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Karnataka Bank Home Loan Interest Rates 2021

Karnataka Bank Housing Loan Interest Rate

Last Updated 05th Apr 2021

Current Karnataka Bank Home loan interest rates for Apr 2021 starts at 8.55% p.a. for a maximum tenure of 30 years. Processing fee on its housing loans is Upto 0.25%, Minimum ₹ 250 .

Loan AmountKarnataka Bank Repo Rate Home Loan Rate
Upto ₹ 25 Lakh8.55%
₹ 25 Lakh - ₹ 75 Lakh8.55%
₹ 75 Lakh - ₹ 3 Cr8.65%
Above ₹ 3 Cr8.65%
Apply for Home Loan @ 6.65%* Get upto ₹ 1,000* Cashback

Karnataka Bank Home Loan Interest Rates

Karnataka Bank offers various products on home loan. Karnataka Bank home loan can be used for the purchase of a flat, home construction loan, extension or improvement loan.

Features

  • Karnataka Bank Home Loan Interest Rate starts from 8.55%.
  • Karnataka Bank charges a processing fees of Upto 0.25%, Minimum ₹ 250 and .
  • Loan Tenure of Home Loan ranges from 5 years to 30 years.
  • Lowest EMI per lakh on home Loan from Karnataka Bank is ₹ 772 per lakh offered at the lowest interest rate of 8.55% at the longest loan tenure of 30 years.
  • Karnataka Bank allows prepayment of home loans with Nil charges on floating rate loans.

Karnataka Bank Home Loan Rate

Current Karnataka Bank home loan interest rates are in the range of 8.55% to 9.50%, with special discounted rates for specific categories of borrowers such as women borrowers for whom the bank offers the lowest interest rate of 8.55%. The table below gives the interest rates on various housing finance schemes of Karnataka Bank.

Karnataka Bank Home Loan Scheme Interest Rates
Karnataka Bank Repo Rate Home Loan8.55% - 9.50%
KBL Home Comfort9.58% - 9.88%
KBL Ghar Niveshan11.25% - 12.10%

Karnataka Bank Home Loan Charges

Karnataka Bank Home Loan Processing Fee

The bank charges a minimum processing of ₹ 3,000. The processing fees is typically non-refundable and has to be paid at the time of loan application. In addition to Karnataka Bank housing loan processing fees, the bank also charges certain technical and legal charges which are explained to the customer during the loan process and are payable once the loan application proceeds further.

Karnataka Bank Home Loan Documents

Documents for Salaried employees

  • Filled up loan application form
  • 2 Passport Size Photo
  • ITR of last 2 years
  • Identity Proof - Passport/ Driving Licence/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Income Documents – 6 months payslip, 2 years Form 16, 6 months bank statement showing salary credit and any EMI debit
  • Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

Documents for Self-Employed

  • Filled up loan application form
  • 2 Passport Size Photo
  • Identity Proof - Passport/ Driving License/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Business proof such as VAT/ service tax registration, incorporation details in case of companies, business address proof, profit and loss account and balance sheets certified by CA, copy of partnership deed and proof of business existence and business profile
  • Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

Karnataka Bank Pradhan Mantri Awas Yojana

The government of India has launched many affordable housing loan schemes to facilitate availing home loan at concessional rates to lower and middle-income groups. Some of the popular schemes are:

a) PMAY or Home Loan Subsidy Scheme: Launched in 2015 to provide houses to the homeless. You can apply for PMAY at Karnataka Bank if you fulfil the eligibility criteria. Know more about PMAY Scheme

b) Pradhan Mantri Gramin Awas Yojana:  It focuses on homeless families and offers pucca houses with basic amenities.

c) DDA Housing Scheme: It aims to provide houses to low, middle, and high-income groups.

d) Tamil Nadu Housing Board Scheme: It started in 1961 to provide houses to varied income groups.

e) Mhada Lottery Scheme: It's a lottery scheme launched every year for buyers of varied income groups.

f) Rajiv Awas Yojana: Launched in 2009 with the aim of bringing illegal construction under the formal system and encouraging slum-free India.

Each of these schemes has its conditions with respect to eligibility, the amount of loan that can be borrowed, and the rate of interest.

Illustration on Karnataka Bank Home Loan Interest Rate
Maximum Annual Percentage Rate (APR) 8.56% to 9.51%
Representative example of the total cost of the loan, including all applicable fees
Here is an illustration of the total cost of the loan:
  • Total amount borrowed: ₹ 1,00,000
  • Time period: 5 Years to 30 Years
  • Karnataka Bank Home Loan Interest Rate: 8.55% to 9.50%
  • Processing Fee payable to: Upto ₹ 250
  • Fee payable to MyLoanCare: NIL
  • Total Monthly Cost – From ₹ 772 for 30 Years ₹ 1,00,000 loan at 8.55% (lowest rate, longest time period) to ₹ 2,100 for 5 Years ₹ 1,00,000 loan at 9.50% (highest rate, shortest time period). This is inclusive of principal repayment.
  • Annual Percentage Rate (APR) of charge including all applicable fees: 8.56% to 9.51%
  • Total cost payable over loan tenure: ₹ 23,494 for 5 Years loan to ₹ 1,78,336 for 30 Years loan

FAQs

What is Karnataka Bank Home Loan interest rate?

