This scheduled bank is wholly owned by the government and is sponsored by the State bank of Mysore. The bank has over 400 branches that spans across 10 districts and is ever expanding in their quest to provide holistic financial solutions to their customers. The bank places utmost importance on technology in the banking sector and have implemented various measures such as NEFT, RTGS, Truncated Cheque clearing system and even mobile ATMs
The Mortgage loan is primarily granted for individuals looking to construct a new house. Owning a house is a long term goal for many people. Owning a house provides a sense of accomplishment and rightly so since it is no small feat. A housing loan is a long term commitment that requires the borrower to be disciplined in repayment schedules or else risk losing the house.
The Mortgage loans offered by Kaveri Grameena Bank can be used either for purchasing a new house or an apartment or constructing one from scratch. These loans can also be used to buy existing buildings and any house over 25 years old, the period of repayment should be covered by the residential life of the house with the same being certified from an approved valuer from the Bank
Due to wear and tear that comes with age or any natural disaster such as floods or even freak accidents like fires can cause damage that runs up a high amount. The mortgage loans can be used for repairing existing buildings.
The Loan also covers for additional costs that are part of constructing a new house. These mortgage loans can be used to purchase solar lighting and heating systems, rainwater harvesting systems and even furniture and durables that go into the house.
The minimum age for availing this loan is 21 years of age with the maximum permissible age being 65 years.
The borrower can be either a salaried person, self-employed or employed in agriculture but should have a steady flow of income
The Mortgage loan amount is determined not by age but by the ratio of EMI (Equated Monthly Instalments) and NMI (Net monthly Income). The NMI is arrived at by dividing the net annual income of the borrower by 12. The loan amount disbursed is decided upon the paying capacity of the borrower.
In case of salaried applicants the net monthly income is the income received after deduction of taxes such as TDS and loan repayments. For applicants apart from salaried persons, Net Annual Income is annual income as per the latest Income tax return filed minus loan repayments and taxes. In case of agriculturists, Net Annual Income is arrived at, based on the nature of their activity such as farming, dairy, poultry, landholding, cropping pattern, yield etc., & average level of income derived from that area of land.
The loan charges an interest rate of 14.50% p.a. for an overdraft loan or 14% p.a. for a term loan. If the loan is to purchase a site, then the interest rate is 14.75% and if it is to build a house, depending of the amount ranging from RS 25 Lakh but not exceeding RS 75 Lakh, the interest charged is 10% p.a.
The margins of the loan is 25% or 30% of the project cost where the cost of the project does not exceed RS 75 Lakhs. This cost includes cost involved in additional amenities, rainwater and solar systems and cost of the land.
The margin is 20% of the project cost in case of repair or renovation work and can be reduced to 15% if the check off facility is available