Karur Vysya Bank is a private-sector Indian bank, headquartered in Karur in Tamil Nadu. The bank also offers Internet Banking and Mobile Banking facilities to its customers. the bank that carries with it a tradition of 96 years and yet is young enough to adapt itself to the rapidly changing scenario in the banking industry. KVB offers several deposit and loan products, tailor-made to cater to the specific needs of customers.KVB offers you home loan if you are a resident Indian or HUF and want to purchase a house we have an exclusive Happy Home Loan scheme to cater your needs. Read on to learn about the eligibility and documentation requirements for the loan you avail.
You’re probably eligible for an Karur Vysya Bank Home Loan if you are
At least 21 years old
Less than 60 years old
Salaried or self-employed
with regular income
Minimum Income Required
40% of gross pay
Your Karur Vysya Bank Home Loan amount eligibility is based on these factors
Earn more than the minimum
Loan capped @ 60% to 75% of property value
EMIs of other loans lower
Increase your eligible Karur Vysya Bank Home Loan amount by these steps
Make your spouse a co-applicant,
and her income will add
to your eligibility
Choose longer tenure loan up to 25 years
Alternatively add your parents
Documentation needed to apply for an Karur Vysya Bank Home Loan
- 1. Signed application form with photograph
- 2. ID and residence proof
- 3. Processing fee Cheque
- 4. Latest bank statements
- 5. 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
- 6. Documentation for self-employed applicants:
- latest income tax returns
- latest comupation of income
Karur Vysya Bank Home Loan Interest RatesUpdated on 05 May 2014
Karur Vysya Bank Home Loan Details
||Waived for loans upto Rs. 30 lakhs
Rs. 5000/- + ST for loans above Rs. 30.00 lakhs
Established in 1961 in Karur, Karur Vysya Bank started with a capital of Rs.1 lakh and grew into one of the top financial institutions providing numerous banking services to millions of customers. Karur Vysya Bank or KVB became one of the first few banks to achieve networking in all its branches and offer core banking solutions through its technological advancements. KVB is spread across the country with 1645 ATMs and 629 branches.
Karur Vysya Bank Home Loan:
Karur Vysya Bank provides home loans for resident Indians or HUFs who want to buy a house or flat. The bank offers the Happy Home Loan Scheme that offers many attractive features to customers availing it. The Happy Home Loan Scheme from KVB can be availed for the following purposes:
- Purchase of houses or flats that are not older than 15 years.
- Construction of houses.
- Buying plots for construction.
- Repair, renovation, modification or extension of houses or flats.
- Loan takeover from other banks.
- Buying flats or plots where Government authorities are the developers.
Eligibility for Happy Home Loan Scheme:
KVB requires its applicants to fulfil the following criteria to be eligible for a home loan from the bank:
- The net take home salary after the deduction of home loan EMI should be a minimum 40% of gross income.
- Applicant can avail maximum loan eligibility by adding spouse’s income.
- Agriculturists are also eligible for a home loan from KVB, provided there is a valid proof of income.
- KVB also grants home loan for purchase of vacant land, provided construction should commence within six months from the date loan is availed.
Documents Required for Karur Vysya Bank Home Loans:
The following documents need to be submitted along with the duly filled application form when applying for a home loan at Karur Vysya Bank:
- Employment Certificate given to the applicant from employer.
- Last six month’s Salary Certificate.
- The latest Income Tax Returns (ITR) filed by the applicant.
- Income statement, if any.
Features of Happy Home Loan Scheme:
- Loan Margin: Loan margin provided by KVB depends on the following factors:
- Buying an old flat or house with repayment tenure of up to 15 years – 30%
- Buying an old house or flat with repayment tenure of more than 15 years – 35%
- Buying a new flat or house – 25%
- Interest Rates: The KVB Happy Home Loan Scheme can be availed at a floating interest rate of one year’s MCLR plus 0.85% per annum, while the home loan availed under CRE norms are offered at a floating ROI of MCLR plus 1.60% yearly.
- Repayment Tenure: Karur Vysya Bank offers home loans with a maximum repayment tenure of 25 years which includes the holiday period. The bank provides a maximum holiday period of up to 12 months.
- Loan Security: Borrowers are expected to provide the equitable mortgage of land and building as primary security to the bank towards the home loan taken from the bank. As collateral security, borrowers can also provide LIC policies, NSC, bank deposits etc.
- Guarantee: The bank accepts a genuine guarantor with adequate net worth. Most preferable guarantor are spouses, family members or friends.
- Processing Charges: KVB does not charge home loan borrowers any processing fee for loan amounts more than Rs.30 lakh, while for loan amounts higher than Rs.30 lakh, Rs.5000 plus Service Taxes is charged by the bank.