Karnataka Bank Home Loan interest rate ranges between 8.55% to 9.50%.

Why should I opt for balance transfer to Karnataka Bank?

Karnataka Bank offers competitive Home Loan rates with the best EMI of ₹ 772 per lakh availed at a low-interest rate of 8.55% for a maximum tenure of 30 years. If you are paying an EMI more than ₹ 772 per lakh, you should consider the option for a loan transfer to Karnataka Bank from your existing bank. EMIs can be calculated through Karnataka Bank Home Loan EMI calculators.

Do I get tax benefits on a Home Loan from Karnataka Bank?

As per the Indian Income Tax Act of 1961, residents of India are eligible for tax benefits on the principal amount and interest components of a house finance under section 24 and section 80C of Income Tax Act.

What is the effect of part prepayments on Karnataka Bank housing finance EMI ?

Part prepayments help you in reducing the outstanding amount of loan, which in turn will reduce the interest amount due. After making part payments, paying the same Home Loan EMI will increase your involvement towards the principal amount, which will help you in repaying the loan faster.

How to increase my eligibility on Karnataka Bank housing loan?

If your spouse or family member is earning well, you can make your spouse or family member the co-applicant for your loan. The combination of both of your income will help you in increasing your eligibility to get a loan.

  • Karnataka Bank offers RBI Repo Rate linked Home Loan which starts at 8.55%. Current Repo Rate of RBI is 4.00%. Bank adds a mark up on RBI’s repo rate which is called Karnataka Bank Repo Rate Linked Lending Rate (RLLR). RLLR can change with change in Repo Rate. An additional spread is applied on RLLR which remains the same throughout the tenure. Bank applies a premium of 4.55% to the Repo Rate to arrive at this rate.
  • When RBI increases rates, the bank may increase its Repo Rate linked Home Loan rates by the same basis points for all existing and new Home Loans. When RBI cuts interest rates, the Karnataka Bank Home Loan interest rates will reduce the interest rates by the same basis points, which will be effective from 1st day of the following month.
  • For instance, if RBI slashes Repo Rate by 0.15%, then Karnataka Bank Repo Rate linked Home Loan rate will cut from 8.55% to 8.4%.

What is the current Karnataka Bank Home Loan rate?

The current Karnataka Bank Home Loan rate starts from 8.55% with a processing fee of Upto 0.25%, Minimum ₹ 250 and


Karnataka Bank Home Loan News - Apr 2021
  • 2021-04-05 : Karnataka Bank targeting 1.42 lakh business turnover in FY 22
    Karnataka Bank is looking for 12% business growth in the current fiscal and targeting 1.42 lakh business turnover. The bank emphasised that it is planning to leverage digital banking to achieve its target.
  • 2021-01-18 : Karnataka Bank Q3 net profit rises to ₹135 cr
    Karnataka Bank posted a net profit of Rs 135 crore for the December quarter of current financial year with a growth rate of 10%. Further, net interest income rose 21% to ₹614 crore from ₹508 crore in Q3FY20.
  • 2019-08-08 : Karnataka Bank transformation initiative ‘KBL Vikaas’ is gaining momentum
    Karnataka Bank’s transformation initiative ‘KBL Vikaas’ with Boston Consulting Group (BCG) has started giving profitable results, as per the lender. Under this initiative, the turnaround time for home loans has been reduced to 7 days from 30 days earlier under this initiative and thereby resulting in growth under home loans category to 26% from earlier 16%. Also, the bank has transformed its NPA recovery process through this initiative.
  • 2019-07-15 : Karnataka Bank registers profit at Rs. 175 crore during during Q1
    Public sector lender, Karnataka Bank has registered a profit of over 7 percent growth in the net profit at Rs. 175 crores in the first quarter of FY19-20 as against Rs. 163 crores during the previous year. The profit of the lender is driven by growth in interest income, deposits, and retail loans, including home loans and mortgage loans.
  • 2019-07-03 : Karnataka Bank announces the launch of a web tool for NPA recovery process
    In a bid to digitalize the NPA (non-performing asset) recovery process of the bank, Karnataka Bank has announced the launch of a web tool ‘Vasool So Fast.’ The tool will provide an end-to-end digital solution to recover stressed assets. Using this digital tool, the lender aims to improve its overall performance to offer enhanced services to its customers related to retail loans, including home loans and mortgage loans and deposits (fixed deposits).
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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