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    Karnataka Bank Home Loan Reviews

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    Home Loan BYTES FROM OUR KITCHEN

    Karnataka Bank Limited is a private sector banking institution based in the coastal city of Mangalore in Karnataka, India. As a premier bank, we have developed comprehensive range of customized products & services suitable for every kind of market, trade or perceived need - Business or Personal. They include, borrowing facilities, deposits, providing optimum returns on surplus funds or helping with overseas transactions. The products we offer to you are honest in intent and quality in content. It offers you the individuality with respect to your needs and to your earnings. And most of all, it comes with understanding you and your special individual needs.Karnataka bank provide you home loan by understanding your changing financial needs, we have developed products that cater to your every step in life, be it luxury or providing quality standard of life to your family.All you have to do is to follow some simple steps to get attractive deals.


     

    You’re probably eligible for an Karnataka Bank Home Loan if you are

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    Karnataka Bank Home Loan Minimum Age

    At least 21 years old

    Karnataka Bank Home Loan Maximum Age

    Less than 70 years old

    Karnataka Bank Home Loan Eligible Employment Type

    Salaried or self-employed
    with regular income

    Karnataka Bank Home Loan Minimum Income

    Gross monthly salary of Rs. 40,000/-


     

    Your Karnataka Bank Home Loan amount eligibility is based on these factors

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    Karnataka Bank Home Loan Minimum Salary

    Earn more than the minimum
    income required

    Karnataka Bank Home Loan Maximum Loan to property value

    Loan capped @ 70% to 75% of property value

    Karnataka Bank Home Loan EMI

    EMIs of other loans lower
    your eligibility


     

    Increase your eligible Karnataka Bank Home Loan amount by these steps

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    Karnataka Bank Home Loan Add Spouse as Co-applicant

    Make your spouse a co-applicant,
    and her income will add
    to your eligibility

    Karnataka Bank Home Loan Maximum Tenure

    Choose longer tenure loan up to 30 years

    Karnataka Bank Home Loan Add parents as Co-applicant

    Alternatively add your parents


     

    Documentation needed to apply for an Karnataka Bank Home Loan

    • 1. Signed application form with photograph
    • 2. Documentation for salaried applicants:
      • Last 3 years Income Tax Returns with computation of Income
      • Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account
    • 3. Documentation for self-employed applicants:
      • latest income tax returns
      • latest comupation of income

     

    Karnataka Bank Home Loan Interest RatesUpdated on 05 Dec 2016

    Karnataka Bank Home Loan Details
    Interest Rate (Floating) 9.50% to 9.75%
    Loan Tenure 30 years
    Processing fees 0.25% with a minimum of Rs 250
    Guarantor Requirement Guarantor required

     

    Karnataka Bank Home Loans Overview:

    Karnataka Bank was established in the year 1924 and is now an ‘A’ class scheduled commercial bank. Over the last 88 years, Karnataka Bank has worked its way towards being the leading financial service provider in India and has been a trailblazer when it comes to providing innovative banking solutions for common people. Karnataka Bank serves over 6 million happy customers by offering products like loans, deposits and insurance services.

    A leader in home loans portfolio, Karnataka Bank home loans will financially assist you in fulfilling your dream of owning a property. Quality customer service, nationwide presence and flexible options make Karnataka Home Loans, every borrower’s choice.

    Karnataka Bank Home Loans Eligibility:

    • The applicant must be an Indian resident.
    • Salaried applicants whose age is 21 and above are eligible to apply. They should be in a confirmed position in current employment and also should have had a regular employment for at least 3 years.
    • Salaried applicants must have a gross monthly income of Rs.6000.
    • Self-employed people, professionals and businessmen aged above 21 years can apply for Karnataka Bank home loans. The loan tenure plus the age of the applicant should not be more than 70 years.
    • Businessmen, self-employed applicants and professionals applying for this loan should have been in business for a period of at least 3 years and should have a minimum gross annual income of Rs.60,000.

    Documents Required for Karnataka Bank Home Loans:

    • The applicant will be asked to submit a copy of ID proof and address proof.
    • Salaried borrowers will have to submit income documents like income tax return statements, form 16, salary slips and bank account statements.
    • Property related documents might also be asked for.

    Do enquire with Karnataka Bank for the complete list of documents to be submitted before applying for a home loan.

    Karnataka Bank Housing Loan Interest Rate:

    The table below summarizes the interest rates applicable for home loans.

    Scheme – Apna Ghar & Elite Home Loans Base Rate Spread Effective Interest Rate
    Up to Rs.300 lakhs 10.50% 0.00% 10.50%
    Above Rs.300 Lakhs to Rs.500 lakhs 10.50% 0.75% 11.25%

    The interest rates are linked to the Prime Lending rate or the PLR. Any revision in the PLR will result in the revision of interest rates on home loans also. Depending on the change, interest rates will increase or decrease depending on the PLR change.

    Karnataka Bank Home Loan EMI Calculator:

    Before you commit yourself to a huge responsibility like a home loan, it is advisable to check your financial stand to see if the loan will be affordable. You should be aware of the EMI that you will be paying monthly and also the interest that you will be paying for the loan. This will not only help you plan your future budget properly but will also ensure that you are not buying a property that is beyond your financial capacity. You need not waste a minute of your precious time calculating the interest and other details. Just follow the steps below to see the amortization details.

    • On BankBazaar.com homepage, choose “Home Loan EMI Calculator” under the financial tools on the top pane.
    • Use the slider to input the loan amount, tenure in years, interest rate and the processing fee if applicable.
    • If you are planning to make prepayments, select “Yes” and fill in relevant details like frequency of prepayments, prepayment amount and penalty fee.
    • Click calculate. The wizardry will project the monthly home loan EMI in addition to other details like total interest payable. Also, amortization details and repayment schedule will be projected as a graph.

    Features of Karnataka Bank Home Loan:

    • Karnataka Bank home loan is a multipurpose loan that is available for the construction or purchase of a flat or a house. The loan is also extended for renovation, repair and remodeling of the existing property.
    • The loan is offered for a tenure of up to 15 years. Also, as a unique advantage, borrowers also get a repayment holiday of up to 18 months.
    • The margin required for Karnataka Bank home loan is also very feasible for the borrower and it ranges from 20% to 30% depending on the property type.
    • Loan applications are processed within 15 working days at branch level provided all documentations are correct. This ensures a quick property purchase.

    FAQs:

    1. Can I prepay my home loan?

      Yes, borrowers can opt for foreclosure of loan. However, pre-closure penalty charges will be levied at a rate decided by the Bank.

    2. What is the penalty for non-payment of the monthly instalment?

      A penalty of 2% of the amount not paid will be levied for missed instalments.

    3. What is the quantum of finance that is offered?

      An amount which is the lowest of the following options will be offered as financing.

      1. 60 times the last take home monthly salary (In case of salaried borrowers)
      2. Rs.50 lakh
      3. 5 times the latest annual net income plus the depreciation provided as per the P&L statement (for traders, self-employed applicants and professionals)
    4. What is the maximum loan amount that is offered for repairs and renovation?

      Up to 40% of the value of property or Rs.10 lakh, whichever is lower is offered as loan for renovation and repairs.

    5. What is to be provided as security?

      The borrower should offer either of the following as security.

      1. Mortgage of the property to be purchased, constructed, renovated or remodeled.
      2. Guarantee of spouse in the absence of a third-party solvent guarantor.
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