Karur Vysya Bank Loan Against Property

Karur Vysya Bank Loan Against Property Highlights 2024
Interest Rates	KVB Personal Loan Secured Others: 10.20% to 13.40% p.a. For other LAP products: Depends on the credit score/ratings of the borrower
Loan Amount	KVB Mortgage Loan: Rs 20 lakh to Rs 5 crore KVB Mortgage Loan for NRI: Rs 10 lakh to Rs 5 crore KVB Personal Loan Secured Others: Rs 10 lakh to Rs 3 crore
Tenure	KVB Mortgage Loan: 1 – 7 years KVB Mortgage Loan for NRI: Up to 10 years KVB Personal Loan Secured Others: Up to 100 months
Loan to Value (LTV) Ratio	For KVB Mortgage Loan and KVB Mortgage Loan for NRI: Up to 60% of the market value of property
Processing/Upfront Fees	KVB Mortgage Loan: 0.75% of the loan amount KVB Mortgage Loan for NRIs: 1% of the loan amount KVB Personal Loan Secured Others: 0.5% of the loan amount

Note: Interest rates as of 5th November 2024

Karur Vysya Bank Loan Against Property Interest Rates

The interest rates for Karur Vysya Bank LAP ranges between 10.20% and 13.40% p.a.

Karur Vysya Bank Loan Against Property interest rates are not disclosed for KVB Mortgage Loan and KVB Mortgage Loan for NRIs. The bank sets the rates for these products on the applicants’ credit scores.

Compare Interest Rates on Loan Against Property for Top Banks & HFCs

Name of the Lender	Interest Rate (% p.a.)
State Bank of India	10.00-11.30
Bank of Baroda	10.85-18.60	Apply Now
PNB Housing Finance	9.25-15.00	Apply Now
IDFC First Bank	9.00-16.50	Apply Now
HDFC Bank Limited	9.50-11.00	Apply Now
L&T Housing Finance	9.50 onwards	Apply Now
LIC Housing Finance	9.50-11.55	Apply Now
Godrej Housing Finance	9.75 onwards	Apply Now
ICICI Bank	10.85-12.50	Apply Now
Tata Capital	9.00 onwards	Apply Now
Axis Bank	10.50-10.95	Apply Now
Punjab National Bank	10.40-12.75	Apply Now

Fees and Charges for Karur Vysya Bank Loan Against Property

Particulars	Rates
Processing/Upfront fees	KVB Mortgage Loan: 0.75% of the loan amount KVB Mortgage Loan for NRIs: 1% of the loan amount KVB Personal Loan Secured Others: 0.5% of the loan amount
Foreclosure charges	KVB Mortgage Loan: 2% on the prepaid amount KVB Personal Loan Secured Others: 2% on the prepaid amount (Foreclosure charges/part prepayment penalties not levied on retail term loans sanctioned under floating interest rate)
Penal charges	KVB Mortgage Loan: Additional 3% p.a. on the arrears or overdue amount
Pre-closure penalty	KVB Mortgage Loan for NRIs: 1% on overdraft accounts. No pre-closure penalty applicable on term loans

Types of Karur Vysya Bank Loan Against Property

KVB Mortgage Loan

• Loan Amount: Rs 20 lakh to Rs 5 crore
• Tenure: 1 – 7 years (Residual age of the building at loan maturity, as confirmed by empanelled valuers, should not be less than 15 years)
• Loan to Value (LTV) Ratio: Up to 60% of market value of property
• Term Loan: Borrowers can avail KVB Mortgage Loan as a term loan (EMI) against residential/commercial property.
• Security: Title deeds of the property, with a clear and marketable title, to be financed.
• Insurance: The property should be insured against all risks for the value of security
• Guarantor: The guarantors for the property can be partners, directors, property owners, husband of lady partner, lady director or lady owner.
• Eligible properties:
  • It should be located within 50 Kms radius of any of the bank branches
  • Residential property used for residential purposes and commercial property used for commercial purposes.
  • Loan against property is allowed on up to 3 tenanted properties. However, the mortgaged properties should have separate & unhindered entrance and properties with more than one tenant per unit will not be funded (e.g., one floor with a single unit having more than one tenant)
  • Industrial property converted to commercial property, doctor’s clinics and any approved vacant land (residential/commercial) not exceeding 10,000 sq.ft. are also eligible under this LAP product.
  • Properties including factories, go downs, hospitals, cinema halls, hotels, restaurants, marriage halls, banquet halls, schools, agricultural lands or properties with a term loan (EMI) against residential/commercial property are not eligible under this product.

