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  • Karur Vysya (KVB) Personal Loan Interest Rates

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  • Karur Vysya Bank offers personal loan interest rates ranging between 12% to 18% p.a. Processing fee starts from Minimum of Rs.500 and which can go up to 1% of the loan amount. Personal loans from Karur Vysya Bank can be repaid in flexible tenures ranging from 12 months to 72 months. You can avail personal loans from Karur Vysya Bank to fund your travel to a foreign destination, your healthcare needs, investments, or any other personal needs.

    Particulars Salaried and Self-Employed
    Interest rate 12.75% - 17.75% p.a. (secured loans)
    12% - 18% p.a. (unsecured loans)
    Loan Amount Rs.50,000 to Rs.1 lakh
    Loan Tenure 1 to 5 years
    Processing Fee 0.30% to 1% of the loan amount (Min. Rs.500)

    Personal Loan Schemes

    Karur Vysya offers five different personal loans under its personal loan scheme, each designed to cater to the unique needs of a customer. The different schemes have been listed below:

    Name of the Scheme Best For Interest Rate
    Bon Voyage Undertaking foreign travel for leisure or business 15.60% to 17.10%
    Insta Loan Permanent employees of reputed government institutions, firms, schools 12.00% to 13.30%
    Personal Loan
    (Secured/Unsecured)
    Fulfilling unforeseen exigencies and personal needs 12.00% to 18.00%
    Quick Loan Business or personal needs 11.15%
    IPO Funding Investing in Initial Public Offerings (IPOs) of a firm 14.75%

    Interest rates charged by Karur Vysya are extremely competitive in today’s market, ensuring that a personal loan repayment doesn’t become expensive and burdening. The bank follows a simple and hassle-free loan application process, keeping in mind the needs of a customer.

    1. Bon Voyage

    This personal loan scheme from Karur Vysya Bank has been specially designed to fund your foreign travels, whether it is for leisure or for business. Any creditworthy person who is also related to you can be your guarantor for the loan. The features of this loan have been given below:

    Interest Rate Processing Charges Repayment Tenure Margin Collateral Minimum Income Criteria
    15.60% to 17.10% 0.30% 36 months 25% Optional Rs.1.8 lakh p.a. for salaried applicants

    2. Insta Loan

    You can avail this personal loan from Karur Vysya Bank if you are a permanent employee working in government institutions, reputed companies, schools, etc. To avail this instalment loan, you need to be a permanent employee with at least 2 years of confirmed service and at least 1 year of unexpired service. Let’s have a look at its features below:

    Interest Rate Processing Charges Repayment Tenure Margin Collateral Minimum Income Criteria
    12% Rs.1,000 onwards + GST 72 months N/A Not required Post deduction of loan installments, the net take home of the borrower should not be lesser than 25% of gross pay

    3. Personal Loan (Secured/Unsecured)

    This loan has been designed to help fulfill unforeseen exigencies or any other personal needs. The loans can be short term or long term in nature and the loan application process is paperless, quick, and trouble-free. These loans are in-principle sanctioned within 15 minutes if the CIBIL scores are satisfied. The highlights of this loan have been provided below:

    Interest Rate Processing Charges Repayment Tenure Maximum Loan Amount Collateral Minimum Income Criteria
    12% to 18% 1% of the loan amount 1 year to 5 years Rs.10 lakh In case of secured loans – bank deposits, government bonds, land and buildings, etc. Post deduction of loan installments, the net take home of the borrower should not be lesser than 25% of gross pay

    4. Quick Loan

    This unique loan, can be availed to fund any business or personal needs and can be repaid either in instalments or paid in full when the loan tenure ends. This loan also allows overdrafts for up to 1 year, the rate of interest for which is fixed during renewal. The features of this loan can be summed up as follows:

    Interest Rate Processing Charges Repayment Tenure Maximum Loan Amount Margin Guarantor
    11.15% Rs.500 Up to 60 months Rs.25 lakh 10% Nil

    5. IPO Funding

    If you need financial help to invest in a company’s Initial Public Offering (IPO), this loan is ideal for you. This loan can be availed either by an individual or by joint individuals of a maximum of 3 people. Below are the features of this loan:

    Interest Rate Processing Charges Repayment Tenure Minimum Loan Amount Margin Guarantor
    14.75% Rs.250 to Rs.2,000 Maximum of 15 days
    from loan disbursement date
    Rs.5 lakh 50% Not Required

    Illustration

    The Equated Monthly Instalments (EMIs) that you will be paying towards your personal loan from Karur Vysya Bank will vary according to the interest rate, the tenure, and the loan amount you avail. The interest rate that you are charged on your loan, in turn, will depend on many factors which have been explained in one of the below sections. For now, we will understand how the interest rate charged on your personal loan will affect your monthly EMIs, with the help of illustrations.

    Scenario 1: Individuals with a monthly salary of Rs.25,000

    Mr. Ashok has been working for only one year and hence, his credit score is 690. He wishes to apply for a personal loan for Rs.2 lakh but since he has a low credit score and earns Rs.25,000 a month, lenders are likely to charge him a high rate of interest. Let us suppose that he was charged an interest rate of 19% and a processing fee of 1.5%. Since Mr. Ashok’s salary is on the lower side, we will assume that he will not be able to afford a high EMI and hence, will choose a longer repayment tenure of, say, 3 years.

