-basis-point interest rate reduction. The credit score would also be used to determine the interest rate concession. There will be a 20 basis point interest rate reduction on home loans ranging from Rs.30 lakh to Rs.2 crore.

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