| Karnataka Bank Home Loan Highlights |
|
| Interest Rate | 8.75% – 10.87% p.a. |
| Loan Amount | Subject to the market value of the property and repayment capacity of the customer |
| Loan Tenure | Up to 30 years |
| Processing Charges | Up to 0.25% of loan amount |
Note: Interest rates as of 13 December 2024
Table of Contents
Karnataka Bank Home Loan Interest Rates
| Scheme | Rate of Interest (p.a.) |
| KBL – Apna Ghar/Elite: (Finance for house purchase/renovation) | Up to Rs 750 lakh: 8.85% – 10.87% |
| KBL HOME LOAN WINBACK SCHEME | 8.75% – 9.40% |
| KBL – Home Comfort: (Finance for furnishing a house) for Individuals | 9.25% – 11.20% |
| KBL – Ghar Niveshan: (Finance for purchasing a house site) | 9.55% – 11.70% |
| KBL Home Top Up: (Finance for meeting personal requirements) | 9.52% – 11.20% |
Compare Home Loan Interest Rates for Top Banks & HFCs
| Name of Lender | Up to Rs. 30 Lakh | Above Rs. 30 Lakh to Rs. 75 Lakh | Above Rs. 75 Lakh | |
| SBI | 8.50%-9.85% p.a. | 8.50%-9.85% p.a. | 8.50%-9.85% p.a. | Check Eligibility |
| HDFC Bank Limited | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards | Check Eligibility |
| LIC Housing Finance | 8.50% - 11.25% p.a. | 8.50% - 10.55% p.a. | 8.50% - 10.75% p.a. | Check Eligibility |
| ICICI Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards | Check Eligibility |
| Kotak Mahindra Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards | Check Eligibility |
| PNB Housing Finance | 8.50% - 14.50% p.a. | 8.50% - 14.50% p.a. | 8.50%-11.45% p.a. | Check Eligibility |
| Punjab National Bank | 8.45% - 10.25% p.a. | 8.40% - 10.15% p.a. | 8.40% - 10.15% p.a. | Check Eligibility |
| Bank of Baroda | 8.40% - 10.65% p.a. | 8.40% - 10.65% p.a. | 8.40% - 10.90% p.a. | Check Eligibility |
| IDFC First Bank | 8.85% p.a. onwards | 8.85% p.a. onwards | 8.85% p.a. onwards | Check Eligibility |
| L&T Finance Limited | 8.65% p.a. onwards | 8.65% p.a. onwards | 8.65% p.a. onwards | Check Eligibility |
| Tata Capital Housing Finance | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards | Check Eligibility |
| Federal Bank | 8.80% p.a. onwards | 8.80% p.a. onwards | 8.80% p.a. onwards | Check Eligibility |
| Axis Bank | 8.75%-13.30% p.a. | 8.75%-13.30% p.a. | 8.75%-9.65% p.a. | Check Eligibility |
| Godrej Housing Finance | 8.55% p.a. onwards | 8.55% p.a. onwards | 8.55% p.a. onwards | Check Eligibility |
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Karnataka Bank Home Loan Processing Fees & Other Charges
| Particulars | Charges |
| Charges for switching from Base Rate/PLR to MCLR |
|
| Foreclosure Charges | 2% of the outstanding balance |
| Processing Charges | For loans above Rs. 25,000 – 0.50% with a minimum of Rs. 250 for Priority Sector and Rs. 500 for Non-Priority Sector and Maximum of Rs. 25 lakh |
| CIBIL/CRIF Charges | Rs. 100 per consumer report |
| EMI Bounce Charges** | If the EMI delayed is more than Rs. 10,000 (If not paid within 30 days from the EMI due date) – Rs. 500 per occasion |
*exposure = principal outstanding + undisbursed amount
** EMI Bounce Charges are in addition to the penal interest being charged for delayed payment
Also Check: Home loan processing fees charged by other home loan lenders
Types of Karnataka Bank Home Loan
1. KBL – Xpress Home Loan
- Individuals can avail this home loan for construction and purchase of a new house. KBL Xpress Home Loan can be also availed by those seeking loans for house renovation/improvement, repair and remodelling purposes.
- The loan amount is up to Rs. 5 Crore for purchase/construction and Up to Rs. 30 lakh for renovation/ remodelling/ extension/ repair
- Loan tenure for loans taken for construction is of up to 30 years
- Loan tenure for loans taken for house renovation/repair is 7 years
- Individuals can apply for this loan through digital mode and get instant in-principle sanction
2. KBL – Xpress Home Comfort
- This home loan scheme can be availed for furnishing house interior works, acquiring furniture-fixtures and solar heating/lighting systems
- This loan is for all those who have already availed loan under KBL (Apna Ghar/Elite/KBL XPRESS HOME Loan scheme) and have not availed any loan from any financial institution for their Residential property/ closed the housing loan already availed
- The loan amount can go up to Rs. 1 crore subject to 75% of the estimated cost of assets to be purchased/works to be carried out
- Loan tenure can go up to 20 years
3. KBL – Xpress Ghar Nivesh
- Individuals can avail this home loan for plot purchase and construction thereon
- The loan amount is up to 80% of the registration value of the plot site, subject to multiple factors such as the property’s location
- Loan tenure can go up to 7 years
Check Lenders Offering Home Loan at Attractive Interest Rates Click Here
Karnataka Bank Home Loan Eligibility Criteria
- The applicant should be either a residents of India or an NRI holding an Indian passport
- The age of the applicant should at least be 18 years
- Income:
- Resident Indian:
- Salaried Persons: Minimum gross monthly salary Rs. 10,000
- Agriculturist: Minimum Annual net income Rs. 1,20,000
- Business Men/Professionals/Self Employed: Minimum Annual gross income Rs. 1,20,000
- Non Resident Indians (NRIs):
- Salaried Person: Minimum gross monthly salary Rs. 40,000
- Business Men/Professionals/Self Employed: Minimum Annual gross income of Rs. 4,80,000 (NRI applications processed manually)
- Resident Indian:
In addition to the above-mentioned eligibility factors, Karnataka Bank may also consider applicants’ credit score, EMI/NMI ratio, property features & its location while evaluating their home loan eligibility, just like most lenders do to evaluate their applicants’ home loan eligibility.