- Insurance Cover: If the borrower is interested, he or she can avail SBI Life, BSLI or LIC along with the loan amount, where single premium must be paid by the borrower.
Special Home Loan:
Karur Vysya Bank offers another loan to its customers, which is similar to the Happy Home Loan. The special home loan comes with different repayment tenures of minimum 5 years to a maximum of more than 10 years. This loan can be availed by both resident and NRI Indians as well as HUF who are KVB’s existing customers and have been associated with the bank for a continuous period of 2 years as on the application date.
Karur Vysya Bank Home Loan Interest Rates:
The interest rates levied on the special home loans offered by the bank are:
- For a repayment period of 5 years, BPLR of 3.25% is imposed, minimum being 9.25%.
- For a repayment period of 5 to 10 years, BPLR of 3% is charged, minimum being 9.50%.
- For a repayment period of more than 10 years, BPLR of 2.50% is levied, minimum being 10%.
Loan repayment is done via EMIs (Equated Monthly Installments) and if there is a change in interest rates, KVB increases or decreases the EMI accordingly.
Prepayment is allowed by the bank till a certain amount of time and it can be paid in part or full within that time. However, if borrowers make a loan prepayment, the charges are as follows:
- With residual maturity of less than five years, 0.5% of the repaid amount is charged.
- With residual maturity of more than five years, 1% of the repaid amount is charged.
KVB – Gruhapravesh:
Karur Vysya Bank also offers a home loan scheme for NRIs (Non-resident Indians) and PIO (Persons of Indian Origin), known as the NRI - Gruhapravesh.
The following eligibility criteria should be met in order to get an approval for the NRI - Gruhapravesh loan from KVB:
- Applicant should be minimum 25 years old.
- Applicant should have a valid foreign passport in case of PIOs and a valid Indian Passport in case of NRIs.
- Should be working abroad for a minimum of two years.
- Should have a steady source of income.
- Applicant should have a genuine work permit and job contract.
- The monthly net income of applicant should be minimum US$ 750 or the net annual income should be minimum US$ 9000.
Features of NRI – Gruhapravesh:
- Loan Margin: At Karur Vysya Bank, NRIs and POIs can avail the Gruhapravesh home loan at a 20% margin.
- Interest Rate: KVB Gruhapravesh loan charges a floating ROI of one-year MCLR plus 0.85%.
- Loan Repayment: Loan repayment in case of NRI – Gruhapravesh loan can be done by remittance from abroad, using the usual banking channels.
- Remittance from NRO/NRE or FCNR accounts to the bank.
- NRIs or PIOs can arrange for their relatives to make the payment on behalf of the borrower for the loan availed in INR.
- Interest is charged based on daily diminishing balance.
- Processing Charges: The bank charges processing fees based on the loan amount availed:
- Up to Rs.25 lakh – 0.25% + Service tax
- Rs.25 lakh to Rs.75 lakh – Rs.10,000 + Service tax
- Above Rs.75 lakh – Rs.20,000 + Service Tax
- Loan Security: Karur Vysya Bank accepts the registered mortgage or an equitable mortgage (depositing title deeds) as primary security towards the home loan. As collateral security, borrower can provide third party guarantees, LIC policies, NSCs, etc.
- Repayment Tenure: KVB NRI – Gruhapravesh home loan allows you to have a maximum repayment tenure of 25 years. However, it also depends on the loan liquidation by the time you are 65 or reach retirement, whichever come earlier.
- Holiday Period: Borrowers availing the NRI – Gruhapravesh loan can enjoy maximum holiday period of 2 months post completion or 18 months from loan disbursement date, whichever duration is shorter, in case of loans for new houses. In other cases, two months post the final disbursement is granted as the holiday period.
- What is the loan margin that I can avail on a home loan from KVB for buying a new flat?
You can avail 25% loan margin if you take a home loan for a new flat, from the bank.
- If I have opted to take a KVB home loan of Rs.40 lakh, will I be charged any processing fee?
Yes, Karur Vysya Bank will charge Rs.5000 plus Service Taxes on a home loan of Rs.40 lakh.
- How do I qualify for the Special Home Loan being offered by Karur Vysya Bank?
If you are a resident Indian, an NRI or HUF and have been using the bank’s services for at least two years continuously as on the home loan application day, you are eligible for the KVB Special Home Loan.
- I have been working abroad for a year now, Am I eligible for the KVB NRI – Gruhapravesh loan?
No, you should be employed for a minimum of two years abroad in order to be eligible for the NRI – Gruhapravesh loan.
- I want to avail the NRI – Gruhapravesh loan worth of Rs.80 lakh, what is the processing fee charged by Karur Vysya Bank?
The bank will levy a processing fee of Rs.20,000 plus Service Tax on a loan amount of Rs.80 lakh under the NRI – Gruhapravesh loan.