    In this case, the monthly EMI that he must pay, as per the EMI Calculator Tool, will be Rs.7,331 and the total interest payable over the loan tenure will be Rs.63,923. He will be paying a processing fee of Rs.3,000. Hence, the total amount payable by him will be Rs.2,66,923. The amortisation table for this scenario will look like the below:

    Year Principal Paid (A) Interest Paid (B) Total Payment (A+B) Outstanding Loan Balance
    1 Rs.30,574 Rs.20,746 Rs.51,230 Rs.1,69,426
    2 Rs.60,906 Rs.27,068 Rs.27,068 Rs.1,08,519
    3 Rs.73,543 Rs.14,431 Rs.87,974 Rs.34,977
    4 Rs.34,977 Rs.1,678 Rs.36,655 Rs.0

    Scenario 2: Individuals with a monthly salary of Rs.50,000

    Mr. Ayushman earns a monthly salary of Rs.50,000 and maintains a healthy score of 800. He wishes to avail a loan of Rs.5 lakh and since he has an excellent credit score as well as a decent income, lenders are happy to lend to him at a lower interest rate. Assuming that the interest rate and the processing fee charged to him was 15% and 1% respectively, below we will look at how much EMI, processing fee, and interest he has to pay to the lender.

    Let us suppose that he chooses a repayment tenure of 2 years. The amortisation table for this scenario will look like the following:

    Year Principal Paid (A) Interest Paid (B) Total Payment (A+B) Outstanding Loan Balance
    1 Rs.1,30,776 Rs.38,927 Rs.1,69,703 Rs.3,69,224
    2 Rs.2,52,423 Rs.38,494 Rs.2,90,917 Rs.1,16,800
    3 Rs.1,16,799 Rs.4,416 Rs.1,21,215 Rs.0

    For the above example, Mr. Ayushman will be paying Rs.24,243 as monthly EMI, total interest of Rs.81,840 and a processing fee of Rs.5,000. Hence, the total amount payable by him will be Rs.5,86,840.

    Factors affecting your Karur Vysya Bank Personal Loan Interest Rates

    There are multiple factors which could impact the interest rate that an individual pays for a Karur Vysya personal loan, some of which are mentioned below.

    • Repayment capacity - The repayment capacity of an individual could change the interest rates charged by Karur Vysya Bank, with a possibility that the bank might charge a lower rate to someone who has limited means to repay a loan.
    • Loan tenure – The tenure of a personal loan has a bearing on the interest rates. Loans for short tenures could command a higher interest rate compared to loans for longer tenures.
    • Relationship with Karur Vysya– Individuals having a good relationship with Karur Vysya might be in a better position to negotiate their interest rates, depending on their past behaviour and personal standing. It is possible for banks to reduce interest rates for valued customers who have shown commitment to their payments in the past.
    • Employment details – Interest rates vary depending on the profession of a borrower. Salaried borrowers might be charged a lower interest rate as they have a stable source of income and there is little risk of them defaulting on payments. Self-employed borrowers might not have a regular source of income and might have to pay a higher interest rate.
    • Age – Pensioners can avail a personal loan at lower interest rates compared to others, primarily because Karur Vysya does not want to burden them with exorbitant interest rates.

    Frequently Asked Questions

    1. How is the rate of interest on Karur Vysya Bank personal loans calculated?

    The interest rate on personal loans from Karur Vysya Bank is linked to the Marginal Cost of Funds based Lending Ratio (MCLR). This means that the interest rates will vary according to the change in MCLR.

    2. If I choose a longer repayment tenure, will it affect the interest rate on my Karur Vysya Bank personal loan?

    A longer repayment tenure translates to lower EMIs but also means higher interest over the loan tenure. If you choose a longer tenure, lenders will get an impression that your repayment capacity is lower and hence, may charge a slightly higher rate of interest. However, this may not be the case with Karur Vysya Bank. Having said that, if you choose a shorter tenure, you can always try to negotiate for a lower interest rate and honoring the request will totally be at the bank’s discretion.

    3. Is the interest rate on Karur Vysya Bank personal loans affected by credit scores?

    Most lenders will look at a credit score of above 750 to lend to you. Lower credit scores may lower your chances of securing a loan and hence, it is a good idea to check your credit scores before you apply for any loan. You can check your credit score for free on the BankBazaar website. You can approach the lender with confidence if your credit score is good but even if your score is low, you can take corrective measures to enhance it and then apply for a loan.

    4. Does Karur Vysya Bank offer special interest rates on personal loans to women borrowers?

    Unfortunately, Karur Vysya Bank does not offer special interest rates for women borrowers at the moment.

    5. Will providing security or collateral lower the interest rate on Karur Vysya Bank personal loans?

    Yes. Borrowers providing security or collateral can enjoy lower interest rates on personal loans offered by Karur Vysya Bank. For example, when you avail a secured personal loan, you will be charged an interest rate of 17.75% while for the same loan, you will be charged 18% interest rate if you do not provide security.

        

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