Karnataka Gramin Bank Home Loan

Check Your Credit Score Now

Karnataka Gramin Bank Home Loan Schemes

The different home loans that are offered by Karnataka Gramin Bank are given below:

1. Housing Loan
   1. Loans can be used to buy a house (less than 25 years old), buy a site and build a house on it, construct a flat or house, and renovate your own house.
   2. Take over liability is permitted.
   3. The borrower cannot be above 55 years of age.
   4. The repayment tenure is up to 30 years (moratorium period is included).
   5. The borrower cannot be more than 70 years old when the loan matures.
2. Mortgage Loan
   1. Loans can be availed for hospital, education, and marriage expenses.
   2. The maximum loan amount that will be provided is Rs.2 crore.
   3. The maximum margin is 40%.
   4. The repayment tenure is 10 years.
3. Housing Loan Plus (HL +)
   1. Loans can be availed for educational and medical expenses.
   2. Only individuals who have taken a Housing Loan from the bank earlier can avail the loan.
   3. Individuals between the ages of 18 years and 65 years can avail the loan.
   4. The maximum loan amount that can be availed is Rs.10 lakh.
   5. The repayment tenure is up to 70 years.
4. Home Cash Scheme
   1. Loans can be availed to furnish the house, renovation, repairs, healthcare expenses, marriage expenses, and education expenses.
   2. The minimum and maximum loan that can be availed are Rs.1 lakh and Rs.15 lakh.
   3. The repayment tenure is up to 10 years.
5. All Purpose Mortgage Loan
   1. Salaried individuals can avail the loan for speculative purposes.
   2. The repayment tenure is up to 7 years.

Check Your Credit Score Now

Eligibility Criteria

The eligibility criteria that must be met in order to avail the different loans offered by the bank are mentioned in the table below:

Type of Loan	Eligibility Criteria
Housing Loan	Borrower cannot be above 55 years.
Mortgage Loan	Salaried employees, individuals with regular income, professionals, and businessmen can avail the loan. Three years Income Tax Assessment Orders must be provided.
Housing Loan Plus	Individuals between the ages of 18 years and 65 years can avail the loan. The existing housing loan must not have any overdue amount. At least one year of the current Housing Loan must be repaid and the repayment record must be satisfactory.
Home Cash Scheme	The repayment record should be satisfactory. EMI repayment must have started at least 1 year before opting for the loan.
All Purpose Mortgage Loan	Loans are provided only for A Khata properties. ECS mandate must be set up in case salary is not credited to Karnataka Gramin Bank. The net yearly income must be at least Rs.2 lakh. The borrower cannot be above the age of 55 years when the loan is being availed. Employees who work for a reputed Public Limited Company, Central Government, or State Government can avail the loan.

Documents Required

The basic documents that must be submitted in order to avail a home loan from Karnataka Gramin Bank are mentioned below:

1. Proof of address.
2. Proof of identity.
3. Property documents.
4. Income proof.
5. Business existence proof.
6. Bank account statement.

Any other documents that are requested by the bank must be provided as well.

A good credit score can help you secure lower interest rates on loans and credit cards.

Get Free Credit Score

FAQs on Karnataka Gramin Bank Home Loan

• What is the Karnataka branch of Gramin Bank's interest rate?

  Interest Rate for the broader population: Up to Rs 1.00 Lakh, the outstanding balance is 2.00% each year. Overdue Balance: 2.50% p.a. for amounts over Rs 1 lakh to Rs 10 lakh. Over Rs 10.00 Lakh, the outstanding balance is 2.90% per annum. 

• Is Gramin Bank of Karnataka a government bank?

  India's Karnataka state owns 15% of the bank and 35% is owned by the the sponsor bank. 

• Can I pay back my house loan early or have Karnataka Gramin Bank foreclose on it?

  Under certain restrictions, you are able to foreclose on or prepay your Karnataka Gramin Bank home loan. Prepayment fines or costs may apply depending on the bank's policy on foreclosure or prepayment. It is advised to check the loan agreement or get in touch with the bank for information on possible early repayment terms and related fees.  

• What occurs if I don't make my Karnataka Gramin Bank home loan payments on time?

  If you don't make your Karnataka Gramin Bank housing loan payments on time, you could face severe repercussions, such as late fees, penalties, legal action, and damage to your credit report. In order to prevent payment default, it is crucial to discuss financial concerns with the bank and look into solutions like loan restructuring or refinancing. 

• How does one go about requesting a Karnataka Gramin Bank home loan?

  You can apply in person at the closest branch of Karnataka Gramin Bank or online via the bank's official website for a housing loan. To begin the processing of your loan application, you must complete it and send in the necessary paperwork. After reviewing your application, the bank will let you know how the loan approval procedure works. 

• Will collateral/security need to be provided in case I opt for a Housing Loan?

  Yes, collateral/security will need to be provided if you opt for a Housing Loan.

• Is a 90% mortgage feasible?

  The Reserve Bank of India (RBI) has released rules that allow the loan-to-value ratio (LTV) for home loans to be as high as 90% of the property value for loans under Rs. 30 lakh. 

• Can I provide an open plot as collateral for a Mortgage Loan?

  No, an open plot cannot be provided as collateral for a Mortgage Loan.

• Where should the property be situated in the case of a Mortgage Loan?

  The property should be situated at Dist HQ, Taluka, or Hobli in the case of a Mortgage Loan.

• What collateral must be provided for the Home Cash Scheme?

  The house that has already been mortgaged will continue to remain the collateral for the Home Cash Scheme.

• Is it mandatory to provide a third-party guarantee in the case of an All Purpose Mortgage Loan?

  No, it is not mandatory to provide a third-party guarantee for an All Purpose Mortgage Loan.