KVB Mortgage Loan for NRIs

• Loan Amount: Rs 10 lakh to Rs 5 crore
• Tenure: Up to 10 years
• Loan to Value (LTV) Ratio: Up to 60% of the market value of property
• Term Loan/Overdraft: Borrowers can avail KVB Mortgage Loan for NRIs both as a term loan (EMI) and as an overdraft facility through NRO account
• Eligible Properties: Residential/commercial buildings or residential vacant land not exceeding 10,000 sq ft., standing in NRI borrower’s name.
• The repayment can be from local funds or inward remittances from abroad. The borrower must have a savings account with Karur Vysya Bank as it will help route their remittances and make EMI payments for the loan.
• The applicant has to sign an undertaking stating that they cannot use the loan proceeds for real estate, speculative business or investing in agriculture/plantation land. The applicant must also indemnify the bank against any action or claim arising from his not adhering to FEMA guidelines on usage of funds out of the mortgage loan.

KVB Personal Loan Secured Others

• Loan Amount: Rs 10 lakh to Rs 3 crore
• Tenure: Up to 100 months (term loan)
• Term Loan/Overdraft: Borrowers can avail this loan both as a term loan (EMI) and as an overdraft facility
• Security: The primary security should be equitable mortgage (fresh charges) by depositing the title deeds. KVB will accept residential & commercial buildings owned by resident Indians as security for the loan. Agricultural properties, godowns, cinema halls, factories, restaurants, schools, etc. are not accepted as security.
• Guarantor: The guarantors should have sufficient net worth that is also acceptable to the bank
• Approval: The bank can provide in principle approval and sanction to the loan applicants within 15 minutes of making an application, subject to the satisfaction of their CIBIL and rating scores. The entire process is paperless, swift and convenient for the loan applicant.
• The borrower/s have to sign an undertaking stating that they cannot use the loan proceeds for speculative purposes.

Karur Vysya Bank Loan Against Property Eligibility Criteria

Eligibility for KVB Mortgage Loan

•  The property should be owned by a resident Indian
• The property owner should either the business enterprise or its proprietor/partner/director or their spouse/parents/major children.
• The titleholders should also extend the guarantee on the property. In case of Hindu Undivided Families (HUF), the property should be owned by the entity. The personal property of HUF members is not accepted as security for the loan.
• Income eligibility is based on last 3 years average income (as per audited financials) or net profit from last year whichever is lower. Any extraordinary income or income from other sources, which is not consistent, should be excluded for computing eligibility.
• The business should be profit making (for the last 2 years) and show a positive growth trend in business turnover.

Eligibility for KVB Mortgage Loan for NRIs

• NRIs (salaried or self-employed) with minimum 3 years of stay abroad are eligible to avail this loan.
• A joint member is mandatory for this loan. The joint applicant may be a resident Indian who must also be the power of attorney holder for the NRI. The applicant should preferably be a blood relative or a family member.

Eligibility for KVB Personal Loan Secured Others

• Both Resident Indians and NRIs are eligible to avail this loan.
• The property owner should be an individual. In case of joint owners, the title holders should join as co-applicants
• For salaried applicants, the minimum income should be Rs 15,000 per month
• The eligibility for this Loan against property product is determined on the basis of average income of the last 3 years, as declared in the ITR.

Documents Required for Karur Vysya Bank Loan Against Property

KVB Mortgage Loan (for Resident Indians)

• Last 3 years audited financial statements
• Last 3 years copy of Income Tax Return (ITR)
• Shops and Establishment certificate, Excise/Sales Tax registration certificate and MSE registration certificate (if applicable)
• Last 1 year current account statement

KVB Mortgage Loan (for Non-Resident Indians)

• Income Proof
• Proof of Tax paid
• Last 3 years statement of account
• Mandatory undertaking from the borrower/s stating that they cannot use the loan proceeds for real estate, speculative business or investing in agriculture/plantation land

KVB Personal Loan Secured Others

• Income Proof: ITR of Last 3 years to calculate average income
• Mandatory undertaking from the borrower/s stating that they cannot use the loan proceeds for speculative purposes

Also Check document required for loan against property