All About Karnataka Bank Home Loan
Eligibility: Karnataka Bank Home Loan
- Individuals who are residents of India.
- Salaried individuals of 21 years old and above. They should be in permanent service in the present employment and must have a total experience for a minimum of 3 years and a minimum gross monthly salary of Rs. 6000.
- Businessmen, Professionals or self-employed individuals of 21 years of age and above. Further, the tenure of loan plus borrower should not be more than 70 years. They should be in working firm for a minimum period of 3 years, and a minimum gross annual income of Rs.60,000 is required.
Purpose: Karnataka Bank Home Loan
- Construction or purchase of a house.
- Renovation or remodeling to an existing house.
Amount of Finance: Karnataka Home Loan
For purchase or construction of a house
- 60 times the last drawn monthly take home (net) salary in case of salaried persons
- 5 times the current annual net income plus depreciation provided, if any, as per P & L account in case of traders or self employed persons
For Renovation or Repairing of an existing house: Up to Rs.10 lakh or 40% of the house value, whichever is lower.
Period of Loan: Up to 15 years. Re-payment holiday up to 18 months considered.
- Guarantee of the spouse wherever feasible and in the absence of spouse, 3rd party solvent guarantor is required.
- 20% for construction of a house on a plot already purchased.
- 25% of the total cost in case of a house not older than 5 years.
- 30% of the total cost in case of a house over 5 years old but not more than 20 years.
- 30% of the cost for renovation or repair of a house, subject to maintaining 40% margin on the house value.
Other Information: Karnataka Bank Home Loan
- How rate of interest will change if interest rate is linked to PLR: Home Loan Interest Rate is linked to PLR, and any change in PLR will lead to 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.
- Co-obligate or Guarantor: Co-obligate or guarantor is an individual who undertakes to re-pay the bank loan in case principal borrower fails. The amount of his liability will be the same 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.
- Processing and Sanctions of loan: Loan will be sanctioned within 15 working days, if sanction of loan is at branch level and will be disposed off within 30 working days, if sanction is at RO level. Loan application will be disposed off within 45 working days, if sanction is at HO level after receipt of all required documents from the loan applicant.
- Option for pre-payment / closure of loan account: Pre-closure option is also available and charges will be levied at rates as per decided by the lender
- Effect of missing installment: Non-payment of EMIs as per terms and conditions will adversely affect credit rating of the borrower.
- Penalty Charges: Penalty charges of 2% will be levied on installment amount unpaid.
- Calculation of interest rates: Interest is charged on Daily balance method and is debited once in a month in you loan account. 2% penalty on unpaid Installment amount will be charged.
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