Tips to Increase Karnataka Bank Home Loan Eligibility
Some of the ways to improve your eligibility for Karnataka Bank Home Loan eligibility are:
- Add a co-applicant – Adding a co-applicant increase your total income, resulting in higher repayment capacity; thus, increasing your home loan eligibility.
- Apply for joint home loan – By applying for joint home loan, you can reduce the repayment burden and also get tax benefits individually.
- Improve your credit score – Your credit score and credit history reflect your creditability. The closer it is to 900, the better it is. A good credit score shows you have responsibly dealt with your debt. Having a higher credit score can also help you avail home loan from top lenders at lower interest rates. If you are new to credit or have low credit score, you can improve or build it by availing lifetime free Step UP Credit Card, which is a secured credit card issued by SBM Bank (India) Ltd. with Paisabazaar as co-branded partner. To understand how Step UP Credit Card can help you in building or improving your credit score, click here.
Compare Home Loan Schemes Offered by Top Lenders Click Here
Karnataka Bank Home Loan Documents Required
When applying for Karnataka Bank Home Loan, you are required to provide a set of documents to support your home loan application. Some of the documents that the bank might request are:
- Duly filled and signed Karnataka Bank Home Loan Application Form.
- A cheque to pay processing fee favouring Karnataka Bank
- Proof of identity – A copy of any one proof of identity documents which includes Aadhaar, PAN, Passport, Voter ID, Driving License, etc.
- Proof of residence – A copy of any one of the proofs of residence documents which includes Aadhaar, Passport, Voter ID, Driving License, etc.
- Proof of income – A copy of the following documents:
- For Salaried
- Salary Slips
- Bank Statements, showing salary credits
- Latest Form-16 and IT returns
- For Self-Employed
- Income Tax Returns (ITR) with respect to both the individual and the business entity along with the calculation of income for the past few assessment years.
- Balance Sheet and Profit & Loss Account Statements with Annexures / Schedules
- Current Account Statements of the business entity and Savings Account Statements of the individual
- For Salaried
- Property documents –
- A copy of the Allotment Letter / Buyer Agreement
- Receipt/(s) of payment/(s) made to the developer
- Title Deeds of the Plot
- Proof of no encumbrances on the property
- A copy of the plans, approved by the Local Authorities
- Construction estimate by an Architect / Civil engineer
Also Read: Home loan documents required by other home loan lenders
Karnataka Bank Home Loan EMI Calculator
Monthly EMI ₹ 15,622
Total Amount Payble ₹ 5,62,395(Principal + interest)
Principal Amount ₹ 5,00,000
Total Interest Payble ₹ 62,395
FAQs on Karnataka Bank Home Loan
1. Who can be my co-applicant for Karnataka Bank Home Loan?
Ans. Karnataka Bank much like other banks allow close members of the family as co-applicants. It is also compulsory for all co-owners of the property to be home loan co-applicants.
2. Karnataka bank home loan interest rate is linked to which external benchmark?
Ans. With effect from 01.10.2019, Karnataka bank has linked its floating rate home loans to 10-year G-Sec (Government Security) as the external benchmark.
3. Can I prepay my outstanding Karnataka Bank Home Loan?
Ans. Yes, you can partly prepay or foreclose your Karnataka bank home loan before the actual completion of the loan tenure. Karnataka Bank does not levy part prepayment or foreclosure charges on home loans availed at floating interest rates.
4. Can the tenure of my existing Karnataka Bank Home Loan be extended?
Ans. Karnataka Bank is yet to reveal anything on extending the term of an existing home loan. Most banks and HFCs allow their borrowers to extend the term of their existing home loans as long as the revised repayment period remains within the maximum term offered by the lender or the maximum age allowed at the time of loan maturity.
Before extending the loan tenure, borrowers must know that increasing their loan period would lead to reduction in their credit score by a few numbers. The reduced credit score would also reduce your chances of getting a new loan or credit card in future. All of this could happen because the request for tenure extension is considered as loan restructuring, which is seen negatively by credit bureaus. Hence, opting for it would lead credit bureaus to reduce your credit score.
An alternative that would help in reducing borrowers’ loan EMIs without hurting their credit scores is the home loan balance transfer facility. As the name suggests, this loan facility allows home loan borrowers to transfer their outstanding balances to a new lender offering lower home loan rates, leading to lower EMIs and interest cost. Depending on the lender and the determining factors, the balance transfer customers can also be able to choose longer tenures on their home loans.